PIC is an ERC20 token that is used natively in the Pic One game as well as in future titles in the PIC ecosystem.
In Pic One, the token is earned by players through their share of the global daily betting volume.
Key idea
If a player accounts for 3% of the betting volume in the PIC network, they will receive 3% of the tokens distributed that day.
There will also be distributions of PIC for token lockdrops, winners of leaderboards, and other such competitions within the game. These will be distributed via the marketing reward fund. (See Supply Curve for how this is created).
Utility
Players are incentivized to obtain and utilize PIC for the following reasons:
- Daily lottery tickets
- Early access to new formats and games
- Purchase of exclusive NFTs, skins, and other in-game items
Repurchase and burn
Pic Labs will use 35% of ETH revenues from Pic One to periodically repurchase and burn PIC tokens on the open market. These repurchase and burns will be conducted on a monthly basis but at a randomly generated date within the given month. This repurchase and burn will be conducted on the open market from the most liquid DEX pairing. This is subject to change if more liquid options develop over time.
Daily Jackpot
Each day, 15% of the collected ETH revenues will be up for grabs in a jackpot. Players compete for this jackpot based on their share of the newly minted PIC tokens.
For example, Vitalik hears about Pic One for the first time and is really excited about the game. He stays up all night instead of working on Eth 2.0 and comprises 7% of the betting volume in Pic One for that day. He now has a 7% chance at the daily jackpot. If he wins the jackpot, he will receive the prize in exchange for burning the PIC tokens that served as his winning ticket.
Daily jackpots will begin at the start of Season 1. There will be one large raffle conducted at the end for 15% of the site’s revenues during the beta.
Future Use Cases
Pic Labs plans on launching other formats of Pic One as well as other innovative and fun new games in the near future. PIC token holders greater than or equal to X tokens will receive early access to these games although all users will eventually be able to play and earn PIC in these games. X will be determined at a later date based on the cumulative emissions at that point. (See Supply Curve for more details on the token schedule.)
PIC holders will also be able to purchase status symbols within the game such as chatbox badges, background skins, and exclusive NFTs. The worst insult for users is to be a ‘default.’ PIC enables you to flex your status to other Pic One connoisseurs.
Supply Curve
Distribution
Overview
While there are advantages to running a presale or having a founder’s reward (e.g. Zcash), the team at Pic Labs is aiming to build a game for the community and decentralize token holdings amongst all active participants in the ecosystem.
The genesis token supply will have 50,000,000 PIC. These PIC tokens will be distributed according to the emissions curve that is discussed below with an estimated ~4.5 year cycle for full distribution.
Emissions Curve
With the PIC emissions schedule, we have attempted to create a schedule that directly rewards play, decentralizes token holdings, and tracks the performance and popularity of Pic Labs products.
We aim to directly reward those who help our products and services grow and balance both the interests of early adopters and latecomers.
We have introduced an emissions scheme that adjusts based on the growth rate of the network.
Our goal is to emit all tokens within 5 years. If PIC exceeds expectations, tokens will be fully emitted before this timeframe and after if it does not meet expectations.
1. The default daily emission is 0.06%, unlocking all tokens in 1,666 days or 4.56 years.
2. The daily growth rate is compared to the historical daily growth rates of Pic.One’s volumes and a z-score is calculated.
3. The daily volume is compared to the historical daily volume as a comparison of long-term adoption and a volume multiplier is calculated in the form of a percentage.
4. We generate an pre-adjusted daily emissions rate of [default daily emission + (z-score * 0.01% * volume multiplier)].
5. This rate is then capped by a lower bound of 0.02% and upper bound of 0.10%.
This model creates a great proxy for the token release to match the growth of the network.
We invite you to see our expanded report on the Emissions Curve which includes some illustrative case studies.
Appendix A: Token Lockdrops
Overview
ERC-20 token lockdrops will be one of the tools deployed by Pic Labs to help build the PIC community. This model was first popularized by Edgeware where participants could timelock their ETH in exchange for EDG tokens at a later date. Participants received back both their ETH as well as EDG tokens at the end of their locked period.
Pic Labs is taking this concept and putting a twist on it. Seasons in Pic One last for a month and are themed based on various world cities. In advance of a new session, an ERC-20 token will be chosen as the Lockdropped Token (hereafter LT) for that season. The LT will be determined amongst a choice of three from a Twitter Poll conducted by Pic Labs.
Holders of the LT can then send their tokens from a wallet they control to the Pic One lockdrop smart contract until the start of the season. Each season, the equivalent of 3000 DAI in PIC tokens will be available for lockdroppers to claim. These tokens will come from Pic Labs purchasing PIC from the open market and locking it in the smart contract at the start of each new season.
At the end of the season, the PIC tokens are distributed pro rata to lockdroppers. A new season will now begin with a new token eligible for the lockdrop.
