DeFi Kingdoms — Tokenomics — Summoning Costs and Tavern Fees and Impact on Quest Reward Pool
In DeFi Kingdoms, whenever you summon, there is a fee you have to pay in $Jewel. Additionally, whenever you sell or rent one of your heroes out on the Tavern, there is a 3.75% fee charged. These summoning costs and Tavern fees are all a fundamental part of the game tokenomics and economy so I wanted to break those down for everyone to see and understand. I think the model is actually very interesting and creative.
First — let’s take a quick look at the fees that I’m talking about.
Summoning Fees
I want get into the intricacies of what drives the summoning cost exactly. I’ve gone into that quite a bit in my comprehensive beginner’s guide as well as my beginner’s guide to heroes. You pay a $Jewel cost for each hero, based on a hero’s generation and how many times that hero has summoned.
Anytime you summon you pay this fee, and we’ll break down where all of those Jewel go down below.
Tavern Fees
Another main source of in game fees that help feed the DFK ecosystem are fees from the Tavern. Whenever you sell a hero through the Tavern or rent your hero out to someone else so that they can use it for summoning, the game takes a 3.75% cut of your proceeds.
These fees are allocated the exact same way as summoning fees — so let’s break down where these funds go now.
Where do these fees go?
Anytime you see a summon transaction or a hire transaction, you can go to the blockchain and track the allocations of the fees. They are broken down as follows:
- 30% — Quest Reward Pool.
This wallet is what pays out rewards for quests. Currently, the only thing pulling from this wallet is the Garden profession quest rewards. Not the gardening rewards from providing LP, I’m talking about the Jewel you get when you run a Gardening quest with a hero in a garden where you have LP staked. See more on gardening in my gardening article.
0x5ca5bcd91929c7152ca577e8c001c9b5a185f568 - 25% — Dev Fund.
For funding development of the game — paying team salaries, etc.
0xa4b9a93013a5590db92062cf58d4b0ab4f35dbfb - 17% — Founder Wallet.
This is used to pay bonuses to team members upon successful completion of roadmap milestones.
0x79f0d0670d17a89f509ad1c16bb6021187964a29 - 17% — Marketing.
0x3875e5398766a29c1b28cc2068a0396cba36ef99 - 10% — Sent to the xJewel contract.
This is what increases the bank ratio and rewards people who keep their xJewel in the bank.
0xa9ce83507d872c5e1273e745abcfda849daa654f - 1% — Burned.
0x000000000000000000000000000000000000dead
If you want to keep track of these wallets — you can use Magg’s kingdom.watch tracker here: https://kingdom.watch/dev. Or you can just click on any of the wallets linked above and view it directly in the Harmony block explorer.
How do we know this is accurate? Well you can go look at any sale or hire transaction on the block explorer and chart it out yourself, here is an example of a sale transaction.
I’ll spare you the details of repeating the above images for a hire transaction, but its the same — you’ll see 96.25% of the sale/hire proceed go to the owner of the hero, and the remaining 3.75% broken down into the same 30/25/17/17/10/1 split noted above.
Quest Reward Pool
So are these fees enough to keep the quest reward pool alive? So far — yes, and that’s been in a pretty choppy past two weeks where tavern was almost unusable and summoning was relatively low due to the pump in $Jewel price which made people second guess spending Jewel on summoning.
I took a snapshot of the quest reward pool balance nearly two weeks ago and then again just recently and this is what I saw:
- As of Jan. 10, 2022: 2,272,199
- As of Jan. 21, 2022: 2,332,572 — +2.66%
Right now — the Garden profession quests are the outflow from this fund, and I, personally, am glad to see that those outflows are outweighed by the inflows, particularly these past two weeks with summoning down and tavern transactions at a low.
Once we see PVP and other combat quests go live that will also reward Jewel, there will be more outflows, but also more of a reason to be transacting with and summoning heroes, which will also increase the quest pool. So far the developers have modeled this correctly so that the Quest Pool is self sustaining and growing — let’s continue to monitor as the rest of the roadmap rolls out. In the meantime, I think this is very positive.
For my other articles, check out my Index of Samichpunch DeFi Kingdoms Articles here. Follow my medium account to stay up to date on my latest DFK alpha.
