The $LORDS token — “The Gateway into the Lootverse” — Part 1
Bibliotheca was founded with the idea to Graph community Lootverse projects together to allow adventurers to explore. This hasn’t changed but it’s morphing into something greater.
This is part one in a two-part series on the macro, micro, and tokenomics of the upcoming Realms resource metaverse. This article touches on the $LORDS token and some design decisions we have made surrounding its utility. Part 2 will focus on a deep dive into the macro and microeconomics of the system.
NFTs + DeFi = The Metaverse economy
A permissionless metaverse allows you to join games, interact with other players, earn special items and resources, and with the liquidity ETH provides, you also have an exit out of the game.
Permissionless entry into the game
When designing an economic system there needs to be a locally denominated token that the underlying contracts can utilize.
The token’s supply dynamics need to be fluid enough to allow the growth of the ecosystem to flourish, but also be constrained enough so that hyperinflation does not get out of control. These tokens also need to be distributed as evenly as possible to allow as many players access to the game.
With Realms, we are creating a resource-based economic system. There are 22 different resources with varying rarities throughout the Realms universe. Since the resources themselves are only erc1155 tokens, you cannot trade them on an ERC20 AMM (Automated market maker, like Uniswap) — this is where the $LORDS token comes in.
Earning and usage for $LORDS
The AMM (Automated market maker) that Bibliotheca is going to use will be denominated in $LORDS token, thus providing liquidity points for players to enter and exit out of the system.
Getting $LORDS
- Earning by Staking Realms
- Buying on open markets such as SUSHI
- Selling resources generated on the Realms for $LORDS on the AMM
Utility
- Building upgrades on your Realm
- Liquidity for trading resources on AMM
- Future consumption by other contracts in the Lootverse to interoperate with sRealms.
Supply Curve & Initial distribution of the $LORDS
Original Realm owners need to be rewarded for being early and backing the project. One thing we all want to avoid is flippers getting hold of Realms purely to take advantage of a big airdrop, like what happened in $AGLD; people were buying Loot just to dump the $AGLD.
The solution to this is a steep supply curve, rewarding early stakers in the system and encouraging staking longer term, rather than quick flips. This can be seen in figure a.
The supply curve will taper off steeply after 1 month of launch. In that period of time, a substantial % of all $LORDS will be distributed to early stakers. This achieves the airdrop to early Realm Lords but also stabilizes the price of $LORDS.
Every Realm has the opportunity to take advantage of this staking period with no exceptions. All you will have to do is stake your Realms.
“Lords, hodl your Realms.” — A Wise Realm Lord
Resource production & upgrades
Any successful economy requires thriving production and trade. The Realms metaverse is no exception. After staking your Realm, they will begin to generate resources in addition to the $LORDS tokens.
The resource generation of each Realm can be increased by building upgrades on them — which will cost an increasing amount of resources as they are leveled up.
The “Wonder” Guardian Tax
Wonders are mythical buildings that require guardians, and these guardians require a steady stream of Resources.
By staking your Wonder Realms, you will receive a proportion of all the Resources generated in the network. We will go deeper into this algorithm in the next article. But see the distribution curve below.
The next article
We will be doing a deep dive into Realm’s micro and macroeconomics. We will outline the elements in the system in place to attempt to consume resources and $LORDS at a steady rate, allowing organic growth within the system without overflowing it with resources.
Curious to learn more? Join the conversation in the discord.
https://discord.gg/3jdaGDVXFh
