//State of the Chikn #5
Plans, Tokenomics update, and OMG THE AUDIT IS COMPLETE!!
We’ve spent the first month of 2022 in full-throttle. As well as furiously expanding our ecosystem, we’ve been adding quality of life updates, fun features and building out the back end for Q1 releases.
There are a whole line of dominoes waiting to fall — the first of which is our LP Farming contract audit, expected this week.
chikn customization & personalization.
The chikn customization rollout has been a stunning success including chikn naming, roost naming, and chikn lore. The leaderboard is looking absolutely stacked with hilarious chikn names. All our customization services make upgrades directly to the blockchain, so your chikn name is truly linked to the NFT. And even better, all egg used for customizations are immediately burned! We hope to see more NFT customization across the market, as it adds a whole new level of attachment and value add for NFT owners.
Lowering ‘skip digestion’ fee by 33x
Pepto Bismol is on discount! As of today, the average chikn at around 12kg takes over 12 hours to digest before leveling again. But now for just 3 egg per KG you can skip right through digestion and keep force-feeding your coq. Previously the digestion skip fee was set significantly higher at 100 egg per KG, as we didn’t want anyone except the maddest of whales to power level their chikn in the early game, and get an unfair headstart. Now the spread of chikn levels has distributed evenly, we are confident this mechanism can be released fairly.
Swap rate and feeding frenzy
On the same note, we are also increasing our native egg-feed swap rate to 120x from 12x on a permanent basis. Pegging our native swaps to the market rates is in the works, but requires the use of oracles to deliver the price feeds — which will take time to develop. As an intermediary solution, we will be setting the swap rate manually every week closer to the market price, as well as hosting more feeding frenzies. We will continue to adjust the pricing of our feature mechanics to reflect market conditions, and optimize how much egg is burned by these baseline game mechanics.
chikn Radio
That’s right ladies and gentlemen, we have launched a geosynchronous digital radio station playing 24/7 in the barn. Feed those chooky-boys while we play the top of the pops, over the top of your coqs.
When there’s market volatility, turn off the charts, tune into chikn radio, and tune out on the farm. The first 33 minute mix was produced by DJ Chikn Rhythm (show him some love in discord!) — and word on the street is that with enough peer pressure — a second mix could be underway!
Most still haven’t realized that our radio features voiceovers and glorious narration by a prominent Australian comedian from a group seen worldwide on Netflix.
Listen closely…
Tokenomics
Our devs have released a chikn API that will form the backbone of future releases, community tools, and launchpad projects. It's an absolute treasure trove of data and insights, so let's look at the tokenomics of the ecosystem.
The distribution of chikn weights reveals much about the platform use. 98% of chikn are roosted with the remaining 2% stuck at level zero — a tragedy for these stranded chooks. Most chikn have reached double-digit weight and are producing over three egg per day. The fairly tight shape of the distribution with a long tail indicates farmers are choosing to level a select number of their chikn faster than others. A total of 8b feed is enough for every chikn to level up to 45 KG. This may not seem too far away when we already have a 41 KG chook, but remember the feed requirements per KG increase by a square factor. So we are still very early in the game and feed emissions, as you'll see below.
As you can see below, 263m feed has been minted into supply from egg staking and incentives, which makes up only 3.3% of the total 8b feed emissions.
Furthermore, over 67% of all minted feed tokens have been fed to chikn for leveling. This is a phenomenal result that speaks to the effectiveness of tritoken architecture in bringing utility to NFTs. Instead of dumping all feed on the market, users would rather keep a majority to use on their upgradeable NFT.
Of the circulating Feed, approximately half are locked in contracts for LP Farming rewards on Trader Joe and Pangolin. Further Feed is being accumulated for the EGG Dao, and while included in these numbers, is not actually ‘circulating’.
Egg Burns
Every day, thousands of egg are burned. Spikes in egg burning are driven by feature releases (chikn customization), external LP farms (through unstaking burn fees) and egg swaps during feeding frenzies.
In our last feeding frenzy we increased the egg-feed swap ratio to 240x for 24 hours, and subsequently burned over 80k egg!
As of today approx. 3.1 million egg has been laid (& initially airdropped) into existence, with over 55% deposited into single-sided staking on our platform (which is technically burned from supply and re-minted upon unstaking).
9% of the total egg supply has already been burned - from our baseline game mechanics as explored above.
This leaves approx 1.1m egg in circulation including egg locked in LP, so there are closer to only 800k egg in actual circulation.
Overall, the egg supply is extremely scarce — and inflation low & steady — even in this early stage of the game, thanks to the controlled emissions of linear egg rewards & proper staking incentives.
Aka, gud math.
The conclusion is:
Our ecosystem is working as well as we could have hoped for: the chikn are roosted, they are being fed, egg is being burned and our tokenomics are right on track.
From here our primary focus is introducing further (and more aggressive) egg burning mechanisms to the ecosystem.
Our Launchpad offering, Roostr NFT series, and native LP farming will introduce massive amounts of egg burning.
Our Tri-Token architecture has introduced a breakthrough mechanism for upgradeable NFTs — and egg is the fuel for these upgrades,
And so much more.
LP Farming
LP Farming has always been a backbones component of our tritoken architecture, with the single-sided staking offered currently a mere stop gap while contracts are audited. But what is LP farming, and how will it be used in the chikn ecosystem.
Liquidity provision is fundamental to the operation of defi and cryptocurrency in general. Liquidity generally refers to how much of an asset can be bought and sold at a price reflective of its value. If liquidity is thin, then trades take a long time execute, settle at unexpected prices, and have a large impact on price. Enabling decentralized, non-custodial liquidity provision was a key innovation for automated market makers, and enabled liquidity provision across the defi landscape. AMM platforms like Trader Joe and Pangolin offer liquidity provision services where users deposit a 50/50 split of tokens into a liquidity pool. Traders then buy and sell tokens in this pool, with a percentage of the transaction fees returning to the liquidity providers. As trades occur, the ratio of the token quantities in the pool determines the price of the asset.
However the assets deposited for liquidity are not accessible for the user to continue using, while still being non-custodial. This actually works to reduce overall liquidity, as the assets cannot easily be bought and sold when locked in LP. This is where LP tokens come into play. LP tokens are distributed to liquidity providers proportionate to how much of the pool they have deposited. So if you have contributed to $10 to a liquidity pool which is $100 in size, you would receive 10% of the available LP tokens. The LP token can be considered as a receipt that proves that you are providing a certain amount of liquidity. The receipt itself is a tokenized, liquid asset that can then be used elsewhere.
A common use of LP tokens is LP farming. This is available across exchanges like Trader Joe and Pangolin, where LP tokens are staked to earn rewards in other tokens. This acts as a reason to provide liquidity on these exchanges. The natural extension of this was to issue another LP token for the LP farming, which itself can be used further.
So where does the chikn farm fit into this landscape?
We are launching native LP farming on chikn.farm where egg liquidity providers will be able to earn boosted feed rewards, relative to single-sided staking. Riding on the rails of innovative blockchain technology to ensure all your birds get as big as possible.
However. We are not simply delivering your run-of-the-mill LP farm.
Expect a little surprise with this feature release… 👀
“Eggnite”🥚🚀: The Chikn Launchpad
The architecture under the hood of the chikn ecosystem is an extremely elegant means of bringing utility to NFTs. Simple mechanics which enable any NFT to turn from a static JPEG into an upgradeable, interactive, and gamified ecosystem.
Already we are seeing chikn forks and spin-offs integrating our mechanics — which is flattering. We knew from the start that our architecture had the potential to not only sustain an ecosystem, but start a movement — and start a movement it has!
However, upgradable NFTs ain’t easy — and we’re here to make sure it’s done right — while using your precious eggies every step of the way.
The chikn Launchpad — Project-Codename “Eggnite” is in the works with our partners across the AVAX ecosystem looking to release their own NFTs — fully upgradeable with egg. We are working alongside multiple teams on their offerings already, and the full platform hasn’t even been unleashed.
Roostr
Roostr will also operate using Tri-Token architecture, and set a precedent for future projects. As we have hinted at before, roostr will have its own emissions token which will be a critical component of the chikn.farm ecosystem. And of course, Roostr will eat egg to get biggr and produce more of said emissions token.
The art for roostr is well underway and Gravy has taken it to the next level, yet again — we’re so excited for you all to see it.
Similarly, the associated tokenomics with Roostr and LP farming are complete — with smart contracts currently under development.
We are still very much aiming for a Q1 release, among a couple of other surprises…
*THIS JUST IN* — LP FARM: AUDIT COMPLETE
What a way to finish another epic State of the chikn!
The auditors have literally just delivered the results:
A couple of very minor, easy fixes as stated recommendations — and we’ve just been informed that they’ve already been implemented 😂.
Ok, this is exciting, we can really put the motors on this one now… gtg!
Love you chiknfam — keep up the bok4coqs with Chiknwhalegod while we keep building.
So much fun is yet to be had!
bok bok,
chikn Team.
