VulcanForged Staking & PlayToEarn. Extreme ROI hidden in plain sight.
VulcanForged is a gaming company based in Greece. They released several blockchain-based games and continuously work on the main project VulcanVerse. We will focus on VulcanVerse for this article as this seems to become the main focus for PlayToEarn mechanisms.
VulcanVerse is a MMORPG Metaverse. It’s based on blockchain and NFT technology. It will probably also support virtual reality and augmented reality in the future. You 100% own land plots and creatures (NFT’s) inside this world. You can upgrade your assets and create value. While playing the game you can gather resources like stone, diamonds, clay, and supposedly wood. While playing you will be rewarded with XP and $LAVA. $LAVA is the on-chain token for in-game rewards just because you play and earn. This will be the next thing in gaming. Why would you ever agree with paying and not owning the stuff you created like in traditional gaming?
Using Axie Infinity as base example
You can buy and own land plots in VulcanVerse. These can be obtained from the marketplace. When in possession of land, you can create the most beautiful surroundings on these plots like the one below for example.
All players can walk through the world and visit all plots. You need to gather resources, blueprints, and NFT’s to upgrade your gameplay. And this is where it becomes interesting. Mostly wealthy people will ‘buy a way in’ while people with less money to spend will play a lot to compensate. This is perfect! And this will create a healthy in-game economy. Money will flow in and can be earned by true gamers. Both $PYR and $LAVA will play an important role inside this new economy.
Let’s look at a similar game like Axie. People rent out NFT’s in order to earn a passive income. It’s the basic investment/ROI mechanism. This will be the same in VulcanVerse. Plot owners will rent out plots in return for a monthly/weekly fee. This is obviously an interest on the investment for this plot owner. The gamer renting the plot has access to the game and can start making money while playing while the plot owner cannot.
We watched the Axie economy closely and will use roughly the same numbers as these seem ‘plausible’ for now. NFT owners and gamers share a reward sum of $600 (120PYR) each month. 50/50 split between the two. We will use the $600 as a base for our calculations.
An average player earns about $300 (60 PYR) while renting out a ‘plot’ like NFTs inside the Axie ecosystem. The gamer earns an average of $300 (60 PYR) at the same time. We will assume this will be about the same in VulcanVerse. Lower is highly unlikely as nobody would play right? So this assumption seems fair for now.
Disclaimer
Some of the details are unknown at this moment. I had to use some assumptions to do the math. Some people will complain about the APY being too low, and some want to see a higher APY cause I did not use the PYR inflow of the rewards pool for example. Just read carefully and decide what's best for you. I’m not taking into account how much you paid for your plot. This could be anything between $75 and $5000. I'm also not taken into account the results should be higher because of the reward pool filling up over time. APY calculations should actually be called “estimated annual income” instead of APY as the base investment cannot be determined correctly. (plot) The profits I mention are in fact right and cannot be explained otherwise.
VulcanVerse
Assuming the basic Axie income of $600 split by the NFT owner and gamer we can go ahead with the calculations. Vulcan should see similar figures to be successful right? This could be higher or lower. For now, we use the $600.
John owns 1 VulcanVerse plot. He decides to rent out the plot. Jason decided to rent the plot. Jason will farm materials, earn LAVA and try to find rare NFT’s in the game to convert to PYR. This is considered to be worth 120PYR/month on average using the Axie measurements. 120PYR generated by the gamer by playing the game. The 120 PYR will be split up. 60PYR for the NFT owner (rent) and 60PYR for the gamer.
The staking profit mentioned is based on my earlier article.
Gamer income = 60PYR
NFT owner income = 60PYR
Staking profit NFT owner = 42.43 PYR
Sowing costs NFT owner = 50 PYR (1 time fee)
Total profit NFT owner = 102,43 PYR
Total profit gamer =60 PYR
Total yearly estimated annual income NFT owner = 1179 PYR
Total yearly estimated annual income gamer = 720 PYR
Total estimated annual income NFT owner = 2458,3%
So, let’s say you own 10 plots right? That's 11790 PYR annually. At PYR = $5 that would be a staggering $58950. Just saying.
Risks involved
The risks involved are pretty small in my opinion. The foundation reward pool is guaranteed. (10 million PYR over 48 months will be awarded to staked plots) and this pool will slowly increase over time due to several payment mechanisms filling up the pool. Right now over 10.15 million is inside the staking pool just because of these mechanisms.
Plot value could drop. But unlikely right if you can make a small fortune?
The price of PYR could dump hard. Well, this could happen although very unlikely either. If it would drop like 80% you would still make a massive passive income as the reward pool pays out PYR. It is not affected by the PYR price.
VulcanForged is a PlayToEarn. This means you have to show activity in order to earn. A small task will await you once in a while to avoid dormant accounts. Not a real risk. But it’s something to take into account.
If tons of people do stake, the rewards for each plot go down. At 100% staked it would still be 21PYR/month. That's still a huge profit.
Maybe the whole system doesn’t work and no rentals are being done? Well, this is the biggest risk I guess. VulcanForged needs to get a proper economy running in order to make this successful. But they are backed by some experienced consultancy companies with similar solutions already live and working as we speak. I assume they will manage.
Long term expectancy
As the reward pool has enough PYR for the next 4 years. I do not expect a major change regarding the APY. Also, the reward pool will be growing. lvl2 land plots receive 1 share of the rewards pool while lvl3 plots take 3 shares. So having loads of lvl3 plots will dilute the lvl2 earnings a bit over time, and even more, if we see the first lvl4 and 5 and so forth. But, considering the growth of the pool I still expect over 35PYR/month for the first 2 years. I do think it would be smart to upgrade to lvl3 as soon as this is possible.
NFT pricing
If the above calculations are right, or even 50% of the calculations NFT prices will surge! It’s impossible they won’t. How in the world can you ignore over 2000% ROI by not buying at the current prices?
Gods can buff plots with special abilities. I assume plots having special abilities will be more expensive to rent, as players tend to want these abilities. It will most certainly increase the profits. As a result, the NFT prices will go up if the passive income increases by just holding those gods.
You need vulcanites and other NFT’s to play the game. When more players enter, vulcanites will become popular. It's just basic math. Current prices are undervalued for sure.
Conclusion
What the hell are you waiting for? Buy $PYR and get yourself on the marketplace fomo buying plots. And maybe even a god NFT. No, this isn't a drill. This can change lives. The opportunity is there for the taking. I’m not going to be politically correct here because I'm supposed to be.
Well…
(no financial advice and such…. ) ;-)
Create a VulcanForged account right now
You can create your account here: https://bit.ly/3lmZIol
Using the link provided, you and I will be awarded some free $LAVA worth $10 in total at the time of writing! You need 100XP to claim the $LAVA. I recommend playing some Berserk games using your new account to gain XP. A great tutorial about claiming your free money can be found here!
VulcanVerse general information
Ecosystem main website: https://www.vulcanforged.com/
VulcanVerse main website: https://vv.vulcanforged.com/
Official Telegram group: https://t.me/VeriArti
Twitter: https://twitter.com/VulcanVerse
Official Discord: https://discord.gg/tZTDX6e
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