BUNs and the Oven
One of the innovations in the Arena is using a token lockup wallet called the Oven. In addition, NeoWorlder employs a cryptographic token called the BUN (short for “Bid Unit”) that is limited in number (500m) and is used by members to battle bids in auctions or to redeem services and benefits.
NeoWorlder has no advisor or team allocations, free distributions, or company reserves. Instead, the tokens are utilized in an already-functioning platform to bid for NFTs from creators or resellers (here, for simplicity, we’ll call them “Suppliers”) worldwide.
As described in my previous article, in a battle bidding scenario, members bid one BUN at a time, which goes toward the tally of the receipts for the item on auction. If a bid is received in the last 15 seconds, the timer resets to 15 seconds. When the timer reaches 0, the previous member to bid obtains the NFT. The proceeds from the auction are divided between the Supplier and NeoWorlder.
An auction could last for hours, days, or even weeks.
When members use BUNs (e.g., for bidding), they are sent to a time-locked wallet (called the Oven); bids from an auction are forwarded to the Oven when the auction concludes. The Oven distributes BUNs it collects weekly every Sunday at 00:00 UTC: 20% are rewarded to members based on their participation level, and the other 80% are sent to NeoWorlder to be sold back to members. Each BUN has a fixed rate of 0.20 USDC (a stable cryptocurrency pegged to the US$).
A succinct overview of BUNs going into the Oven; all BUNs spent in the Arena are sent to the Oven. Combining a limited supply of BUNs and the time-lock wallet presents exciting possibilities.
One scenario, which our team refers to as D-Day, begins when all BUNs are in possession of members, trapped in an auction or the Oven. As bidding continues, members must bid strategically.
Over time, there are fewer and fewer BUNs in circulation. Finally, there is a theoretical point where all BUNs are locked in the Oven, and everyone (including NeoWorlder) must wait for the Oven to redistribute BUNs to restart activities; that is, no one but the Oven holds the BUNs.
Note: This is not a bug; it is a feature.
How likely is it to happen? We consider it highly unlikely. Yet, who knows, we’ll have to wait and see; stranger occurrences have transpired.
Can you think of any other scenarios?
❤️ Loot NFT
