LTTs, BUNs and Credits: What Is Loot NFT Ecosystem Powered By?
Lootverse consists of six separate sites, each site operating within our ecosystem as contrasting, yet interoperable brands and applications — The World (our parallel universe), Loot Arena (where NFT auctions take place), Satoshi’s Lounge (our exclusive store), The Fund (our fantasy real-estate and business fund), HABN soon to be renamed to TALOS (our permissioned-blockchain used to track all interactions and mint NFTs), X by SL (high value, honour-based auctions), and The Government coming soon. In addition, Loot NFT runs on three separate tokens — LTTs, BUNs and Credits. Our ecosystem appears complex, and this post will explain what the differences are between the three tokens (we get asked about them a lot).
Credits
Credits are the first of our tokens you will make use of in our ecosystem. Initially, to get your funds into Lootverse, USDC ERC20 is required, which are then exchanged for Credits. USDC acts as the initial financial input into the ecosystem, and are always required to purchase Credits. Calculating the conversion is simple — 1 Credit is equivalent to 1 USDC ERC20, and each USDC ERC20 received backs each Credit in the ecosystem, 1 for 1.
Credits pay for X by SL fees, and are used to buy BUN and LTT, or pay for certain prescribed services (e.g., shipping from Satoshi’s Lounge store). They are purchased in packs of 5 for 5 USDC each. Only a limit of 10,000 Credits can be purchased at any one time.
Credits only flow through the ecosystem once they are used to buy BUN or LTT, at which point they are split amongst plot owners depending on the zoning of the respective plot of land.
Bid Units (BUN)
BUN are accounting units which allow users to make bids in battle bidding auctions to win NFTs, calculate proceeds paid to creators or good causes and also mine Loot Tickets (LTT). With a limited supply of 500 million, BUN are capped at 50,000 per account and are spent one at a time in auctions (i.e. pay-to-bid).This significantly reduces disparity between our users regarding their purchasing power and ensures that valuable NFTs are won at a fraction of the price through the use of strategy, rather than wealth.
Until an auction is over, all BUN spent is suspended in the auction. By requesting they enter an escrowed amount for each auction, we ensure our members only spend at auctions the number of BUN they are willing to bid. Once the auction is completed, the BUN is then sent to the Oven (a time-locked wallet) to be redistributed back into Loot Arena ecosystem every Sunday. Ten percent of the BUN of the Oven is distributed as rewards to users, while the other 90% recirculates back for resale to users.
Loot Tickets (LTT)
Loot Tickets are mined in Loot Arena, following the Proof-of-Play protocol. This is a process where miners battle-bid in time-based NFT auctions. These gamified auctions have three rules:
1. All miners must bid only one bid unit (or BUN) at a time.
2. The last miner to bid when the timer expires wins the NFT.
3. A bid in the last 15 seconds of an auction resets the timer back 15 seconds.
All miners that bid at these auctions mine LTT based on a mining ratio (e.g., how many BUN they must bid to receive 1 LTT). The lower the mining ratio, the more LTT they produce by bidding. Miners can also lower their mining ratios by winning simple majorities of NFTs in themed collections. For example, collecting a simple majority of 3 out of 5 NFTs, 3 out of 4 NFTs, or 2 out of 3 NFTs in a set will earn a miner a degree badge, which allows them to mine LTT with fewer BUN. As miners collect more degrees, their mining ratio reduces respectively.
Loot Tickets (LTT) can be utilised in a variety of ways, including staking as well as being used to redeem products and services from Satoshi’s Lounge. This is our store that lists unique and limited-edition items that are unavailable elsewhere. Such items could be land plots, fantasy licenses, physical products from brands, and other services. It will soon also be possible to send LTTs off-site, when they become extractable to user’s wallets on various supported blockchains.
Finally, Loot Tickets are exchangeable for a seat in the member governance group that can decide on changing the parameters of the ecosystem. We hope this post has helped you understand the roles and availability of our tokens.
