Q&As from Peer-Review: A deep dive into NFT listings, account caps, D-Day and more…
As part of our launch, we allocated time for peer-review of our information to ensure that “a fresh pair of eyes” could detect any issues with our design or if additional clarifications were needed. We prudently considered whether we needed to make changes or update our communication.
This article addresses the queries of Ishant Ayadassen (one of our reviewers) regarding how we list NFTs, deal with maximum caps, and achieve a level playing field for all members, in addition to clarifications surrounding what we’ve dubbed the “D-Day Event.”
It is evident that those who conduct an in-depth analysis of our design will come up with questions that we might have addressed too briefly or overlooked. However, some of the questions Ishant posed were important enough to handle. These are listed below.
1. Do you have a schedule for the listing of NFTs?
Yes, we intend to list new NFTs for auction daily with a set end time. Six hours before the end time, the joining fee of 5 BUNs doubles to 10 BUNs. Since each bid received in the last 15 seconds resets the timer, an auction could go into overtime beyond the original end time. Therefore, the joining fee will double every 6 hours in overtime until it reaches 40,960 BUNs (approximately 78 hours).
Re-listed auctions (i.e., those NFTs re-listed for sale by members) can be listed at any time and will have 170 hours to achieve a reserve price. Once the reserve is met, the battle bidding auction starts with a timer of 24 hours to allow all people to join in. After that, the reserve is added to the auction receipt. If the reserve is not met, the auction is delisted. To note, any member can join a re-listed auction at any time by paying the same share of the reserve price prior members paid to join that auction.
2. What is the process to bid?
First, members must pay a joining fee to bid on a new (first-time listed) NFT or pledge BUNs to meet a member’s share of a reserve price for re-listed NFTs. If the reserve is unmet (i.e., the auction doesn’t go ahead), the pledged BUNs are returned to the member.
Second, members must allocate an amount they will spend on each auction. Then, they can “clear” that amount at any time, and the balance is returned to their account, or they can add more. An example of the bidding control panel is shown below.
Once members have allocated an amount they’d like to bid for an auction, they can set the bid bot, bid manually, or both. They must reallocate more if the amount is wholly consumed to continue bidding. This allows members to control the amount they’ve allocated per auction.
In addition, members can bid on one or multiple auctions simultaneously.
3. Do all bids get sent to the Oven automatically from biddings?
No.
BUNs for an auction only get credited to the Oven when the auction concludes. In the meantime, the Oven will accumulate BUNs spent for other services, such as whitelisting email addresses of invitees or of public cryptographic addresses, NFT Re-listing fees, etc.
4. What’s a D-Day scenario?
D-Day is a theoretical event where NeoWorlder has no more BUNs to sell, and the Oven has not redistributed BUNs yet to the NeoWorlder ecosystem. As D-Day approaches, BUNs become more scarce, and the last members that have BUNs (as long as they have joined an auction) are the ones that can win the NFTs.
If all auctions are still in progress on the platform at that time, this could result in a cascade of auctions ending, filling up the Oven as they do so. However, since the Oven only distributes at 00:00 UTC on Sunday, there may be a situation in which members must wait until that time to participate again (it also means that new members can only sign up at that time).
That’s D-Day.
5. How long do we have to wait for D-Day?
As previously stated, D-Day is theoretical and dependent on several factors, such as the length of an auction, the number of members bidding in the last 15 seconds, the number of NFTs on auction, the re-listing reserves, the amount of BUNs off-platform, lost, or “hodled,” etc. According to our models, it is possible that this could occur in 21 days, though this is a highly uncertain prospect.
6. Doesn’t a D-Day scenario mean that new auctions will only be available to members that have kept BUNs to pay the joining fee before they lockup to other participants?
No. All of our listings end weekly following an Oven release. After that, members can join an auction at the base cost of 5 BUNs before the joining fee doubles (only in first-listing scenarios).
7. So, you’ve capped your revenues?
Not necessarily.
There are other avenues for growth, such as creating NeoWorlder sub-sites on a country basis to help creators there; these individuals could then move to the NeoWorlder site, much like the football world cup, which has different qualifying regions before leading to the world cup. These sub-sites could use tokens with different tokenomics but the same or similar approaches.
8. About the cap of 50,000 per account… how do you stop members from buying from Loot NFT and sending them off-site and purchasing more so that they have more than 50,000 BUNs combined?
A member’s cap is the sum of all BUNs they’ve sent off-site (since BUNs are blockchain assets) and their balance in the Arena(which includes the amount allocated in live auctions). As a result, they cannot purchase additional BUNs from NeoWorlder unless they use their BUNs on NeoWorlder. Additionally, to send BUNs off-site, they must pass our KYC checks, which prevents multiple accounts from being used to buy BUNs and consolidate off of NeoWorlder.
9. Can a member buy BUNs at any time or is the cap of 50,000 BUNs a onetime lifetime cap?
Members may buy BUNs at any time, but the cap is a hard cap at any one time.
For example, if John buys 50,000 BUNs and spends 1,000 BUNs in an auction, he can purchase up to 1,000 BUNs. Here are a few essential points to keep in mind:
(a) BUNs are sold in packs of 25 BUNs, which means that if a member spends 1 BUN at an auction and wants to buy BUNs, they will not be able to do so. That member must make room for at least one pack.
(b) If a member has allocated BUNs to auctions or pledged to a re-listing, these BUNs are treated as if they hadn’t left that member’s account (since they still have control of those BUNs).
For example, John has 50,000 BUNs. He allocates 5,000 BUNs to an auction. His account balance shows 45,000 BUNs. He attempts to purchase more BUNs. However, he can only once he returns the BUNs from the auction. For reserve pledges, these amounts are locked-in and cannot be canceled. It is only returned if the auction does not go ahead.
10. If I’ve sent 50,000 BUNs off site and I’m not able to sign up unless I buy BUNs, but they’re all off-site and I can’t buy more, what do I do?
Send the BUNs back to the Arena.
11. Can members send in BUNs from another non-whitelisted public BUN address to their account?
Yes, but any amounts over their 50,000 BUN cap (which includes BUNs held on NeoWorlder) will be sent to the Oven for re-distribution to the NeoWorlder ecosystem. Therefore, members must be mindful of sending the cap they are entitled to. Otherwise, they will lose the additional amount.
12. Are there any additional benefits to more BUNs out of the Oven to holding a degree?
Degree holders may receive a benefit that increases their maximum BUN cap by 10% (1st degree), 20% (2nd degree), 40% (3rd degree), 70% (4th degree), and 110% (5th degree), thereby allowing for an increase in rewards for those members.
13. If you add more NFTs everyday and you have a limited supply, doesn’t that mean that over time the remaining NFTs get valued less?
This is an excellent question, and the answer is uncertain. Therefore, it is not advisable to speculate on the future value of NFTs, as any comments made could be misinterpreted. Nevertheless, certain aspects may affect an NFT’s worth, outlined below.
For fungible tokens valued about another, inflating one token relative to the other usually results in the devaluation of the inflated one. In the case of NeoWorlder, we are adding more NFTs while keeping BUNs fixed. This is similar to valuing gold (or a painting) concerning an inflationary US dollar, although even that is a stretch.
On NeoWorlder, the following considerations must be taken into account:
(a) The arena has a maximum of 20 first-listed NFTs and 20 re-listed NFTs simultaneously (40 NFTs on auction); this ratio of first-time/re-listed NFTs may be adjusted depending on participation. All other items are placed in the “Upcoming” section on a first come, first serve basis. When a spot opens in the arena, the next NFT is auctioned. This ensures that bidders can focus on only a few items simultaneously.
(b) Members may need to keep a certain number of NFTs to complete sets, thus effectively taking them out of circulation temporarily. For example, if a member has a 3/5, they may want to get to the 5/5 to obtain the mystery gift.
c) Some NFTs may be more sought-after than others; this could occur, for instance, if a custom car by a particular creator is part of a set of mechanical objects.
(d) NFTs may not be sold by “holders” as they may have value to those members in their own right.
(e) NFTs can be sent off-site, which reduces the number of NFTs in the ecosystem and can balance out with the incoming NFTs so that certain NFTs may have more value outside of NeoWorlder than on it for a member. This means that a new set of NFTs can replace the older ones.
(f) The number of members in the Arena is an essential factor in the intensity of bidding at auction.
(g) In a decentralized ecosystem, we will transition to pricing the BUNs with a set amount of ADA (Cardano Native Token); for example, one pack for 5 ADA — initially, we intended to launch by selling BUNs to ADA before replacing it with USDC for various practical reasons. Therefore, compared to fiat, BUNs may fluctuate in the future according to the price of ADA.
Concluding Remarks
I understand this may only be suitable for some, so I have posted it in the complex section for those who wish to explore further. For all other members, the process is simple: there is a 50,000 BUNs cap per member, which you use to participate in auctions. All you need to do is pay the joining fee, set the amount you want to allocate to bid per auction, bid to get NFTs, collect sets, and enjoy competing in the Arena.
Finally, I would like to thank Ishant for seeking clarification on these matters, which has prompted me to provide a more detailed explanation.
❤️ Loot NFT
