Looking ahead to launch scenarios for the Minting Phase
The Reservation Phase for Metablox is only one week away.
What is the Reservation Phase: In the Reservation Phase, Neighbors will be able to reserve up to 3 Blox using their email.
For this blog post, let’s look ahead to the Minting Phase, which is planned for April 2022, and explore the dynamics of the economy that we’re building.
Mint Pricing
Mint prices for a Blox increase by 50% for every 10% interval that a city is sold.
If a city has 5,000 Blox:
- Phase 1 = the initial phase.
- Phase 2 = triggered when 500 Blox (10% of inventory) are Minted.
- Phase 3 = triggered when 1,000 Blox (20% of inventory) are Minted.
- And so on…
Upon reaching the next phase, the price of un-minted Blox increase by 50%.
For example:
- A Phase 1 — Tier 1 Blox costs $100 to Mint
- A Phase 10 — Tier 1 Blox costs $3844 to Mint.
Benefits of participating in the Reservation Phase
As detailed above, the price to Mint a Blox increases by 50% with each Phase.
But, if you get in early during the Reservation Phase, then the price to Mint a Blox will always be the base Phase-1 price for you.
Here is an example:
80% of Blox are reserved during the Reservation Phase
Note: For simplicity, let’s assume a 100% conversion rate from Reservation to Mint.
A city that is 80% Minted is in Phase 9. A Tier-1 Phase 9 Blox costs $2,563 to Mint.
However, with the Reservation Phase, all 80% of those reserved Blox can be Minted at the Phase 1 price — a Tier 1 Blox costs $100 to Mint.
$100 vs $2,563 is a huge difference — which means there is tremendous value in getting in early and locking in your Phase 1 Mint price in the Reservation Phase.
Do the remaining un-minted Blox move immediately to Phase 9?
The un-minted Blox do not immediately increase to Phase 9 pricing; instead, we provide a 24-hour grace period to Mint a Blox once a threshold is met.
How the grace period works:
- A city hits the threshold for a new Phase
- Before the new Phase is enacted, Neighbors have a 24-hour grace period to Mint a Blox before it increases in price by 50%
To continue with our example, here is how it would play out if 80% of a city is reserved:
- 80% of the city is Minted
- The city immediately enters the Phase 2 grace period
- After 24 hours, the city enters the Phase 3 grace period
- After 24 hours, the city enters the Phase 4 grace period
- … this continues until the city settles into Phase 9
Why increase the price at each 10% interval?
The founding principles of Metablox are solid growth and lasting value — instead of exuberant speculation and hype.
We’ve designed the economy so that the Phase of the city reflects the organic demand, which could reach full saturation over an extended period of time.
By increasing the price to Mint a Blox, we design an economy where buying a currently owned Blox becomes more appealing than Minting a new one, encouraging buying and selling in the market.
This ensures that Metablox owners will have steady rising values for their Blox as floor prices increase while community interest in Metablox remains healthy.
We are dedicated to NFT appreciation and liquidity for our Neighbors.
Let’s now examine 3 different scenarios of what can happen in April 2022 when we introduce the Minting Phase.
Scenario 1: San Francisco is completely reserved during the Reservation Phase
Note: For simplicity, let’s assume a 100% conversion rate from Reservation to Mint.
In this scenario, all of the inventory in San Francisco is Minted at the Phase 1 price — there is no un-minted Blox.
Implication for demand: New Neighbors need to buy a Blox from a current owner, at the price the owner deems desirable.
Needless to say, this is a great situation for the Metablox Neighborhood as a whole. People who reserved got the best possible deal and the entire ecosystem has tremendous social proof.
Implication for the Metablox team: Overall, Metablox as a company would earn less revenue as all Blox were Minted at the Phase 1 price. Although we wouldn’t make as much revenue, selling all inventory brings great confidence to the market and we would be able to quickly expand to new cities as demand is high. Everyone wins.
Scenario 2: Between 10% — 90% of San Francisco is reserved
In this scenario, there are still Blox that are available for Minting.
Implications on liquidity: Blox owners that bought during the Reservation Phase will immediately see an appreciation for the value of their NFT.
Continuing with our original example, in Phase 9, a Tier 1 Blox is priced at $2,563.
Therefore, a Tier 1 Blox owner could immediately liquidate their NFT if they price it below the current Mint price.
Scenario 3: Less than 10% of San Francisco is reserved
Although this is less than ideal, it is not the end of the world because the foundational mission of Metablox is to build lasting value over time.
Buying frenzies are volatile and can distract from the ultimate mission of preserving humanity’s most important memories.
In this example, because <10% of San Francisco is Minted, Mint Prices will remain at the base, Phase 1 level.
A path to value for early Blox owners: In this scenario, un-minted Blox remain in Phase 1; therefore, there is no immediate increase in the value of the NFT. However, there is a clear path to increasing the value of the asset.
By leveling up through the Rooting of meaningful memories, Neighbors will increase the value of their NFT and Mine Metablox Coin.
In addition, early Neighbors will have significantly more MetaRent, which enables them to have a substantial advantage to bid for Landmarks.
We are prepared for all outcomes
There are a variety of ways the launch could play out. Regardless, we are prepared for every scenario and will work hard to execute on our longterm vision, while making sure Neighbors get rewarded handsomely along the way.
