Rewards distribution model
Understand Nemesis Downfall’s rewards
During patch 1.0.4, we deployed our automated rewards distribution algorithm after a few weeks of internal simulations. We now also have a few weeks of live data and are comfortable with how it behaves. We believe it is now time to explain how it works.
Balancing and adjusting rewards
We would like to remind Downfallers of our initial statement and the base line we’ve been following through the development of the project: Nemesis Downfall is conceived as a video game with crypto rewards to incentivize players, and not as a Play-TO-Earn.
With that logic, we have conceived a system that preserves both the rewards reserves and makes sure they will last for the lifetime of the game (multiple years), and the ND market to ensure holders are not being put under constant pressure of the rewards flooding the market.
Our system is adjustable, and we are using the Beta phase to fine tune our settings, define most suitable total amounts of rewards, amounts burnt, minimum withdrawals etc. We consider all these parameters as variables that we can and will adapt to balance the rewards distribution. This also includes temporary modifications, for example to increase rewards temporarily before or during an event, etc.
The rewards algorithm
The algorithm’s role is to distribute a defined amount of rewards tokens fairly to an undefined amount of games over a specified time frame (currently: daily)
- The defined amount of token is based on a daily dollar amount converted to ND at the price of ND during snapshot. That dollar amount can be adjusted.
- As part of our Reward and Burn mechanism, 20% (adjustable) of the NDs to be distributed are added to the burn pool which is sent to the burn address every week, and 5% are added to the infrastructure treasury meant to cover operational costs.
- Based on that defined daily token amount, the algorithm allocates a fixed amount of tokens per hour. It calculates a distribution per game based on the rolling average number of games of the previous 3 hours.
- Rewards for 1 game are capped to an amount that is adjustable to avoid cases were amount of games per hour are so low that players receive an abusive percentage of the daily allocation. Tokens allocated over cap are instead fed to the vault.
- If the number of games during the hour “T” is less than the average of the last 3 hours (T-3), the remaining tokens that were allocated to that hour but not distributed are stored into a vault.
- If the number of games during the current hour is more than the average of the last 3 hours, the missing tokens are taken from the vault.
- Based on the player base growth, the vault is designed to deplete during peak hours and refill during less busy hours. If the vault was to fill beyond a certain cap, it would be trimmed weekly and tokens would be used in a mix of player rewards / tournament rewards / burns / tax.
With that model, the algorithm will split the same amounts of rewards hourly whatever the number of players is, resulting in less individual rewards when there are a lot of players in game, and more when the game is less busy. This helps optimize the servers load.
Winners attributions
Once the final amount of ND rewards is calculated for each given game, it is split as follow:
- 50% to top 1.
- 30% to 2nd.
- 20% to third.
This repartition is adjustable and is specific top the deathmatch mode. It might be different for the future modes.
Earning and Spending rewards
As highlighted in our in-game economy presentation, the $ND token is the utility token of the game and as such can be used in-game to purchase cosmetic skins and NFTs.
In the near future, it will also be usable to enter the competitive games, buy season passes and different other things.
We wish to incentivize even more the use of rewards in-game and will be exploring different leads during the beta, including but not limited to in-game staking, conditioning partial reward earning to spendings, voluntary burning, abandoned micro balance sweeps & burn, etc.
We are also working on a check-in function that will reward players for returning to the game daily with bonuses and rewards multiplicators adding up with unbroken check-in series (more to come on this).
About Nemesis Downfall
Nemesis downfall is the first ever FPS Play-and-earn game developed as a game with crypto serving it and not the other way around. In a dystopian future, players fight each other in a Deathmatch style game featuring a whole in-game economy based on its $ND token and lootable NFTs.
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