$KOKU: An Algorithmic Stablecoin

Contract: 0xaa39B60b5c4273f659674B6B34E3f187d16e7CfD

In feudal Japan, one koku was equivalent to roughly five bushels of rice. This unit of measurement was used as a means of payment in many aspects of Japanese society. Each feudal domain was evaluated based on how much koku it could produce for a feudal lord, or daimyo. Even high ranking samurai received stipends in koku instead of gold or silver.

Rice was the backbone of feudal Japanese society thanks to its stability and utility. In Samurai Legends, $KOKU is the rewards token that powers the in-game economy. In keeping with its historical inspiration, $KOKU will be an algorithmic stablecoin — offering players stable and sustainable in-game rewards.

Daikokuten Protects $KOKU

$KOKU will have a stable price of $0.004 (+/- 2%). This gives $KOKU a stable range of $0.00392-$0.00408. This stable price will be facilitated by an algorithm known as Daikokuten — the deity of wealth and fortune in historical Japan. In Samurai Legends, Daikokuten watches over $KOKU and maintains a stable price — protecting the in-game economy.

Daikokuten works by monitoring the $SMG/$BUSD every 10 minutes and $KOKU/$SMG pairs to calculate the price of $KOKU in USD. If the price is outside of $KOKU’s stable range, then Daikokuten will trade in the appropriate direction until the price is back within the stable range.

Daikokuten works slowly but surely! He may need multiple runs to restore the $KOKU price. He’ll become more aggressive as time progresses.

Keeping $KOKU at a stable price allows players to easily quantify their earnings and the cost of things in the game world. Players who earn $100 of $KOKU will be able to redeem it for around that amount at any time, and the price of goods in the in-game economy will not drastically fluctuate.

$KOKU will be paired with $SMG in a liquidity pool — with a 5% tax either way. This tax will prevent people from front-running Daikokuten’s algorithm while also funding it. The tax will decrease as our confidence in Daikokuten increases. In addition, funds from $SMG’s “play-to-earn” allocation will also be deployed to keep the $KOKU price stable via Daikokuten.

Trades in the $SMG/$BUSD liquidity pool will remain untaxed. While our vision for $KOKU is a stable currency used in the game world, $SMG will be the speculative asset tied to the value of our ecosystem and used outside the game world.

Exchange KOKU-SMG on Pancakeswap here.

Watch the KOKU-USD price at the Dextools chart here.