KittieFIGHT Token Pricing Parameters & Economic Valuation Via Gnosis Reverse Dutch Auction
We released a demo of what to expect for kittieFIGHT (See video above). We are releasing the fight mechanism (fight paper) in time for our Gnosis style reverse dutch auction (more on this below). kittieFIGHT is a Cryptokitties Real-Time Blockbuster Dapp Game. It is a crowd-driven, real-time fighting Dapp game. KittieFight Tokens and ETH are awarded to winners of each fight session that utilizes customized fighting kittie characters derived from the Cryptokitties platform. Read more about KittieFIGHT here: why it could be one of the biggest blockchain Dapps. We were also interviewed by the anarchast show here :
Now its time to touch on the KittieFIGHT (KTY) token economy and the parameters surrounding the KittieFIGHT (KTY) token utility which necessitates a market discovery mechanism, via our reverse dutch auction. A reverse dutch auction is an auction in which case the price of the commodity being auctioned descends towards ZERO or towards a lower price than it originally started with. The starting price of the kittieFIGHT dutch auction will start at $0.40/KTY( ~ 0.002ETH/KTY) and gradually decline by a small factor each Ethereum block (every 14 seconds). The cheap price is to guarantee affordability, wide distribution, and valuation level of the token necessary for quantifying pricing models within the kittieFIGHT DAPP game. The only catch is not being able to guarantee token availability due to the continuous dropping price.
kittieFIGHT Dapp Goal
The kittiefight goal is to gamify NFTs with Mortal Kombat style catfights through an economic token model that utilizes limited supply, suppressed emissions and incentivized crowd dynamics to drive up each value of token necessary to reward owners of Cryptokitties non-fungible tokens. The kittieFIGHT Dapp also solves the problem of oversupply of Cryptokitties via euthanasia/kittie-sink called kittieHELL. The sink effect from fights also serves to create demand for new kitties on the Cryptokitties platform. Winners of fights on the kittieFIGHT platform can trade winning tokens to buy more Cryptokitties collectibles. We intend to massively incentivize current users of the Cryptokitties platform as well as onboard new crypto users and hopefully without all the onboarding pain through Universal logins; an EOS Style account abstraction enabling user onboarding via usernames and multi-device attestation see demo:
We also Have plans for plasma cash integration for more scalability after our rough alpha deployment and we feel the loom network could work well for this, See: https://loomx.io/
Token dynamics
To cause a deflationary effect on the KittieFIGHT (KTY) token economy, as well as upward buying-pressure on KTY through demand, we provide a huge incentive for participation in every game; every game contains a jackpot of Ether and KittieFIGHT (KTY) tokens called the Nip pot/honeypot, funded by the kittiefight endowment smart contract fund. Then there are fight scheduling fees, fight tickets, and kittie redemption fees from Kittiehell; all activities geared towards the fights, which all payable in KittieFIGHT (KTY) token but such fees are exempt to first-time players.
Because of these parameters, it is important to quantify the value of each token in order to gauge what level of pricing is acceptable and fair within the KittieFIGHT (KTY) token economy.
Token economy
There is an immutable total supply of 100 million KittieFIGHT (KTY) token;
- 8 million are up for public auction in a descending price dutch auction
- 2 million is allocated for a pre-launch bounty & marketing bounties
- 5 million is allocated for gaming related partnerships and promotions
- 10 million is allocated to a long-term free distribution for new users (freemium access)
- 10 million is allocated to the team
- 65 million is allocated as token rewards alongside Ether rewards over time for fight winners as well as to KittieFIGHT stakeholders.
About 65 million or 65% of the total token economy supply are used as rewards to winners and supporters alongside Ether rewards. 8 million tokens out of 100 Million are being auctioned off, with an additional 2 million tokens allocated for bounty tasks. This means anyone can get involved, without needing Ether.
Kittiefight Gnosis style reverse dutch auction synopsis
The dutch auction is the exact one used by the Gnosis team, with upgraded syntax and wrapped in extra functionality to allow bounty activities such as referrals and social sharing.
Before the auction starts:
- The dutch auction starts at a medium to a very low price per KTY token. while also decreasing with every block:
KTY Price = priceFactor * 1 ether / (block.number — startBlock + 7,500) + 1 - The priceFactor will be selected by the KittieFIGHT team shortly before the auction starts. The priceFactor is chosen, such that the start price for one KTY will be $0.40 at the time the auction starts.
- The maximum receivable amount (ceiling) is ETH valued $3M.
- The amount in ETH will be set shortly before the auction starts using the changeSettings function.
- After the auction starts, the ceiling, as well as the priceFactor, cannot be changed.
- The auction is triggered by a transaction from the KittieFIGHT multisig wallet to the dutch auction contract function startAuction.
For Bidders during the auction:
- Bids are accepted via the bid function until ceiling or the stop price is reached (KTY Price <= stopPrice).
- The stop price is based on the following formula:
stopPrice = totalReceived / 8,000,000 + 1 - The stop price guarantees a cheap enough price for wide distribution and network valuation.
- ETH is sent to the Dutch auction contract, which forwards the ETH to the multisig contract in the same transaction. The Dutch auction contract will never hold ETH.
- The bid function allows bidding on behalf of another user (the receiver). This is required for a ShapeShift integration allowing users to directly buy KTY with any supported currency.
- If a bid exceeds the ceiling, the maximum amount will be bid and the difference will be returned (to the receiver).
For Marketing and referral activities during the auction:
- referral credit for tokens are awarded until ceiling or the stop price is reached
- social share confirmation is an ongoing process till allocated tokens run out
After the auction:
- After the auction is ended, there is a 45 day waiting period before tokens can be claimed, to enable us to launch our Dapp alpha. The kittiefight token is strictly a utility token and we want to make sure it is able to be used as such within the dapp game prior to any trading activities.
- After the 45 day waiting period, everyone can claim their tokens with the claimTokens function and trading can start.
- Because of rounding, every bidders’ KTY shares may be rounded down by 1 KTY wei. This is why the auction contract may still have up to #(bidders) * KTY wei in its contract after every bidder claimed their tokens.
The contracts are deployed on the mainnet:
- KittieFIGHTToken:
- DutchWrapper:
- Gnosis multisig wallet : 0xa8a7ca2f8ec6c713c2a4bc371fa0c2726120afa7
RoadMap
Our roadmap is delayed slightly due to preparations for this auction, but we do need a couple of weeks to deploy the first iterations as well as a push down the road. The alpha deployment of the game is dependent on the minimal target fulfillment of the dutch auction. Here is a conditional overview of our roadmap:
Our roadmap will be pushed a little further if we do not reach our minimal targets in a few weeks:
For more information about KittieFIGHT
Help us discover a valuation for the kittieFIGHT token economy here or just Bounty Hunt in exchange for KTY tokens on BountyOX
Game demo: https://www.youtube.com/watch?v=ROKRxNZdmVs
BountyOX Podcast : https://player.fm/series/bounty0x-podcast/ep-40-kittiefight-game-centered-around-utiliziing-collectible-cryptokitties
Anarchast Interview: https://www.youtube.com/watch?v=qJ8DBbELVuo
Dapp.com write-up: https://www.dapp.com/article/into_the_ring_with_oladapo_ajayi_from_kittiefights
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IMPORTANT DISCLAIMER
KTY tokens are functional utility tokens within the KittieFIGHT dapp game platform. KTY tokens are not securities. KTY tokens are non-refundable. KTY tokens are not for speculative investment. No promises of future performance or value are or will be made with respect to KTY, including no promise of inherent value, no promise of continuing payments, and no guarantee that KTY will hold any particular value. KTY tokens are not participating in a Company and KTY tokens hold no rights, they are simple utility tokens necessary in a decentralized gaming mechanism. KTY tokens are sold as a functional good and all proceeds received by KittieFIGHT may be spent freely on development absent any conditions. KTY tokens are intended for experts in dealing with crypto economic tokens utility and blockchain-based software systems.
