What are collective farms and how to earn with them?
What would Waves Ducks be without collective farms? An ordinary collectible NFT game with a rather limited set of features. Sure, it’s fun to breed ducks and generate passive income, but not everyone can afford a farm of their own.
That’s why it was important to introduce collective farms, allowing players to get EGG with minimal investment. At the same time, it created a number of social hubs aggregating the wildest community in the world of crypto games.
From farming to space
From the beginning, Waves Ducks was designed as a metaverse full of activities and mechanics of varying engagement and profitability. Collective farms are the gateway into space that enables interactions with new mechanics, third-party NFT projects, and other games.
For example, the play to earn mode, Duck Wars, is heavily linked to the collective farms. This is not just NFT duck battles, but a whole war of communities, with collective farms acting on their behalf. To take part in Duck Wars, you must first choose a farm to fight for, and as a reward for winning, you will receive share tokens of that farm. In the process, you will train your duckling until it becomes a full-fledged NFT duck.
What are share tokens for?
“Wait a minute, but we were promised EGG as play to earn winnings!” — the inquisitive duck farmer might object. That’s right, players get EGG, but in a slightly different form. Share tokens are proof that you own a portion of the EGG income of a particular collective farm. You don’t just receive EGG, you create your own passive income. And there can be several such sources of income because the farm can be switched every 6 hours.
Additionally, share tokens have value themselves as they are easy to trade with other players in the Puzzle Swap mega pools. But the easiest way to get a hold of share tokens is directly, through investments in collective farms. Anyone can start investing with as little as 0.01 EGG and receive a portion of the farm’s income in line with its performance.
Shared tokens will have another use in future updates, but it’s a surprise 😀
How do collective farms work?
Collective farms are not much different from private farms in their mechanics: the ducks are either purchased on the marketplace or obtained through hatching, breeding, or rebirth and are placed on perches. A CEO is appointed as head of the collective farm, and his main task is to directly manage the farm and make strategically meaningful decisions.
Investors’ funds are used to maximize passive income, which is distributed to all share token holders. The CEO receives a fixed percentage of all farm profits, which rarely exceeds 10%. In addition to their main duties, collective farm heads often run separate communities on social networks, where they organize various contests and giveaways.
It is important to note that the collective farm CEO is not the sole owner of all assets invested in it. Special smart contracts impose certain restrictions on his actions. For example, a CEO cannot buy or sell ducks if their value differs from the average market value by more than 10%. And, naturally, the CEO cannot take all the funds invested in the farm and transfer them to another wallet — such a scenario is completely eliminated.
How to invest in collective farms?
To get started, you need to have a Waves wallet and a minimum of 0.01 EGG (excluding fees) in your account. You can purchase EGG directly with your bank card via this link. You can also purchase WAVES here. WAVES tokens can come in handy for saving on in-game commissions.
On the Collective Farms page, you will see a list of all farms with their descriptions and basic parameters. If you already have share tokens from a particular farm, additional metrics will be available for you regarding your share and current APY. If you click on the collective farm icon, you can see all the ducks it owns and their status, as well as the amount of EGG they have accumulated.
Click Invest EGG and enter the amount of EGG you want to invest. A confirmation window will appear, showing you the amount and the fee. For example, for 0.01 EGG the fee will be 0.0000835 EGG and if you have WAVES, you can use a fixed fee of 0.005 WAVES. After you click Confirm, you will see a window with the name of the collective farm you invested in and the number of share tokens assigned to you. You can view the balance of the share tokens by clicking on your wallet number and selecting Balance.
If you want to quickly move your investments from one collective farm to another or sell share tokens, you can do so with the next-generation exchange, Puzzle Swap. Simply connect your wallet and select one of the farm pools. Share tokens from one farm can be exchanged for tokens from another, as well as EGG and USDN.