Staking and tokenomics

In the Cao Wari empire's expansion throughout the galaxy, one of the ways the empire imposes its rule is through cultural imperialism. One of the tenets of these policies is the formation of Phoenix Arenas.

Diver holding Scythe

Operating under the rule of the Cao Wari empire, the realm and the arena are required to operate economically with the de facto currency of the empire, the Wari token. As such, participants in the Cao Wari economy pay and get paid for their goods and services in Wari.

Besides the grandiose infrastructural development of the arena itself, a monument intended to display the magnificence and power of the empire as well as distill fear in their subjugates, the empire uses economic stimulus packages to incentivize their subjugates to conform to the imposed culture.

Arena Knife

As such, the empire has provided a total supply of 370 millions total Wari tokens for initializing the economy around the newly built Phoenix Arena #42069. Rapid cultural change is encouraged through high economic incentives that taper off over time. Similarly, the empire has provided blacksmithing services that provide mystery boxes containing items that can be used by the participants of the arena.

The operators of Phoenix Arena, while acting as treasurers of these funds, only receive rewards in the form of Wari tokens through the operating fees they receive from arena entry fees, forging items for contestants, or other services that they provide. The total amount the operators can receive is capped at 20% of the total supply.

Another utility the economic stimulus serves for the Cao Wari empire is to enable the ruthless mercenaries of their subjugated societies to rise up the economic and political ranks and begin expanding the economy around the arena after surviving their cultural indoctrination. A portion of the service fees generated throughout the economies go to a decentralized fund where Wari token holders will be able to vote on how the fundʼs resources are used.

Distribution red aura Max

The distribution of the Arena funds occurs over a 5-year span with diminishing returns each year:

42% year 1

26% year 2

16% year 3

10% year 4

6% year 5

NFT Staking PFP character NFTs acquired from character sales can be staked for earning Wari tokens passively. Staking rewards will be split among all staked PFPs. PFP rarity and early adopters will be rewarded.

For example, rewards may be distributed pro-rata amongst NFT categories and then within each nft category based on rarity rankings. This would apply to main character PFPs e.g. Diver, as well as early drops such as Santa Divers Christmas Presents and Max (Diverʼs pet) drops.

Mummy diver

The main character PFP categories are comparable to each other and this would be a fair strategy given open drops in that early adopters with “higher risk” receive more rewards before additional characters arrive, while future adopters have the chance to claim their fair share of rewards once they join. It would not be fair to treat the very limited size Santa Diver and Max drops as equivalent categories, but the proportion parameter will still be generous such that the weighting of an individual NFT is significantly higher than that of later NFT drops.

Gameplay Economics and Rewards

The arena will have a reputation points system and a corresponding leaderboard with ranked tiers. As players win matches, they gain points; if they lose matches, they lose points. There will be a notion of the number of points received and lost from games depending on the difference between the points of the players. Players will periodically receive rewards in the form of the Wari token based on player leaderboard positions.

3d token image

As a part of the Phoenix Arena economy, players will need to pay an entry fee with the Wari token (or ADA if desired) for each game. The values of these will be dynamically adjusted as the ebbs and flows of the Phoenix Arena economy are better understood. As players climb the tiers and the stakes get higher, the fees for battles will rise, but so will the rewards.

Economics Summary Token acquisition:

  • Staking of PFP NFTS

  • Gameplay leaderboard ranking rewards

  • Tokens are distributed periodically dependent on player leaderboard positions Token utility:

Pay arena entry fees

Purchase discounted PFP NFTs

Use token to purchase mystery boxes that drop gameplay NFTs

Governance

A note on the role of ADA in this project: all services that require creation or transfer of assets on the blockchain layer will incur a small service fee that functions as one of the main sources of sustained revenue for the development team and outside world value inflow for the Cao Wari realm. For example, PFP minting, mystery box minting, claiming Wari tokens to users wallets, paying for other in-game functionality with Wari tokens e.g. arena entry, and so on.