An Overview of GHST Revenue Sharing

The $GHST Circle of Win

Prelude: The Bonding Curve

At the core of GHST’s token economics is the bonding curve — an automated market maker (AMM) that mints and burns GHST on demand, ensuring that our players have always-on access to GHST liquidity without high slippage.

  • 🕹 Creating a healthy play-to-earn ecosystem that rewards active players and DAO participants
  • 📈 Ensuring that GHST token has a strong foundation for long-term value capture
  • 💰 Building a treasury for AavegotchiDAO to use on discretionary spending
  • 👨‍💻 Providing ongoing financial rewards to those developing Aavegotchi

Part 1: Burn Baby Burn 🔥

Fixed supply tokens generally do not have high burn rates because that would entail rapid deflation of the token.

  • Enables better liquidity for buyers and sellers on the curve (less slippage)
  • Lowers circulating supply (less selling pressure)
  • Provides stability for the DAICO Tap Mechanism (deeper reserve)

Part 2: Go Farm Yourself

Rewarding Players is a core tenet of the Aavegotchi closed loop that ensures players have financial incentives for active participation in the Aavegotchi ecosystem.

  • Top 100 Rarest Aavegotchis (by BRS, ARS coming later)
  • Top 100 Highest Kinship Score
  • Top 100 Highest Experience

Part 3: Just DAO It

Aavegotchi is a community-governed game. The DAO address has access to many functions and levers to control core game mechanics, as outlined in Aavegotchi Governance.

Part 4: Feed the Devs

The Aavegotchi core team has watched and participated in numerous food-related farming experiments, and in our opinions, poorly-aligned incentives for protocol developers are a Top 3 Cause for protocol failure.

In Summary:

Every GHST received via sales of Portals, Wearables, Consumables, and REALM Parcels, will be automatically transferred to the corresponding addresses in the following percentages:

  • 33% to BURN address
  • 40% to Player Rewards address
  • 10% to AavegotchiDAO address
  • 17% to Pixelcraft address

The Final Touch

The Aavegotchi protocol contracts are upgradeable, which means these numbers can be adjusted if necessary.

What about fees?

Secondary market trading fees can be a strong source of revenue for any NFT project. Initially, the majority of Aavegotchi trading will happen on established NFT markets such as Opensea. These platforms allow us to set a trading fee that is earned whenever an NFT changes hands.

Final Thoughts

The above revenue sharing approach we’re taking is thoughtful and intended to ensure a healthy and growing Aavegotchi community. We’re building for the longterm together as players, developers, and creatives.

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