Tokenomics
What is $PANDAI？
$PANDAI is the first token to be issued on the EVM chain based on the Digital Material Theory (DMT) and minted fairly as Non Arbitrary Tokens (NATs), and it is also the first GameFi token to utilize this property. The supply of the token is not subjectively set by humans, but is determined by existing block data. For instance, the daily supply of $PANDAI tokens is determined by the gas parameter values in Ethereum blocks, naturally basing token emission on the Ethereum mainnet. We have designed a set of formulas that combine block generation speed and gas fees to ensure this.
The game periodically generates a certain amount of ERC-20 tokens from the blockchain as salary for virtual characters, and these tokens are bound to NFTs in the form of on-chain smart contracts.
The game system distributes the generated ERC-20 tokens to the corresponding NFTs according to certain rules, providing players with a tangible opportunity for profit.
$PANDAI Geneartion & Distribution Mechanism
1. Minting Process
Our $PANDAI tokens are generated through a minting mechanism on the blockchain, with the specific amount generated depending on the gasUsed & transactionCount parameters of each block. Here is a detailed explanation of the minting mechanism:
Calculation of Generation Amount: The amount of $PANDAI tokens generated is related to the
gasUsed & transactionCountparameters of the current block. The formula for calculating the generation amount is as follows:
This function f will be adjusted based on actual needs to ensure appropriate token generation while maintaining the healthy operation of the blockchain.
2. Distribution Mechanism
The generated $PANDAI tokens will be distributed based on the following three main aspects, AI Agent salary, WorldShard Staking Rewards and Game Taxes.
2.1 AI Agent Salary
A portion of the $PANDAI will be allocated to AI Agent holders, i.e., real players who own AI Agent Contracts NFTs. The distribution process will consider the following factors:
AI Agent NFT Weight: Different virtual character NFTs will have different weights, based on the rarity and other attributes of the virtual character.
Artwork Attributes: AI Agents may also hold artwork NFTs, the attributes of which will affect the distribution of salary.
The distribution formula is as follows:
AI Agent Salary = x% * f(NFT Weight, Artwork Attributes)
where x% is a system pre-parameter, representing a portion of the total $PANDAI amount.
2.2 Staking Rewards
A portion of the $PANDAI will be allocated to WorldShard NFT stakers.
WorldShard Weight: Different amounts of WorldShards will have different staking reward weights.
WorldShard Staking Rewards = y% * f(WorldShard)
where y% is a system pre-parameter, representing a portion of the total $PANDAI amount.
2.3 Game Taxes
Another portion of the $PANDAI will enter the game treasury in the form of taxes, to be used for the development and maintenance of the game. The distribution formula is as follows:
Game Taxes = (1 - x% - y%) * ERC20 Generation Amount
where (1 - x% - y%) represents the percentage of the remaining part, used for the game treasury.
2.4 Distribution Period
The minting and distribution of $PANDAI will be based on a cycle, with every x natural days marking one cycle. In each cycle, the system will continuously snapshot all NFT attributes in the game and use these attributes for the weight update of the next cycle's $PANDAI distribution. This way, changes within the game will be timely reflected in the distribution of $PANDAI.
3. Staking Function
We introduced a staking feature to enable players to participate in the liquidity pool for additional earnings. The implementation is as follows:
Platform Choice: The staking feature is based on Uniswap, allowing players to form a liquidity pool with $PANDAI tokens and ETH.
Staking Rewards: The platform distributes rewards linearly from 10% of the block output each cycle to players participating in staking. Rewards are distributed according to the proportion of stakes.
Earnings Withdrawal: Players can withdraw their staking earnings at any time, with the withdrawal process conducted as an on-chain transaction and providing corresponding on-chain proof.
4. Burn Mechanism
When the in-game amount of $PANDAI exceeds a certain threshold, a burn mechanism is activated. The specific steps of the burn mechanism are as follows:
Burn Conditions: When the in-game amount of $PANDAI exceeds the set threshold, the system will trigger the burn mechanism.
Burn Process: The game treasury will automatically burn a portion of $PANDAI to maintain economic balance. The amount burned will be recorded as an on-chain transaction and provide on-chain burn proof.
Burn Proof: The burn process will generate on-chain burn proof to ensure transparency and traceability. This proof will include the amount burned, transaction hash, and other relevant information, available for players and the community to verify.
The implementation of the burn mechanism aims to prevent excessive inflation of tokens while promoting the stable development of the game economy.
5. Deflation Mechanism
To ensure the stability of the token value, we have introduced a deflation mechanism. The specific measures are as follows:
Deflation cycle: Every 540 natural days, the base number generated by $PANDAI will be halved.
The purpose of the deflation mechanism is to maintain its stable value by moderately reducing the supply of tokens.
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