Ve(3,3) Model of Shiniki Ecosystem
Original Article: https://medium.com/@0xjason/diving-into-ve-3-3-model-of-shiniki-nft-collectible-c77016dc85dd
Diving into ve(3;3) model of Shiniki NFT Collectible
Dear Shiniki fam,
In this post, I would like to explain more about the Game Theory behind Staking feature of Shiniki NFT, projecting the benefits of Shiniki stakeholders and some critical milestones in the long run. Do remember that we will be introducing Shiniki NFT Staking as well as Shiniki Marketplace very soon.
Explaining Game Theory & ve(3;3) model
What is Game Theory?
Long story short, “Game Theory studies interactive decision-making, where the outcome for each participant or “player” depends on the actions of all. If you are a player in such a game, when choosing your course of action or “strategy” you must take into account the choices of others.” ~ Internet Source
We will apply Game Theory to analyze and utilize the benefits of all Shiniki Stakeholders. ve(3,3), based on Game Theory, is the famous deFi model that succeeded in incentivizing individuals to come together and bring about the best possible outcome. In essence, we will apply ve(3,3) model to the Shiniki Ecosystem as below:
▹Game: Staking to the pool
▹Player: Owner of Shiniki NFT
▹Reward (in ETH): 50% royalties of Shiniki NFT + 50% trading fee of Shiniki Marketplace) + other rewards TBA.
▹Outcome: Growth of Shiniki Ecosystem — increase in Shiniki NFT Floor Price, increase in Shiniki NFT trading Volume, increase in Shiniki Marketplace Trading Volume, increase in the number of new contributing members of Shiniki Community.
▹As a player of Shiniki staking game, each player has 3 options:
Option 1: Stake (or Dispatch) → This option reduces the circulating supply of Shiniki NFT on the market, which will likely increase Shiniki NFT floor price.
Option 2: Hold (or Retreat) → This option shows newcomers that Shiniki holders don’t give up their Shiniki NFT that easily. This option is neutral. It doesn’t provide a negative nor a positive change to the ecosystem.
Option 3: Sell (or Evade) → This option increases circulating supply which could push Shiniki NFT floor price lower.
The different choices will bring about different outcomes to the ecosystem as presented below, in a 3x3 table:
Best case (3;3) (3;1) (1;3) (1;1): If most of the owners decide to act in the green boxes (including different shades of green), they will create a net positive outcome for both owners and the ecosystem.
Neutral case (-1;1) (1;-1): If they chose to act in the yellow boxes, they will create a neutral outcome (Holders, Stakers, and Believers will be able to absorb the selling pressure of flippers).
Worst case (-3;-3) : If all choose to act in the red box, it will create a negative outcome for themselves (selling at a loss) and the whole ecosystem. It will look like a “stampede” event, where everyone is willing to exit from the project even if they have to step on each other. In the end, the project will fail (I assume that 90% of NFT projects are falling into this “death spiral”).
We have distributed Shiniki NFT to the community as Free mint. When the staking is live and the marketplace is live, we will also be sharing half of Shiniki’s Ecosystem total revenue to all Shiniki NFT holders. Thus, Shiniki NFT holders hold a very large portion of the power to decide the future of Shiniki Ecosystem. We, the developers, will now be calling you, Shiniki NFT holders, comrades. Your decisions will now be just as important as our decisions.
Therefore, we are calling all of you — Shiniki gang to cooperate with us to make the (3;3) case come true.
Here is what we can all do to help the project:
Shiniki Gang’s Inception Oaths:
1- Never FUD.
2- Delist or never list Shiniki NFT lower than the fair listing price (I will explain the fair listing price later in this doc).
3- Buy more Shiniki NFT to support the project if you can afford it.
4- Dispatch your Shiniki NFTs to the Battlefield, and if you need to take profits, please do it little by little so that it doesn’t negatively affect the project.
5- Join hands with the team to run Twitter raids, shilling campaigns, contests, marketing and promotions to expose Shiniki to more users.
6- Introduce Shiniki to your crypto/NFT friends, your colleagues, or even your family members (it’s a good project, you don’t need to hesitate to onboard them).
In the next paragraph, I will do my best to project the outcome of the (3;3) case for all believers.
Projected Outcome of (3;3) case
Reward from Royalties
Each season on the Battlefield will last for 2 weeks (14 days). Therefore, 1 year includes aprox. 26 seasons.
The total supply of Shiniki is 5,814 NFTs. Supposedly 50% of Shiniki were dispatched on the Battlefield.
Projected APR = 5% (minimum value expected by the market). We think it’s a proper APR if we use Eth as a reward because the staking APY of Ethereum POS right now across platforms is 4%.
The Fair Floor Price (FP) of Shiniki NFT is determined by Earnings per NFT.
Fair FP= Shiniki Total Annual Rewards / Shiniki NFT APR
Then we can play around with numbers as the sheet below:
All stakeholders & our team will work together to achieve trade volume milestones:
If we could get 10 Eth trade volume/season, each Shiniki NFT can earn 0.003 Eth/year. The Fair Floor Price of 1 Shiniki on the secondary market should be 0.06Eth. Otherwise, it’s undervalued.
If we could get 20 Eth trade volume/season, each Shiniki NFT can earn 0.006Eth/year. The Fair Floor Price of 1 Shiniki should be 0.12 Eth.
And so on.
We just calculated the Annual Rewards and the Fair Floor Price of Shiniki based on a very simple, purely financial perspective. In reality, there are many other variables such as the hype, the branding value, and other added value (like free mints of other collectibles, WL of upcoming incubated collectibles of Shiniki, IRL events, etc.). That’s why the team believes that the market price of Shiniki NFT is so undervalued right now.
What will happen when we release Shiniki Marketplace?
According to the monthly trade volume of NFT marketplaces, Top 2 marketplaces as OpenSea and X2Y2 are generating from $400mil (~307k Eth) to $700mil (~540k Eth) each. Frankly speaking, in the beginning, Shiniki Marketplace cannot compete directly with OpenSea, X2Y2, LooksRare, Rarible, or Magic Eden. Therefore, we expect to get 1/100 monthly trade volume of OpenSea which is 3,000 Eth/month (or 1,500 Eth/season). Now let’s see how Annual rewards/Shiniki and Fair Floor Price of Shiniki would change:
If we could get to 500 Eth trade volume/season on our marketplace, Annual Rewards / Shiniki is 0.02 Eth, and Fair Floor Price of Shiniki is 0.29 Eth.
And if we could get 1,500 Eth trade volume/season on our marketplace, Annual Rewards / Shiniki is 0.134 Eth, and Fair Floor Price of Shiniki is 1.34 Eth.
And so on.
Now I believe you can see the whole picture of ve(3;3) staking model of Shiniki and which option you should choose in this game. However, we would like to add more fun to it.
In ve(3;3), “ve” stands for voting escrow. You may have guessed it. As communicated much earlier, step by step, we intend to build Shiniki Ecosystem Governance into a DAO, using Shiniki NFT to represent voting and proposing power. But before we get to that, we need to increase the value of Shiniki NFT. Apart from ve(3,3), we also need to make Shiniki NFT more scarce.
Making Shiniki NFT more scarce
The team decided to use a part of our revenues (from royalties and transaction fees of Shiniki marketplace) to sweep the floor price until the ecosystem approach a certain maturity.
All Team-swept Shiniki NFT will be “imprisoned” (locked) for at least __ months. (We are thinking at least 12 months). You can think of this as punishing those who avoid military duty.
That action will make Shiniki become an impermanently deflationary NFT collectible, and add more value to the existing Shiniki in circulation.
We also set aside a dedicated marketing budget (out of our own pocket) to expand Shiniki’s brand to more creators, NFT enthusiasts, and partners.
That’s all for today. We will get to see how it will play out soon.
About Shiniki NFT Collectible
Shiniki NFT collection — a series of 5,814 NFT items originally inspired by multicultural Gods. This NFT collection is a delicate mixture between the exquisiteness of Japanese Anime art style and mystical Western folk elements. Shiniki holders will get extreme values from NFT utilities, experiences, exclusive events…
Official website: https://www.shinik.io/
Twitter: https://twitter.com/Shiniki_NFT
Discord: https://t.co/0Z2bLo1o2S
Last updated
