GLTR For Raffles

Proposals by Gotchi Gov'nuhs
1

Hello everyone, I am posting it as a member of the Alchemica GLTR Economic Taskforce (AGETF).

PROBLEM

GLTR emissions are currently out of control because we are emitting far more tokens than we are using and in the near future I do not see the possibility of creating simple and quick sinks to utilize the circulating supply + daily emissions rate. Speeding up upgrades of installations alone is clearly not a sufficient sink and the more the token gets inflated the less attractive it becomes to provide liquidity to our pools.

SOLUTION

Our solution is that we use GLTR not FOR minting tickets, but INSTEAD of tickets. Wearable raffle = everyone can put a certain amount of GLTR in each category of rarity. And we don’t need more tickets. Just use (burn) GLTR to win assets in the raffle!

If we choose this path, then I see OTF (OTF = Old Tickets and Frens) as the most difficult obstacle. I believe that OTF could interfere with the ability to add an effective sink for GLTR. At the same time, the DAO has the opportunity to say goodbye to OTF forever and switch to a new raffle system.

Problems of OTF:

  1. OTF will create pressure on the GLTR market and in the near future we will not have big raffles, so if we will use GLTR+OTF for raffles, then the demand for GLTR will be extremely low and even when we do some small raffles - very little GLTR will be used because everyone will be able to buy OTF at a discount on the baazaar;
  2. we will never be able to utilize all OTF because we have many AFK-ppl and the burning of their OTF depends on the time when they will come back and not on the total amount of assets which we will raffle;
  3. unattractive GLTR tokenomics. If we leave the OTF, then the GLTR tokenomics loses its attractiveness for new investors. Let’s compare: (a) GLTR has a fixed emission and every year the emission is reduced by N%, GLTR is used to win new assets in the raffes. (b) same as in the (a) + but to use GLTR for raffles, tickets need to be minted from GLTR, tickets can also be minted from frens, also, old tickets which minted from frens earlier can be used along with new tickets which minted from GLTR

My choice is definitely for the total end for OTF in favor of an exclusive and free GLTR, which will become a new raffle token.

OTF is the debt we have accumulated. And we must pay it off. We should not continue to accumulate it, taking it into our new life forever as a heavy burden. And I believe that now we have the opportunity to repay this debt.

The proposed solution is the final land raffle (which we promised since February 2022) only for OTF holders. The betting period will not be 3 days, but 90 days, so that everyone who is at least somewhat active can bet their tickets or sell them on the baazaar. This raffle will be the last one, after it there will be no possibility to use OTF on any other raffles.

So the cost of GLTRs freedom is a land which was already promised to the owners of frens anyway. And it’s not that we’re trying to pay the OTF holders less than they will be able to receive if they will get the opportunity to use their OTF on the raffles forever - mainly for us: we’re trying to make the GLTR do its job and live up to our expectations.

So we can make GLTR a free and exclusive new raffle token today. To do this, we do not need to hold the final land raffle right now and we do not need to make GLTR a raffle token ONLY AFTER the final land raffle will finish. We just need to make a decision. And then we must promise this final land raffle, because we are doing this raffle not because we are forced - this is our voluntary decision, which we consider profitable, therefore, promises are enough to determine the size and procedure for repaying our old debts - we are happy to pay according to these commitments, because it gives us very good prospects.

We don’t have to call the date or create exact conditions which define when this raffle should be held (lands price or average lvl of the aaltars or % lands which already started to build) - we just vote that the next citadel land raffle in the amount of land that was promised in 2022 will be held under general conditions after the DAO votes for LAND GBM#3 and after it, in a week, betting will begin and will last for 90 days only for OTF owners.

From the moment this core prop passes, GLTR will become a token used in raffles, even though there is no technical possibility to bet/burn GLTR in the raffle and there are no announced raffles.

Assets for GLTR raffles
I think 20% of main valuable assets (lands, portals, wearables) is an optimal number. And we must always stick to 20% and no 30% and no 100% as it was with wearable raffles. Extractors were extracted using frens and raffles because:

  1. unlimited frens emission
  2. easy frens mining
  3. raffles without the approval of the DAO and without a sufficient assessment of demand and market readiness for new assets
  4. huge wearable raffles with 100% without GBM

Now this will not happen, because:

  1. limited GLTR emission and it decreases every year
  2. GLTR mining becomes more difficult as TVL increases
  3. only raffles approved by the DAO
  4. 80/20 raffle/GBM for main valuable assets (decorative raffles can be 100% and FORGE assets - separate solution, but never more than 20% alloy and cores for raffles)

CONCLUSION

We can increase the utility of GLTR by using it directly for raffles, this should:

  • increase the depth of liquidity
  • increase utility for GHST (LP is a single way to use GHST today)
  • give good opportunities to farmers for passively using ALCH in LP and make our ALCH buffers very capacious
  • make the value of GLTR depend on demand for new assets but not on ALCH price level.

Thank you for your attention, see you in the comments!

13 Likes
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Great post! Does anybody have numbers of exactly how many FRENS are outstanding in the contract?

1 Like
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Thanks fren!

Frens is not a token, but we can get info anyway. I remember tools which shows frens total supply but cant find it

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I think a simple approach to GLTR raffles as laid out here makes a lot of sense.

This could still be done as “GLTR” raffle tickets (new ERC-1155’s) that have a fixed GLTR cost (say, something like 10K GLTR for a common ticket, 50K GLTR for an uncommon ticket, etc- it doesn’t matter how they’re priced as the # of entries will adjust to the perceived value of the prize vs the ticket anyway). One advantage of this as opposed to just using GLTR itself is that some amount of GLTR will inevitably be soaked up in tickets that aren’t entered in raffles, which is basically a zero-interest loan to the value of GLTR- similar theory as to why stores love to take pre-orders and sell gift cards.

It also feels better from a usability standpoint to buy 500 entries into a raffle rather than 2,500,000 entries. There’s just something psychologically about the “ticket” layer of abstraction that feels better, than just putting a currency in a pot. Another workaround for that is just to say 1 entry = 10K GLTR and then you buy how ever many entries you want. But you do lose out on the extra upfront gain of pre-selling tickets.

@soloegoist Do you want to make a Discord forum post on this? Seems busier over there. Thanks for bringing this up!

2 Likes
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I like the idea of ending OTFs with a 90 day final raffle. The GLTR could take its place as planned.

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nobody will mint ticket before raffle start because it has no sence, agree? who loves lock liquidity without chance to get reward?

and one more problem with 50k gltr for common ticket : if GLTR will grow so high - nobody can bet so expensive tickets on raffle with common schematics. Thats why imo the best way 1 gltr = 1 ticket (if we need to use only erc-1155 tokens for raffle - it can be converted automaticly when you bet on the raffle : 1 gltr erc20 => 1 gltr ticket erc1155 => bet (just 1 tx)