This is a draft proposal open for discussion regarding the possibility of obtaining frens from Aavegotchis.
What is the problem?
My thinking stems from the fact that there are two problems that are likely to become more pronounced over time.
First, getting an Aavegotchi is a tough choice for small wallets. Also, having an Aavegotchi is not a guarantee of profitability because Rarity Farming rewards mostly the wealthiest players.
While Gotchiverse can start to create returns for Aavegotchis, I think that today GHSTs are more valuable than NFTs, especially Aavegotchis.
For small portfolios, 1 Aavegotchi is worth nothing outside of speculation and its potential price in the future. If you count the floor price of an Aavegotchi (about 500 GHST), staking 500 GHST yields 500 frens per day, a rare ticket, or about 0.5 GHST.
So if I spend 500 GHST to buy an Aavegotchi, I go from 0,5 GHST per day to 0. Or almost 0 if I’m lucky enough to be ranked in rarity farming which will bring me a few cents anyway.
What could be the solutions?
Keeping an Aavegotchi could pay the holder a certain amount of FRENS.
It would be interesting to pay more FRENS based on Gotchi, but this could induce a new bias of paying the richest. Perhaps based on gotchi age would be the best way to reward older players rather than the wealthiest (e.g. 1 FREN / day / 1000 blocks).
What would be the benefits?
Encourage players to buy Aavegotchis instead of holding GHST
Boost the activity of the baazaar
Increase the floor price of Aavegotchis
What are the risks?
Having more interest in Aavegotchis without having new Aavegotchis on the market can make it harder to access.
Less liquidity staked = ? (does it have any downsides?)
What do you think frens? Is it a good idea? Just an interesting thought that needs more study? Or a … complete piece of shit?
I like the idea, and I agree with your sentiment and concerns. I think FRENS works, but I am personally in favor of an Alchemica incentive. An interesting idea was just proposed in the "A drip feed of Alchemica, and the delay of sale 3" thread regarding airdropping a pre-mine of Alchemica to realm holders based on vintage.
A similar mechanism for gotchi’s might be interesting. Maybe use the age based approach for avgotchis to determine their Alchemica airdrop.
I am more worried about the current utility of land parcels compared to gotchi. Gotchi already have utility. You can get a return from rarity farming, they age, you get kinship for petting them, you get xp for voting. All these things either give return or improve the value of your gotchi over time. Kinship will be used in the gotchiverse for channeling alchemica, so the higher this stat, the more return you can get for your gotchi in the form of alchemica later. just holding a gotchi and taking care of them already builds up value.
Compare that to land parcels that have no utility or way to improve their value currently. Like Rancho, I am more in favor of the Alchemica incentive towards land parcel holders. Either in the form of a drip or an airdrop.
You are probably right but I think they are two separate proposals. The other proposal of airdrop for paarcels is probably a very good idea.
On the other hand, rarity farming is one thing but it doesn’t solve the problem unless you change the formula.
I regularly bring new players to Aavegotchi and they all make the same observation. Note that new players can’t come with 1000 GHST and spend it all without having a little more confidence in the game.
What they see when they arrive is that they earn FREN every day. And then at some point they want to have a gotchi or a portal (the degen way ). And then they realize that if they do that, they lose money.
So they calculate how much they could get in rarity farming. Well, often it’s just 0. Sometimes 30 GHST over a whole season if they are lucky.
Starting from a 700 GHST portal. That’s 700 frens per day. That is 10-13 GHST every 14 days. This is a guaranteed gain and allows you to participate in GBM auctions.
So they conclude easily GHST > Aavegotchis.
The calculation is fast and it is difficult to contradict them. So this proposal is just about that.
I recently opened a portal and was lucky enough to have a gotchi BRS 555. So I tried with my small savings to equip it for the next season of rarity farming.
In total, about 700 GHST spent to get a BRS 584 (here it is).
At the last Rarity Farming, it would have brought me 150 GHST. Assuming that a season lasts 2 months, that makes 60 days.
If I sell my gotchi + the wearables, that makes ~3700 GHST. With that I can participate in GBM and earn some money. About 10 GHST every 3 days (not counting GBM profit), that’s 200 GHST for the season.
And selling this gotchi 3000 GHST is paper hands, so…
It is possible that more and more people will make this observation. In the long run, as long as the gotchiverse has not proven the true value of gotchis, it may harm the value of Aavegotchi as a whole. Especially for new comers.
I get your point on the current pure predictable return on GHST compared to a gotchi, I would still disagree that GHST is the better investment of the 2. I would say GHST is a safer way to just get a predictable return if you would sell all your tickets.
In general gotchi keep increasing in value, gotchi I bought 6 months ago are worth almost double their amount in GHST right now(compared to only a 25% increase in my total GHST value had I just staked for frens).
Add to that the profit of rarity farming I got, future lending of my gotchi, alchemica farming and channeling. I know these are ofc more speculative yes, since we do not have a concrete whitepaper yet.
That makes it harder to predict their exact return and harder to explain to people why they should buy a gotchi instead of just keeping it in GHST. If they are worried about that, it might even be better for them to wait on the whitepaper and just keep their funds in GHST for now.
I expect the biggest surge of players to come once there is a full game since then you get more predictable numbers, which convince people(or not).
If we would pay out frens to gotchi themselves, the biggest problem I see with that is the increase in frens supply. If we take 500 GHST(around current floor price) per gotchi as a value and you get that as frens return for easy calculation, plus we know there are about 17.5k gotchi in circulation, that is an increase in supply of 8.75 million GHST accumulating frens.
Maybe that is not as much as I think it is. I do not know the exact stats of how much GHST is staked in total. But it could be a problem and just crash the ticket price. If we want to pay out frens to gotchi holders I think we need to revision the entire frens system to balance out the payout.
If I have 500 GHST, I earn 500 FRENS per day. Assuming that an Aavegotchi pays the same, this means that the result of FRENS generated is the same. I suppose a ratio of 1/10 would make more sense since an Aavegotchi already has multiple other interests and the purpose of this proposal is mainly to reward new players. And to make them want to have a gotchi.
It would be interesting to hear from others, anyway.
Thats why Im not messing with land parcels. (at this point) I just pet my Gotchi 2Xs a day. Resell wearables at a price that allows a profit then buy cheep and do it all over again That way I continue to make GHST with 0 headache.
Is the Spirit Force mechanic an abandoned idea? I assumed staking GHST is how you earned FRENS and that the Aavegotchi was a speculative purchase with some spirit force passive value and utility TBD when the game existed.
If there wasn’t a roadmap I would agree with this proposal, but right now I think the main driver of purchasing an Aavegotchi is FOMO, as I assume it will be worth an order of magnitude more when there is a mechanism in addition to/more frequent than RF.
There are some pros & cons. Overall give aavegotchi holders a reward is a good idea,
But if too much frens are emitted on top of the ones emitted everyday by staking GHST or GHST based pools tokens, it might in the end lower the price of the raffle tickets, so the APY of the staking process would be lower also.
Plus the large GHST holders would benefit a lot from that one.
So i get it that an incentive to hold a gotchi may be a good idea, not sure if using frens as a reward is a good solution.
Changing the rule of rarity rewards might be another option
Maybe the possibility of getting alchemica (like a passive form of channeling alchemica from above) before the Gotchiverse is released would be the only solution. And it look like there are other proposals like this.
). And then they realize that if they do that, they lose money.