Sacrifice a wearable for quick GHST

Ideas
1

Hello, here is an idea I’d like to submit.

Sometimes you need quick GHST and you can’t afford to wait for your precious wearables to finally sell.

Two ways we could solve this.

OPTION A : you BURN the item, and you immediately get GHST (amount to be discussed). This would increase wearable rarity over time.

OPTION B : you put the wearable at an auction (with or without a reserve price). People bid GHST, winner pays a fee to the treasury, everyone is happy. Obviously, the item is not burned in this scenario, so the rarity is left intact.

In this discussion, I suggest we focus on option A, as I believe it is the more interesting approach. Feel free to start a poll between A and B though.

How to calculate the amount you get for burning the wearable?

Someone suggested a % of the store value, something like 70-90% of the store value. Price shouldn’t be too low though, otherwise it will be too painful and no one will ever do it Probably 90% of store value is low enough. We could add some randomness to it (“anywhere between 90 to 95% the store value”) for impredictability (might be a deterring mechanism against abuses?).

But i’m concerned using store price as a basis might be too low. Imagine getting 1500 ghst for burning a mythical you paid 8000 : it seems problematic). Any idea ? Aim is to be able to get a fair discounted price somehow.

On the other hand, if you don’t want to get such a low price and you can wait a bit, you still can try and get a better price in the bazaar. Burning is only if you can’t wait (or don’t want to).

Where would the GHST come from ?
Realistically they would come from treasury.
An unlikely attack scenario could be people burning lots of items to siphon the treasury but

  1. That’s probably unrealistic : it would be extremely costly to do so (you’d have to buy the items and you would get less than what you paid for)
  2. A hard limit could be set (“no more than [tbd] GHST distributed like that per day in total”)

Foreseeable consequences would be:

  • an increase in rarity (value) for wearables and complete sets over time. Some mythicals could become as rare as godlikes. That would be a reason for people to hodl longer, as long as they can (less items put for sale, increasing bazaar price faster).
  • improved GHST mobility, hence probably more bazaar fees for treasury
  • some sets would eventually become impossible to complete (making gotchis with complete set very desirable, and other sets more valuable)
  • it would counteract (to a certain extent) dilution caused by introduction of new wearables

If it’s approved, it would be interesting to be able to track items burned and remaining quantities of a given item. It would greatly accelerate the game theory dynamics around wearables.

What do you think about this? Let’s discuss.

Sidenote : do I need to link my account or something ? First time I do that in a Dao.
Also : not a native English speaker.

3 Likes
2

This idea brings a few things to mind. Many years ago, a stamp collector held one of two stamps in existence. He finally was able to obtain the second stamp and guess what he did? He burned it. Literally. Now he owned a 1/1 stamp which was worth significantly more than both stamps combined.

With the GBM auction, it is theoretically possible for a player to obtain every single item in a set. I was even joking about this with the mugs. Someone could have outbid on all 1,000 mugs and become the mug baron. With this burn mechanism, they could then burn 999 mugs and have a 1/1 item. So in that sense, this mechanic tilts the scales in favour of the collectors over the gamers.

I do however like the idea of item liquidity (something NFT’s certainly lack). Being able to return an item, even for 80% of mall price is appealing, for sure. The only challenge I see with this is during bear markets or big sell-offs. There would be tremendous selling pressure as people flee to fiat/stable coins. The treasury would take a pretty big hit as a result.

This does create some interesting gameplay mechanics though and reward the diamond hands. If people burn off 20%-40% of an item in a bear market, then naturally the remaining items go up in value.

I would need to think more on this before deciding whether or not I support the idea. I just wanted to share some of my initial thoughts on the subject as I find it rather compelling.

2 Likes
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Another alternative would be for the option to liquidate the item at 75% of the mall price and then the item be relisted in the mall for the og price. That would solve the treasury depletion (though tbh I think the actual drain would be negligible), keep item stock the same, and give some life to the mall, although I’m not sure if they intend to retire the mall soon.

1 Like
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Interesting points, thanks.
Someone could theoretically play god and turn commons into his own godlike item I guess, yes.

Although if someone could afford to decimate an item on his own, to the point of owning the last remaining one, he would still need to find a buyer at an impossible price for his now godlike mug.

He probably wouldn’t be able to sell it unless compromising significantly on the price, not being able to cover the cost of buying everything / burning everything at a loss.

And if he could find someone to buy it, well, the object is still alive under its new status, and the market would have filled its purpose.

I need to think about it too but I’m not sure I see a problem here, other than a free market eventuality.

1 Like
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I like the more modest proposal of feeding things into auctions. Perhaps the original owner gets some fairly low percentage of market value immediately, I’m thinking 25-50%, and those items go into an aauction contract. Then we could have routine GBM-style auctions. Say, once a month, all the items sacrificed to auction, would be all auctioned at once for 72 hrs.

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Anyone can send anything to a burn address, so being a baron has always and will always be possible in the way you describe. But I don’t see a lot of incentive to do that with aavegotchi, since supply expands completely unlike rare stamps, coins, or books.

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