Introducing the Forge:
Situation: The wearables market is in a very difficult position with decreased demand during the bear market, wearables inflation, gaps in items stats, shortage of hand/face/eyes/pet slots, stale rarity farming with no new items, and general lack of ability to engage with the wearable itself. Moreover, the Aavegotchi ecosystem is suffering from low engagement, difficult to understand path towards “leveling up” and, thus, little time spent in the Gotchiverse. Alchemica continues to lose valuation and the liquidity pools are unacceptably low.
Background: The Aavegotchi DAO commissioned a wearables report completed by MikeyJay which can be seen here: http://wearables.report/. There is no easy way to trade wearables and certain slots are far rarer and more expensive than others. Outside of “flipping NFTs” there is no Gotchiverse-based path towards upgrading your gotchi’s equipment. Separately, alchemica values are rapidly declining due to high inflation. This is negatively impacting Gotchi price as UBI is both decreasing in value and contributing to the inflation. Additionally, there have been no new measures of engagement or skill added since inception of the gotchiverse, leading to decreased attachment to the gotchi itself. Ecosystem stakeholders, concerned about further inflation and asset devaluation, have voted to turn off additional wearable sales further entrenching a stale economy, leaderboards, likely reducing overall engagement.
Assessment and Response:
I propose the creation of the Aavegotchi Forge as a powerful tool to address these problems and add further depth and composability to the Gotchiverse and the Protocol assets. The goals of the forge:
- Increase gotchiverse engagement
- Create a clear path towards advancement
- Add significant alchemica sinks
- Provide a non-inflationary path for new wearables
- Tokenize/fractionalize wearables by introducing 10 Aalloys as their composition tokens
- Create a new economy for forge materials
- Incentivize sacrifice of gotchis by creating a new “Essence” token required for Godlikes and all pets
- Add depth to Aavegotchi lore by exploring these base elements, essence, and forging
- Create a sustainable path towards DAO liquidity by Zapping alchemica spent in forging to LPs
- Add the first Gotchiverse skill, Smithing
- Pioneer a reproducible implementation path of DAO ideas and talents
Forging and Aalloys
All wearables will be composed of the 10 Aalloys. In addition to Aalloys, Godlikes and pets will require essence which is obtained by sacrificing a gotchi. Wearables can be melted/broken down into their Aalloys ± essence at the Forge installation. Specific wearables, both new and old (still in discussion) can also be created at the forge. There is an alchemica cost for Forging. Not all forging is successful, however. Higher forge installation levels and Gotchi smithing skill will determine the success of forging. It will feel challenging to successfully forge a Godlike as only the most talented Smiths + high level forges will be able to consistently be successful in forging. If forging is unsuccessful, the required alchemica is lost, however the Aalloys and Essence will not be lost or burnt. Successful smithing will increase your smithing skill. It will cost more Aalloy to forge a wearable than will be obtained when melting it down. This multiplier will serve as an Aalloy burn which will reduce the potential building blocks of wearables. This will create deflationary pressure on wearables and create room for additional wearable sales to fill gaps and create revenue.
The 10 Aalloys
The Aalloys are combinations of two alchemica or concentrated versions of the alchemica. These deserve fun and catchy names for which I need community feedback. Certain Aalloys provide specific trait bonuses and are more often used in specific slots. For example, Alphalpha (Alpha-Alpha), is commonly found it hand items while Fomomo is used for Aggression modifying wearables. See the attached google document for specific trait impacts. I have mapped out a potential composition table for the common wearables. If there is interest in this project, I can map out the Recipes for Uncommon-Godlike. It costs more aalloy to mint a wearable than can be obtained by melting it. This is known as the Aalloy Ratio which can be used as a deflationary tool or provide lootbox contents, raid loot, rewards, etc. I have used 1.1 as the Aalloy Ratio in my model. This can be modified with feedback or perhaps future installations advancements in the technology tree. There is a fixed amount of Aalloy in the gotchiverse unless there is a new wearable sale. Aalloys could be used in the future to mint Skins which would provide additional deflationary pressure on BRS-modifying wearables. Aalloys would be tradeable in the Baazaar and create a fun, secondary commodity market. Aalloys will allow destruction of rare items to create many less common items in a deflationary way. This will help fill wearable gaps while also creating an upwards path towards forging a more rare item. This will allow for composable NFTs creation with a set supply – something that can only be accomplished by Web3 gaming!
Essence is obtained by sacrificing a gotchi. Each gotchi will give up 100 essence when sacrificed. All pets will require essence for forging. Godlikes will require essence as well. This creates a unique lore opportunity where each Godlike carries the soul of a sacrificed gotchi – a powerful deflationary mechanic and source of lore. Imagine your godlikes giving off the a specific aura which is the essence of all the gotchis inside! Deflationary pressure on gotchis will support gotchi price while, hopefully, creating room for H3. We can decide on trying to airdrop essence to previously sacrificed gotchis or use that essence as lootbox items, gameplay rewards, or possibly a raffle distribution.
The Smithing skill will start at 50 and level up every 50 points. Smithing skill increases logarithmically based on the FRENS ratio of the wearable item. For example, successfully forging a Common grants 2 Skill, while successfully smithing a Godlike grants 56 skill. High smithing skill increases the chance of successful forging. A master smith with >450 Smithing has an additional 45% chance of Smithing success. Unsuccessful smithing attempts will reduce smithing skill by the same increment at which it’s granted.
The Forge is a Gotchiverse installation used for melting (new word?) and forging new wearables with Aalloys and Essence. Leveling up the installation increases the chance of success in forging. For example, a L1 Forge + Gotchi with starting level of 50 smithing only has a 40% chance of successfully crafting a common and a 15% chance of successfully crafting a Godlike. Each installation level grants an additional 5% chance of success. Both the installation and the forging cost will serve as strong alchemica burns. The alchemica required to forge is also calculated logarithmically- ~1500 FUD EQs to attempt forging a common, 50,000 FUD EQs to attempt forging a godlike. Aalloys and Essence are not lost if the attempt is unsuccessful. I have not yet devised the installation and upgrade costs for the Forge or the specific alchemica ratios for forging attempts. We may want to make forging high rarity wearables even more difficult or expensive.
Alchemica spent on forging costs will be zapped into the alchemica liquidity pools providing a sustainable path of liquidity. The DAO will provide a base level of GHST (100k to start?) to pair with the spent alchemica which can be replenished as needed and by DAO vote.
I would like the DAO to complete as much of this effort as possible. Ideally, we leverage our DAO Treasury Coffers to produce the smart contract work, economic details, wearable Aalloy recipes, etc. We will certainly need assistance from Pixelcraft as I believe this would best be served as a Gotchiverse installation and not an SDK or separate DAO-run user interface. We have the community talent to push this forward, so let’s do this!
Thanks everyone for your feedback. I had a lot of fun theorycrafting. Please provide feedback on the following specifics:
- Aalloy recipes, including the alphalpha and kekek wildcard plan
- Do we want to airdrop or distribute essence from previously sacrificed gotchis?
- What is an appropriate Aalloy ratio (cost of forging/aalloy obtained by melting)?
- Are there concerns about negative price impact on highly valued common/uncommon wearables? Should we maintain the cap of wearables such as fireballs so as not to devalue them? More could only be created if some were melted for example.
- What do you think about logarithmic alchemica pricing and skill progression?
- What are better and funnier names for the Aalloys?
See my Google Sheet with all details here: Aavegotchi Forge - Google Sheets