The Economy
As technology allows more people to move more of their lives online, an entire digital economy is developing inside these new virtual worlds.
The primary revenue of the DAO will come from leveraging LKOC-owned NFT assets, either directly, or indirectly, via a rental program where members utilize the assets in exchange for a portion of the in-game rewards going directly to LKOC;
NFT ownership will benefit from the rise of the in-game asset’s economic value is reflected in the value of its native fungible token on the open market. The value of all activities in LKOC will be captured in the fully diluted market capitalisation of LKOC governance tokens.
The Last Knights of Cryptopia economy will feature a one-token model. The only cryptocurrency involved in our game is the KNIGHTS (or KNGT) token, which is a governance and utility token. KNGT tokens are deflationary.
The LKOC business model requires the following elements of a play-to-earn game to make it suitable for selection by the DAO
A virtual land-based economy that can be acquired;
A virtual NFT economy with a native token;
Play-to-earn functionality where players are rewarded native tokens for in-game activity.
There are multiple processes in the game that require the tokens and that burn them in the process. Essentially, any time players spend the tokens in-game, even in the in-game store, the KNGT is burned. The in-game currency in Last Knight of Cryptopia, Cryptopia, will not be launched as a cryptocurrency, and it cannot be minted as an NFT.
The supply of the character NFTs in LKOC will be inflationary. However, this inflation will be offset through the Character Sacrifice system.
The Sacrifice system allows you to enhance the attributes of any weapon or wearable item by sacrificing a certain number of NFT characters, which will burn the selected NFT characters in the process. By Sacrificing characters, you can receive the following benefits (depending on the number of characters that you’ve chosen to sacrifice):
“Of Power“ Sacrifice: Sacrificing 1 Character = Item attributes improved by 20%
“Of Demise“ Sacrifice: Sacrificing 2 Characters = Item attributes improved by 30%
“Of Clan“ Sacrifice: Sacrificing 3 Characters = Item attributes improved by 40%
“Of Blood” Sacrifice: Sacrificing 5 Characters = Item attributes improved by 50%
Because there is no benefit to sacrificing a more high-value character compared to a low-value character, this system will have a tendency to eliminate the supply of lower-valued characters on the market, raising the floor price and value of all Last Knights of Cryptopia characters.
There are four main ways to earn money in Last Knights of Cryptopia:
Own valuable Character NFTs. The simplest is passive income from owning a character or land — 5% of the resources harvested by players are redistributed to NFT landowners, and character NFT holders also receive 10% of the profits from in-game purchases in KNGT. Trading land or NFT Assets. Staking KNGT Tokens earns players KNGT.
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