The Rewards Card Liberation Lottery White Paper
A Delegate to unlock soul bound rewards cards lottery system
This white paper outlines the goals and mechanics of a new project designed to support the HIVE ecosystem, promote deflationary measures for SPS (Splinterlands' governance token), and offer players a unique opportunity to unlock Soul Bound Cards from the Chaos Legion set. By integrating community participation through delegation and curation, this project aims to provide value across multiple layers of the HIVE and Splinterlands ecosystems.
Key Objectives:
Support the HIVE ecosystem: A portion of the project’s profits will be donated to the Decentralized Hive Fund (DHF) to support the development and sustainability of the HIVE blockchain.
Deflationary Impact on SPS: Through the burning of SPS in exchange for DEC (Dark Energy Crystals), the project will help decrease the circulating supply of SPS, contributing to a deflationary tokenomics model.
Community Engagement via Delegation and Curation: Players can delegate Hive Power to a designated curator, receiving 80% of the curation rewards while having a chance to win unlocked Soul Bound Cards through a lottery system based on their delegation.
Project Mechanics
- Delegation and Curation System
Participants in this project will be able to delegate their Hive Power (HP) to a specially designated curator account. The primary goals of this delegation system are twofold: provide ongoing curation of Hive content and offer a fair and transparent lottery system that unlocks Soul Bound Cards.
How It Works:
Delegation: Users delegate their Hive Power to the curator account. This delegation will power up the account, allowing it to curate content on the HIVE blockchain. The delegators content will be considered first for voting as long as it meets certain quality standards and will be manually curated.
Curation Rewards: Delegators receive 80% of the curation rewards, providing them with a passive income in HIVE tokens.
Lottery Participation: Delegators will also receive tickets for the Soul Bound Card lottery, weighted based on the amount of Hive Power delegated. The longer and larger the delegation, the more tickets a participant receives.
Lottery Details:
Unlock Mechanism: Every time the curator account accumulates 120% of the card’s unlock cost (through curation rewards and contributions), a lottery will be triggered.
Ticket System: Delegated Hive Power will be converted into lottery tickets based on a weighted system. The more HP a participant delegates, the greater their number of tickets and chance to win.
Winner Selection: A random number is drawn from the ticket pool, and the winner receives the fully unlocked Soul Bound Card at no extra cost. This incentivizes continued participation in both the HIVE and Splinterlands ecosystems.
Delegation Requirement: To qualify for each lottery, delegations must remain in place for the entirety of that lottery cycle. This ensures stability in the delegation pool and fair participation.
SPS Burning for Deflationary Benefits:
The project introduces a mechanism to reduce the supply of SPS and encourage its deflationary nature. As part of the card unlocking process, SPS tokens will be burned in exchange for DEC.
How It Works:
SPS to DEC Conversion: A portion of the project's revenue will be used to purchase SPS tokens. These tokens will be immediately burned (removed from circulation) and converted into DEC to further support the Splinterlands ecosystem.
Deflationary Impact: By burning SPS, the project reduces the circulating supply of the token, which can have a deflationary effect. This encourages a higher valuation for SPS over time by creating scarcity.
This burning mechanism benefits both SPS holders and the broader Splinterlands economy by increasing the demand for DEC, which powers various in-game functions and transactions.
Supporting the HIVE Ecosystem via DHF Donations
The Decentralized Hive Fund (DHF) plays a critical role in maintaining and advancing the HIVE blockchain. As a commitment to sustaining and enhancing the HIVE ecosystem, the project will allocate a portion of its profits to the DHF.
Profit Allocation:
5% of all profits will be sent directly to the DHF.
This contribution will help fund infrastructure development, technical improvements, and community projects, ensuring the long-term success of HIVE.
Benefits to Key Stakeholders
1. For the HIVE Ecosystem
Ongoing Financial Support: By allocating a portion of the project’s profits to the DHF, the project provides continuous funding for the development of the HIVE ecosystem.
Increased Engagement: The project incentivizes greater participation in Hive curation through delegation, increasing the overall value of the Hive Power pool and engagement on the platform.
2. For SPS Holders
Deflationary Impact: Regular burning of SPS tokens contributes to their scarcity, which could lead to an increase in value as the supply decreases over time.
Support for Splinterlands: By converting SPS into DEC, the project actively contributes to the economic dynamics of the Splinterlands game, supporting ongoing in-game utility for both tokens.
3. For Splinterlands Players
Unlock Soul Bound Cards: Players who delegate Hive Power have a chance to receive fully unlocked Soul Bound Cards from the Chaos Legion set through the lottery system, with no additional costs involved.
Curation Rewards: Delegators receive 75% of the curation rewards generated from the curator account, providing them with a passive income stream in HIVE and other Hive-based tokens. 5% of the unallocated rewards will go to purchasing HBD to create a passive income stream that can be used to subsidize the lottery capital needed to be raised and with each successful lottery the account will grow and so will the interest payments that will go to directly offsetting the cost of the lottery and at some point there may be an allocation to the second place winner of a portion of these profits from interest in order to provide additional benefits by converting it to HIVE via the stabilizer and delegating it directly to the winner for an indefinite amount of time. The HP will be delegated so that it will always stay powered up and used for curation and not just sold off.
Community Participation: The weighted lottery system ensures that participants feel engaged and rewarded for their involvement in the project, whether through delegation or voting.
Sustainability and Future Growth
The project is designed to be self-sustaining, with a clear and transparent profit allocation strategy. By continuously burning SPS, contributing to the DHF, and rewarding community engagement, the project aligns with the goals of decentralization, token scarcity, and ecosystem sustainability.
Future Expansion:
Expansion to Other Card Sets: While the initial focus is on unlocking Soul Bound Cards from the Chaos Legion set, future expansions could include cards from other sets or even new gameplay-related assets.
Integration with Other Layer 2 Tokens: As the Hive ecosystem grows, additional Layer 2 tokens could be integrated into the curation rewards structure, offering more diverse incentives for participants.
Conclusion
This project represents a novel approach to decentralized engagement on the HIVE blockchain. By offering players the opportunity to unlock valuable rewards cards, contributing to the deflationary model of SPS, and providing consistent support to the DHF, the project creates a win-win situation for all stakeholders involved.
Benefits at a Glance:
Support for the HIVE ecosystem through DHF contributions and increased curation activity.
Deflationary pressure on SPS by burning tokens, reducing supply and increasing scarcity.
Player rewards in the form of unlocked Soul Bound Cards and passive income from curation rewards.
This project not only strengthens the Splinterlands and HIVE ecosystems but also creates a sustainable mechanism for value generation and community involvement.
This is a first draft of the white paper and there may be significant changes before the project launch
This white paper was written with the assistance of chat GPT using my original ideas and thoughts.