Thread by @monethereum

I just took a bit of time to look at the recent @karithaio announcements, especially the adjusted staking awards and the new tokenomics and I want to do some math with you in this 🧵 /1 #ElrondNFTs #ElrondNetwork #P2E #NFTs #Pixelverse

@Karithaio Creating such a complex tokenomics is surely no easy thing, so adjustments will and have to be made at some stages, it's a bit trial and error. /2

@Karithaio First of all, let's assume 1 $REALM is 0.025 USD (the Seed Phase price). It could be higher, it could be lower, but this should be okay as the most conservative base level. /3

@Karithaio Hard Facts: Capital to be raised by Token Sales: 1.25 Million USD seed round, 2 Million Private Sale, Public Sale there's a price range so let's go by the middle price: 1.625 Million. So target raise from token sales is 4.875 Million USD. /4

@Karithaio Seed Phase investors can also get advertising space and ownership of key areas. So a lot of things(almost everything that can be) are going to be commercialized. /5

@Karithaio The NFT collection costs are another interesting aspect, let's do the calculation based on the seed valuation and the public valuation, 0.025 vs 0.05 USD: /6

@Karithaio Upgrading/Dismantling buildings: 15 vs 30 USD, Characters 112.5 vs 225 USD (10000 minted, equals a raise of 1.125 million/2.25 million), same price for land. Faction Cards 62.5 vs 125 USD /7

@Karithaio At this moment, the way to earn REALM is genesis staking. The rewards have been sharply adjusted and cut by factor 3 for everything except cartography guilds that have been cut by factor 6. It was necessary for the new tokenomics to work. /8

@Karithaio So some examples: 2.85 5.58 11.27 109.59 current staking rewards per day per building type, ascending by rarity. This is probably only interesting and understandable for Karitha Owners /9

@Karithaio Let's round this, 3 for a GS, 5.5 for a BS and a PS, 11 for a TA, 110 for a CG / 10

@Karithaio This means with 0.025 usd per realm valuation, rewards per day: 0.075 USD GS, 0.1375 USD BS/PS, 0.275 USD per TA, 2.75 USD per CG. at 0.05 we'd be at: 0.15 USD GS, 0.275 USD BS/PS, 0.55 USD per TA, 5.5 USD per CG / 11

@Karithaio Over 30 days: 2.25 USD GS, 4.125 BS PS, 8.25 TA, 82.5 CG. Or at 0.5: 4.5 USD GS, 8.25 USD BS PS, 16.5 TA, 165 CG. /12

@Karithaio Not going into longer timeframes, as these things are dynamic and might change. But you got a general picture. /13

@Karithaio So what do I think - I think the corrections to the staking rewards are right and correct. What I don't think is that the future land and character mints should be that expensive in terms of realm. If we assume a realm valuation at 0.05 usd per Realm, those prices are steep. /14

@Karithaio And also with the current staking rewards, unless you'd been amassing realm by now, you will be 'forced' to buy realm/spend egld in order to mint a character, as a Tavern would need more than a year staking to earn 4500 realm for example. / 15

@Karithaio Overall the project is very ambitious and costly to realize, so all these raises and the valuations are high, but not astronomical. Thanks for your attention / 16

@threadreaderapp unroll

"here’s a deceiving/misconception about the nfts, the realm is burnt and sent to the treasury to further boost liquidity in other forms, while 95% will always be locked
(..) so it's not a "raise". - just a little feedback from @Karithaio