🎰Nexter Game Token
Nexter operates the Prowess Chain, utilizing the Nexter Game Token as its native currency, a representation token without intrinsic value. All the integrated cryptocurrencies, whether fungible or non-fungible, are correlated with their respective dollar values, determined by credible sources.
For example, if a BoreApe NFT is valued at 20,000 USD, corresponding game tokens will be distributed accordingly. Similarly, if a user wants to stake Uniswap LP tokens, valued at 1.5 USD per token, he/she will receive corresponding game tokens, sourced from reputable channels. In cases where obtaining values poses challenges, the list of trusted sources may be expanded, subject to Nexter Governance Proposal approval.
Consider a scenario where a user holds various cryptocurrencies, collectively valued at 50,000 USD and stakes them on Nexter.
10% corresponds to token A
20% corresponds to token B
40% corresponds to token C
30% corresponds to token D
This will generate 500,000 Nexter Game Tokens
Now the user participates in a Prowess Chain protocol using 100,000 game tokens, earning 100,000 Reward tokens i.e, 100% return. Rewards are distributed as follows:
10,000 reward points for token A
20,000 reward points for token B
40,000 reward points for token C
30,000 reward points for token D
Since reward points are calculated for the overall leaderboard points per token per group (explained in the next section), token valuation becomes less critical as each token's exposure to rewards is allocated to its respective pool.
All protocols within the Nexter Prowess Chain operate on a weekly timeframe. Users' points and game tokens undergo a weekly refresh. Accumulated points can be converted into leaderboard rewards tokens, which users can further convert back into the protocol's designated reward token. As an example, if a user secures the 3rd position on the token A leaderboard with a 20% allocation of Token X (e.g., USDC) from a 10,000 USD total pool, they have the flexibility to convert it to USDC on the source chain where they have staked. This streamlined process ensures a regular and transparent reward system for users within the ecosystem.
User Token Groups:
To ensure fairness among protocol users, individuals are categorized into different Groups based on their token holdings. The initial Group classification is determined by the Nexter team and can be modified through Nexter Governance Proposals in the future.
Users may belong to multiple Groups based on their token holdings. For instance:
If a user holds Nexter Reference token A valued at 5000 USD, they will belong to Group 4 for token A.
If a user holds Nexter Reference token B valued at 20000 USD, they will belong to Group 6 for token B.
Each token group's rewards correspond to the total token staked value within that Group. For example:
If a protocol has 100 Stakers in Group 3 with a total staked value of 450,000 USD (with an average of 1500 USD per staker), and the total staked value for that token is 5,000,000 USD, with total weekly rewards worth 10,000 USD (based on an average APY of 10.4% per year), then for Group 3, the total allocated rewards will be (450,000 / 5,000,000) * 10,000 = 900 USD.
This system ensures fairness across all Groups, allowing users to level down via unstake. When a user unstakes, the corresponding amount of reward points for that week will be removed. For instance:
If a user has 10,000 reward points and is at the bottom of Group 3 before unstaking the token k of 2000 USD staked and end up in Group 2 as the highest reward points holder, -
To mitigate this risk, when a user unstakes during the week of the competition, their points will be adjusted to the new Group with an additional penalty.
In the current use case, if a user unstakes 1000 USD, they will have to let go of:
5000 reward points (A token reward points) * 1000 (Unstaked Amount) / 2000 (Current Balance) = 5000
20% of the points, i.e., 10000 (A token reward points) * 20% = 2000
The user's points will be adjusted to 3000, i.e., 10000 - (5000 + 2000).
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