Schematic
Each wallet or contract exists in each blockchain network. Some features also utilize off-chain resources to deal with more than two blockchain networks.
Game Services
Game Services have transactions with game users and revenue control.
Reward: game users can acquire EPL Jewels and/or NFTs from games as rewards.
In-game Use: EPL Jewel is required for spending on in-game use.
Buying/Creating NFT: $EPL is required for official NFT sale and creating NFT with in-game assets. For an official NFT sale, other payment methods might be allowed.
NFT Fusion/Upgrade: NFTs can be enhanced with injecting additional resources for increasing grades or options.
Revenue Control
In our marketplace and games, fees are applied at certain rates for each transaction, which is in-game use, NFT trade, or a swap between $EPL and EPL Jewels at Epic League Swap we provide. And the Revenue Control deals with the flow of the collected revenue for deflation of $EPL.
The flow of the collected revenue is as follows:
Buyback from external exchanges to support the value of $EPL with revenue of cash or other tokens.
Marketplace fees from NFT trades.
Revenue Settlement: revenue is collected from Game Services and Epic League Swap. Revenue from consumption of EPL Jewel is determined periodically by calculating the approximate ratio with deposit volume of $EPL and remaining quantities of EPL Jewels.
Lockup: part of the revenue moves to Reserved Contract for lockup.
Share: other part of the revenue is used for staking program resources.
A small part of revenue is split into Operating Account for providing gas fee to activate transactions in the ecosystem.
Reserved Contract
In order to limit effective circulation of $EPL, part of the ecosystem revenue is locked up in Reserved Contract. Locked $EPL can be only released in cases of:
Blockchain migration to layer-1 mainnet.
Ecosystem treasury almost runs out and cannot provide appropriate liquidity for more than two months. In this case, governance voting will be performed for future alternatives.
PoS and its reward become required due to additional features.
Handling circumstances of anomaly.
For those cases, EPIC LEAGUE team would reestablish stability of the ecosystem. If unlocking the Reserved Contract is not necessary, lockup will keep continuously.
Internal Exchange
Internal Exchange provides swap between Epic Jewels and $EPL. Each Epic Jewel has its own ratio of variable exchange and the ratio is determined by our Automated Market Maker(AMM) protocol. The AMM protocol is different from well-known ones such as CPMM(constant product market maker) or hybrid constant function market makers because there is no liquidity deposit of Epic Jewels.
Operating Account
Due to operation on various blockchains, gas fees are required for many transactions in the ecosystem, such as withdrawing EPL Jewels for $EPL, moving assets among wallets and contracts. EPIC LEAGUE team manages Operating Account wallet to prepare enough gas fee balances in $ETH (Ethereum), $BNB (BNB Smart Chain), $MATIC (Polygon), etc. For supply of the balances, $EPL can be exchanged in external markets at EPIC LEAGUE team’s own discretion.
Epic League Swap
Epic League Swap works as an internal exchange of the ecosystem, and provides swap between EPL Jewels and $EPL. Each EPL Jewel has its own ratio of variable exchange and the ratio is determined by our own Automated Market Maker(AMM) protocol. The AMM protocol is different from well-known ones such as CPMM(constant product market maker) or hybrid constant function market makers because there is no liquidity deposit of EPL Jewels. The algorithm of AMM would be covered in Annexed Papers section.
Each off-chain EPL Jewel has its own exchange rate of $EPL. Users can deposit and withdraw in a manner of exchanging between $EPL and EPL Jewels. If a user exchanges $EPL to EPL Jewel, it is called deposit in a game of the ecosystem. Otherwise, a user exchanges their own EPL Jewel to $EPL, it is called withdrawal.
Withdrawal requires gas fee for activating a transaction from Operating Account. The gas fee is covered as withdrawal fee in $EPL.
Ecosystem Treasury
The timely and event-driven accumulation of up to the designated limit of each blockchain is an integral feature of the system. The treasury, established with a specific allocation, is reserved for three primary purposes:
Liquidity providing for Epic League Swap to withdraw $EPL.
Adopting new services and/or structures to grow the ecosystem.
Expanding the ecosystem to a new blockchain network and setting a new treasury within the chain.
NFT Lending Pool
Anyone may stake their extra Totem NFTs to NFT Lending Pool and let them be borrowed by the other game players without Totem NFT. The game players use the extra totems for their game plays and get rewards with the totems. The rewards are divided by a certain split ratio and accumulated in the lending pool’s capital. Everyday the accumulated capital is distributed to every staked Totem NFT depending on the weight of grade. The staked NFT’s owner can check how much EPL Jewels are shared and collect them. For getting back staked Totem NFTs from NFT Lending Pool, the owner should request unstaking to wait for their lending periods. And then the owner can claim the NFTs and the uncollected EPL Jewels.
Collecting EPL Jewels is finished by adding each amount of EPL Jewel to each game. The accumulated EPL Jewel capital is distributed daily over 7 days because the size of rewards may vary depending on day of the week. This scheme lets users stake and unstake their Totem NFTs anytime they want.
Due to a mismatch between the number of users without Totem NFT and the number of NFTs in the lending pool, more policies are required to fill the gap. In general case of expectation, the numbers of users without Totem NFT would be greater than the staked NFTs in the lending pool. While each user can use up to 3 or more Totem NFTs with a game account simultaneously, each user without Totem NFT can borrow up to one. The lending system assigns a Totem to a user arbitrarily. If there is no more available Totem NFT in the lending pool, the lending system does not work for the users. And the ecosystem assigns a virtual totem or nothing to the users until any Totem NFT is available to lend. A virtual totem just mimics part of off-chain features and no reward is shared with the lending pool.
Token Staking Program
Excessive market circulation devalues tokens. Unlike many projects that just choose to give token stakers the same cryptocurrencies from their treasuries, that can bring out more inflation, basically $EPL token staking programs provide a part of revenue of the ecosystem or other benefits as we plan. Staking benefits, terms and conditions are planned and designed by EPIC LEAGUE, and staking participants get stEPL tokens amount of staked $EPL.
With stEPL, participants will get benefits and rights to suggest or vote on governance. stEPL is exchangeable back to $EPL after terms of a staking program are satisfied.
Staking terms and conditions will be provided to participants at appropriate times in Epic League Hub.
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