Token Economics
Non-Fungible Token
Degen LP features a Non-Fungible Token (NFT) system where purchased NFTs represent a perpetual claim to the transaction fees (or "taxes") generated by both the raffle-style lottery and the dice game on the platform. The NFTs will be available for resale and transfer.
90% of the 5% tax on lottery winnings and 1.5% tax on dice game winnings will enter a tax wallet, where it will be available for redemption by NFT holders. This provides an upside for users, whether they are bettors or investors.
Transaction fees will be collected and claimed by NFT holders on a regular basis, as determined by the platform's governance structure. Holding an NFT will confer rights to the individual in the future, allowing the owner to vote on and make proposals on matters such as:
Pool frequency Pool taxes Pool min/max amounts Current entry amounts Cross chain integration New features Cross project collaborations Design ideas We have implemented a soft cap of 10,000 NFTs, with tranched releases of 2,500 NFTs.
We may increase the limit of NFTs in the future, but for now, we have no plans to do so. Our reason for not wanting to increase the soft cap beyond 10,000 NFTs is due to the diminishing rewards for each user as more NFTs are released, assuming transaction fees collected stay the same.
It is worth noting that tax redemption of NFTs is chain-specific. Our current plan is to release a Degen LP Fantom NFT, making users who own this NFT eligible to redeem taxes collected by our FTM DLP pool.
In the event that a second pool is set up on another chain, such as ETH, users who own the ETH DLP NFT will NOT be eligible to claim from the FTM DLP Tax pool and vice versa. There are no arbitrage possibilities, and the existence of the NFT is for fee collection.
However, in governance, when our governance system has been set up, 100% of NFT holders hold 100% of the voting shares that govern the platform. This scales with the total number of NFTs issued by Degen LP.
Business Model of Degen LP
10% of the 5% tax on lottery winnings
10% of the 1.5% tax on winning dice games
NFT sale revenue
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