🙀CHONK Game Theory Concepts
The "CHONKTANK" acts as a simple NFT escrow solution which will pay out $CHONK immediately from the CHONKTANK when a user chooses to lock their NFT.
When the user wishes to retrieve their NFT back from the "CHONKTANK" they can do so at any time by paying the claimed token amount back to the CHONKTANK in the $CHONK token. The original user who locked their CHONK NFT in the CHONKTANK is the only one who is able to retrieve it back.
🔥 3% of $CHONK from both $CHONK Claims and $CHONK Payments is burned forever. 🔥
IMPORTANT: $CHONK CLAIM AMOUNT = $CHONK PAYMENT AMOUNT (+3% Premium)
The premium amount while paying back the CHONKTANK ensures that there will always be enough liquid $CHONK available in the CHONKTANK to account for each NFT in circulation after the 3% burn takes place.
For example: A user wants to retrieve their CHONK NFT and pay $CHONK to the CHONKTANK to get it back.
The user would pay the CHONKTANK 420,690,000 plus the premium of 12,620,700 $CHONK tokens for a total of 433,310,700 $CHONK tokens to be transferred to the contract.
The contract will then burn 12,620,700 $CHONK (3%), ensuring that exactly 420,690,000 tokens are returned to the CHONKTANK.
Game Theory Ideas for Consideration:
As more CHONK NFTs are sent to the "CHONKTANK," they become scarcer on the market, potentially influencing the floor price of the NFT. For instance, if a user sells their $CHONK tokens and opts not to retrieve back the NFT, it remains locked in the CHONKTANK indefinitely, effectively removing it from circulation and making the collection hyper-deflationary in nature.
Each CHONK NFT sold on the secondary market comes with an attached claimable token amount and essentially gives each NFT a liquid value. Therefore, if the price of the $CHONK token increases, the floor price of the CHONK NFT could rise in tandem.
Because not every CHONK NFT holder will claim their $CHONK tokens, a significant portion of the $CHONK supply could remain locked, maintaining a low circulating supply of the $CHONK token. This reduction in circulating supply may lead to a supply shock, potentially influencing token price.
The two-way escrow mechanism presents a perpetual arbitrage opportunity because the $CHONK token price is linked with the value of NFT(s). For example, if an NFT's floor price falls beneath the claimable amount in terms of the $CHONK token, a user could buy the NFT at the floor price, claim the $CHONK tokens attached to it, and then sell the acquired $CHONK tokens on Uniswap for a quick gain. Even when users claim $CHONK for locking the NFT and sell their tokens on the market, it still contributes to a positive feedback loop for the CHONK ecosystem because it not only removes the NFT from circulation and increases the collections rarity, but also burns the $CHONK token, making it rarer over time.
If a user sells ALL of their $CHONK tokens from their claims and later decides to retrieve their NFT(s), they can buy back the necessary amount of $CHONK tokens and pay back the CHONKTANK for their NFT(s) at any time. This process offers users flexibility and creates a potential arbitrage opportunity for participation at a later date if desired.
Disclaimer: Coding and cryptocurrency are complex endeavors, and we are fortunate that any of this code functions as intended. This NFT project operates in the volatile crypto space, where values can fluctuate, and investments may incur losses. CHONK NFTs are created for artistic and community engagement purposes on Base Chain. We emphasize that there's no guaranteed profit, and participants should not expect financial gains based on the efforts of others. Please be aware of the inherent risks, and only engage if you understand and accept the potential for value fluctuations based on market demand.
Please note that this whitepaper is subject to change at any time. We reserve the right to update or modify the content, information, or strategies outlined within this document as deemed necessary to reflect evolving circumstances, technological advancements, or regulatory requirements. Any revisions or amendments will be communicated transparently to our community.
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