The Best Utility for NFTs for Better CAKE Tokenomics!

The purpose of this proposal is to 1/Enhance the PCS reach through the utility of NFTs, and 2/Provide additional streams for burning cake.

There were 2 releases of PC NFTs 1/Generation-0 that included 446,500 and PC Squads which were unique 10,000 NFTs.

The utility of these NFTs is what dictates the success of the upcoming NFTs to be minted. The NFTs look very nice compared other projects, but the utility is the aspect we need to address moving forward WITHOUT affecting the overall economics of the PCS business. We have to balance between the utility of NFTs (for the users), and the returns in $ for PCS. This is the tough balance we will strive to achieve here.

There are around $2B in Auto-cake that are being staked. A change of 0.1% annually to this amount, reflects a total of $2M on an annual basis. There are more than 300,000 stakers in that pool most probably. All of them are aware of how to use PCS and how to stake, unstake etc...

I propose that we use the Generation-0 NFTs for this Auto-Cake pool, as a utility. The reason is that there are more than 446,000 of them and thats a very close figure to the total number of stakers on Auto-Cake.

How will this work and how will it not affect the PCS tokenomics and business negatively?

1. There are multiple tiers within these NFTs (please refer to the traits section of that NFT collection).
2. We will use the lowest tier of these NFTs as the seed of our idea here (They are called "Sleepy" and cost 0.032BNB at the time of publishing this. This reflects around $16 each.
3. If we used the floor price of each of the traits, we will have a total collection value of $5.5M (for a total of ~370,000 NFTs) for the lower teired ones only (starting from "Dollop" all the way down to "Sleepy"). Each of these NFTs are all priced almost the same at $16-17 each. So, its ok to treat them all equally for the sake of this exercise. We will call these NFTs, Lower Tier Burns (LTB).
4. The overall purpose is to have people loyal to the platform as much as possible.
5. The other important aspect to consider, is that Cake's price is stalling because the smaller retail investors are unlocking their staking and selling almost everyday.
6. We must utilize these lower-tiered NFTs in a way that incentivises the smaller investor to keep staked and reward them for that.
7. We propose that each LTB gives a boost of 10% APR over 3 months. Yes that reflects to additional net staking rewards of 2.5% over 3 months. We also make this capped at $1,000 staked. So in reality, each LTB will be used to give a boost of a maximum of $25 over 3 months.
8. These $25 are only given at the 90th day.
9. If the staker, chooses to unstake befoer that period, they lose their NFT and their additional rewards. They will only get the usual Auto-Cake rates.
10. But some of you might say, that that would cause a lot of cake additional rewards. No, please consider the other facet of it. We are locking in a potential of 370,000 stakers for 3 months for $1,000 each. This reflects to a lockin of $370M being locked for 3 full months (10% of Cake's MarketCap), against a worst case scenario of distributing additional rewards that equal to $9.2M
11. The main concern we have for the price of CAKE is that staking rewards are being sold periodically. This mechanism will create more loyalty and decrease the selling pressure on a daily basis.
12. This mechanism will ensure lock-in and rewards for it.
13. This proposal is not aiming to drive the price of NFTs upwards. Its aimed to propose utility and enhance the tokenomics, through rewarding users for loyalty.

If this proposal gets enough traction, I will make an elaborative one for the higher Tiers (The baller and the likes), and potential PC Squad as well. I personally do have more than $1,000 in Auto-Cake, so this is not for me to benefit from, its for the larger community.

Note: Unfortunately, I can't attach pictures or excel sheets here, would have been much easier to elaborate.

Thanks a lot fo reading until here.

Bazabizo (Ahmed El-Baz)