Incentivize Reinvestment for Owners via Banked ICE

Background

Following a passed governance proposal (#Qmd3TuV), we introduced Banked ICE as a new ecosystem asset distributed to delegated players to effectively guide them towards ownership, upward mobility, and ultimately being a productive member of our ecosystem.

We immediately saw the potential Banked ICE has in effectively maintaining value within our ecosystem and seeding Tournament Mode player liquidity via an attractive Banked ICE to Shine conversion rate (20% discount). Furthermore, folks who stack Banked ICE have access to a ~20% discount on minting an All Access Wearable. All in all, the Banked ICE architecture has provided upward mobility through reinvestment of earnings, immediately improved our burn-to-earn ratio, and catapulted us much closer to long-term sustainability.

Banked ICE is an extremely attractive asset to anyone who is serious about re-investing within our ecosystem. It makes sense to extend this offer to all participants in our ecosystem – not just delegated players.

Proposal

Distribute Challenge Mode player-owners’ and guild owners’ daily ICE earnings as 20% Banked ICE and 80% ICE.

We currently emit ~1.2M unlocked ICE per day. This proposal would reduce our daily unlocked ICE emissions to ~960k ICE per day, improving our Burn-to-earn ratio by 1.25x.

Additionally, the DAO would have access to another key economic lever – the Banked ICE / ICE Split for Owners – in order to adequately respond to market conditions with the objective of maintaining balance in the ICE ecosystem.

Rationale

If someone is planning on re-investing even just 20% of their ICE earnings (for instance buying Shine to play Tournament Mode or saving up to mint another wearable), then receiving 20% of their ICE rewards as Banked ICE is a great opportunity.

By allowing player–owners and guild owners into the Banked ICE ecosystem with 20% of their earnings, they get to buy Shine at a 20% discount and new All Access Wearables at a ~20% discount. We also avoid the scenario where these folks have to dump their ICE to ETH in order to expand their wearable collection.

The main argument against this proposition is that it may take longer to upgrade metaverse wearables from earnings because you can’t use Banked ICE to upgrade. That is why we wanted to allocate a clear majority of 80% in unlocked ICE for owners. Owners will still be able to accrue most of their earnings in unlocked ICE in order to upgrade their wearables.

By opening up Banked ICE to our whole community – delegated players, player-owners, and guild owners alike – we will welcome more growth and reinvestment within the ecosystem as a whole, which will benefit all participants.