SUMMARY:
Breeding NFT KARA is very profitable. Look at the price of NFT on the market and compare to KARA nft breeding (the first breeding costs 600 UMY token). After calculations it comes out that it is about 100% profit after 5 days. In a year ROI = (365 days / 5 days) * 100% = 73 x 100% = 7300% in the year. The very high return on breeding makes KARA NFT keepers eager to breed. More new KARA NFT from breeding results in more new accounts being created (3 KARA NFT).
I will show you with an example :
Currently there are 27 796 KARA NFT (pets)
https://bscscan.com/token/0x2bf5e716181a7ba31d83c19fa3c3bfdeb4da9f0f
27 796 KARA NFT (pets) / 3 KARA = 9 265 Full account
(*This is a maximal, extramal example because there are more kara nft on some accounts so the number of full accounts will be less)
Full accounts need 3 KARA NFT with access to the game.
Full account (3 KARA NFT) earns approximately 70 UMY tokens per day.
9 265 Full account x 70 UMY tokens per day = 648 550 UMY token per day.
Every day it is produced 648 550 UMY token per day and this amount is increasing all the time by breeding new KARA NFT.
GOAL: Eliminate and limitation a large number of new NFT KARAs and reduce 5-day profit (annual profit) (VERY BIG ROI). Keeping the NFT KARA price at a certain level on markiet and constant certain ROI.
Plan:
For this purpose to reduce the amount of breeding must be done:
A) Extend the breeding time by several days + if a person doesn't enter his account daily, the breeding time resets and you have to renew breeding KARA nft again. This is to remind the breeder to look after KARA NFT. It seems to me that there are a few people who do this on a massive scale and don't always remember to renew their breeding on time.
See here for my other suggestion (how):
https://snapshot.org/#/karastarumy.eth/proposal/0x532288280387dba866e66698d254bdeb51232cbe44699eb26c47259bdac1c660
B) We need to create a suitable algorithm that will calculate the profit from breeding KARA NFT (ROI from kara nft breeding). The algorithm is to analyze the current price of NFT KARA in the market so that the KARA NFT (new KARA) breeding has less ROI. Regarding ROI, we needs to be determined and analyzed together. I will describe an example below:
KARA NFT (pet) price on the marker is 0,12 BNB
UMY token price is 0,0001 BNB
The first breeding costs 600 UMY token, i.e. the cost breeding is 600 UMY * 0,0001BNB = 0,06 BNB
So after five days ROI is 100% when you sell KARA NFT to the market for 0.12 BNB.
To decrease ROI, the algorithm must either increase or decrease the number of UMY tokens needed for breeding. Profit must be constant( ROI = const.),
Calculate the formula used using the current market situation:
Example:
ROI = 20% (this is constant)
Price KARA NFT = 0.12 BNB (depends on the current market situation)
Price UMY token = 0,0001 BNB (depends on the current market situation)
Cost of breeding KARA NFT in umy token (how much umy token needs to be burned for a 20% profit on breeding KaRA NFT ?)
Assuming that KARA NFT price of markiet will be at a similar level:
a) small UMY token exchange rate
For breeding KARA NFT you need more UMY token (more umy token you will burn)
b) high UMY token price on the stock exchange
For breeding KARA NFT you need less UMY token (less umy token you will burn)
EVALUATION OF SUCCESS:
a) UMY tokens needed for breeding KARA NFT at a fixed specified profit (ROI)
b) The person who breeds new NFTs is assured of some profit (amount of percentage to be determined). C) The player does not fear that a large number of accounts will be created because the ROI breeding KARA NFT will be smaller and controlled.
d) UMY token should be better burned because the amount of tokens burned will depend on the market situation (KARA NFT price and UMY token price)