Royalties to 5% to fund $CHICK Liquidity Pool

We would like to bring a proposal to the community on an increase of our royalties from 4% to 5%. The additional 1% would be completely committed to funding the future success of the $CHICK token. This is critical for the success of the token and we feel strongly that tying the token to the secondary sales revenue of the Crypto Chicks collection will help deliver value back to our holders. 




Here is a (somewhat brief) explanation of how that works:

The $CHICK utility token will be swappable vs ETH on an Ethereum Layer 1 decentralized exchange (DEX) through a Liquidity Pool (LP) established by Crypto Chicks. The LP will allow for swaps for $CHICKS tokens. The Crypto Chicks token is used to participate in the Crypto Chicks developing ecosystem. We are proposing to grow and support the LP over time by dedicating 1% of secondary sales revenue into the LP. It's important to understand that the $CHICK token has no economic value and is designed to be used solely within the Crypto Chicks ecosystem we are rolling out. The $CHICK token is not an investment. 

In a Liquidity Pool, price movement will depend on the trade size versus the size of the pool. The larger the LP is relative to a trade, the less price impact (slippage) will occur. Increasing the size of the LP over time will reduce slippage as well as provide buy pressure to the LP.

Committing secondary sales revenue into the CHICK:ETH LP will allow the LP to accommodate larger trades over time without moving price excessively. When adding ETH to the $CHICK:ETH pool, we first swap half the amount of ETH for $CHICK tokens from the LP. We then utilize the extracted $CHICK tokens and the remaining ETH for additional seeding of the LP. This creates a mechanism that grows the CHICK:ETH LP proportionally to our secondary sales volume. This feedback system will also help counter ETH draining of the liquidity pool. The passive staking distribution for $CHICK token results in an increased amount of tokens in circulation over time. The LP will grow in parallel to this inflation of the $CHICK token.

We believe this LP funding architecture will be beneficial to the $CHICK token stability and, by extension, to the Crypto Chicks NFT owners.

The following article from Finematics is a great introduction to constant product Liquidity Pools. https://finematics.com/liquidity-pools-explained/



To give you some comparisons: World of Women = 4%, Boss Beauties = 5%, Women and Weapons = 5%, Alpha Girls Club = 6%, WomenRise and Flower Girls = 10%, Psychedelics Anonymous = 5%

Out of those, Psych Anon is the only project (that I am aware of) with plans to launch a token and therefore requiring this level of tokenomics planning.