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NFT Time Deposits (Staking)
It's about time in the market, not timing the market.
The legacy (old-method) time deposit (aka certificates of deposit) is a simple and easy concept to grasp. It's similar to a savings account, however it differs in the fact that it is sets a pre-defined date that offers a premium interest rate based on the maturity of time passed. Interest rates are calculated to a greater degree on the length of time deposited rather than size. If you want to earn the premium interest rate, then the money deposited remains in this account for the fixed term set by you and the bank.
Crypto makes it possible to create customized token economies based on traditional economic models like the time deposit and make them more attractive.
Crypto Fight Club NFTs allows you to benefit off existing economic designs with more appealing utilities and flexibility. Starting with the high-interest bearing NFT time-deposits built to reward stakers by delayed gratification.
First, there needs to be a burning mechanism to counteract the event of overinflation. Second, mitigate circulating supply by incentivizing longer-term lockups. Third, penalize those who end their original deposit duration early. Fourth (and last), reward those who are actively participating in the staking pools for playing a role to support the token economy.
The Element of Surprise
Here's the fun stuff.
During the event of an NFT being minted, $FIGHT tokens are sent directly to the BSC burn address and the NFT minting smart contract executes a call and sends a message straight back to the wallet address performing the action on the app. This execution notifies the network that the appropriate amount of $FIGHT has been burned and is now prompted to mint the NFT mystery box. Once the network recognizes this action, the NFT box will be opened and inside your wallet will land a unique Crypto Fight Club NFT 2.0 avatar.
Now there are two options at this point: use the remaining $FIGHT to stake inside of the NFT avatar or play the game, earn $FIGHT, and then stake. Let's go with option one.
With the freedom of choice on the staking product, participants get to choose the following:
- Amount of $FIGHT (20% of annual inflation) or LP $FIGHT (80% of annual inflation) the user desires to stake The amount staked is part of the formula that calculates the premium interest rate. LP $FIGHT stakes pay higher because the majority of interest paid out from inflation belongs to stakers in the LP class.
- Duration of time spent locking up tokens The duration of the stake is the most prominent component calculating interest (longer stakes result to higher payouts).
- Quantity of stakes placed (latter staking) Participants can set-up multiple stakes inside single NFTs, offering the option to slowly withdraw their rewards one at a time, rather loading up their entire balance.
Upon the maturity of the stake, the participant withdraws after serving the pre-determined time they initially agreed on with the smart contract and mint their rewards on the spot. Reaping average interest rates of over 100% paid in full to those completing their initially agreed upon lock-up.
Calculation: (x amount of days staked - 1) / 1820. The stakers will also earn a bonus of 20% over the course of a year (the contract uses 364 days/year) with a maximum time-lock of 5 years. The “minus 1” accounts for the minimum stake period of one day.
Staking Dashboard V1
With the product defined fully, Crypto Fight Club NFT holders can successfully stake and earn interest rates bearing over 100% at the time of this writing. This APY is held consistently by restricting the supply of NFTs and releasing more over the course of time based on demand. When more NFTs are holding tokens, supply is restricted and does not go to the open market. When new NFTs are minted, $FIGHT is always distributed to the BSC Null address and reduces the circulating supply. With more opportunities to earn and spend $FIGHT, the token economy is set to grow and push boundaries in the crypto industry.
Additional unique benefits to staking $FIGHT
NFT avatars attributes (ATK, DEF, TEK) grow based on the sum and length staked - Requirement: stake 5,000 $FIGHT or 600 LP $FIGHT for 1+ year and evolve 20%. This percentage is compounded until max stats have been met.
Bonuses in $FIGHT and LP $FIGHT are also paid out to stakes longer than 1+ year(s) - 20% annually, compounded to 100% over total allowed stake duration of 5 years
In the event they cannot keep their stake for the original time locked, a penalty can be avoided - Because stakes are composed of BEP-20 tokens stored inside BEP-721 NFTs, stakers can avoid the 50% penalty that comes along with ending a stake earlier than originally desired by transferring the NFT to an interested party with the underlying principle + interest + value of the NFT attached
🔜 Leveling system and reputation for 'socialpreneurs' based on length of stakes
Transferrable time-deposits are a massive leap in the innovation of DeFi and crypto. Utilizing NFTs for technological advances as such can propel other, more institutionalized firms to follow suit and take advantage of these discoveries. This is classified as a true store of value in crypto.