What is a BUN?
Bid units (or BUN) is a token solely used to bid at auctions on Loot Arena. It has a fixed supply, and no more than 500m will ever be issued. BUN is used as an accounting unit to calculate the proceeds of auctions in USDC ERC20.
… and the Oven?
Whenever BUN are spent by miners, they are sent to a time-locked wallet called the Oven. Every Sunday, the Oven empties the BUN it collects back to our ecosystem. Miners get 10% as rewards, and 90% are allocated for resale to miners.
Calculating Oven Rewards
We track the number of BUN bid at auctions. Oven rewards are distributed to members based on participation at auctions (i.e., amount of BUN bid) pro-rata all other members. Five percent (5%) of the Oven rewards all-time participation and an additional 5% rewards involvement over the last 7 days.
BUN (or LTT, Credits and NFTs owned) are used to prove active status. Whenever, a miner invites someone to Loot Arena, they must have at least 1 BUN (or LTT, NFT owned or a positive Credit balance) for that person to sign up.
Effective Bid (or BUN) Value (EBV)
All (100%) proceeds from the sale of BUN are distributed to plot owners in Loot NFT world. Further, all miners receive BUN rewards based on their activity in Loot Arena. Hence, the effective value of BUN that is used to account for the proceeds at auction is lower than the equivalent of 0.20 USDC ERC20. The EBV changes dynamically.
BUN are sold in packs of 25 for five credits (equivalent to 5 USDC ERC20). Miners must buy Credits (1 Credit equals 1 USDC ERC20), that they can then use to purchase BUN. Credits are also used to buy LTT or pay for shipping across Loot NFT World.