ABOUT LOOT ARENA
What is Loot Arena?
An invite-only site where members (also known as POP miners, or miners) experience the Proof of Play protocol by battle-bidding at auctions and in the process, mine Loot NFT World's native currency, the Loot Ticket (LTT). The miner that wins the auction is rewarded with an NFT and every bidder receives LTT based on a mining ratio (i.e., how many bids they must make to receive 1 LTT). NFTs can then be re-listed for sale. The mining site is also where miners manage the mining process and control variables affecting the management and issuance of LTT.
What are Bid Units (BUN)?
BUN are cryptographic tokens of limited supply (total of 500 million) minted on the LNFTxHABN blockchain and are used as bids in battle-bidding auctions by miners. BUN have a fixed value (equivalent to 0.20 USDC ERC20 each) and are also accounting units to calculate the proceeds of each auction.
What are LTT?
BUN that are bid in auctions convert to Loot Tickets (LTT) and are redeemable for products and services in Loot NFT World; redeemed LTT are burnt. LTT are mirrored on LNFTxHABN and can also be sent off-platform as LTTE (ERC20), LTTB (BNB20), and Cardano (functionality enabled over time). LTT extracted to other chains are burnt on LNFTxHABN and minted on the respective chains; when brought back in, they are burnt on the relevant chain and re-minted on LNFTxHABN.
What is the Oven?
A time-locked wallet that receives BUN after auctions end and redistributes them back into the ecosystem every week at 00:00 UTC every Sunday. Members receive 10% as rewards and the remainder is for resale.
What is a Battle-Bidding auction?
A gamified time-based auction where miners bid one BUN at a time to win an NFT. The last miner to bid before the timer expires wins the NFT. A bid received in the last 15 seconds of an auction, resets the timer back 15 seconds. Miners can use a bid bot to bid automatically.
How to bid in battle-bidding auctions on Loot Arena?
First, you must join an auction to bid. NFTs listed for the first time and that have no reserve price have a joining fee of 5 BUN. This fee doubles 30 minutes before the start of battle-bidding (i.e., when the initial auction timer expires), and every 30 minutes that the auction remains live. As the auction timer resets if a bid is received in the last 15 seconds, battle-bidding can last hours, days or weeks.
You can only bid up to your auction cap (BUN amount you can bid in auctions). Some auctions allow you to raise your cap once only by paying the prescribed LTT fee before your initial cap is entirely consumed, and others are hard capped (i.e., no cap raises allowed).
If you join an auction at or after 30 minutes of the start of battle-bidding (i.e., when or after the joining fee doubles), your auction cap is reduced by the amount of fees you paid to join the auction. E.g, John joins pays 10 BUN to join a hard cap 500 BUN auction. He can only bid up to 490 BUN (500 less 10).
The auction is locked when the fee to join exceeds the auction cap or you have bid your entire cap for that auction.
We provide data in radical transparency to all bidders, such as the number of miners in an auction, the total cap for the auctions being the sum of all caps of all miners in auction, and more. A penalty box lists miners that are spam bidding (multiple bids in a row), and those that bid in the last 3 seconds of an auction. The penalty box shows the user name of those that broke the above rules, their allocated balance, hard cap balance and whether they raised their cap (for applicable auctions).
Our auctions are innovative and have been tested and refined in practice. We recommend that you join auctions early so you preserve your cap. Do not spam bid or bid in the last 3 seconds. Allocate only an amount that you feel comfortable in bidding. Keep an eye on the information box to allow you to strategise. Above all, have fun and accept that auctions may last for a long period of time.
What is an NFT?
Non-fungible tokens (NFT) are cryptographic tokens that unique from other such tokens and can establish the authenticity, ownership, and transferability of an underlying item. On Loot Arena, all NFTs offered for battle-bidding are wrapped in blockchain notarized legal contracts granting the right of ownership to an underlying item (digital or digital and physical) in a manner that current legal frameworks understand.
What are "degrees"?
When a miner collects a majority of NFTs in a set (e.g., 3 out of 5), they achieve a degree (i.e., a status level). The highest level is that of the 5th degree. Achieving degrees give members lower mining ratios; e.g., if a miner is on a 42:1 mining ratio (meaning 1 LTT for each 42 BUN bid), obtaining the first degree grants a 34:1 mining ratio. In addition, the more degrees miners collect, the more BUN rewards they receive out of the Oven rewards distribution than they would otherwise have had.
What’s your goal with Loot Arena?
A token mining protocol that is fun and pays talented creators and contributes to good causes.
Do you have a participant leaderboard?
Yes, all members are ranked based on their engagement within the ecosystem. Activities are weighed using a points system and the leaderboard can be seen at www.lootnft.world.
Help me with the lingo
BUN Bid Units Creations All works by creators embodied in the rights granted by an NFT. Creations can be digital only or digital and physical. Creator Any person whose creation is being minted into an NFT for battle-bidding auctions. DAO Decentralized Autonomous Organization Degrees A status level giving unique benefits to members. LNFTxHABN Loot NFT permissioned blockchain, powered by HABN NFT Non-Fungible Token Oven A time-locked wallet that receives all BUNs after the auctions end and redistributes them back to the ecosystem every Sunday at 00:00 UTC. Sets A collection of unique NFTs belonging to a particular theme and can be collected to unlock benefits. Credits One credit is equal to 1 USDC ERC20 and is an in-world currency like a game credit used only to buy BUN, LTT and to pay for shipping. USDC USD Coin (ERC20), a pegged cryptocurrency to the US dollar.
Did you raise any capital, take any investments, and if so, how much?
No, and zero. In addition, we have no token reserves nor team allocations.
When do all auctions start the battle-bidding phase?
At 12:00 UTC, every Sunday unless past auctions are still ongoing at 00:00 UTC Sunday. An auction that concludes after that time goes into battle-bidding on the following Sunday.
Do you anticipate auctions to take days on some NFTs?
Yes. Auctions have already taken days to conclude.
What is the difference between USDC (ERC20) and Credits?
Credits are like an in-game currency backed one-for-one by USDC ERC20; this facilitates the consumption of Loot NFT products. They are used to buy BUN, LTT, and pay for shipping.
Credits can only be converted to USDC ERC20 based on Plot Type zonings allowing convertibility (e.g., since all revenues are attributed to Plot owners, a Plot Type F allows its holder to maintain and pay for expenses of the ecosystem). Other than this, Credits cannot be converted back to USDC ERC20 and extracted out of the ecosystem; they must be used within the Loot NFT world.
USDC ERC20, on the other hand, is a cryptocurrency pegged to the US Dollar and is convertible to the US Dollar and other fiat and cryptocurrencies. Proceeds of auctions in Loot Arena are sent as USDC ERC20 to the seller of NFTs.
Describe the ecosystem in more detail?
Loot NFT World is a sprawling ecosystem designed like a gamified arcade. It is focused on NFT battle-bidding auctions (NFTs can be resold for USDC ERC20 or sent off-world), minting NFTs (can be sent off-world), the issuance of LTT (which can be extracted out of the ecosystem, and the redemption of LTT to redeem for items.
Every other interaction within Loot NFT World provides users with various pathways to play a macro game depending on achieving more value for them.
Loot Arena is an area of Loot NFT World that is like a mining "box" that requires token mining strategies to win NFTs and generate LTT. While in the "box," miners can trade LTT for Credits, Credits for BUN, and LTT themselves until they win an NFT or redeem LTT.
The inputs into the ecosystem are USDC ERC20, limited-edition items, and digital and physical creations. The internal currencies used are BUN, LTT, and Credits. The outputs are USDC ERC20, limited-edition or unique items, NFTs (digital and digital/physical), and LTT.
Miners are incentivized to win NFTs and relist them. In this process, they acquire a tangible product and can resell them for USDC ERC20. Miners:
receive LTT according to mining ratios that they can sell or stake internally to get credits to buy BUN to generate more LTT or buy LTT directly from other members. LTT redeemed in the ecosystem are burnt, requiring more BUN to generate more LTT, provided items for the redemption of LTT are prized.
that are also landowners in Loot NFT World, and depending on their land's zoning, also receive rewards in Credits or USDC ERC20.
can send LTT to LTTE (ERC20), LTTB (BNB20), and Cardano (functionality coming soon). LTT sent out of the ecosystem may also be used in various other applications beyond Loot NFT World.
can send NFTs to Ethereum (or Binance Smart Chain for NFTs won as part of the mining process). These may have an inherent value in and of themselves. They own that creation.
can spend LTT for physical or digital items in Satoshi's Lounge or services in other parts of the ecosystem.
Will you do away with the Credits in the future?
Maybe. In a decentralized autonomous organization, depending on practicality and costs, the system may run atop USDC ERC20. This would negate the need for Credits.
What is the vision and goal?
Three simple goals:
The first is to grow a mining protocol for issuing a native cryptocurrency based on miners' contributions to talented creators and good causes.
Secondly, to provide value to our ecosystem participants through access through ownership of NFTs, experiencing an alternate reality, buying limited-edition items and feeling special, controlling the ecosystem's evolution through member governance, managing the custody of their tokens that are capable of various uses worth their attention.
Third, to replicate real-world interactions such that our core technology, Talos, can be applied to real-world transactions powered by our native cryptocurrency.
Lastly, to experiment with decentralization towards a decentralized autonomous organization for various components of the ecosystem.
Can you change your terms and conditions?
We may update our terms from time to time and provide reasonable notice to our members before doing so. In a decentralized autonomous organization setting, however, the variables in the system are renounceable, meaning that member governance will be responsible for the health and decision of the ecosystem.
What email do I need to sign up?
It is recommended to have a personal email address since you cannot change email addresses, (and we cannot change them either). Further, you cannot transfer BUN from your account to another nor your badges and benefits.
The only way to transfer LTT in-world is to sell them (for Credits equivalent to 1 USDC ERC20, which you can only use to buy BUN, LTT, or pay for shipping), as proceeds from a benefit or transaction, or send them to your wallet from the Loot Arena (functionality coming soon). For these reasons, please choose your email address carefully as this is final.
Note that to log in you must either have access to your email account or have set up Google Authenticator as your 2 factor authentication.
How do creators participate?
Unlike platforms like Opensea, creators cannot mint their own NFTs for listing in battle-bidding auctions. Only curators (holders of a Type P plot in Loot NFT World) have a key to list receive payment for the proceeds of auctions. There are a total of 8 curators (4 seats are locked up for 12 months). Creators that wish to participate in battle-bidding auctions must work with one of the curators; they contract with the curator solely for this purpose.
As a creator, do I need to convert my work into an NFT?
No, the curators perform this work (holders of a Type P plot in Loot NFT World). They also oversee the custody of physical creation. The Loot NFT Company (later the Loot NFT Foundation) provides two facilities worldwide dedicated to the custody of physical pieces at the disposition of curators, should they wish to use the same.
My creation is a physical item. When do I send it to you?
Curators handle the custody process of physical items, not the Loot NFT Company. Please do not send your physical work to us.
Does the Loot NFT Company take a commission from auctions?
No, the value in USDC collected and shown on each auction is the exact value paid to the curator, less the Ethereum network’s gas fees. In the event of a relisting, the proceeds are paid to the re-lister.
Why is the value of the BUN lower in auctions lower than 0.20 USDC each?
BUNs are revalued following the distribution of the proceeds of BUN sales to plot owners (based on different zonings) and takes into account BUN rewards like referral bonuses and Oven reward distributions. While 0.20 USDC per BUN is an input into the ecosystem, this is shared amongst the community before being used as a unit of account in auctions.
How does the blockchain fit in?
To create a fully decentralized autonomous organization, we use blockchain to track and audit transactions from a centrally controlled infrastructure dismantled over time.
There are two main components to this strategy:
- the interactions with other chains to send USDC, NFTs, and send and receive LTT transactions. These address cases at the edge of the ecosystem interacting with public blockchains;
- the interactions within the ecosystem that address on-chain user interactions. The level of complexity to achieve this is such that it needs to occur over a longer timescale, following testing in centralized environments before the dismantling of the centralized infrastructure. We use a permissioned blockchain to track internal transactions, including NFT, LTT, BUN, and USDC mirror tokens, the smart contracts required in the proof of play protocol, and the tracking of all token transactions. First, this is tested in parallel with a centralized system. Then, a bi-directional bridge is implemented in a staged approach to connect various decentralized modules between the permissioned and the public chains. In time, our X hardware is expected to be used to bolster decentralization further. This will take time, but our team will not compromise on the proper process of this implementation.
Why create a DAO?
Implementing a DAO is an experimentation in decentralization where ecosystem participants decide how they want the ecosystem to evolve. This is our ultimate vision, and we hope, for our community. In this process, "the parliament" is a place where member governance is exerted.
How do you intend to link LNFTxHABN to other blockchains?
This will depend predominantly on transaction frequency and cost.
Interactions such as whitelisting email addresses, relisting fees, or payment to creators and resellers (e.g., non-exhaustive) are all activities where transaction fees can be entertained and make suitable candidates for being governed by public chain smart contracts.
However, the Battle-Bidding process and the Oven on public chains would be commercially prohibitive and could cause bloating; for this purpose, we will keep using LNFTxHABN until a better alternative comes along. While this makes for a good plan, practical realities of how we fit these pieces together may change to reflect the best possible structure at the time of implementation. Our process is set out in our patent-pending application.
Tell me more about the NFT tokenization process?
All NFTs are tokenized on LNFTxHABN and remain under our custody. If a member requests to transfer an NFT out of our custody, we will burn that NFT (retire it from LNFTxHABN) and mint it on the miner's blockchain of choice (provided that blockchain route is offered by Loot NFT). We will provide all the documentation for provenance purposes, and it will be listed as "Burned" in the "Manifest" section of our website. Once the NFT is minted on the destination blockchain, we will transfer it to that miner's provided public address. Note that if the NFT is linked to a physical creation, then we will request that the miner take possession of the physical creation, at their cost, within 90 days from the time the NFT is burned on LNFTxHABN.
Do you have team member, advisor, and other third-party BUN or LTT allocations?
Why a fixed supply of tokens BUN?
A fixed supply is critical. It automates miner intakes, Battle-Bidding gamification elements, and removes purchasing power advantage, etc. Simply put, the structure of our platform would not work without a fixed supply and Loot NFT World would not exist; yes, it is that important.
How do I invite a person to Loot Arena?
In your profile, enter the email address of your invitee and pay the prescribed LTT fee. Note that there are no automated emails sent from the platform in this process. You will have to relay the information to your invitee that their email address has been whitelisted.
Another way to invite someone is through a special URL that can only be created by plot owners holding a Type B zoning. Anyone following the link must pay the LTT joining fee.
What is the joining process to Loot Arena?
An invitee should click "Sign Up" on the Loot Arena, then enter their whitelisted email address on the subsequent page.
For persons who do not have an account at Satoshi's Lounge, our system checks whether the referrer (person who invited the invitee) has at least 1 BUN, 1 LTT, 1 NFT or a positive Credit balance in their account. They must then buy Credits by sending USDC ERC20 (1 Credit costs 1 USDC ERC20). Following this they’ll be prompted to pay the joining fee (currently, 6 LTT).
What is the cap on each miner’s account?
What happens if I receive more than the maximum allowable BUN in my account?
All excess BUN are directed to the Oven for redistribution into the ecosystem.
I am a miner and I spent all my BUN. Can I log in?
No one can access Loot Arena unless they have at least 1 BUN, 1 LTT, 1 owned NFT, or a positive Credits balance. If not, you will be prompted to buy Credits.
How many creations will you list for auction?
Type P plot owners in Loot NFT World (i.e., curators) are the ones that list creations for auctions; we have no control over this. Over time, however, we expect that the arena could handle up to 88 simultaneous auctions in various sections (e.g., the planned: "stars arena," the "relisting arena," and the general arena that is live today).
Can you explain the menu items "Upcoming" and "Past Auctions”?
The "Upcoming" menu lists NFTs waiting in the queue to go to a live auction in the arena on a first-come, first-served (i.e., auctions go live on a first-listed basis). E.g., If there are 10 live auctions at any one time allowed in the arena, then when one of these is complete, the next NFT in the queue will go live such that at any one time, there is a maximum of 10 auctions in the auction arena.
"Past Auctions" shows the results of all auctions on the platform, including additional details such as the number of LTT mined per auction, the value received by the Type P plot owner (proceeds of the auctions in USDC), the block number (i.e., order of the NFT added to the chain of NFTs).
Do you keep a manifest of all creations on Loot NFT?
Absolutely. Click the "Loot Vault" link to see all NFTs sold and about to be sold. This tab shows the NFT public addresses, whether the creation it embodies is physical, and if so, where it is located, the current owner's username, etc.
I won an NFT that is linked to physical creation. Will I receive the physical creation?
Not until you transfer the NFT out of the ecosystem. That creation is on loan to us until then. If you choose to transfer your NFT, you have 90 days to organize shipping at your cost and take delivery of it (shipping is paid in Credits, the equivalent of 1 Credit per USDC). We will send you an email with all pertinent details in this process. We will then mark that creation from our manifest as “burnt”.
How do I relist an NFT I have won?
In your "My NFTs" tab, enter your reserve price for your NFT and the number of miners you wish to contribute to that reserve price.
If you are not a holder of the free relisting badge, you must pay the prescribed fee in LTT before you relist. The prescribed fee increases if you want to be listed higher up the page. Press "Relist," and the NFT will be added to the "Upcoming" auctions list; at that time, the NFT is on consignment to us to list for auction. You can cancel your listing at any time before it meets the reserve price. Once the reserve price is met, the item moves to the arena, and all participants are notified via email, and a countdown of 24 hours is added to the clock before Battle-Bidding starts.
Can I bid on an item that I have relisted?
I do not want to relist. Can you buy it from me and then you relist it?
What happens if all BUN are sold?
BUN recirculates back for resale from the Oven every Sunday at 00:00 UTC. However, the number of BUN we receive from the Oven depends on how active miners are at spending them in auctions and whether an auction has concluded (BUN from auctions are only sent to the Oven when the auctions end). If we do not have any BUN for sale, miners must wait until after the Oven distributes BUN back to the ecosystem to buy more.
Can I combine all my NFTs into 1 NFT if I own all NFTs in a set?
What happens if someone else previously whitelisted my email?
All sign-ups to Loot Arena send an email One-Time-Password (OTP) before signing up. As long as you have access to your email account, no one can complete the sign-up process on your behalf. You only enter your name, country, and password after you enter the correct OTP.
PAYMENTS AND FEES
How much is a BUN?
BUN are sold in packs of 25 for 5 Credits (or ~US$0.20 USDC ERC20 each; i.e., 5 USDC ERC20 per pack).
What is the currency in which members buy BUN and receive payments?
BUN are purchased with Credits (1 Credit equals 1 USDC ERC 20, a cryptographic token pegged to the US dollar). BUN convert immediately to USDC ERC20 when bid at auction, and the proceeds are paid to Plot Type P owners or, in the case of NFT Re-Listers, then the Re-listers in USDC ERC20. All other plot owners get rewards in Credits, and depending on the Plot Types, Credits are convertible to USDC ERC20. This allows the ecosystem frictionlessly and defines the boundaries between the In-World economy and what value can be extracted.
What are the current fees on Loot Arena?
Whitelisting an email address: 6 LTT
Whitelisting a public cryptographic address: 10 LTT
Re-Listing Auction Fee: 50 LTT
Bid at battle bidding auction: 1 BUN each
Auction Joining Fee: From 5 BUN to join, then every hour before the end of the original auction timer, that fee doubles.
Relisting Joining Fee::Variable rate set by the owner of the NFT
Parliament fees: Varies between 25 LTT to 5,000 LTT.
These values may change and will be displayed in the relevant sections of Loot Arena.
Why use an Effective Bid Value (EBV)?
We operate similar to an economy. All BUN sales are distributed to plot owners with Credits or USDC ERC20 based on their plots' zoning, in addition to land in common areas (e.g., stakers, LTT sellers, NFT Re-sellers, etc.). Due to the BUN bonus and rewards given to all miners, in addition to the distribution of sales to all plot owners, the value of the BUN to account for the proceeds of an auction is reduced.
E.g., If, after all distributions, the actual BUN value is 0.05 USDC ERC20, but we sell a BUN at the equivalent of 0.20 USDC ERC20, then if an auction collects 100 BUN, the value collected is 5 USDC ERC20, not 20 USDC ERC20.
The Internal Exchange Rate (IER) is the value of all BUN sold less all BUN given as rewards (free within the ecosystem). The Effective Bid (or BUN) Value (EBV) is then calculated following distributions of Credits to plot owners and equals around 50% of the IER.
You can see IER and EBV charts over time from lootnft.io/statistics.
Internal rate calculations are made hourly and at the end of each auction and are locked in that amount as the auction proceeds (BUN going into an auction are converted immediately to USDC ERC20). The following are calculation considerations:
- We do not account for BUN in the Oven as part of the calculation; otherwise, the BUN/USDC ERC20 rate would depreciate.
- Over time, the net value of the Internal Effective Rate (IER) should tend to be a little less than the equivalent of 0.18 USDC ERC20/BUN (since 10% is returned as rewards and there are some referral bonuses to account for as well), and the Effective Bid Value (EBV) around 0.08 to 0.09 USDC ERC20.
I have a Pioneer Badge. How do I get paid?
Our system tracks all invitees you have introduced to Loot Arena, and you receive 10% of their purchases as rewards (in Credits that you can only use to buy BUN, LTT, or pay for shipping) until 31 December 2022. After that, this drops to a 2% reward only on first purchases.
How do you calculate how much an auction item receives in USDC (ERC20)?
We multiply the amount collected in BUN by the Effective Bid Value (BUN/USDC) at the end of an auction.
Can I sell my degrees?
No. Once you achieve a degree, it stays with that account for life.
Can I sell my badges?
How are Oven rewards distributed back to miners?
Miners receive BUN rewards pro-rata their participation in auctions in the following two ways:
Five percent of the Oven goes to members based on how many bids they have spent on auctions from the time they joined, compared to all other members since the start of Loot NFT, and
Another 5% of the Oven goes to members based on how many bids they have spent at auctions over the past seven days, compared to all other members.
Simply put, the Oven rewards long-term and recent auction participation. All Oven distributions are issued in whole numbers, and any fractional numbers are placed back into the next Oven for distribution.
What are the rewards given to members other than Oven rewards?
Members may earn badges that entitle them to several benefits, and these are shown on the site. E.g., the Genesis Army badge that gives your invitee bonus BUN on their first purchase; the Pioneer badge that offers 10% Credits for BUN purchases from invitees; the referral bonus badge that provides a BUN bonus on the first purchase of an invitee; the free NFT relist badge that allows re-listings without paying the LTT fee.
Will you show my name as an NFT owner if the work is displayed in a physical space?
Absolutely. The owner's username is displayed with the words “On loan by:” next to it. In some cases, at the owner's request, we may show that owner’s actual name. Allow 72 hours for us to request the change of names in the case of NFT resales.
KNOW YOUR CUSTOMER
Will you require Know-Your-Customer (KYC)?
We do not require KYC to purchase BUNs, LTT, Credits, NFTs, buy items, or sell LTT In-World. However, you must pass a KYC check and register your recipient address for any payments in USDC ERC20, transfers of NFT or LTT, or send purchased items off-world or to you.
Are there any additional conditions beyond KYC to relist or transfer NFT off-site?
No, although you must agree to our terms and conditions.
Can members create multiple accounts?
There is little benefit in creating multiple accounts. Members engaging in this practice may not send LTT, NFTs, or USDC ERC20 (for sales of NFTs or holders of plot types that entitle them to send USDC ERC20) to their accounts since we limit one KYC'd account per person.
What happens if I do not pass KYC?
We deal with these cases on a case-by-case basis to ascertain your eligibility. If you have breached our rules, your account may be suspended or terminated (in the centralized version of our platform). You will forfeit all your BUN (directed to the Oven). All LTT and NFTs held will be burned on LNFTxHABN, transferred to a public chain, and donated to a charitable organization (including the physical item). Member sanctions may be severe if our terms are breached.
The Arena seems glitchy and slow. Why?
If you leave your browser tab open on the Arena for some time, the data display list can make your navigation jerky or slow. During this time, your page may show tens of thousands of records that can consume your device's memory. Refresh the page from time to time to clear stale data and re-establish optimum performance.
Why do you have a warning for bids placed in the last second?
We advise customers that bidding in the last 3 seconds of an auction, whether by bid bot or manually, is at their own risk.
The time-based auctions are determined from our servers. Anyone who bids within the last 3 seconds of an auction must account for their submissions to reach our server before its timer reaches zero. A bid placed in the last second of an auction may reach our servers after the auction has ended (i.e., it needs to travel from the customer's device to our servers and be recorded as a bid). It is risky and not recommended to bid within the last three seconds of an auction. Bidders assume that risk, and there is no recourse for bids placed within that time and not recorded. Simply, put do not place a bid in the last 3 seconds if you can avoid it.
My timer went to zero, but the auction then resumed. Why?
The timer in the Arena is for display purposes. The accurate auction timer is on our servers. It is possible that if you experience a disconnection between your device and our servers (e.g., internet service interruption on your end), the timer on your device is not able to synchronize with the timer on our servers.
In that event, the timer on your device can count down to zero. Refresh the page when your network connection is re-established. Rest assured that if you have a bid bot on, it is still firing on our servers (provided that you have BUN to bid).
What do you mean the last to bid when the timer expires?
Timer here refers to the timer on our servers and may differ from time to time to timers provided for display purposes on your device. In our literature, when we refer to "the last bidder before the timer expiring," this is strictly related to the timer on our servers.
What preventative measures are in place to stop low auction engagement?
- There is a joining fee to an auction (added to the auction tally); this cost increases over time, disincentivizing people joining late. This seeds the auction early.
- There are a relatively small number of NFTs; all are unique, which may increase desirability.
- Miners engaged in playing the game may be on the lookout to participate in completing their sets while mining LTT.
- The re-listing feature may also bring value to a miner that wants to sell an NFT previously obtained at auction.
What is D-Day?
D-Day is a theoretical event where all BUN are in the Oven or trapped in auctions, and there are no further available BUN for sale. Since the Oven only recirculates BUN back to the ecosystem on Sunday at 00:00 UTS, there may be a situation where miners have to wait until that time to buy BUN and participate. This also makes it plausible that miners holding the last BUN win the auctions.
Why are some dates marked “Est.” on the development roadmap?
“Est.” means estimate. The creation of smart contracts must be approached very carefully and undergo significant testing. The interactions and feedback by members will inform us about our design which may be implemented.
What happens if you go out of business?
First, we hope this does not happen. But if it does, we will attempt to find a partner to sell to or run the business (if not already decentralized). Failing this, the following steps may be implemented:
- We will issue a notice on our medium page.
- Require that all participants in the ecosystem, within 90 days, send all LTT, NFT, and items out of the ecosystem. Any physical creations must also be picked up. Items for sale in Satoshi's Lounge will be sold in a fire-sale.
- All Credits held are returned as USDC ERC20 to members.
- All BUN still in customers' accounts will be refunded based on the amount of USDC held by the company (following step number 3 above) divided by the number of BUN held by members, less any BUN bonuses given and any outstanding expenses.
- After the 90 days:
- Any physical creations or items in inventory for Satoshi's Lounge will be donated to a charity of our choice.
- All remaining NFTs on the LNFTxHABN blockchain will be burned.
- After that, the Loot NFT applications will list the custodian of the physical creations if not claimed by the owner. The site will be maintained for 12 months before being retired.
What happens if you get hacked?
No software system is 100% secure, and we acknowledge that. We have taken as many precautions as would be expected from a professional in this industry. However, it is still a possibility.
The three hacking scenarios (non-exhaustive) are listed below, which are the most relevant and impactful. Our first step in each of these events will be to get the relevant authorities involved.
Hack of our USDC ERC20 accounts. In this event, the value for creators and resellers of NFTs and other ecosystem payments will decrease since the internal BUN/USDC ERC20 rate may fall. As the Oven redistributes to us, the BUN internal rate should go back up over time.
Changes to BUN and LTT ledger during custodianship. We will proceed to a recovery methodology from our backup servers as mirrored by the LNFTxHABN blockchain. During a DAO phase, security by users will be paramount.
Hack of NFTs. NFTs are reissued with the provenance, or past transactions, listed.
What is staking?
Staking is the process by which miners lock up their LTT permanently for Credits rewards calculated from (a) the sale of BUN (one USDC ERC20 backs each USDC Credits allocated), and (b) a percentage of each auction proceeds from X by SL (not yet released). Each miner shares in the staking pool based on the amount of LTT contributed to other miners. Rewards are provided every week. Once you stake, you cannot unstake.
How do I Sell LTT on Loot NFT? (upcoming functionality)
The LTT marketplace allows miners to set the amount of LTT and the corresponding price they would like to sell their LTT to others. Sellers receive Credits (i.e., purchasers either pay in Credits).
The sales mechanism is as follows:
All LTT are sold in whole numbers.
The lowest-priced LTT is sold first.
A round-robin system is implemented for amounts at the same price whereby one LTT is taken from each seller (in chronological order based on the time LTT was offered for sale) at every round until the purchase order is fulfilled.
For orders that consume all LTT at a given price, the round-robin starts at the next highest price after that.
- Buyers get an aggregated price for larger purchases. There are no fees taken in the sales or purchase of LTT.
Can new members join after the reserve price has been met in re-listings?
No. That auction is locked to new participants.
Are BUN sent to the Oven automatically while bidding?
No. BUN only get credited to the Oven when auctions conclude.
How long do we have to wait for a D-Day?
D-Day is theoretical and dependent on several factors, such as how long an auction lasts, how many members are bidding in the last 15 seconds, how many NFTs are on auction, what the re-listing reserves are, etc.
In a D-Day scenario, can members be locked out of auctions before the Oven distributes?
No. All first listed battle-bidding start following an Oven release. It means that members can still join an auction at 5 BUN before the joining fee doubles. This is not applicable for NFT re-listing scenarios that only start following the reserve being met.
Is the cap of 50,000 BUN per account a lifetime cap?
Members may buy BUN at any time, and the cap is a hard cap at any one time. E.g., if John buys 50,000 BUN and spends 1,000 BUN in an auction, he can purchase another 1,000 BUN.
The following are important notes for BUN purchases:
BUNs are sold in packs of 25, which means that if a member spends 1 BUN at an auction and wants to buy BUNs, they will not be able to do so if that would put them over the 50,000 cap. That member must make room for at least one pack.
If a member has allocated BUNs to auctions or pledged to a re-listing, these BUNs are treated as if they had not left that member's account (since they still have control of those BUNs).
If NFTs are added every day, and there is a limited supply, does that mean that the remaining NFTs get valued less over time?
We do not talk about the future value of NFTs as we do not want our words to be taken out of context, but we think that in this instance, we can list certain aspects that may affect an NFTs value for general informational purposes. For fungible tokens valued in a pair to another, inflating one token in relation to the other generally means that the inflated one loses value. In our case, we are adding more NFTs while keeping BUN fixed.
On Loot Arena, the following need to be considered:
The arena has a maximum of 40 first-listed NFTs and 40 re-listed NFTs, and 8 "star" NFTs (88 NFTs on auction); this proportion of first-time/re-listed NFTs may change depending on participation. All other items wait on a first come, first served basis in the “Upcoming” section of the Loot Arena. Once a spot frees up in the arena, the next NFT goes on auction. This focuses the attention of miners only on a few items at any one time.
Members who want to complete sets have to hold on to many NFTs, effectively temporarily taking them out of circulation (i.e., like an NFT staking). For example, if a member has a 3 out of 5, they may want to get to the 5 out of 5.
Some NFTs may attract more attention than others, such as a custom car by a particular creator in a themed NFT set for mechanical objects.
Holders may not sell NFTs since NFTs may have value in themselves to those members.
NFTs can be sent off-site. This reduces the amount of NFTs in the ecosystem and can balance out with the incoming NFTs such that certain NFTs may have more value off Loot NFT than on it to a member. This means that a new contingent of NFTs can take the spots of the older ones.
The number of members on the Loot NFT is relevant to the bidding fervor at auction.