What is $MAGIC?
MAGIC is the natural resource of the Treasure metaverse. It “powers on” NFTs and turns them from fantasy into productive, yield-bearing assets.
MAGIC is designed to be increasingly scarce (emissions decline as the complexity of the economy increases) as it weaves an ever-growing web of narrative bridges within the Metaverse.
Players can earn $MAGIC through playing, mining, and participating in Bridgeworld. The Treasure ecosystem, therefore, is governed by $MAGIC holders.
In the next phase of farming, users will have to stake Legion, treasures and MAGIC to earn new items (see Bridgeworld). The cost of farming is the price of the initial assets (the mining equipment) and the time it takes to perform these actions. An example mine would include:
- Stake MAGIC and diamonds to create drilling tools (one-time use consumables)
The goal is to create an economy of assets by which the rarest assets are earned through labor. An actual proof of work economy.
This mechanism is a vast improvement over traditional LP incentives. Most farms cater to mercenary farm and dumpers. We have opted for a model that will create slow, continuous growth in liquidity. The early days matter very little because the meat of the LP incentives will not be the token itself but rather the treasures. LPs are rewarded not just for providing liquidity but actually enhancing the quality of the ecosystem. Traditional liquidity mining has instant success and zero long-term efficacy. We are trying to create a long-term community, not instant liquidity.
Mining results in a virtuous cycle for MAGIC and the actual treasures. MAGIC is put into staking or LP positions indefinitely, leaving less of the token to go around. The token then gains “density” (i.e., a loyal community, established use cases), meaning it forms a foundation on which new types of derivatives and financial products can be built.
Users love rare items not only for their qualities, but also because of the effort it took to achieve them. This proof of work mechanism turns treasures from words on a card into collectibles of provable value (cost of mining + time + collectors’ affinity for their treasure).
Moreover, as treasures gain financial value, they become valuable inputs for other DeFi products. Builders will compete to attract liquidity to their products. Protocols bid for users’ loyalty with higher yield and lower fees.
The virtuous cycle continues to compound, with demand for the inputs growing as the outputs become more sophisticated and valuable as well.
Future MAGIC emissions will be distributed at the following ratios:
MAGIC emission mimics Bitcoin’s halvening, but this event occurs every year as opposed to every four years. The total supply will be ~350,000,000 tokens.
The team deliberately opted for high inflation at the beginning to create long-term sustainability. Successful DeFi protocols have almost universally implemented high emissions to help bootstrap a community and liquidity.
Moreover, the design of the MAGIC mine created uniquely high rewards for users who were willing to lock up their MAGIC for longer periods. These users played a key role in bootstrapping liquidity for the protocol and demonstrated great confidence in its future. This group proved themselves to be the best stewards of the protocol and therefore the best possible trustees of the DAO.