Special announcement

Dear community, the purpose of this newsletter is to explain the main reason for the changes incorporated in the tournaments and how they affect the economic ecosystem of the game.

Tokenomics DF

First of all, it is worth explaining that the tournament modality is designed to provide a competitive scheme where the $DEV, which is a governance token that can be traded in the different swaps of the network, is at stake. This token is NON-inflationary in nature and has a finite number of tokens created.

This number of tokens is designed to be released over a period of 6 years as shown in the graph below (graph presented in the project tokenomics and available in the project whitepaper).

It should be noted that the fact that the token is released does not imply that it must be used in its entirety, rather its use is proportional to the number of players enjoying the game, while the remaining tokens remain locked and cannot be used under any circumstances.

Bots and tournaments

In the early Alpha stage of the game, there was a reduced base of players to test the different features of the game, so it was necessary to admit bots in the tournament mode, giving the player the possibility to know and live the experience of the competitive game, also served as an instrument to incorporate tokens into the game as an incentive for the arrival of new players to the ecosystem waiting for its early availability in the market. Unfortunately, none of these assumptions were fulfilled and the limit in the token-player ratio was exceeded in the base of the game, where each extra token contributed by a bot could negatively affect the stability of the token price.

Having made the previous point clear, we will explain how tournaments will be related to the $DEV and why the previous point is so relevant in this matter.

To participate in a tournament you must have VOL (obtainable for free) and $DEV obtainable through some SWAP in the market, it should be noted that only the $DEV participates in the prize pool as it is the main asset of value (along with the NFT Carta) in the game, thus the figure is shown as follows:

ENTRY (n)+ Added $DEV = Prize pool

ENTRY = VOL + $DEV — FEE(%entry $DEV)

where:

• (n): number of players;
• Fee and added $DEV: inflation control mechanisms in the token economy.

On the other hand, the competitive tournament program (Underground) is summarized in the following table showing the ENTRY value for each tournament expressed in $USD.

These values will remain fixed unless previously determined and advised otherwise.

How this translates to $DEV, is summarized as:

Buy-in($) = Price($) DEV * amount of DEV.

therefore:

Buy-in(DEV) = Buy-in($)/price($) DEV.

The price of the token inversely influences the amount of DEV required to play in competitive tournaments, this also establishes a mechanism of self-regulation of the price according to its demand, since if the price of the token decreases, automatically increases the demand for the use of this, and with this the price tends to rise again to the equilibrium point, the same happens if the price rises, automatically decreases its demand since it is not occupied much for entries to the tournaments.

Conclusions and implications

As many know, for a token to be traded, it must have at least one liquidity pool, and the larger the pool, the less susceptible it is to large price variations with small transactions. Unfortunately, having a large pool requires a lot of liquidity resources, which generally means that it is the community itself that feeds the pool in the process of the project’s active life. In the case of Deviants Factions, this is no exception and it is expected that this pool will grow as more players enter the competition acquiring the required token, raising its price, while that happens, more tokens can be injected to the ecosystem through different incentives or special prizes, even incorporating bots to the competitive tournaments, contributing their share of tokens. However, as long as that does not happen, bots participation in tournaments only generates an injection of tokens that eventually end up diluting the liquidity of the pool depreciating the token, making it necessary to occupy more and more tokens to participate in tournaments. This price instability mainly affects current DEV holders who will see how their previous efforts are devalued.

In view of the above, the different measures already known have been adopted:

• Limitation of bots in tournaments.
• Limitation in the daily withdrawal of $DEV.

Mainly to maintain the stability of the internal economy and the price of DEV stable.

That being said, we hope you can enjoy the game and most importantly, HAVE FUN!!!!

Happy Holidays!
Deviants Factions Team.