📈Core Utility

The Kadena King NFT Core Utility.

The Kadena King NFT is designed to be a passive income utility NFT which generates income off of the growth of the betting network. As volume increases, the income generated off of player losses increases in a direct proportion and is known as the hold. The hold is simply an aggregate amount of users bets that is held back on in each betting market as a direct tax for the operator's bookmaking service.

As explained in the DAO Topic, the proceeds of the hold is seperated into two pools:the Kingpool and the Treasury. The kingpool ratio, which is 66.7% of the generated hold, is distributed amonst each wallet holding a Kadena King.

If the treasury reaches a certain maximum amount, the kingpool then reverts to 100% of the proceeds as the protocol has no more need to extract capital. The capital drawn into the kingpool is computed and paid out once per calandar month.

The formula for the kings passive financial utility is then:

income = volume * hold% * kingpool-ratio / 500

As volume rises, it is expected that the costs to run the network and facilitate knight NFT's will increase over time and the kingpool-ratio will decrease as an economy of scale emerges. This is a natural effect of decentralization as volume increaes and the network demands more of the proceeds to operate efficiently and formally dilutes ownership.

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