AnRKey X uses a price oracle to apply value to our non-fungible tokens (NFTs). Oracles essentially allow smart contracts to receive information from external data feeds. In the case of our Price Oracle, our blockchain receives real-world, real-time information relevant to determining the prices of our NFTs via our proprietary Derived Base Value (DBV) engine.
Our DBV formula is a driving force behind what makes our NFTs so revolutionary when compared to other platforms. In other uses, NFTs worth is based only on market perception. However, we are able to back them with a real value through our DBV calculations.
The AnRKey X DBV calculation takes into account the base value of an NFT, as well as the $ANRX average price over the game period, the average number of Golden Chalice NFTs minted for the game period, the amount of tokens spent by the winning team over the game period, and the tokens rewarded to the winning team during the game period.
That way, not only do our NFTs have a usage in the game, but they also have a value, which is largely determined by the real-time game economics and player engagement. The more you and others play, the more value your NFTs have.
DBV is used to set the base price of NFTs, but these are then further influenced by other specific factors. For Collectable NFTs, for instance, the price is also impacted by the specific NFT collectable’s degree of separation (out of the 6DoS), with a lower degree of separation (meaning, being closer to a hero character) corresponding to a higher value. The collectables’ prices are also impacted by the $ANRX price and stable rate, the number of players’ addresses in the game, the quantity of collectables, and the time-adjusted APY. A market regulator also ensures a healthy limit on card supply to keep collectables valuable for users.
You can conceptualize the price oracle and our DBV as being like how governments back fiat currencies with various assets. To draw a parallel, in the US, USD used to be backed by gold and other precious metals. However, now, as stated by the US Treasury, “because they are legal tender, Federal Reserve notes are ‘backed’ by all the goods and services in the economy”. In a similar manner, we back our NFTs with both actual assets ($ANRX) and their characteristics, as well as other economy-related activities and goods (like the number of Golden Chalices minted). The result is that our NFTs are truly worth something.
The price oracle is able to take into account all of these in-game and real-time economic factors to value our NFTs. This is critical to our game and players, as it provides all of our items with real worth, powering our token economy. It also incentivizes gameplay by providing value to users, essentially driving liquidity provisioning, which is incredibly important to the overall blockchain industry by providing a strong market for digital tokens.