Tokenomics
Last updated
Last updated
GMBL requires users to place all their bets in the GMBL token and all player winnings are paid from the GMBL “House” Fund, which consists of 20,000,000 GMBL. 100% of the house fund profits are paid out to xGMBL Stakers.
Because GMBL.Computer only allows betting in GMBL tokens, it does not need external house liquidity providers – the token holders are the house! This enables all platform profits to accrue to token holders.
Anyone can permissionlessly stake GMBL as xGMBL to earn a pro rata share of the player losses in a mix of GMBL and xGMBL tokens. Only core contributors are prohibited from staking to comply with regulation.
Staking GMBL for xGMBL is instant and happens at a 1:1 ratio. Stakers earn 100% of the proceeds from player losses in a mix of GMBL and xGMBL tokens. Unstaking xGMBL to GMBL takes 6 months to convert at a 1:1 ratio, but xGMBL can be unstaked instantly at a 1:0.5 ratio where the other half of the GMBL tokens are burned. While unstaking, stakers recieve less yield. The amount of yield they earn while unstaking is at the determination of the core contributors. Initially, you will earn 50% of your yield while unstaking.
GMBL.Computer does not make any money from player gambling losses. In fact, the Core Contributors are prohibited from staking GMBL. GMBL.Computer primarily funds operations with the proceeds from protocol owned liquidity swap fees and via token appreciation.
GMBL has a max supply of 100,000,000 GMBL tokens divided into the following categories.
5,000,000 GMBL was sold on a "presale" on Camelot Exchange at a $4.75M market cap. Users that bought the "presale" are able to claim their tokens as a ratio of 65% GMBL and 35% xGMBL shortly after the completion of the Liquidity Bootstrapping Pool (LBP). The presale raised 750,000 USDC, and 100% of proceeds provided liquidity in the LBP.
15,000,000 GMBL was seeded into the LBP with the USDC proceeds from the presale at a 95:5 ratio and scheduled to end at a 5:95 ratio. The LBP was slated to last for up to 48 hours, but ended early after 29 hours after raising 1.5M additional funds at a final price of ~$0.2259.
In total, 8,119,649 GMBL were released and the leftover tokens will be directed to the Ecosystem fund, the majority of which will be burned and some of which will provide boosted staking yields during the initial staking epochs. 20% of the USDC proceeds from the LBP will fund product development. The remaining 80% will go towards liquidity.
The liquidity distribution will be changed to account for the reduced number of tokens sold during the LBP (details available soon). The GMBL token liquidity amounts have not changed.
The core contributors will have a 3 month cliff with a 2 year linear vest.
To prevent the Core Contributors from profiting from gambling, the Core Contributor wallets receiving GMBL directly from the vesting contract are strongly encouraged to NOT stake their GMBL as xGMBL. GMBL Computer does not take a rake and the core contributors do not profit from gambling losses. These losses accrue solely to xGMBL stakers.
These tokens will be the "House." 100% of player winnings will be paid out from this fund and 100% of player losses will accrue to this fund. Tokens can only leave this fund as distributions to xGMBL stakers as GMBL or xGMBL rewards.
Initially, the amount of rewards paid out to xGMBL stakers weekly will be at the discretion of the core contributors (based on the volatility of the house fund), but the plan is for the payout amounts to eventually become fully algorithmic.
The tokens allocated to liquidity will be divided into two categories. 8,500,000 GMBL will provide DEX liquidity using the strategy detailed below and 5,000,000 GMBL will provide CEX liquidity.
The DEX Liquidity will be divided into the following concentrated liquidity ranges relative to the LBP's final execution price (defined as the last price in the LBP before trading ends). The buy side ranges below are defined as a percentage of the USDC raised for liquidity. The sell side concentrated ranges consist of the 8,500,000 GMBL allocated towards DEX liquidity. Any GMBL tokens left over from the LBP will be sent to the Ecosystem wallet. The DEX liquidity will be deployed on Camelot DEX with the trading fees set to be between 1-1.5% based on volatility.
For example, if the LBP ends with 5M USDC in it, 4M (80%) will go towards liquidity, and thus there will be 1.6M USDC deployed between 0.8x and 1x of the Final Execution Price (FEP). Similarly, if the price were to increase from FEP to 2x FEP, then net 750,000 GMBL must have been purchased from the concentrated liquidity LP.
The DEX liquidity from this allocation will be rebalanced according to the following rules:
The Core Contributors (CCs) have full discretion to remove GMBL liquidity above the current price at any time. For example, if the price after the LBP goes down 20% from FEP (using up 40% of the USDC provided), the CCs can remove 80% of the GMBL liquidity left in the range above the current price. Essentially, this would make the buy side concentrated liquidity have a similar effect as token buybacks.
The CCs will not remove USDC liquidity below FEP for the first 3 months. For example, if the token is trading at a 10% discount to FEP, the CCs will not remove any USDC liquidity below that price, but could remove the GMBL liquidity above that price.
The CCs can rebalance USDC and GMBL liquidity above FEP at any time. Such rebalances will primarily aim to allow smoother inflows and outflows from the application.
The CEX Liquidity will be used to market make on exchanges as listings occur. This liquidity will be managed by the GMBL Computer Foundation for the lifetime of the project.
The tokens will be half vested upfront to a multisig and half received linearly to that multisig over 3 years. It is currently estimated that 35% will go to Staking Rewards for xGMBL, 20% will go towards Ecosystem Grants and 45% will be in Reserves, but these proportions are subject to change based on input from the core contributors and community. The Staking Rewards portion will mostly be paid out in xGMBL.
These tokens will be reserved for securing long term strategic partnerships in the future. At the time of writing, none of the 5,000,000 GMBL has been allocated. The specific vest for each future partner will likely depend on their value add and allocation size with larger allocations generally resulting in longer vesting terms. These tokens will be unlocked upfront to a multisig.
The Development Fund is reserved to fund Milestone based payments to contractors with the purpose of increasing platform revenue. It will be stored in a multisig and unlocked at the sooner of 4 equal sized 1,125,000 GMBL chunks at 6 months, 12 months, 18 months, and 24 months from TGE or when GMBL's 30 day average FDV crosses $100M, $150M, $200M, and $250M.
To give rewards to players (ie “Degens”) on the platform. Can be used to fund giveaways and other marketing campaigns. Will likely be mostly given out in xGMBL. Vested upfront to multisig.
These tokens aim to make it clear that GMBL Computer will pay a sizable bug bounty for critical issues. Vested upfront to a multisig. These tokens might be deployed as concentrated liquidity as price appreciates so that the project can offer a significant cash bug bounty program.
xGMBL is the staked, non-transferable, version of the GMBL token. GMBL can be converted to xGBML 1:1 at any time but xGMBL takes 6 months to convert 1:1 back to GMBL. xGMBL can be converted to GMBL instantly but 50% must be burned. Additionally it can be converted in any time between 0 days and 180 days with a linear amount burned (i.e. 25% burned after 90 days). xGMBL stakers receive the earnings from the “House” Fund.
For the first 3 weeks after the LBP, users will be able to stake for xGMBL and receive a 10% bonus on their staked amount (meaning if they stake 1 GMBL, they'll receive 1.1 xGMBL). The GMBL for this staking program will come from the Ecosystem allocation.
