Steady Rise of the Keys
Economic Model
The $Key token model adopts a structure of quasi-stability, characterized by a steady rise in its floor price over time, which ensures that it will never decrease. Conversely, its market price fluctuates in accordance with market demand, but it will never fall below the floor price. This creates a scenario where downward potential is limited, while the upward potential is limitless.
As illustrated in Figure 2, this depicts the trend curve of a Stone's $Key at a specific moment. The interpretation is as follows:
In a bearish market, holders tend to sell their keys, resulting in a declining price trend as depicted by the solid line, until it reaches the current floor price, thereafter which it stabilizes.
In a bullish market, significant key issuance and acquisition will lead to an ascending price trend, as represented by the dotted gray line. This continues until the point of ascent of the floor price is reached. At this point, the price trend graph immediately adjusts (as shown in Figure 3, transitioning from s1 to s2), with a portion of the liquidity transitioning from the market pool to the floor price pool, causing an increase in the floor price and a minor downward adjustment in the market price. (This process simply involves the transfer of funds from the liquidity pool to the floor price pool, hence the total funds remain unchanged).
Floor Price Elevation Point
During the initial creation of a Stone, the following parameters need to be configured:
| Parameter Name | Parameter Meaning | Default Value |
|---|---|---|
Floor | Initial floor price | 0.01 eth |
Floor_Supply | Initial floor price issuance quantity | 200 |
Step | Magnitude of each floor price elevation | 100 |
Increse | Increment of floor price issuance quantity after each increase (must be < Step) | 10 |
Upon the creation of the Stone, the key trend graph is initialized based on the above-configured parameters. The floor price at this stage is set as the 'Floor' price defined by the creator. Hereafter, sales will continue at the floor price until the 'Floor_Supply' is reached, marking the first adjustment in the Key trend graph.The rules for adjustment are as follows:
New floor price after elevation = Current floor price + Step
Next floor price elevation point = Current issuance quantity + Increase
Liquidity pool funds = Total funds - funds in the post-elevated floor price pool
Given the constant slope of the market price, the current market price can be calculated based on the size of the liquidity pool.
Subsequently, when the issuance quantity reaches the next floor price elevation point, the trend graph is adjusted according to these rules to raise the floor price.
Earning Profits
Upon the purchase or sale of $Key by users, a fee is incurred, which is currently set at 5% of the $Key price. This 5% fee constitutes the earnings for both the creator and the Moss project team, following a 50-50 revenue sharing model.
For instance, assuming the current market price of $Key is 1 eth, users are required to pay 1.05 eth when buying or selling, with 1 eth entering the liquidity pool while the creator and Moss each receive 0.025 eth.
This economic model ensures a controlled rise in the floor price of $Key, providing a stable and lucrative environment for creators and users within the Moss ecosystem.
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