Decentralized Anonymous Organization (DAO) - an organization that is run through rules encoded in smart contracts.
The tokenomics design of DAO allows DAO Farmer to have a perfect decentralized financial system in the newborn phase.
Considering that there is a non-reciprocal relationship between the liquidity provider and the contract protocol in traditional DeFi the liquidity provider cannot comply with the contract protocol after gaining benefits and then withdrawing funds resulting in a lack of liquidity. The economic system of tokens in DAO Farmer uses the DAO vault as the hub and the tokens in the DAO vault are injected into the liquidity pool through smart strategies. In each claim operation of a player, a portion of the tokens will be automatically sent into the DAO vault, which is the main component of the DAO vault. Thus the initiator of the entire token financial system is the player and the more the player produces, the more liquidity is injected through the DAO vault. This is known as Protocol Owned Liquidity (POL).
To prevent the price of NFT from rising too quickly and to ensure that more players can participate in the game, DAO Farmer has designed the Property as a Service (PaaS) mechanism, in which the DAO vault will open the asset selling function in the early phase, players can buy game assets in the DAO vault and 94% of all the revenue will enter the DAO vault as transactions occur and then inject liquidity through Protocol Owned Liquidity (POL). Liquidity is then injected through POL. When the price of NFT stabilizes, this function will be closed.
Too much liquidity can ensure the circulation of tokens, but it can also cause slow growth of players’ revenue. The token DAO Reactor can be a good solution to this problem. Players can buy DAOF with token Liquidity Provider (LP) or specified tokens and holding DAOF can provide players with a revenue growth rate. The existence of the token reactor can largely make up for the lack of Protocol Owned Liquidity (POL) presence and increase the scope of control over liquidity. It also increases the player’s earning and the output is converted into earnings, forming a gain closure loop.
Protocol Owned Liquidity (POL) and Property as a Service (PaaS) ensure the liquidity of the game’s assets, while DAO Reactor provides the financial system. The tight economic model has a positive effect on the sustainability of DAO Farmer, ensuring a longer game lifecycle, which is the basis for the later development stages of the game.