VRGDA

Because the TBK supply is increasing faster and faster every day, having fixed TBK prices for TBK or Pages would make no sense. A fair price for a TBK might be 69 immediately after mint, but 69,000 when the TBK supply has grown by several orders of magnitude.

Instead, prices are set dynamically to make issuance of TBK and Pages track pre-determined schedules using a mechanism called VRGDA.

From the VRGDA paper:

Variable Rate GDAs (VRGDAs), designed for TBK and used in 0xMonaco, let you sell tokens close to a custom schedule over time by raising prices when sales are ahead of schedule and lowering prices when sales are behind schedule — a generalization of the GDA mechanism.

[…]

Imagine a simple schedule where we want to sell 10 NFTs per day. We set a starting price of 1 token for the first NFT.

Suppose it is currently day 5, so we should have sold 50 NFTs. However, demand has been high, and we have sold 70. We weren’t supposed to sell 70 NFTs until day 7, so we are two days ahead of schedule.

As a result, we want to charge a higher price going forward. We use an exponential curve to determine how much higher. This can vary based on parameters, but in this case, let’s say we use , so that we increase our price by a factor , so since our initial price was 1 token, the new price will be 4 tokens, making it harder to buy more NFTs.

Ten days later, on day 15, we should have sold 150 NFTs, but users have only bought 120, the amount they should have bought by day 12, meaning we are three days behind schedule. We adjust the price to , making it easier for users to buy more NFTs.

Because your rate of TBK production depends on both how much TBK you have and how many TBK you have, spending TBK to get TBK presents a tradeoff. Furthermore, every time you spend your TBK to get TBK, you increase the TBK VRGDA price for every other player.

This presents a complex strategy space that we saw play out on our 30x speed test net run (to be released soon). Once you add in the possibilities of DAOs and other forms of collaboration, especially as they interact with Legendary TBK, the scope for action becomes quite wide.