FuseBlock Operations

FuseBlocks as a long-term incentive to hold tokens

Because the minted objects have intrinsic value, it's now possible for Developers, Creators, and Players to examine the constant value of the game object, independent of the extrinsic value in the game context. This opens up interesting possibilities:
  • Players can invest in acquiring game objects, knowing that they can have persistent value, even if the game ceases to operate: holders of objects that have lost all extrinsic value can "melt them down" and extract the underlying $RDYX associated to the object. This serves as a type of hedge- or insurance policy- for the player. In turn, this can spur more player spending on collectible objects, rewarding the developer in the immediate term as these consume In-App Purchases (IAP).
  • The melting down process itself can be governed by the FuseBlock contract. For instance, when an item is melted, the owner does not receive 100% of the underlying token value. When melted down, 50% of the value is returned to the Ecosystem Fund. The remaining 50% is divided equally between the original creator (25%) and the current owner (25%).
  • This provides a disincentive to melt down objects for the pure value of the underlying RDYX tokens, and, when it does occur, rewards the original creator with a derivative payment, while funding long-term ecosystem growth.
  • The contract can also generate a type of player staking reward for holding game objects in their inventory, and comitting not to trade them for a period of time. For instance, the player staking reward could stipulate that when a player a) places their game objects "on ice" (meaning they cannot be traded, but can be used in-game) then b) they will receive a staking reward commensurate with the overall value of underlying $RDYX in the staked objects (their intrinsic value). Thus a player can be rewarded (and a developer, if they hold FuseBlocks and place them "on ice" prior to using them for minting) for holding on to game objects.
Additionally, FuseBlocks can serve as a powerful market-making incentive.
For example, the Ecosystem Fund could decide to contribute a certain amount of $RDYX to be converted into FuseBlocks. In turn, these FuseBlocks are allocated to a competitive devleoper and/or creator program.
Thus in the totality of uses, FuseBlocks serve to:
  • Reward players for being long-term holders of minted objects, by providing a yield for "on ice" items.
  • Reward developers by creating market-making incentives to attract high quality games to the ecosystem (with an appropriate lockup on the sale of the underlying $RDYX in the FuseBlocks).
  • Allow for "bulk discounts" when devs or creators purchase large quantities of FuseBlocks.