QuarryDraw — Investor details
Shares lifetime
Validator have a minimum lockup period of 2 weeks. As it has to have a running node related to the collateral to earn rewards, the validation will be made with the whole collateral amount, and as you can’t increase of stake during this period, shares and rewards will have to live a 3-cycles lifetime period as shown in the image above.
1st period
The first period is the cooling period.
During this time, you have just deposited your investment but it hasn’t been added to the validator yet or collected by the team. You are waiting for the current validation period to finish. You won’t be subject to health management or receive rewards, and you won’t be able to send your shares to people or contracts.
2nd period
The second period is the transition period.
This period is very similar to the third period. Your $AVAX share has been collected and staked on the validator. You will be subjected by health management, you will be able to transact your shares or use them with contracts, and you will earn rewards.
Although you will earn rewards, they won’t be provided by your actual share as it has just been staked. Instead, rewards will be provided by older shareholders as a welcome aboard.
3rd period
Finally the third period is the actual active period.
Your shares have been generating rewards in the last period, and you will earn them as time passes. This period will last for the rest of your life. You will earn rewards every two weeks and you will be able to do what you want with your shares.
Levels and supplies
Shares have different levels, from 1 to 5. To level up you will need 10 shares of the previous level.
Supply is capped at:
30'000'000 shares level 1, giving a 0.1 AVAX per share to complete the validator.
2'571'000 shares level 2
207'600 shares level 3
15'030 shares level 4
828 shares level 5
As you can see there aren’t enough higher levels for everyone, which will result into a remaining of:
4'290'000 shares level 1
495'000 shares level 2
57'300 shares level 3
6'750 shares level 4
828 shares level 5
These level caps are introduced to incentivize participants to level up their shares as they can’t be sure to have a reserved place at a higher level. Supply decreases by an order of magnitude greater than 10, leading to an exponential decrease of supply and exponential increase of rewards generated per share.
The QuarryDraw team will be entirely focused on increasing scarcity. Higher levels will have priority as these shares will represent people who have a higher investment in the company.
Rewards implications
Higher levels will have a big rewards advantage.
Everyone who passes from a cooling period to a transition period will get to share the rewards of previous active owners. As you level up, fewer and fewer shares will transition to your same level as they are more expensive and fewer in supply.
Note: if you level up during both a transition period or an active period to a zero supply level, you won’t get any rewards until the next rewards distribution.
Cooling period
The cooling period is a passage that everyone needs to go through in order to fully operate in our environment. It will last for a minimum of 2 weeks. Any changes to the cooling period will be announced beforehand to give everyone time to prepare for it, but it is very unlikely.
This period doesn’t need you to be active or to control your health.
You won’t earn rewards and you won’t be able to move any of your shares as they aren’t yet active.
This is a great time to prepare yourself for what is coming next.
Revenue & Rewards
Revenues and rewards are the most important factor for both the business and investors, and yes they will be completely passive and for lifetime.
At the beginning revenues will be generate entirely by Validators, with both $AVAX delegated and staked. Your ownership tokens will earn you a completely sustainable ROI based on the annual staking rewards provided by the Avalanche Network. Furthermore you will collect a return on the $AVAX that is liquid staked to the validator, which will have a standard minimum tax of 2%. This tax will be subject to changes as governance will vote on its value with their ownership share. Keep in mind that you will need to make a balanced decision to not discourage people from staking just to earn a few percentage points more.
Owners of the validator will play an important role in this user service, they will be able to help provide liquidity in exchange for a fee for the work.
QuarryDraw will be rewarded with a percentage of rewards, this will ensure that the project will thrive and deliver more possibilities to investors and users. As described on the business profits section, profits will go to fuel the work of the team, the maintenance and the infrastructure, marketing, but most importantly incentives for the platform and reward ownership.
Our rewards amount will scale with the amount of collateral that we have staked. You can check out values here.
As we want to reward early adopters and give people who believed in us first the most return possible, we plan to reduce our compensation derived from them and increase the scarcity of their ownership. Moreover, we will take a snapshot of the first cooling period participants.
While you will earn your rewards, we will aim to incentivize new people to join as both users or investors, not to guarantee that you will be able to get your rewards but to increase them over time!
To reward ownership, our objective is to both create healthy burning mechanisms on our ecosystem and simply buy back and burn it with revenues. In both cases, we will see an increase in the backing value of people’s ownership, which over time will distance itself a lot from the 1:1 baseline.
The structure is still subjected to changes.
Royalties
Token ownership will be represented by an ERC-1155 token. This type of tokenization gives us the ability to have a larger supply and different levels in a single, easy and comfortable smart contract. The token will be a Semi Fungible Token or in short a SFT. Tokens of the same level will be fungible between them, and thus tradable between people at the same price and storable in a single slot.
Every level will store its own metadata.
They won’t have decimals.
Tokens will be tradable in the near future on the QD marketplace and from there on secondary marketplaces. They will trade in a NFT type of marketplace and not on an AMM. We will introduce a royalty fee to swaps, which will be used to fuel the business if needed or it will go completely into burning or incentivizing shares and reducing their supply.
Health
Health will play a fundamental role and will add a GameFi aspect to our Avalanche ecosystem that will help every other person who is active in our protocol. This is the input of the Avalanche workflow. The input will be a simple transaction execution. There will be the option to refresh your health with a simple button on the user page or it will be refreshed every time you perform an active action.
Refreshing your health will collect rewards between periods.
Health will be required only by non-cooling users.
Our initial plan was to incentivize active players and to reward them for their time and energy, which is why we introduced the health parameter as it will ensure that people have a 31-day activity period.
Collect rewards
Collecting rewards will be an essential task. Refreshing your health is an active action that, once performed, will guarantee you to collect your earned rewards in the current cycle. If you don’t do so, your rewards will be just paper earned and not actually reserved, and they will go directly to the people’s pool and redistributed during the next active period. This will serve as an incentive for you to be healthy and for other people to have participants who are not healthy, thus earning more rewards. Forgetting your rewards will be your first signal to be aware that you will soon become unhealthy, as rewards period will be a 2-week period, you will have slightly less than half your health.
Increase scarcity
Another important GameFi aspect to take note of is that it will give everyone the opportunity to earn extra rewards while increasing their shares value at the same time.
Non-healthy users will be managed by any active holders, which means that every active person who manages the shares of an inactive user will collect their rewards and burn the entirety of their shares, thus increasing their portfolio and everyone’s shares’ value. Be sure to stay healthy!
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QuarryDraw,
Fractionalization of blockchain infrastructures. Bridging the gap between people and blockchains on any network.
If you want to learn more you can check out our Docs or join us on Discord, Twitter or just by visit our website.
