ICDM, ICOS, and the ICPCS token are the three fundamental cornerstones of the ICPCS ecosystem. This article will serve as an introduction to ICDM — a dApp combining collection management and NRI-based liquidity mining features granted to ICPCS NFT holders. The ICDM interface will allow you to stake your ICPCS and claim rewards, send NFTs between wallets, view collection metrics, and more.
Overview
Each ICPCS NFT sale on the secondary market has an associated 8% transaction tax. The breakdown of the tax is as follows:
- 5% - ICDM reward pool
- 1% - Marketplace fee
- 1% - Platform maintenance fee
- 1% - Charitable contributions distributed to Crypto4Changemaking
We have been paying close attention to the suggestions provided by our community members — and given that ICPCS is, at its core, a community governed project, the final ICDM model to be implemented will be decided by a governance vote that will shortly be accessible to all holders in the official ICPCS DSCVR portal.
Two separate reward models are outlined in this article, each with its own advantages and drawbacks. Rewards will continue to be accumulated in the ICDM treasury until platform release, currently scheduled for April 2022.
Option A — ICP token rewards
This approach distributes ICP tokens directly from the ICDM treasury to all platform users based on the total number of their staked ICPCS NFTs and their combined NRI. In order to be eligible for reward distribution, each holder will be required to stake their NFTs through the ICDM interface; this will delist them from the marketplace and decrease the available supply of the collection.
Each NFT’s weight is calculated using the following formula:
NFT Weight = 7777 * 2 * NRI + 7777For example, with an NRI of 50%:
NFT Weight = 7777 * 2 * 0.5 + 7777 = 15554The total weight in the rewards pool for each holder is a sum of all NFT weights staked by that holder. Example:
NFT1 Weight = 7777
NFT2 Weight = 15554
NFT3 Weight = 23331Total Holder Points = NFT1 + NFT2 + NFT3 = 46662
Using this method, high NRI NFTs receive a higher allocation of rewards, but low NRI NFTs still retain value since they are also guaranteed a portion of the reward pool. The maximum possible difference in weight is a 3X multiplier.
Advantages:
- All participants guaranteed an ICP reward
- Decreased marketplace supply
- Fair distribution of rewards
Drawbacks:
- Potentially lower value rewards than Option B
- No floor buyback system
- Smaller holders don’t get to roll over their weights to the next month
Option B — NFT buyback and raffle
Since the IC NFT market is still in its early stages, the ICP rewards from Option A would, arguably, not be too substantial in the beginning — which is why we decided to provide a possible alternative. In Option B, we use the secondary sale royalties accumulated in the treasury to buyback/sweep floor price ICPCS NFTs, and then distribute them to eligible platform users. The total number of staked ICPCS NFTs of each user and their combined NRI will increase the chance of wining an NFT in the raffle.
For example, with 1000 ICP accumulated in the treasury, the ICDM funds would be used to buy approximately 300 ICPCS NFTs at floor price and then distribute them in a raffle system, where the total number of a single user’s entries is calculated by first calculating each of their NFT’s weights and then producing a sum of all weights.
Each NFT’s weight is calculated using the following formula:
NFT Weight = 7777 * 2 * NRI + 7777For example, with an NRI of 50%:
NFT Weight = 7777 * 2 * 0.5 + 7777 = 15554The total number of raffle entries for each holder is a sum of all NFT weights staked by that holder. Example:
NFT1 Weight = 7777
NFT2 Weight = 15554
NFT3 Weight = 23331Total Holder Points = NFT1 + NFT2 + NFT3 = 46662
Using this method, high NRI NFTs bring their holder more raffle entries, but lower NRI NFT’s still play a considerable role in potentially winning a prize. To balance things out, we will use a dynamic entry calculation system: a user staking 100 high NRI NFTs will get a high probability of wining an NFT, but after wining the initial reward, the raffle entries will be reduced to 50% of the original value, giving a chance to smaller holders to win the prize.
If you are unlucky and don’t win any of the (in this example) 300 NFTs, half of your points will be rolled over to the next month, increasing your chance of wining next time.
By compounding NFTs, one month’s prize contributes to your chances in the next raffle.
All NFTs won in the ICDM raffle will be locked in a two week vesting period.
The maximum possible difference in the number of raffle entries is once again a 3X multiplier.
Advantages:
- Higher value rewards
- Buyback of floor price NFTs
- Decreased marketplace supply
Drawbacks:
- Not everyone is guaranteed to win a prize
Conclusion
More details regarding our first governance vote will be announced in our official Discord server.
Whichever model is selected by the community, the initial implementation of ICDM will serve as a base to be further upgraded by the broader ICPCS ecosystem, including ICOS and our own native token.
Our next Medium article will focus on ICOS — a cross-platform portal into the Internet Computer dApp ecosystem, available to all ICPCS holders.
Website: icpcs.io
Email: hello@icpcs.io
Socials: linktr.ee/icpcs
