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Daomyo Manufacturing Subsystem design and explanation

Daomyo Manufacturing Guild (DMG)

Mechavax is a collective storytelling NFT project that is using multiple systems to incentivize and reward participants in the ecosystem. The Daomyo Manufacturing Guild subsystem will be the support structure for the organic growth of the project.
Generate SHK -> Assemble Armaments -> Increase Ascendancy Score -> Reap Greater Rewards in Game

Goal:

This will be a completely separate system from the soul-bound token Hopium (HPM). It will be used as a reward for PvE/PvP content and leveling up Mechavax to increase damage. These two systems will work in tandem to create the rich ecosystem, with which people participating in the project will be able to interact.
This is not detailed in the roadmap because all of these contracts and systems will be enabled from day 1. All of the contracts have already been audited and are ready to go as soon as we launch our mint.
Now, without further ado, I present to you the DMG subsystem.

Armaments

Once Mechavax has gone live, artists will be able to mint their own 1/1 art through a process we call Assembly (Assembly is a process where a Mechavax Chassis Blueprint is commissioned and added to the Mechavax: Armaments- Sub collection). These NFTs will belong to the Mechavax Armaments collection, and will be ERC721 NFTs that belong to that artist. Just like any other NFT on chain, they can be transferred or sold by the artist at will.
Once Mechavax has gone live, the call to fight in ON!
We will need to call upon creative community members and digital artists to expand upon the Mechavax story in a unique co-operative way.
Armaments are unique 1 of 1 pieces created by community members that live inside of the Mechavax: Armaments sub-collection.
Mechavax will need to add Armaments to their Chassis Blueprint (PFP) in order to expand earning power and to start earning experience.
But... how is an Armament made?
When you connect to the Mechavax website, if you own an Armament, an editor will pop up for you inside the browser, with some creative tools for creating basic art.
The idea is to create art with this tool, so that the community can be involved with the active development and story-telling of Mechavax in a meaningful way. In a way, Armaments are ideas, hopes, or dreams that add to the makeup of any individual Mechavax unit by increasing their earning potential and activating experience gain.

Producing Armaments

The act of creating these Armaments is the main point of the Daomyo Manufacturing Guild ecosystem. The number of Armaments that can be created in a given period of time is limited by a VRGDA mechanism, and any art assembled onto an Armament will benefit from the impactful cultural relevance of the Mechavax IP as well as the attention of the Avalanche community.
The Manufacturing Guild has already been seeded with some of the most accomplished collectors and artists in the Avalanche NFT space. In order to assemble your drawing into an Armament, you need a Chassis Blueprint NFT, which can be created using Shirak (SHK).
As artists create interesting art, the cultural relevance of the Mechavax IP will grow. As cultural relevance grows, Mechavax art will be in higher demand from collectors. As artists see higher collector demand, they will produce further culturally relevant art.

Assembling your own Mechavax

Mechavax themselves are going to be ERC721 NFTs. As well as emitting SHK, they can auto-assemble via Armaments.
Let’s say you own both a Mechavax and some unique art in the Armaments collection. If you attach that Armament to your NFT, ownership of the Armament transfers on-chain to the Mechavax contract, which has a mapping indicating which particular Mechavax that piece of art belongs to. That Armament then becomes a permanent part of that Mechavax blueprint, viewable through the Mechavax dApp. If you transfer your Mechavax, all of its Armaments go with it. Collectors can curate their Mechavax however they choose.
Armaments will also have a scoring system that adds to a Mechavax's Ascendancy score, which will be relevant in the PvE & PvP staking gaming in which you can earn rewards to level up your NFTs to fight for the fate of the universe.

Collecting without a Mechavax

Given their rarity in the universe and their unique in-game use, Mechavax are extremely rare. Pilots who can’t get their hands on a Mechavax NFT will still be able to contribute to the ecosystem by collecting Armaments. Because Armaments are inherently rare, by choosing which artists to support and even directly commissioning artists to draw Armaments, even collectors without Mechavax will be able to make a serious contribution to the curation of the decentralized gallery that will become the Armaments collection.

Systems Design – Daomyo Manufacturing

Mechavax are the instruments of war that the Lumi have gifted the human race in their fight against the Demi-urge and the Illithids, their void-bound minions. All mechs were assembled with love and care by the Daomyo Manufacturing Guild. All NFTs passively gain Shirak (SHK), which is the primordial and non-refined version of Hopium (HPM, our soulbound token). Essentially, this raw light-bound magic is what is used to infuse Armaments with the magical power needed to be able to fight against the enemy. The more Shirak one Mechavax has, the quicker they are able to accumulate more due to the unique nature of the resource.
The supply of SHK grows at an exponential rate, starting at a few hundred units and eventually reaching billions. We are implementing a mechanism called VRGDA, which will automatically adjust prices over time to target a desired issuance schedule. This means that prices will be adjusted up when sales are ahead of schedule, and down when sales are behind schedule.
The protocol targets the issuance rate of 69 per day for initial Blank Page VRGDA to foster experimentation, but eventually slows down to a constant 10 per day to ensure a high bar and focused attention from the community.
The initial (2 AVAX) Mechavax mint consists of 2,250 Mechavax. Over the next 2 years, players will spend SHK to mint 2,250 more Mechavax using VRGDA. Issuance is relatively fast at first to bootstrap growth, but slows and eventually stops to preserve exclusivity.
These systems can lead to some interesting gameplay, as players must decide when to trade SHK for Mechavax, which would in turn change the VRGDA price for everyone else. Ascended NFTs will be SHK-boosting 1/1s that can only be obtained by burning vast numbers of regular Mechavax to encourage large-scale collaboration. The mechanisms making up the gamification of the Daomyo Manufacturing Facility will be finalized at the time of mint, and no more will be added.
These systems are intended to power a self-sustaining ecosystem capable of creating and collecting the most exclusive and sought after art in the galaxy without the need for human intervention.
This process will also be used for the void-bound mint that is soon to come.

Ascended Mechavax

The 12 Ascended (Mythic) Mechavax for both the light-bound and void-bound collections are unbelievably rare, one of one Mechavax NFTs that represent the Pantheon of Gods in the Mechavax canon.
The Ascended will arrive at specific predestined times over the next years, providing punctuated drama for key narrative events throughout the course of the collective storytelling.
In order to obtain an Ascended Mechavax, one must sacrifice a huge number of base Mechavax. The first Ascended Mechavax will start at a price of [redacted] Mechavax, and will become cheaper using a standard Dutch Auction mechanism until purchased.
Each successive Ascended Mechavax will start at twice the number of base Mechavax that the last Ascended Mechavax sold for. A new Ascended Mechavax appears each time an additional 10% of the total supply of Mechavax is issued via VRGDA, and each Ascended Auction is scheduled to end by the time the next Ascended Mechavax appears (or when all Mechavax are issued, in the case of the final Ascended). To compensate for the many Mechavax lives lost, Ascended Mechavax produce their native token at twice the rate of the combined Mechavax sacrificed to summon them.

Shirak (SHK)/Dumak (DMK)

Shirak and Dumak come from the original Dragonlance novels from the Dungeons and Dragons universe. These words were used to create light and extinguish it, which is very fitting within the Mechavax universe. Shirak will be the token the light-bound passively gain, while Dumak is what the void-bound gain.
Mechavax, from our upcoming NFT project, are NFTs that produce an Avalanche token called SHK. The more SHK a Mechavax has, the faster it generates more SHK. This means the total Shirak supply will increase faster and faster every day, going from thousands to millions and beyond.
Hoarding SHK tokens without owning any Mechavax NFTs is a very bad strategy, as everyone else will be generating SHK and your share of the total SHK supply will rapidly dwindle to nothing. On the other hand, if you own many Mechavax but little SHK, your SHK production will lag compared to other players. But, let's say you maintain ownership of Mechavax NFTs with a combined SHK production capacity of 1% of the total and never remove your SHK. No matter how much Shirak you start with, you will eventually end up with at least 1% of the total supply. This ensures the token stays in NFT holder’s control over the long term.
Mathematically speaking, instantaneous issuance is equal to the square root of the multiplicative to SHK in its tank, where a Mechavax’s multiplier is its base speed production of Shirak. We auto-compound issuance over time using a differential equation, and also automatically balance SHK between Mechavax if you have more than one.
In this system, due to some extremely lucky math, it turns out that having many Mechavax with multipliers that add to (Total MULT) is the same as having a single Mechavax with a multiplier of (Total MULT), which means the game stays fair as some players obtain more Mechavax.

VRGDA Explanation

Because the SHK supply is increasing faster and faster every day, having fixed prices for Mechavax or Armaments would make no sense. A fair price for a Mechavax might be 69 SHK immediately after mint, but 69,000 when the supply has grown by several orders of magnitude. Instead, prices are set dynamically to make issuance of Mechavax and Armaments track pre-determined schedules using a mechanism called VRGDA.
Variable Rate GDAs (VRGDAs), designed for Art Gobblers 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. We have implemented this system and are forking the smart contracts to use what has been proven by professionals to be a highly stable and secure model.
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 were not 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. In this case, let us say we increase our price by a factor of 4, 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. This means that we are three days behind schedule. We lower the price, making it easier for users to buy more NFTs. Because your rate of SHK production depends on both how much HPM you have and how many Mechavax you have, spending SHK to receive Mechavax presents a tradeoff. Furthermore, every time you spend your SHK to receive a Mechavax, you increase the Mechavax VRGDA price for every other player. Once you add in the possibilities of DAOs and other forms of collaboration, especially as they interact with Ascended Mechavax, the scope for action becomes quite wide.

Issuance Schedule

Mechavax themselves begin at a supply of 2,250, for 2 AVAX each. Of these, 300 go to the core team and the rest go to the community. Over the next two years, an additional 2250 Mechavax will be minted using a logistic schedule. At first, the protocol will issue roughly 200 Mechavax per month, but this will slow down over time. This pattern allows the community to grow quickly and bootstrap at first while avoiding over-inflation in the long term. Similar to the Nouns model, one in ten newly minted Mechavax will accrue to the team. An additional one in ten will go to a vault to be distributed to the community.
No Armaments will exist at mint, but they can be created shortly after using SHK. The schedule calls for an initial creation rate of 69 Armaments per day to allow the community to experiment with art styles, memes, and more. Over the course of about 6 months, this issuance rate will slow down along a logistic curve until it hits a constant rate of 10 Armaments per day, which the protocol maintains forever. No Armaments accrue directly to the team, but one in ten newly created Armaments do go to a vault to be distributed to artists in the community. This vault will eventually be managed by the D.A.P.P Pilot DAO.