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The Tokenomics of Horizen Labs X GGC

By city_admin

August 17, 2022 at 12:00 am UTC

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0 comments
17.08.2022

By now, you know that $GANG is coming SOON, and while the Gutter Labs team has
been tight-lipped about the tokenomics and uses of $GANG; fortunately for us, there are some clues already on the blockchain, particularly with Gutter Juice for DNA-2 and 3 Gutter Clones.

First, a little background on Gutter Juice: Gutter Juice (the “mint pass” for Gutter Clones) was both airdropped to OG species holders 1:1 (12k total) and sold in a dutch public auction (16k supply). The dutch auction started at 1.9ETH and settled at 0.1ETH. The Gutter Juice contract is not upgradeable and, as such, was deployed with some exciting easter eggs. The original supply of Gutter Juice was 28,000. In the contract, the “setMaxSupply” function, can change that number. The latter need to happen for the team to release more Gutter Juice later. The best easter egg is the following function – “buyJuiceWithGang.” We can assume that $GANG is needed to buy Gutter Juice. The team has teased that you may be able to upgrade your DNA-1 clone using $GANG, and we can assume you will do so by buying DNA-2 Juice with $GANG.

So how much $GANG will a DNA-2 Juice cost? Well…that depends on the demand. The mechanism to purchase Juice using $GANG is also a Dutch Auction. The startPublicSale function lets the team specify a starting price in $GANG and start a Dutch Auction. How many DNA-2 Juices will there be? Unfortunately, that’s where the breadcrumbs end. I am sure that DNA-2 will not be 1:1 with DNA-1; my gut says it will be very supply constrained. I expect DNA-3 to be an even smaller supply. The team has mentioned that DNA-3 clones will be scarce. Now let’s do some speculating and realize that if you want a DNA-2 clone (or clones), you are (NFA DYOR yadda) underinvested in OG Gutter Species. First, I assume that all Gutter members (except for Juice) will be able to claim $GANG. But how much will members be able to claim? Lucky for us, Gutter Labs is working with Horizon Labs, who helped launch $APE. $APE allocations between BAYC/MAYC are a function of floor prices at the time of claim. Let’s apply that same logic here (I’m going to use round numbers to make everything a bit cleaner). Current FP (note: this was written when FP’s were a bit higher, but similar ratios still exist):
OG Cats – 6eth
OG Rat/Pigeon/Dog – 1eth
Clones – 0.1eth

Using these numbers, non-cat OG’s are 1/6th of OG Cats, and Clones are 1/60th of OG Cats and 1/10th of OG Rat/Pigeon/Dog.

Let’s say that OG Cats get 10,000 $GANG
OG Rats/Pigeons/Dogs get 1,666 $GANG
Clones get 166 $GANG
Juice gets 0

I also predict there will be some OG full set multiplier. So if you have a Cat+Rat+Pigeon+Dog set, the $GANG for that set gets a 1.2x multiplier, so instead of ~15k $GANG, you would get ~18k. I expect no multiplier for clones. Now let’s assume that the DNA-2 supply is around 1/4th the DNA-1 supply (this, again is just a speculative number I made up). That’s only 7,000 DNA-2 Juices. There are 12,000 OG species, many of which have their DNA-1 clones, and holders will most certainly want to upgrade to a DNA-2 clone.
In conclusion, DNA-2 Juice is a very hot ticket. If you want to get some, your best bet is to stack OG’s (and probably full sets), so you start with enough of a claim to be in contention for the Dutch Auction. Gang Gang.

@printer_brrr


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