Yesterday marked the first day of Legends week, a celebration of our genesis collection. An instant sell-out, elite licensed athletes, and an artwork collaboration with one of the goats of the game, Dosbrak. Legends were minted a year ago at the heights of NFT mania and the bull market on Solana and since then we have grown our community and solidified ourselves as the web3 sports brand of the future, signing champions and producing some of the best media, not just in the Web3 space, but in all of sport.
A year on as a project we’re embracing the bear market, strategizing and heads down building out our tech infrastructure, and the quieter market has allowed us to make some key learnings and reassess the current state of the Blockasset ecosystem. With the assistance of AR7 and help from key advisors, we audited our current rewards structure and noticed some flaws in how the ecosystem was emitting rewards therefore have devised a new rewards structure which we expect to be rolled out in November (with an official announcement week commencing Monday 14th November)
Firstly, we can announce that Legends set holders can soon create on-chain sets and earn BLOCK rewards when staked! Legends is our genesis collection and we want to provide as much utility and value. We listened to community members on this and are happy to integrate this into the ecosystem. When the full product is rolled out you’ll be able to show off your sets on your own Blockasset profile, not long now until profiles are live.
The native token of any project is its cornerstone of strength yet due to the bear market many holders are selling off creating a perception of weakness for BLOCK. There was one issue that was clear from the analysis — we have too much inflation. On the current reward structure, we emit 28,115 BLOCK (excluding community bonuses) per day across token staking, NFT staking and liquidity rewards. The data shows that 75% of Smesh Bros holders sell their BLOCK rewards and around 40% of BLOCK stakers sell rewards. This causes an issue to our community who hold and believe in the future of the token yet on-chain data suggested we had some whale holders capitulating during this period.
For Smesh Bros current floor is 3 SOL showing good value with set holders paying 1.69 SOL. On average, minters who staked have enjoyed rewards close to 60–70% ROI in BLOCK already in just a 6-month period and therefore we have had to make the decision to pause rewards on Smesh Bros from November 16th. The Smesh Bros is an iconic collection for Blockasset and was the first time we truly showcased our media potential along with having strong collectible value as Dosbrak masterpieces. The NFTs will have performance-based rewards in the future, and with Till fighting in December and Khamzat primed for UFC London in February keep your assets staked as you can expect updated performance rewards soon. Smesh Bros holders will also have priority access to the limited presale of the athlete tokens when live.
CURRENT ECOSYSTEM PROBLEMS and Solutions
- BLOCK 30% APR is a lot higher than the market average and 40% of rewards are sold
The initial 30% APR was to incentivize early adopters during TGE and initial launch. Moving forward we will create new staking pools offering enhanced rewards for longer lockup periods.
- NFT stakers sell ~75% of their BLOCK rewards causing damage to the token price.
BLOCK NFT rewards to only apply to performance-based rewards when an athlete wins then incorporating athlete token rewards when live.
- Despite many NFT stakers, selling BLOCK to purchase NFTs, the floors were relatively stagnant. At any sign of increased buy pressure for a collection, holders would unstake then floor NFTs to try to take profits limiting growth.
Create new NFT training camps that mean only holders with the ecosystem are rewarded for staking. The training camps will come with a rest and recovery period for the athlete (cooldown) combating users from unstaking and dumping into periods when a collection floor is in discovery periods.
- Legends set holders, our prime collection, aren’t being rewarded which means floors are pretty stagnant.
Create a set staking pool where users can stake sets of Legends and earn BLOCK rewards based on rarities.
We will be holding a community podcast in Discord tonight 7:30 pm UTC where members can ask the core team any questions on the new rewards, and product information or share ideas and suggestions. Thank you for reading and understanding.
New Rewards Breakdown
An official announcement of when the community can expect the changes will be released the week commencing Monday 14th November.
Choice from three pools, 12% APR with 7 days cool down 18% APR 6 month lock-up Period with a 7-day cooldown period, Staking Pool for 24% — 1 year lock-up period with a 7-day cooldown period
LEGENDS Training Staking
Stake your Legends sets 10–25 ASSET. Choice from three pools,
Option one: 2–4 BLOCK per set per day — 0 minimum lock up, 7-day rest and recovery,
Option Two: 4–6 BLOCK per set per day — 60 days lock up, 7 days rest, and recovery
Option Three — 4–8 BLOCK per set per day — 180 days lock up, 7 days rest, and recovery.
Smesh Bros Staking
BLOCK Performance-based rewards. Earn a percentage of athlete token volume upon launch. 5–10 ASSET based on rarity. The higher the amount of Smesh Bros held and staked, the larger the allocation available to access.
Current Win rewards end 15th Nov (end of the 60 days). Future performance-based rewards. Earn athlete tokens upon launch.
Current win rewards end 15th Nov (end of the 60 days) Future performance-based rewards. 5–10 ASSET based on rarity.
Please note: the Usyk Collection was sold as a digital artwork with little/no utility, and the rewards previously provided were as a thank you to those who purchased and an appreciation for the heavyweight champ. The collection is purely a charity-based artwork collection, a Dosbrak commemorative piece to support the Ukrainian war and the foundation of Usyk as described prior to mint.
Why are we changing the ecosystem?
An audit and review of the ecosystem showed flaws in the reward process so we have tweaked it to help benefit the long-term benefit and sustainability of the project.
When will the new rewards system start?
We’re expecting an official announcement to come in the week commencing Monday 14th November.
Will rewards be updated in the future?
As always, we are agile to change and if we see value in updating rewards.
What is a lock-up period for an NFT?
Consider this as sending your athlete to training camp to earn you rewards. The longer your athletes camp, the better the rewards.
30% to 12% is a big decrease in rewards, is this really beneficial as a holder?
The initial 30% staking was to incentivize early adopters and we are coming up to 1 year since BLOCK was launched. As a holder, you can still earn 24% but it means a 12-month lock-up period. You can also provide liquidity for around 90% on Raydium.