Chicken NFTs are in-game pets that can generate profits, golden eggs, and more. They are backed by PAYG Options. There will be a limited supply of mintable chickens at the start, but this will gradually increase over time.
Users can purchase chickens from the Vendor, which would give users a quote and an estimation of how much food and the intervals that chickens have to be fed at. When you purchase a chicken, you are required to make a call on the future direction of the markets (e.g. you think ETH will be higher than current price in 1 weeks time). If your call turns out right, you will be handsomely rewarded if you keep your chicken alive. If your call turns out wrong, you may choose stop feeding your chicken, and let your chicken starve and die.
Once users have bought chickens, they have to feed their chickens at fixed intervals to ensure that the chickens stay alive. If a chicken is not fed on time, they will starve and die.
Chickens have 2 key indicators:
Health Bar: Shows how profitable the chicken is. A healthy chicken will have health bar more than or equal to 0, and a diseased chicken will have health bar statistics less than 0.
Satiation Bar: Shows the number of feeds left until the chicken NFT starves. The higher the satiation bar, the higher the chicken can stay alive without being fed. Users can increase their chicken's satiation bar by purchasing meal plans from vendors. Once a meal plan is purchased, it cannot be refunded and will be used to feed the chicken until it is fully used.
On harvest day, healthy chickens may take one of the following actions
Explode the chicken to receive profits
Keep the chicken & harvest golden eggs
Engage in chicken battles to bet your profits
Diseased chickens will not be eligible for any of the above actions. Diseased chickens can be burned to return a small random number of Golden Eggs.
Minting a chicken NFT represents the user opening an options position. When minting a chicken NFT, users have to pick a direction of an underlying asset (e.g. Ethereum). They are required to pay a certain percentage of the chicken's initial value (premium) as downpayment, and can service the rest of the premium through the life of the chicken NFT.
Feeding the chicken NFT represents the servicing of the option loan. Chickens are living and breathing creatures, and just as humans need 3 meals a day, they need to eat food daily. Players have to feed their chickens regularly with the specific feed sold by the vendor. to ensure that they are kept alive and for a chance of the chicken's being healthy.
Meal Plan represents how much chicken feed is required to keep the chicken fed and alive till the expiration date. There will be an indicator of how many feeding sessions are left, which is also indicative of how close expiration is.
Once a feeding session is missed, the chicken NFT will starve and the NFT becomes worthless. Missing a feeding session is the equivalent of users defaulting on their option payments. Users can choose to pre-pay a certain amount of feed so that there is buffer for missed feeding sessions.
Burning a chicken represents taking profit from the options position. Health is an indicator of how much the chicken may be worth on harvest day, and can be tracked either visually or more accurately by the health bar in the coop. If a chicken is healthy by harvest day, a user can burn the chicken NFT and cash out his profits. After exploding a chicken NFT, the NFT is burnt permanently.
Farming allows users to share in the protocol revenue by delaying gratification of profits. Only healthy (ITM) chickens are able to be staked for Golden Eggs. Users would have to evaluate whether it would be worth accumulating healthy chickens for the farming of Golden Eggs, or to harvest the healthy chickens and roll profits into creating a larger amount of healthy chickens.
Healthy chickens can be pit against one another in a high stakes high return battle. This enables users to increase their profits by siphoning profits off other healthy chickens. Winning chicken fights increases a chicken's level and allows it to initiate higher stakes battles against other chickens. Chickens are randomly matched according to both dollar value wagers and within a specific band of levels and timeframe, to prevent gaming of the system where a single bad faith actor constantly pits two self-owned chickens together to raise the level of one chicken.
The satiation bar is used to gauge how long chickens can stay alive for without being fed. Once a feeding session is missed, the chicken will starve and die. To minimise accidental occurrences, users may purchase multi-day meal plans for chickens so increase their satiation bar.
The health bar can be used to assess if the chicken is healthy (profitable/ITM) or diseased (unprofitable/OTM).
If a chicken is neither profitable nor unprofitable, the health bar would indicate 50%.
If the chicken is diseased, the health bar would be less than 50%, with health decreasing in accordance with how unprofitable the position is.
If the chicken is healthy, the health bar would be more than 50%, with health increasing in accordance with how profitable the position is.
Healthy chickens can be harvested for cash or staked for Golden Eggs. Diseased chickens kept alive until maturity can be exchanged for a random number of Golden Eggs.
Golden Eggs do not hatch into chicks, but they are much more valuable, as they allow users to share in the protocol profits.
How to get Golden Eggs: Healthy chickens reared till maturity can be staked in the protocol to generate profit-accrual tokens called Golden Eggs. Diseased chickens can also be sacrificed for a small amount of Golden Eggs. For each transaction that occurs in the Pokpok protocol, a percentage accrues to a community pot which would be claimable by community members who burn their Golden Eggs.
How to use Golden Eggs: Profit-sharing is time-gated within a week, hence users who burn their Golden Eggs will be eligible for profit-sharing from the community pot in one particular week. Once Golden Eggs are burned, they are removed from circulating supply permanently. New Golden Eggs can only be obtained via the staking of healthy chickens or sacrifice of diseased chickens. The entire community pot would never be claimable as a remainder portion is always set aside as foundational funding for the next round of profit-sharing.
Distribution of profits: The percentage of the community pot each member gets is dependant on the number of Golden Eggs burnt for a particular week, weighted among the Golden Eggs burnt by the entire community for that particular week. Profits here are not consistent and users would have to determine the best strategy of accumulation vs burning of their Golden Eggs.
OG Chickens: The first 2,000 healthy chickens will receive the title of Free-Range , and will enjoy the best production rate of Golden Eggs. The next 2,000 healthy chickens will receive the title of Cage-Free and have a slightly elevated production rate of Golden Eggs. The rest of the chickens will not receive OG titles and will have an average production rate of Golden Eggs.
The OG titles are refreshed on a rolling basis, and if an earlier token ID harvests their chicken, the next token ID in numerical order will be promoted to the status of an OG chicken.