Wrapping your $ECTO inside of xECTO NFTs opens many possibilities that include renting out your multiplier in game, staking, and more.
xECTO NFTs are a type of non-fungible token (NFT) that are used in LittleGhosts MMO. They are created by users wrapping their ECTO tokens in a pool and are used to increase a user's play-to-earn rewards. xECTO NFTs can be rented out by other users in a renting contract, where the renter pays a fee to use the multiplier from the NFT. Additionally, users can stake their xECTO NFTs in a contract to receive an extra APR, although they are not able to convert the NFT back to ECTO tokens until the staking period is over. This APR is rewarded to the user every 7 days in unlocked ECTO, which can be claimed directly from the pool or when the user receives the NFT back from being rented.
When first conceptualizing LittleGhosts MMO, we knew from day one the amount of play to earn rewards you get would be based on the amount of $ECTO you currently own. There were several issues surrounding this but the number one is what about the people that just want to hold $ECTO and not play the game how would they get rewarded? This opened the idea to the concept of xECTO NFTs and renting out this multiplier that affects your play to earn rewards.
Now, the total amount of multiplier you have from xECTO NFTs is what affects your play to earn rewards not the amount of $ECTO you are holding.
Users now have to wrap their ECTO in a pool to receive an xECTO NFT. Each xECTO NFT will have an play to earn multiplier based on the number of ECTO tokens attached to it.
For example, Tim has 3 different xECTO NFTs. He has 1 with a billion ECTO attached to it that has a 100x multiplier, another with 100m attached to it that has a 10x multiplier, and finally another that has 67m attached to it that has a 6.7x multiplier. Tim has a total multiplier of 116.7x which affects the amount of play to earn rewards he receives in game.
An xECTO NFT has the amount of ECTO tied directly to it in the contract. All the data is stored on chain.
These xECTO NFTs can not be transferred to any other account or used anywhere besides the xECTO renting contract or the xECTO contact itself.
Additionally, they can rent out these xECTO NFTs in a contract where users can pay a small fee to use the multiplier from the NFTs.
For example, John wraps 1 billion ECTO in the xECTO contract. John receives a 100X multiplier xECTO NFT in return to prove he owns the amount of ECTO in the xECTO contract. John can now lock this NFT in a renting contract pool. He now has a 100X multiplier NFT in the renting contract pool. John can browse offers where people put up listings that say they want to rent the 100X multiplier NFT for a specific amount of time and money. John can additionally create his own listing that says he is renting a 100X multiplier NFT for one day. Using the play-to-earn calculator on the website, John can simulate that at max efficiency he can earn $500 a day from playing the game for 12 hours with a 100X multiplier. John sees the best offer someone is offering to rent a 100X multiplier for one day is 420$. John is happy with that and the user who plays the game is also happy to earn 80$ for playing for the day.
The renting contract never transfers the NFT to another player. The game and play to earn reward pool contracts read from the renting contract how much a user currently has rented.
For example, Daniel has a 1 billion xECTO NFT he is currently renting from someone. That NFT is always in the renting contract but the game can read the contract to see Daniel has a 100X multiplier from the NFT currently rented to his address.
Also, when renting out a specific xECTO NFT you can not withdraw that NFT until the renting period is up.
There will be xECTO NFT renting but what about traditional staking? We have integrated traditional staking directly in the xECTO contract. Users are given an option to lock their $ECTO tokens up for a chosen amount of time when they are initially acquiring xECTO NFTs for an extra APR. You are still given the traditional xECTO NFTs. An increased staking period respectively increases the APR received. You are still given the traditional xECTO NFT when locking up your tokens but you can not convert that xECTO NFT back to $ECTO tokens until the staking time is over. However, if you pay a huge 15% fee you can convert your xECTO NFT any time during the staking period. This 15% is used to additionally fund the staking pool creating more rewards for the patient stakers.
You can not convert your staked xECTO NFT back to $ECTO until the staking time is up, but you can rent the xECTO NFT in the renting contract like normal. You can also use the NFT as normal for the multiplier in game yourself. The two staking options you are given are a 30 day period or 90 day period. The 90 day period has a higher APR than the 30 day period. It is encouraged to stake your $ECTO tokens when first acquiring an xECTO NFT if you do not plan on playing the game everyday.
Still confused? Let's see an example of how staking works. Li has 1 Billion $ECTO that he wants to convert to an xECTO NFT. He can choose to convert it to an xECTO NFT to rent or convert it and lock that NFT so it can not be converted back into $ECTO until the staking period is over. If he chooses to lock it he will be given extra APR and can still rent out the xECTO NFT to other players in the game.
The APR will reward you every 7 days in unlocked $ECTO. You can claim this $ECTO directly from the pool if you are not currently renting out your xECTO NFT. If you are currently renting, the APR will accumulate while it is rented, then you claim your reward when you receive your xECTO NFT back.