Spells are on-chain magic. An experimental attempt to conjure the first NFT with true on-chain utility, and improve the zero-sum dynamics of NFTs and on-chain games.
Spells are the first ERC-5050 Interactive NFT, and can be
cast() across the blockchain on other NFTs and addresses – but only those that support it. Like Loot, Spells are an invitation to create together – not an insular game world. It is up to the community and creators to build with them.
100% of Spells proceeds go to a holder-controlled treasury, used by the community to fund and support projects building with Spells.
3,333 Spells were minted launch to seed the playerbase, followed by the Eternal Mint (an infinite VRGDA).
The Metaverse so far has mostly looked like walled-garden web2 games that monetize web3 assets (NFTs and coins). Spells is the first project to use the new ERC-5050 (contributed by hypervisor) for truly decentralized game building – where the game world becomes the blockchain itself and anyone can build in it.
There are endless ways that spell casting might affect other NFTs, but the most immediate is appearance. For example, Entropes will be the first project to support Spells, and will allow Entropes holders to trigger special visual effects on their Entropes.
Magic is most powerful when it is created together. Spells holders will control the treasury and the Spells contracts utilizing a fork of Nouns DAO (itself fork of Compound Governance).
The DAO can provide grants to creators to build integrations with spells, fund new projects, cross-project collaborations, and anything else that helps build the world of on-chain magic.
Spells has an initial supply of 3,333 tokens, with a continuous Variable Rate Gradual Dutch Auction (VRGDA ) after that. This is intended to seed an initial player base, while also providing a system to increase adoption and fund the DAO treasury.
Phase 1・Spread the Godspell
An initial supply of 3,333 tokens will be sold to early zealots and magic makers.
|9/8 3:33 EST||Minting begins for 🗝 key holders|
|9/8 7:06 EST||Public Sale (if any spells remaining)|
Phase 2・Eternal Mint
Additional Spells will be minted using a VRGDA that autonomously balances the emission rate. The Eternal Mint begins immediately after The Conjuring.
Spells is an experiment with no guarantee of success. The following is speculation.
Eternal Mint Tokenomics & The Virtuous Cycle
If the Spells experiment is successful and Spells become the first NFT with on-chain utility, the tokenomics are likely to work a bit differently than traditional NFT collections. Usually, increasing the supply of a collection is zero-sum – existing holders lose value as the new holders gain it. Spells, on the other hand, are both collectibile and useful. The more creators build on Spells, the more useful they become. And the more players hold Spells, the more creators want to build with them. The hope is that this will create a virtuous cycle that benefits all participants – the beginning of a new way to build positive sum games on-chain.
Derivatives → Integrations
These positive-sum mechanics also apply to projects that build with Spells.
The open, on-chain utility of Spells changes the narrative from derivatives, which sap value away from the originating project, to integrations, which create value for both projects.