⚛️Land Pricing
We are exploring different auctioning mechanisms to help balance, supply, demand and price for land.
Variable Rate Gradual Dutch Auctions (VRGDAs) are being introduced to CafeCosmos to optimize our Land Sales. This innovative method lets us set a flexible schedule for selling tokens and adjusts the price within predetermined limits. Here's how it works:
📆 We'll set a timeline for selling a specific amount of Land.
💰 The price of Land will then oscillate within a pre-established range.
👆 If sales are faster than expected, prices will rise to a maximum cap.
👇 Conversely, if sales are slower, prices will lower to a set minimum limit.
This system gives us the ability to offset any potential impact a surging token price might have on game accessibility. If the token's value rises, it could deter potential buyers. VRGDA comes to the rescue here - if fewer people buy Land due to a high token value, the price of Land will automatically drop, fostering a new market equilibrium.
This initiative is currently in the design, modeling, and experimentation stages. Rest assured, implementation will only occur once we've thoroughly studied its potential effects on CafeCosmos and its players, backed by data-driven insights.
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