Revenue Sharing Overview

What happens to all the BBCoin spent on bikes and wearables?

EARN IT

A core part of the Bike Battle experience is racing. To incentivize continuous and active engagement with the game's ecosystem, part of the revenue earned from bike sales and wearables will go toward the race rewards.

To that end, 40% of all earned BBCoin will be distributed back to players via player rewards.

DAO IT Community governance is also a core tenet of the Bike Battle experience. Part of DAO's responsibilities include managing a treasury, to be used for any initiative it deems worthy.

15% of revenue will initially be distributed to the DAO treasury. As the DAO continues to mature, this percentage may eventually increase. The end goal, of course, is for the DAO to grow into an entity fully capable of managing and even upgrading the protocol. While that might still be a couple of years away, it's something to look forward to.

BURN IT

As a prelude, it would be good to get acquainted with BBCoin's bonding curve and how it works. Then, the fun begins.

5% of all BBCoin earned via fusion and item sales will be burned. Forever.

BBCOin is a token with a dynamic supply. Its supply increases with demand, meaning that the burn rate does not entail the rapid deflation of the token. That's a problem for tokens with a fixed supply.

Burning BBCoin is a deflationary counterbalance to the downward pressure on BBCoin's price, as potentially caused by giving out BBCoin gaming rewards in the form of BBCoin.

Sending BBCoin directly to the burn address also locks MEL within the bonding curve, creating a rising price floor for BBCoin. This is a net positive for all parties as it enables better liquidity for buyers and sellers on the curve (aka less slippage), lowers the circulating supply, and provides stability for the DAICO Tap Mechanism

BUILD IT

Last, but most definitely not least, 40% of revenue goes to the development team. After all, it's important to feed our devs to make sure they can focus on helping build the best DeFi x NFT experience for everyone here.

That said, we're all human here. Poorly-aligned incentives for protocol developers are a huge contributor to protocol failure and are an issue MELX hopes to prevent.

When protocol developers are paid for their work exclusively in the native token, they are forced to sell the token to pay for expenses, leading to selling pressure and a potential “spiral of death” scenario from which the token never recovers.

However, if developers aren’t paid ANY native token, then incentives aren’t strongly aligned, leading to poor decisions being made.

The Bike Battle bonding curve solves this problem via a separation of concerns — our community-governed Tap mechanism distributes MEL from the reserve to MELX (the lead developers of Bike Battle) monthly to ensure a working budget for active development.

Additionally, MELX will receive 40% of all BBCoin revenue, mainly for liquidity incentives, giveaways, and other promotional activities that require BBcoin.