PG Token Conversion - Updated Proposal

Summary

Over a year ago, we set out on a mission to bring gamers and games together in the play-to-earn space (“P2E”). During that time, the doors have swung wide open to an array of NFT use cases across art, music, avatars and the evolving metaverse.

Play-to-earn gaming is stronger than ever and while we still believe in the long term benefits of P2E, we also believe that the emerging landscape of use cases expands the opportunity to deliver value to web3 participants.

As we built toward our vision for Polyient Games, one thing was undoubtedly clear. NFT holders want more - more value, more utility and more access to perks and rewards. This value driver has been at the forefront of our minds every step of the way and we want to help the entire NFT space, including gaming, grow to new levels of adoption and participation.

This is why we are expanding our value proposition to the wider NFT community through PolyientX. Our vision for PolyientX is to grow the seed of an idea that started with Polyient Games into a robust set of tools to help creators and collectors unlock more value from NFTs.

Honoring Early Supporters

As we break ground with this expanded vision we are keenly aware of the early support from NFT holders in the Polyient Games community. Delivering value to our early supporters is of utmost importance which is why we are introducing a path within PolyientX that will continue to create value while delivering PolyientX benefits to the play-to-earn gaming community.

PX Games will be a sub-brand of the PolyientX platform dedicated to play-to-earn gaming. The PX Games brand will exist as a standalone initiative with a DAO-controlled treasury while simultaneously guiding the direction for gaming rewards throughout the PolyientX platform.

There are three primary components to the PX Games transition:

  1. Convert PGT, PGU and xPGFK tokens into a single PGX token that will be used as a governance token for PX Games. PGX will exist on the Avalanche blockchain due to the low fee and low friction experience on the Avalanche network.
  2. Establish a DAO for PX Games to guide decisions about PolyientX rewards for gaming NFTs, identify and recommend opportunities for collaboration and investment via the PX Games DAO treasury.
  3. Empower the DAO to manage the PX Games treasury.

This simplification will remove all current Polyient Games fungible tokens from circulation, including Polyient Games Governance Token (PGT), Polyient Games Unity Token (PGU), and PGFK Particles (xPGFK). To facilitate the transition, we will soon introduce a claim portal where token holders can claim their converted tokens on the Avalanche network.

The Polyient Games Founder’s Key (PGFK) will remain in circulation and will be accepted in a PolyientX vault that will allow PGFK holders to accrue PGX prior to the token conversion.

Note - PGFK vaulting will take place on the Ethereum network. Accrued PGX will be calculated off-chain and holders will be able to claim earned PGX on the Avalanche network with considerably lower gas costs.

Holders of yield booster NFTs (Wendex, PolyAnt Queen and PolyAnt King) will be eligible to claim a single, universal yield booster NFT on the Avalanche network after the claim portal has launched. The actual yield boost will be determined by the type of booster NFT being converted.

PolyientX Games Token (PGX) Details

PGX is an ERC-20 fungible token that is designed to function as the governance token for PX Games. This token’s primary purpose is to allow for community-driven decision-making about PX Games rewards and treasury management decisions.

In order to accommodate growth in the token holder base, the max token supply of PGX will be 10,000,000,000. Current token holders will convert to PGX at an equivalent proportion of the new supply.

PolyientX Games Token (PGX) Tokenomics

Total Supply: 10,000,000,000

Distribution: Fungible PG tokens converted to PGX tokens; Non-fungible tokens (PGFK and yield booster NFTs) used to farm PGX.

Tokens available for conversion: 9,500,000,000

Tokens distributed to PGFK staking: 400,000,000

Tokens distributed to yield booster NFT staking: 100,000,000

Proposed Conversion

Note - PGT and PGU rewards have been redeemed by PGFK holders and liquidity providers. xPGFK tokens were obtained through a user initiated conversion of PGFK nonfungible tokens to xPGFK fungible tokens. Polyient has never directly sold any fungible tokens and PGT holders who sold their rewards received market value at time of sale. The market value of Polyient rewards is subject to the market demand based on interest in the Polyient Games project. As noted in the original sales agreement, no Polyient NFT was ever sold as an investment in Polyient.

We will use a blended approach of token numbers and market prices for PGU, PGT and xPGFK when converting into PGX. This will allow us to give a small boost to the conversion values and further incentivize the migration.

For easier conversion calculation, we have equalized PGU and PGT through a conversion ratio (xPGFKs are not relevant for this calculation). This allows the calculation of the total number of original PG tokens that will then be used to calculate the allocation of PGX.

Conversion rates:

  • PGU per PGT = 110
  • Total PGT & equivalent PGU = 23,080 (total number of original PG tokens)
  • PGX per original PG token = 411,611

The net result of the calculation is that 1 PGT or 110PGs will be equivalent to 411,611 PGX

PGFK Vault

PGFK holders will be able to stake NFTs in a PolyientX vault to accrue a PGX token bonus prior to the conversion. PGFK holders will be able to claim a total of 4% of the total issuance of PGX (400,000,000 PGX tokens).

Note - We are discontinuing the PGFK generation system given that we are removing xPGFK from circulation.

Reward Booster NFT Vaults

In addition to PGFK vaults, we will open vaults for reward badge holders that will earn 1% of the total PGX supply prior to the completion of the PGX token conversion (100,000,000 PGX tokens).

Conversion Timeline

  • Early December - Open vaults for PGFK and holders
  • Mid December - nominate a treasurer for the PX Games treasury via PGT voting on the current snapshot portal
  • Mid January - PGX token claim page available on Avalanche network
  • Late January - Community call to discuss open roles and nomination process for the PX Games DAO
  • Early February - Establish PGX voting portal for DAO decision making and DAO nominations
  • Late February - Seed fund allocated to the PX Games DAO
  • Ongoing - Monthly community calls to discuss reward opportunities and treasury investment goals

TL;DR

In short, we are proposing a simplified tokenonomics system that is built around the PGX token that will serve as the governance token for PX Games.

  • PX Games will live as a sub-brand of PolyientX and will guide the direction of the gaming rewards category on the PolyientX platform.
  • All PG fungible tokens (PGT, PGU and xPGFK) will be converted to a single PGX token.
  • The PGX token will have an increased supply but holders will be converted at an equivalent ratio of their current token holdings.
  • The PX Games DAO will be established to guide the direction of gaming rewards on the PolyientX platform.
  • PGX will live on the Avalanche blockchain to facilitate a better UX and lower fees for claiming future rewards. Moving to Avalanche will also allow the PX Games DAO to take advantage of opportunities in the burgeoning gaming ecosystem on Avalanche.
  • We will open an off-chain vault in December (on Ethereum) for PGFKs. Staked PGFKs will accrue a PGX balance that can be claimed on Avalanche when the claim portal goes live.
  • The target timeline to complete the full transition is the end of February 2022