GGM Base-Level Pricing Protocol

Certain most valued gaming assets become claimable as NFT tokens and by default are classified to 7 rarity levels depending on their in-game utilities and scarcity. Their scarcity and default relative value are defined in the following proportions:

• level 1 - 50% of NFTs are valued at 1X

• level 2 - 20% of NFTs are valued at 1.5X

• level 3 - 15% of NFTs are valued at 3X

• level 4 - 10% of NFTs are valued at 10X

• level 5 - 4% of NFTs are valued at 50X

• level 6 - 0.9% of NFTs are valued at 200X

• level 7 - 0.1% of NFTs are valued at 1000X

The scarcity rules are set algorithmically and can be facilitated with artificial intelligence on more mature stages.

At the beginning of each Epoch the protocol makes the bid offers on the internal marketplace for all NFTs outside the GGM Vault based on the valuation of GG liquidity pool (70% for base-level pricing) to all NFTs (already claimed and circulating outside the GGM Vault and those becoming available for claiming in this particular Epoch) taking into account their relative value coefficients. The offers are updated each Epoch.

If a bid is accepted, GGMT tokens are transferred to a NFT owner, and the NFT itself goes to the GGM Vault. NFTs from the GGM Vault are not subject to the base-level pricing procedures any more, even if they are sold from the Vault and freely circulated on the market.

If a bid is not accepted, the new bid orders will be placed by the protocol based on the updated conditions of the GGM Liquidity pool and availability of new NFTs to be claimed.

As the deposits into GG liquidity pool are not regulated, to make the pricing model more stable, the protocol regulates claiming of new NFTs in a way that the new volume of NFTs does not change the existent not realized bid offers for more than 30% from the average bid offer in GGMT for the last 4 Epochs.

Claiming of more scarce NFTs (with high rarity) takes priority over less scarce ones. It means that the Protocol applies new replenishments to the Liquidity pool first toward gaming assets with higher levels and makes it possible to claim them as NFTs.

Epoch is set to one week by default and is subject to change by decision of GGMT token holders voting (after the voting procedures launch). NFT scarcity levels with their relative value coefficients and the allocations of the Liquidity pool are also subject to the votings.