🗝️Virtual Economy (In-World)

If Earn is a failure, do we still need to Earn?

Types of virtual assets:

• Application Token Debris：Non-transferable to non-CHIC citizens NFT holders, and fragments are not listed on exchanges for fiat currency conversion

• NFT：Digital token identity, Account, Items, Digital collectibles; secondary market sales

• Application Token：Non-transferable

The economic direction and ideas of the CHIC project.

CHIC aspires to be a global pioneer in the cross-domain coverage, building the era of Web3 game governance! Therefore, the economic model adopted by CHIC is 'progressive.' We aim to bring the economy back to tradition by creating an 'in-game economy' that cannot be exchanged for fiat currency! Utilizing the PAE (Play And Earn) model to generate 'virtual assets.'

What's PAE?

PAE games emphasized a traditional gaming experience, where players engage with the game for enjoyment and entertainment, with the option to earn rewards through various in-game activities. The primary difference is that PAE games' earning aspect is secondary to the overall gaming experience. Players can still acquire virtual assets or tokens, but it is not the primary motivation for engaging with the game.

Note: To avoid financial monopolies in project governance, CHIC adopts a dual-token policy, developing non-transferable utility tokens. Players will no longer be able to obtain security-like tokens by playing the game. However, even if investors hold CHIC's tradable token '$ZENY' in the future, they will not have access to DAO governance.

Token airdrops must ensure compliance with smart contract rules and should not be manually airdropped. Also, to comply with the EU's cryptocurrency marketing policies, players are advised not to market the project indirectly as an investment.

The token airdrop model continues to be non-human-centric, based on PGN, but the utility of tokens is very limited in the early stages of the project. Please understand that this is a GaaS (Game as a Service) model and highly unconventional. With future DLC development, there will be increasingly diverse applications! CHIC also challenges the traditional necessity of game accounts being 'in-game'; CHIC's NFT economy includes the sale of accounts, which is your digital token identity (citizen NFT ERC-6551), but selling requires burning all of the player's 'application tokens.'

NFT Economy vs Token Economy is the primary asset within the CHIC gaming ecosystem. Although there is no App, we have restricted the fungibility of application tokens in finance and opted for smart tokens (ERC-5169) rather than ERC-20. CHIC turns tokens into application props and game achievements interacting with AI; Debris is tradable only among players who possess 'citizen NFTs' of CHIC game accounts, restricting the trading counterparties based on regulated games! Additionally, we refrain from listing Debris on any exchanges, aiming for a purer player-to-player transaction. Debris can be used to pay for evolution costs, purchase items, old version NFTs, or to brainstorm more compliance-based possibilities with the team!

Smart tokens serve as rewards for players actively engaging in the game and making contributions. The CHIC governance committee strictly regulates the use of tokens. Initial ecosystem participation eligibility and token airdrops will be determined in collaboration with the community CM and OG. Due to the non-transferable nature of smart tokens, CHIC is no 'Community Foundation Holding Governance Token Allocation Rate' in P2E Tokenomics. Instead, a special governance mechanism is in place.

The Importance of Smart Tokens - Unmissable Value!

At first glance, smart tokens that don't physically become your monetary benefits might seem like mere in-game items. However, their significance is beyond imagination! These invisible tokens harbor potent governance rights.

Smart tokens, obtained through achieving hidden accomplishments via participation in game missions or through unique creations, hold value that transcends monetary worth. Handle them with respect, for their value lies elsewhere.

However, not all smart tokens possess governance rights. Their "definition" varies based on which "activities" or "accomplishments" they are acquired through, and DAO governance rights are granted solely based on achievement attainment.

Additionally, in compliance with regulations, the team promises not to engage in market manipulation activities seen in previous projects.

Games will never develop staking; we are not banks or financial institutions, and players should understand this key point.

Additionally, we'd like to remind players that CHIC is primarily a Japanese project, and we don’t encourage the use of VPN by overseas players to purchase CHIC products. If players choose to use VPN for purchasing virtual assets on NFT markets, they will be responsible for any legal risks in their respective locations.

The economic model cannot be achieved overnight. This model is based on the Public Goods Network (PGN) model and involves the reconstruction and research of NFT games. It is not the traditional P2E or C2E economic model. This economic model focuses on "building ecosystems and emphasizing sustainable internal economies." The team plans to continuously modify the economic model based on the ecosystem and community.

What’s a smart token?

The smart token has been transformed from ERC-20 to ERC-5169, creating an entirely new type of token. CHIC leverages this token to enhance interaction and versatility with AI-NPCs, moving away from the simplicity of ERC-20 tokens.

We aspire for the token to be more than just a gaming financial asset; aligning with CHIC's NFTs, it becomes an integral part of in-game content. Players can utilize this token for various purposes, and we can leverage the expansive flexibility of smart tokens to increase possibilities for players without reducing the token to a mere "currency."

What’s the PGN model?

The economic model of the Public Goods Network (PGN) is based on network effects. Network effects refer to the phenomenon where the value of a network increases as the number of users on the network grows. In the case of PGN, as the number of users on the network increases, the network becomes more reliable, and the value of public goods also increases.

The PGN economic model is also based on incentives. PGN uses a mechanism called Contract Secured Revenue (CSR) to incentivize users to provide funding for public goods. CSR is a mechanism that allocates a social responsibility fee to public goods. This fee is paid to nodes responsible for verifying and submitting transactions. By allocating a portion of the social responsibility fee to public goods, PGN enables public goods to obtain sustainable sources of funding.

Economic Cycle

As an "internal reward" for the community, the initial focus is placed on smart tokens or VRCs that do not have economic value. This is also the way CHIC aims to break the death spiral—not by creating ecosystems overly financialized with X To Earn, but by maintaining game innovation and further expanding community dynamics. Profitability of the game can be considered from the following perspectives:

• Debris are specialized tokens for ecosystem transactions for all DLCs, somewhat similar to Games Coin. Therefore, initially, if players wish to 'Earn,' the only way is to 'invest in NFTs' without more options.

• NFT Transactions: CHIC's NFTs are not GameFi game items; they are simply items within the equipment. In the situation of "NFT=Game" without a main game program, all NFTs have the potential to generate unexpected game value or extensions in subsequent DLCs. You can purchase NFTs from specific DLCs and enjoy the entertainment the game offers or propose enhancements based on the NFTs from that DLC. If the community and development team find it amazing, all players with NFTs of that type will have the monetary value they expect. This is what sets CHIC apart from other games: possibility!

• Player-to-Player Transactions: As mentioned earlier, the quantity of NFTs is not infinite, meaning not everyone has access to DLC. Players can enable more individuals to enjoy DLC through player-to-player transactions. It's as simple as traditional game transactions of virtual items, isn't it? When we shift the focus of games back to entertainment rather than a tool for earning money, everything becomes straightforward and uncomplicated, right?

Note: Participants in internal airdrops are required to undergo KYC as mandated by the government. Failure to complete KYC will result in the inability to participate in any token airdrops, NFT airdrops, and other related activities.

Incentive Mechanism

Note: The incentive mechanism doesn’t constitute a requirement to encourage investment. Please don’t judge the current cryptocurrency industry based on past cryptocurrency projects' practices.

CHIC's incentive mechanism can be classified as follows:

Internal Reward Mechanism: The reward mechanism is divided into different currencies based on the game's main quests and hidden quests. It is important to note that in the early stages of CHIC, VRC obtained through occupational activities and achievement smart token cannot be traded. They don’t have any monetary value. However, owning these tokens grants special game and governance rights, and early participants (OG) will have higher scores in subsequent incentives.

Achievements and Challenges: CHIC's achievements are completely separate from Discord roles and use smart token as the governance token. To obtain achievements, specific numbers of hidden quests need to be solved or high levels of participation are required. Achievements often have humorous names, and having more than 30 smart token (Achievement) qualifies for candidacy in the governance committee. This condition will increase as the game progresses.

Loyalty Rewards: CHIC's loyalty rewards differ from traditional companies' cumulative points systems. They are primarily based on the number of hidden Easter eggs discovered, qualifying for airdrops. Additionally, rare synthesized NFTs accumulated through collecting various NFTs after the DLC version are part of the loyalty rewards. Loyalty represents the dedication of players to explore all the hidden eggs, quests, or DLC mechanisms provided by CHIC, and the rewards associated with them.

Governance Rights:DAO & Governance

Community Interaction: As the project focuses on the AICG co-creation ecosystem, actively publishing AICG content related to the characters created by oneself is considered a form of interaction. Additionally, organizing online and offline community events, initiating discussions, and engaging in online chats are also regarded as forms of interaction. However, please note that CHIC doesn’t evaluate chat scores through bot calculations, but rather through voting where players can select "Who do you think is the most active person in this phase of the project?" mode. Candidates can be proposed by players in the group, and voting will be initiated by the CM.

Note: Once again, please be reminded that past invitation codes are not applicable during the regulatory period, so please refrain from recommending the acquired airdrop webpages or invitations to others.

Transparency: CHIC expects airdrops to be conducted through automated processes using smart contracts rather than artificial methods. This helps avoid centralization and the perception of item securitization by regulatory authorities. Players can independently trace and verify airdrops through smart contracts and other means.

Balance and Sustainability: The allocation of funds for airdrops is determined by the Governance Committee. However, the development team aims to prevent the community from being abused by "unreasonable amounts and reasons for airdrops" through short-term proposals, ensuring the sustainability of the project community's funds. The community is supervised to prevent airdrops from becoming a means for specific vested interests. Please note that positions in the Governance Committee will be revoked if related individuals are identified.

CHIC is not a game designed for you to make significant profits

In the existing Tokenomics, we are aware that certain mechanisms need planning only when they are deemed as 'securities,' for example, vesting periods, similar to the Simple Agreement for Future Tokens (SAFT). Therefore, we have not implemented such measures internally for tokens within the game. CHIC believes that game players are just that—players—and not speculators or investors.

We hope players recognize that virtual assets are akin to obtaining rare items after completing time-limited quests or simple items from regular tasks in a game like Final Fantasy. Players derive value from rare items, even if they cannot be exchanged for fiat currency.

The team anticipates that game tokens that cannot be exchanged for fiat currency will be considered heretical and illiquid. We agree that game economies require time and infrastructure, rather than 'immediacy' entering the blockchain economy! However, even with PAE, CHIC will manage Debris and application tokens through the treasury, centralized by CHIC Cosmonaut. This is because, during the current period of token regulation by various countries, we believe that DAO community members or representatives of the community committee may not necessarily understand industry issues and make incorrect decisions. Therefore, 'temporary centralized management' may be the better option.

Don't forget the most important aspect: the original game type 'CAG' without an App will elevate CHIC's potential, expansiveness, and playability in virtual assets in the future. Please do not treat 'Earn' as the main focus.

The implementation of PGN makes decentralization challenging. This is because the content of "ecosystem expansion" is highly diverse. This inevitably means the existence of "manual inspections." However, based on AICG, so we want to establish an additional "Smart Contract Committee"

What’s SCC?

SCC stands for Smart Contract Committee. Technical practices of SCC can be found on the Technical architecture

Alongside the governance committee, the "smart contracts" for ecosystem creation models become part of the committee's "members." The community can develop smart contracts, have them audited, and get evaluated by the development team for feasibility and fairness (where some centralization is necessary due to human factors). This helps reduce the high development cost of smart contracts for the development team and is a feasible aspect of the PGN economic model.

Reminder: The basic game smart contract airdrops are primarily based on "achievements," but they are managed by the development team.

The integration of protocols and smart contracts brings security risks, and price fluctuations due to community participation are also significant concerns. However, PGN returns token fees, incentive optimization, and gas fees to the governance committee, creating an internal economic cycle. Development is also returned to the community, not only for building the internal economic cycle but also to practice "player-driven creation" vs. "team-driven creation framework." For CHIC, the benefits outweigh the drawbacks, but please remember that updates in technology and token economics must be done in phases. Avoid demanding perfection from the development team all at once.

There is nothing here that is unrelated to creation, even the economy needs to be created together by everyone. We welcome everyone to provide us with better ideas!