Algorand Casino uses a digital asset called Chips. 1 Billion Chips have been created. 100 Million of these CHIPs have been locked away into the CEO wallet (3LDFG6J4DVZLL3W4AFXQOTGONGUCC4654MFOYWYJ4ZQNITQ7HKVKZF7UDU). The original tokenomics stated that this wallet would be locked until November 2022. This will now be extended to November 2025 or in the event that that Algorand Casino is sold this wallet shall be locked until 1 year after completion of the sale.
Token distribution shall be managed to reward for liquidity provision. Holder of Tinyman LP tokens shall receive 10 CHIPs per token per day. There is a daily limit on this distribution of 150,000 CHIPs per day. One this limit is reached the CHIP per token reward will be reduced to maintain a daily distribution of less than or equal to 150,000 CHIPs. This distribution is funded by the reserve account. There are enough CHIPs in the reserve account to maintain this distribution for 10 years.
More people lose at the casino than win due to the house edge in all games. The casino in April 2022 made a profit of 4,570,000 CHIPs. This profit is then sold off into the tinyman CHIP/ALGO pool. The selling takes place in small amounts throughout the day to minimize the price impact. Some days there will be no sales at all if we feel the price impact will be too much.
We also have an NFT strategy that is designed to give us an additional revenue stream in Algos. Each NFT minted and released by us with come with a 10% Royalty attached. This means that any resales will result in us gathering 10% of the purchase price. Over time we expect the NFT market to generate a significant secondary income for Algorand Casino. All NFTs launched by algorand Casino with have some utility attached. Any distributions shall be funded by the reserve wallet until some point in 2023 when we will switch over to funding the distributions to profits from the casino/poker apps.
Dilution of the reserve wallet has begun since April 2022. In April 2022 417,000 CHIPs we sold into the tinyman CHIP/ALGO pool. This represented 0.055% of the reserve wallet. Well below the previously stated 2% limit per month. We are revising down our dilution targets to up to 1% of reserve wallet holdings, however we do aim to fund our entire project with profits from the casino/poker app and our NFT strategy.