Some days ago I wrote an article discussing the mechanics of the Dog Pound and more particular the BNB inflows and outflows of the Dog Pound BNB Vault. The effects as described are become more and more visible and significant.
https://cryptozoa.com/the-dog-pound-mechanics-are-coming-into-play-e6761eddf4e
In this article I’ll discuss the BNB Vault inflow/outflow and game mechanics which will be in play as a result of it.
BNB Vault in- and outflows
As expained in the previous article the BNB Vault is used in relation to the Dog Pound. The vault contract pays out 3% of its total value each day to the Dog Pound stakers.
- 40% of the total goes towards the Linear pool stakers
- 60% of the total goes to the Autocompound pool stakers
These payouts lead to outflow of BNB from the Vault.
On the other side we have inflow of BNB coming from taxes which are charged on the sells and transfers of DOGS ($AFD) token.
The ratio between the inflow and outflow results in either a growth or a decline of the total value of the BNB Vault, as you probably would have figured. In short:
- Higher outflow than inflow means net outflow, resulting in a decreasing total value of the BNB Vault and a lower daily payout (daily 3% of the total)
- Higher inflow than outflow means net inflow, resulting in an increasing total value of the BNB Vault and a higher daily payout (daily 3% of the total)
BNB Vault Current state
The way to validate the current state of the ratio between inflow and outflow is to look into the BNB Vault contract. You can find it on BSCScan since the blockchain is 100% transparant right?
Always make sure to use the official contracts as given by the project. You can find the contracts on the dripcommunity.wiki website and more specifically on the Token & Contracts page:
When clicking the contract link you’ll be taken to BSCScan and the corresponding contract.
Scrolling down a little gets you to some tabs where you need to select “Analystics” and “BNB Transfers” to see the BNB transfers coming into and going out of the contract. Adjust the timespan to “Nov 11th” as start day to have a clearer view by excluding the big inflow bars which were a result of injections by the team.
As discussed in the previous article we saw the inflow outpacing the outflow over the course of one day for the first time on the 12th of December. But now we can see it happened again yesterday on the 15th and this time the difference is much greater. In fact we saw a 178 BNB net inflow.
Now if you click the “BNB Balance” tab on the top of the chart, you can see indeed that the total BNB Vault value increased as a result of yesterday.
How to play the game?
These are all numbers and statistics but what are the implications?
As you may know all tokenomics of the protocol are installed to incentivise holding the native DOGS and PIGS tokens. Holding and staking these tokens in the Dog Pound and the Pig Pen, respectively, is rewarded by dividend pay outs.
However, not everyone will follow the playbook as proposed by the team obviously. People apply their own strategies and might take profit by selling their tokens instead of staking. Therefore the higher the daily payout per staked token the more interesting it is to keep holding on to the DOGS token instead of selling them.
And this is where the game mechanics come in for the entire population of the stakers in the Dog Pound. Who is selling at what point? What will be the tipping point for people to sell and take profit versus stake and earn dividends?
If more tokens are sold the DOGS price will go lower but the BNB Vault total will increase as a result of the collected taxes. This in turn leads to a higher daily pay out which might be interesting for people to buy DOGS tokens. Which increases the DOGS token price, etc.
Wrapping up
In the previous article we already looked into the BNB Vault and the mechanics regarding it. Now we took another look and dicussed the effects of the inflows and outflows of the BNB Vault. I’m really curious to see what strategies will be applied by the community in order to make the most out of the product. Furhtermore, what the effect will be on both the DOGS token value and the Total BNB Vault balance over a longer period of time.
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References
Website:
Wiki
Telegram channel The Animal Farm:
Telegram channel Forex Shark Calls:
