Economics & Technical1

Revenue Model

Dual Revenue Streams

    ┌─────────────────┐         ┌─────────────────┐
    │  LP Fees        │         │  Spell Books    │
    │  (Primary)      │         │  (Secondary)    │
    │  From Trading   │         │  User Necessity │
    └────────┬────────┘         └────────┬────────┘
             │                           │
             └────────────┬──────────────┘
                          ▼
                    Treasury → Swap → GOLD → Distribute

Primary: LP Trading Fees

Collected from $ALCH liquidity pool
Scales with trading volume
Theoretical: $1M daily volume → ~$25,000/month in fees (variable based on LP provider splits)
Higher volume = Exponentially larger rewards

Secondary: Spell Book Sales

Users buy books to multiply their points
Necessary to earn larger share of primary revenue
Strategic investment in your future distributions

How Revenue Scales

Trading volume drives everything:

Low Volume ($100k daily):

Modest LP fee collection
Small GOLD distributions
Early stage ecosystem

Medium Volume ($1M daily):

~$25,000/month theoretical fees
Significant GOLD rewards
Sustainable ecosystem

High Volume ($10M daily):

~$250,000/month theoretical fees
Life-changing distributions for major holders
Mature ecosystem

Key Insight: Your point share × Treasury size = Your earnings. Books increase your share, volume increases the treasury.

Game Theory

Nash Equilibrium

                Others Don't Burn  │  Others Burn 100%
            ────────────────────────┼────────────────────
You Don't   │  Outcome: Average    │  Outcome: You LOSE
Burn        │                      │
            ────────────────────────┼────────────────────
You Burn    │  Outcome: You WIN    │  Outcome: Equal
100%        │                      │

DOMINANT STRATEGY: Always burn (2× points regardless of others)

Result: Rational actors burn → Deflationary cascade → Maximum scarcity

Technical Implementation

100% Open Source - All code on GitHub, immutable contracts, community-owned

Smart Contract (Rust/Anchor)

Program: 6MBt6Gh2GwmijsBgYkANFDge335dsekwFCRK3WUALCH

Key Functions:

craft_runes() - Burns ALCH, credits runes
buy_spellbooks() - Transfers SOL, credits books
cast_spell() - Consumes resources, RNG for success

Randomness: Solana blockhashes (provably fair)

Distribution Algorithm

// 1. Collect LP fees + book sales SOL
// 2. Swap SOL → GOLD (Jupiter)
// 3. Calculate: Points = (ALCH×1 + Runes×2) × Multiplier
// 4. Distribute: Share = Your Points / Total Points
// 5. Airdrop GOLD proportionally

Frequency: Dependent on volume - Automation checks every 5 minutes

Transparent: All code open source Automated: No human intervention

Risks:

⚠️ Runes permanently locked
⚠️ Spell books can fail
✅ Contract itself is secure

Open Source

All code public on GitHub:

Smart contracts (Rust)
Frontend (Next.js)
Automation (Node.js)

Contributions welcome - Best ideas win

Resources

Contract: Solana Explorer
Code: GitHub
Community: Discord & Twitter

$ALCH: WXsX5HSoVquYRGuJXJrCSogT1M6nZiPRrfZhQsPcXAU $GOLD: GoLDppdjB1vDTPSGxyMJFqdnj134yH6Prg9eqsGDiw6A

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Last updated 3 days ago