💎MAGIC

MAGIC acts as the main token of value in a metaverse game, giving it utility above and beyond that of a regular coin. It can be used to purchase Hero NFTs, which can themselves be used to earn MAGIC and other rewards. MAGIC can also be combined with existing Heroes and other items to mint new Heroes, and be swapped through the DEX for other tokens and in-game items. This is all in addition to fee sharing opportunities, liquidity pooling, and governance rights.

$MAGIC — BEP-20 utility token of the protocol

$MAGICemissions currently have two key objectives:

• Reach and maintain adequate liquidity to facilitate optimal trading conditions — $MAGIC are emitted as farming rewards to incentivize deep liquidity

• Encourage decentralized governance — $MAGIC can be used to take part in the governance for continuous development of the platform. The long term goal is to achieve true decentralization.

veMAGIC — ERC-721 governance token in the form of an NFT (non-fungible token)

veMAGIC is the vote-escrowed version of $MAGIC. Users can lock their $MAGIC tokens for up to 2 years to get veMAGIC. The longer the lock, the higher the amount of veMAGIC voting power received.

To encourage continuous locking and sustained participation from stakeholders, the veMAGIC balance of users declines over time until it reaches zero at the conclusion of the initial locking period. veMAGIC positions can be increased, split up and resold on a secondary market.

Initial Supply

veMAGIC Protocol Airdrop

19% of the initial supply was dedicated to airdrop game protocols that demonstrate their willingness to engage with our liquidity layer. When evaluating the available game protocols, we have examined a wide range of factors, such as TVL, trade volumes, and product. We have also sought to find a balance between native opBNB Chain game protocols and those from other chains.

List of protocols receiving the airdrop will be updated once finalized.

$MAGIC/veMAGIC Airdrop for Users

25% of the initial supply was distributed to regular users of existing opBNB Chain protocols, as well as those new to the chain through Pixel island. Users has been chosen based on behaviors that promote long-term stability of said protocols, such as: locking, stacking, holding, participating in governance, and continuing to support despite the challenges faced.

$MAGIC/veMAGIC Airdrop for Gen 0 Heroes Minters

9% of the initial supply was allocated to Gen 0 Heroes minters and is claimable right at launch on Pixel island.

Gen 0 Heroes minters Airdrop balance between $MAGIC and veMAGIC:

• 50% as veMAGIC locked for 2 years

• 50% as $MAGIC

Ecosystem Grant

25% of the initial supply was dedicated to a specific fund that will be used to support a wide range of projects that aim to accelerate the growth of Pixel island. Shortlisted projects will receive significant backing from the core team (smart contract development, marketing, business development, etc.).

Team

18% of the initial supply has been distributed to the team to engage them in the long term success of Pixel island. The team allocation is balanced between veMAGIC and $MAGIC vested tokens.

The core team members will have their interests align with Pixel island by receiving a percentage of the initial supply in the form of voted escrow tokens. This allocation allow team members to participate in the upside of the protocol while having a long-term oriented position.

Team allocation balance between $MAGICand veMAGIC:

• 60% as veMAGIC locked for 2 years

• 40% as $MAGIC vested 2 years with a 1-year cliff

Initial Liquidity Providers

4% of the initial supply will paired with $USDT and/or $BNB to provide enough liquidity at launch.

Emissions

ve(3,3) Dynamics

The main stakeholders of a typical AMM including veMAGIC holders, LPs, users, and protocols, are all aligned by the ve(3,3) dynamics that determine THE emissions.

veMAGIC holders — are incentivized to vote either for the highest volume pools (because the greater the volume, the greater the amount of fees produced as a result), or the ones being bribed by protocols seeking to bootstrap their liquidity. This allows these protocols to create their own flywheel, if the token generates strong volume.

Liquidity Providers (LPs) — are incentivized with emissions driven by “Real Yield” based metrics.

Traders — benefit from the low slippage thanks to the liquidity provided, in concert with the latest and greatest battle-tested vAMM / sAMM tech.

Protocols — have access to a cooperation oriented liquidity layer. They benefit from capital efficient trading conditions for their tokens, and they can incentivize their liquidity via bribes offered to veMAGIC holders.

• Weekly emissions (at inception): 200,000,000 $MAGIC

• Weekly emissions decay: 1%

• Weekly developer wallet allocation: 2.5% (lowered from 4%)

• Weekly veMAGIC rebase: Up to 30%

• Emissions for liquidity providers: 67.5% (1.5% added from the dev allocation)