What's (3,3)
What is (3,3)?
Staking + Staking (3,3): Both participants choose to stake, increasing the system's value, and benefiting everyone.
Staking + Selling (3,-1): One participant stakes while the other sells. The staker may lose, and the seller gains short-term profits.
Staking + Redeeming (3,0): One participant stakes, and the other redeems. The redeemer might gain, but the system's overall value decreases.
Selling + Selling (-3,-3): Both participants sell, causing the system's value to drop significantly, and both suffer losses.
How Novai Chain Utilizes the (3,3) Concept:
In the context of Novai Chain, the "(3,3)" concept is used to encourage cooperation among users, where staking $Novai tokens through Bonstake leads to greater collective and individual benefits. This strategy focuses on maximizing the ecosystem's value through collaboration rather than competition.
Explanation of Staking, Selling, and Bonding in the (3,3) Strategy:
Staking (Stake, Stake): When users stake their tokens, they lock them in the protocol to earn interest. In the "(3,3)" strategy, staking helps reduce the token supply in the market, which can stabilize or increase the token's price. If everyone stakes, the whole community benefits, creating an ideal "3,3" situation.
Selling (Sell, Sell): Selling tokens increases market supply, potentially leading to a price drop. If most users sell instead of staking, it harms the entire community, making it a "0" or even negative choice in the "(3,3)" strategy.
Bonding (Bond, Bond): Bonding allows users to buy tokens at a discount by providing other assets. This mechanism gives the protocol its liquidity, reducing reliance on external liquidity. In the "(3,3)" strategy, bonding positively impacts prices by lowering market selling pressure and helping the protocol accumulate liquidity.
Principles of "(3,3):"
The "(3,3)" strategy is derived from game theory, suggesting that cooperation (staking or bonding) among all participants leads to the highest collective and individual rewards. Different actions—staking, bonding, and selling—yield various outcomes:
Stake + Stake (3 + 3 = 6): Maximum benefit for the community and individuals.
Stake + Bond (3 + 1 = 4): Moderately positive, with liquidity for the protocol and benefits for both stakers and bondholders.
Bond + Bond (1 + 1 = 2): Neutral, with liquidity but lower overall returns.
Stake + Sell (3 - 1 = 2): Negative, as staking benefits but selling lowers market prices.
Bond + Sell (1 - 1 = 0): Negative, with the bond providing liquidity but selling undermines price stability.
Sell + Sell (-3 - 3 = -6): Worst-case scenario, with plummeting prices and losses for all.
Through the introduction of cooperative mechanisms like Bonstake, Novai Chain encourages users to stake $Novai tokens and invite others to maximize rewards, aligning with the "(3,3)" principle to enhance the ecosystem's overall value.
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