Search…
Game Mechanics
Campaigns
The Bank of Rome
The Bank of Rome
The Bank of Rome (BoR) is the (de)central(ized) bank of the Rome ecosystem and is responsible for the game’s monetary policy. It controls issuance of new $ROME tokens, manages the intake of reserve assets through bonds, guides the growth of protocol-owned-liquidity, and otherwise ensures the health of the Bank’s balance sheet under all market conditions.
The Bank of Rome is ultimately controlled by the DAO, which delegates day-to-day decision-making to a board of scholars appointed by their houses (2 scholars per per house).
The Bank is responsible for 4 key areas:
- Balance Sheet: The Bank manages burn and issuance rates for $ROME tokens, which are liabilities on the Bank’s balance sheet, as well as the issuance of bonds in exchange for reserve assets and liquidity pool tokens, which are assets on the Bank’s balance sheet
- Decentralized Exchange: The Bank ensures healthy liquidity across Rome-controlled liquidity pairs.
- Liquidity Facilitation: The Bank facilitates, in exchange for a fee, the purchase of protocol-owned-liquidity by other other protocols in Etruria (Moonriver) through its bonding-as-a-service offering.
- Lending Parameters: The Bank seeks to influence parameters for lending markets that include $ROME to ensure health and safety of borrowers for the stability of the protocol.
The Bank of Rome's place is not to time markets or trade the balance sheet. The chief objective of the Bank is to ensure the $ROME token is a high quality asset with significant token velocity in-game, as well as to ensure the permanent health of the Bank of Rome balance sheet.
Balance Sheet
The Bank of Rome (BoR) balance sheet is managed by the BoR Scholars, 2 from each house. The current balance sheet is positioned to farm the following yield opportunities:
- Solarbeam 3pool
- Solarbeam 3pool+FRAX
- Solarbeam ROME-FRAX LP
- Moonwell FRAX, USDC, MOVR
- veSOLAR
- gOHM
- stMOVR
We believe stable rails are the most important piece of any ecosystem and are keen on dominating each major liquidity rail as the ecosystem grows. All liquidity leads to Rome.
What is $ROME?
$ROME is the in-game currency used for much more than just transacting in-game.
The NFTs in Houses of Rome are priced in the staked version of the $ROME game currency ($sROME).
The staked version of the $ROME token can be staked to earn rewards and yield. The token is backed by a treasury of yield bearing assets including stables, gOHM, and risk-on assets like MOVR.
Unlike many DeFi protocols, Rome owns its own liquidity instead of incentivizing liquidity with pool 2 rewards. This means rather than renting liquidity through pool 2 rewards, Rome owns its own liquidity, profiting from fees on every trade and permanently owning liquidity on the Moonriver blockchain.
Uses for the $ROME token:
- Stake to earn rewards from yield on treasury assets, in-game usage.
- Transact with $sROME to buy characters, items, and resources in the auction house and resource exchange.
- Use $sROME to lock tokens and participate in wars, battles, and campaigns. Through participation you earn more items and rewards.
- $sROME is the Governance token of the DAO, the DAO that governs the treasury, builds the game, and enacts balance changes.
$ROME can be bought, sold, and staked in-game.
We currently print $ROME at a fixed 5-day token inflation rate and via bonding to grow treasury.
$ROME Tokenomics 2.0
As we bootstrap the game economy we will continue to reduce the token inflation and align staking rewards instead as a function of marketplace revenue, game activity, and yield from the Bank of Rome (BoR) Balance Sheet.
Token holders should choose a balance between two core models for how Rome marketplace and balance sheet activity impacts supply inflation.
Minimal $ROME issuance: a minimal issuance model would result in a weekly or monthly token issuance (auto-compounding) that rewards stakers with an certain percentage to how many $ROME are burned from marketplace fees each period.
$ROME burn: instead of rewarding new $ROME tokens from the marketplace fees, a burn and forget results in a decreasing supply.
This model would result in a capped total supply, whereby tokens taken out of circulation through usage are rewarded back to stakers as revenue. With that in mind, velocity is important in a currency so some target excess inflation to token revenue as long as general player or user numbers are flat or up should be targeted.
Additionally, we should consider some percentage of excess inflation being sourced from token buybacks as a percentage of monthly yield from returns on the balance sheet.
Sample scenario, completely hypothetical numbers:
- Supply: 2M total $ROME supply, 1.6M staked as $sROME
- Locking: 1.2M sROME locked in battles, 400k sROME unlocked for transacting in marketplace, 400k ROME in liquidity pools.
- Revenue: $500k marketplace fees from 5% fee on $10M monthly volume. 10% APR on $30M Bank of Rome balance sheet.
- Issuance: Dynamic APR to minimally match burn from marketplace fees. Boosted APR optionally available on yield from balance sheet assets for variable length token locking (vesROME). Scenario A: market cap of $40M with monthly marketplace fees of $500k that would be a minimum monthly ROI (higher in reality because high % of tokens not staked) of 1.25% or optionally if governance prefers it would be a monthly burn of 1.25% of outstanding token supply. Scenario B: market cap of $75M with $15M marketplace fees & 7% APR on $30M Bank of Rome balance sheet would be a minimal monthly ROI or token burn of 20%. Scenario C: market cap of $15M with $250k marketplace fees & 7% APR on $30M Bank of Rome balance sheet results in minimal 2.8% monthly ROI or token burn. Regardless of scenario or whether a token burn or minimal $ROME issuance is chosen, this tokenomics model ensures value directly accrues to token holders. General target timeline for implementing these tokenomics should occur some time after the regal era is finished. This would result in encouraging sROME stakers to exit their staked ROME (sROME) positions to restake in a different staking contract, i.e. xROME.
The mechanics of the game and how we incentivize bonds into heightened demand create a positive feedback loop for Bank of Rome balance sheet growth alongside growing attention in the game. Continuous game updates, expansions, and development incentivize additional lockups and marketplace activity, in theory creating more token demand, allowing for more bond sales, and closing the positive feedback loop of value accumulation to token holders.
Note: $ROME is a valueless governance token that acts additionally as a game currency used for purchasing in-game items and incentivizing player activity. Nothing herein is a recommendation for purchasing or otherwise participating in any way in the Houses of Rome ecosystem. This protocol is experimental, risky, and can result in smart contract exploit, failure of the economic model, or any number of other negative consequences because of how experimental in nature this protocol is. If you choose to take part, do so responsibly.
Last modified 4mo ago
Copy link