DG7 buyback explained

There are many players who think that Dapp game tokens’ values are determined by the dividends the platform gives, as most Dapp games in the cryptosphere comes with dividends, players have to play to contribute to the dividends pool or the platform find ways to get fresh funds to be injected into the pool for distribution.

Let’s take the trendsetter, Tronbet for example, from ANTE, they introduced another token and now yet another token was introduced after their rebranding as WINk. It is either games die out faster as players are spoilt with varieties, due to overplayed boredom or players will scream SCAM when ROIs changed or zero out. So how will Dragon7 cope with this issue?

Dragon7 sees mining as a short term aspect as for example, tokens can be mined, dividends will dry out, etc, so Dragon7 took it as an additional feature on its platform than one of her main features. They recognises that mining is one of the attractive features in Dapp space and introduced it to build interest in attracting Dapp users to play hoping true casinos players within Dapps can be interested in some of the 105 games on Dragon7. However, many players sees it as a “turn-off” as no one knows what happens after Day 29 when the buyback kicks in. Some players addresses that it sounds scammish when they read Day 29 as they cannot see the ROI within a short 1 month.

Questions from players includes, so what is the value of the buyback? Shouldn’t it be valueless since it has no use?

The uses of DG7 are:

  • Providing players dividends for 28 days
  • Players can sell back to the House using a inbuilt Bancor protocol where DG7’s value is ascertain in a long run

If DG7 ceases after Day 29, no more tokens can be mine or minted so whatever its in the market will be it.

After several requests from players to consider continuous mining of DG7, the team had decided to stick with their original plan as set out for Dragon7, that there will be no extension of mining on Dragon7. The team iterates that mining is a bonus for early players and this strategy is beneficial for Dragon7 in a long run. Dragon7 is here to provide good games to dapp players aside from mining for profit.

Initially, the team wanted to work with an exchange but now had decided to utilise an existing protocol design by Bancor exchange, with this protocol, players can enjoy a long lasting buyback automatically via a smart contract. This way, players will not have to be paying transaction fees, etc determined by exchanges, this protocol will be built in Dragon7 itself. This similar detail is updated in our White Paper.

Detail explanation of buyback protocol

Dragon7’s DG7 will not be listed on exchanges for buyback sequence. DG7’s buyback will be based on Bancor’s protocol where there will be a guaranteed minimum price where the reserve sum on the smart contract account is divided by the supply or number of tokens issued multiplied by the reserve ratio. For example, if there is a pool of 100 trx (fuel by 10% daily income) and 10 DG7 in the protocol to start with, the formula of per DG7 would be

100 / 10 = 10 trx per DG7

Based on the above smart contract formula, if a player wants to sell 0.1 DG7 and add them into the protocol, the equation will be

100 / 10/ 10.1 = 0.99

The player who sold 100 DG7 will get 0.99 trx.

Clearly, if a large share of tokens is being sold, the reserve sum shrinks down and the price decreases accordingly. However, and that’s what we call continuous liquidity, even when the price goes down, you will always be able to sell the tokens — they won’t become a garbage asset.

There may be a 2% price variance during transactions as the buyback processes is automated. The price you see may not be the amount you transacted, as there may be a player who sold faster than you in that instance.

Buyback page on Dragon7
Your personal selling page after successful transaction

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