Unique innovation in SmartBCH: LAW token distribution systems

There's been quite a few articles already written about the LAW token and the Law Punks, a project by BlockNG that launched in smartBCH and which some members of this community are enjoying a lot; but none has gone to the core of this project as I will try to do in this article.

It's already been described some of the things that BlockNG allows to do on their website, but people have focused mostly in what they find most attractive: the Law Punks and the possibility of staking them to earn some LAW token.

But this projects goes way beyond that, and I think I've deciphered the rationale of the team behind BlockNG.

I think it's all about TOKEN DISTRIBUTION in order to reach some kind of governance and fair system in the future.

This article tries to explain that previous sentence.

Distributing the LAW token

Most projects choose one way or the other to distribute a token:

• Some choose to do an ICO and sell part of the total tokens supply to investors.

• MistSwap chose to give tokens as rewards to Liquidity Providers in their platform and give a 10x rewards multiplier during the first 2 weeks.

• Some projects choose to airdrop tokens to early adopters.

• Some projects choose to crowdfund and give tokens to early contributors as a form of gratitude.

But BlockNG chose to NOT do any of this, and instead went with unexplored ways by creating a few very innovative strategies.

We will see how these align with their whitepaper by the end of this article.

Let's inspect the different strategies the LAW token is distributed by at this moment.

Strategy #1: Stake BCH, earn LAW

The first strategy is simple, but has a nice implication.

It consists in you getting your BCH and sending it to a smart contract to stake. As you're staking your BCH you earn LAW tokens, so you're incentivized to keep those BCH there instead of selling them or swapping them for other tokens.

They call this part of the project, BEAM. You can see the details here:

https://blockng.money/#/beam

What's the side effect of you staking your BCH?

If you hold your BCH and other people do it too, the price of BCH will tend to NOT drop!

BlockNG chose to reward those who contribute to the whole BCH/smartBCH community by setting a hold pressure for them, because now you have the possibility to earn tokens by just not selling BCH.

You don't sell your BCH, you're rewarded with the LAW token.

This is genius and it actually helps the whole community. As of the time of writting this article, there were 150+ BCH staking.

Strategy #2 Rebase your LP tokens from BenSwap to BlockNG and earn LAW

This strategy consists of the following:

You acquire both LAW and BCH token, go to BenSwap and add liquidity to the BCH/LAW pool.

When you get your LP tokens in your wallet, instead of farming those tokens at BenSwap, you go to REBASE (that's how they call this part of the project) and farm at BlockNG's website for a bigger APR with rewards in LAW token instead of EBEN.

This is just a way they found for distributing the LAW token, and even if it's a more complex and interesting strategy, it isn't as good for the community as BEAM (BCH staking).

But this is actually a very innovative strategy that gives users the possibility to be exposed to LAW token appreciation in the future, and also to a real higher APR. So, it's definitely a win for the users of REBASE.

REBASE can be accessed here: https://blockng.money/#/rebase

(...)

Before BlockNG launched the third strategy, they went through a middle step: deploying their Law Punks project.

This is one of the most amazing projects in smartBCH, which I won't describe in detail here as other articles have covered it, but I'll just say that I've been shilling and having fun with this project and the community around the punks, as I hadn't for a very long time.

What a way to enjoy this project!

I'll just leave here the Telegram group we all gather at to talk Punks: https://t.me/BlockNGGlobal

For realtime punks activity and transactions, see this group (it's very interesting): https://t.me/LawPunksSale

The combination of both these groups have created an amazing and vibrant community around the punks. Come enjoy with us!

(...)

So, the punks were minted and they have many owners now. What next?

BlockNG came up with strategy #3.

Strategy #3: Upgrade your Punks and stake them to earn LAW

Punks have a metaverse power that depends on its attributes and the rarity of each attribute. This metaverse power can be increased via upgrades, and these upgrades are paid with the LAW token.

As punks get a higher metaverse power, they get a higher mining hash power. This mining hash power is used to stake the punks and earn LAW tokens.

The higher the mining hash power, the faster you earn LAW. This way you're incentivized to actually use the LAW token to upgrade your punks.

You can stake a maximum of 5 punks at the same time.

So, you earn LAW tokens for staking your punks and NOT selling them. This creates a preassure not to sell and also rewards the early believers in the LAW project, presumably those who acquired Law Punks.

The punks upgrades are paid in LAW, and 80% of the LAW collected from the upgrades is redistributed to the rewards pool for the punks staking.

This means that as people upgrade their punks, everyone staking punks is rewarded, in a closed cycle of LAW acquisition and LAW use for upgrades. The LAW token has some utility and a real economy around the punks.

You can find all the 10000 punks here: https://blockng.money/#/punks

Use the filters to find your favorites :)

Punks were rather cheap at some point, but lo and behold, with the staking system they've appreciated in price. Two achievements at the same time: token distribution and punks price appreciation.

(...)

So, 3 ways so far you can use to earn the LAW token. They are coming up with more and they have an announcement this week related to punks upgrades, presumably something that will incentivize the community to upgrade their punks even more.

Update (Nov. 28th): they launched a new project to incentivize upgrades: The Dungeon.
See details here: https://read.cash/@mortinp/law-punks-dungeon-a-lottery-with-multiple-prizes-a-new-token-f297b7cb

The community members have also been talking about games ideas, so a game would probably be one more way to earn LAW in the future.

BlockNG has decided to explore DAOs too, which is probably the end goal of all this.

The Grand Strategy

But, can these ways BlockNG chose to distribute their token be part of a much bigger strategy?

Can all this be more than punks and an economy around them?

I think so. I read the whitepaper and though it's a little dense with Physics concepts like entropy o_0, they do have this quote by the end:

LAW is a unique token model issued by BlockNG.money, which represents a new system of distribution of rights and benefits, not only for the distribution of profits throughout the system, but also for governance mechanisms.

The easiest way to get LAW is to enter a negative entropy into the system, which is the responsibility and obligation of the citizen. Law System's smart contract detects the contribution status of each citizen, and citizens who are in a silent state are suspended from LAW increase and dividend rights.

BlockNG seems to be trying to achieve a new, more fair economic model, and they're going after it with their initial projects.

Right now they are at the first step: distribute the LAW token in a community-contribution-wise way. You give to the community and adopt the project early, you earn sufficient LAW for the future.

You can contribute to the whole BCH/smartBCH community by participating in BEAM and earning LAW for not selling your BCH; or gain higher APR by chosing LAW as your reward token, hence trusting it via REBASE; or show your appreciation for the project by buying their flagship product, the LAW PUNKS, and staking them.

Conclusions

The BlockNG project has brought a nice breeze of innovation to smartBCH. I haven't seen a project like this in any other blockchain, and I've been exploring quite a few blockchains before arriving in smartBCH.

There is something I can certainly say: the token distribution models BlockNG has deployed are really interesting and probably unique. Something for smartBCH to be really proud of.

I'm really looking forward to the next realeases by BlockNG.

In the meantime, I'll be just shilling among vamps, mummies, skells, robots, demons, aliens, zombies, apes, orcs and of course, humans (I only have humans as I didn't mint any punks and couldn't afford other types at the time of buying).

I'll leave you with The Queen of Humans, the highest bloodline, 6 attributes female.Here she is:

https://blockng.money/#/detail/579

Hope whoever owns her gives her a name soon :)