LITEPAPER

GemBit Games — One Token. Many Games. Shared Economy

Ticker: $PXG

Version 0.3 • October 2025

Mission

Fix fragmented Web3 gaming by replacing fragile single-game tokens and obsolete play-to-earn with a simple, fair "one-token" multi-game economy and transparent risk-to-reward system where skilled and long-term players come out ahead.

Abstract

Tagline: One Token. Many Games. Shared Economy.

What GemBit is (short): A unified, spend‑backed rewards layer for multiple indie games. Players buy Premium Currency (fiat/crypto), play activities (and charge Token Generation NFTs), and receive instant $PXG rewards funded by protocol buybacks of a capped‑supply $PXG. Value is sustained by real spend, not vesting‑line emissions, and $PXG is spent back on meaningful cross‑game sinks.

How it works (in 6 steps):

  1. Acquire Premium Currency — fiat (card/Apple/Google Pay) or crypto.
  2. Play &/or Charge TG‑NFTs — engage in activities; charge Token Generation NFTs at NFT Stations.
  3. Fees Accrue — a protocol fee from spend forms a Buyback Budget.
  4. TWAP Buybacks — contracts acquire $PXG and fill the Reward Pool.
  5. Oracle Allocation — pool is split by per‑title demand (spend, usage, marketplace).
  6. Instant Rewards → Sinks — player gets $PXG rewards, then spends on craft/merge/upgrade, entries, boosts.

Core entities (see Key Definitions):

🔹 $PXG • Premium Currency • Token Generation NFTs (TG‑NFTs) • NFT Stations • Cosmetics & Artifacts • Genesis NFTs

Why it's different (at a glance): Rewards backed by real spend • Portable cross‑game progression • Fair variance (Lucky Draws + off‑chain perks) • Frictionless UX (wallet abstraction, familiar payments).

"We design GemBit for today's reality: players and speculators come with short time horizons, looking for high-intensity risk. Our goal is not to fight this, but to route this behavior into fair, bounded, spend-backed risk-to-reward loops that can operate for many seasons."

Player/Dev/Policy: Fun‑first feedback & transparent odds • SDK complements traditional revenue • No P2E loops; regional compliance & anti‑abuse baked in.

Numbers & % note: All figures in this draft (percentages, caps, windows, multipliers, examples) are illustrative and subject to change during testing and seasonal tuning. Final parameters will be published on the public dashboard.

Living document: This litepaper will continue to evolve. Features, parameters, and policies may be amended as playtests, audits, and partner integrations progress. Where details are not final, we mark them inline as (to be finalized) or [TBD] and publish updates on the public dashboard. Naming note: $PXG is a placeholder ticker; chain selection and naming will be finalized before launch.

Key Definitions

  • $PXG — capped, cross‑game utility; rewards are funded by market buybacks, not printing.
  • Premium Currency — off‑chain spend balance purchased via fiat/crypto; used for entries and charging TG‑NFTs at NFT Stations.
  • Token Generation NFTs (TG‑NFTs) — per‑game, limited items that must be charged to enable token rewards; each eligible activity consumes Energy Units.
  • NFT Stations — per‑game mint/charge hubs that define TG‑NFT costs, cooldowns, and rules.
  • Cosmetics & Artifacts — non‑emissive, craftable NFT items; provide bounded synergy with active TG‑NFTs; primary token sinks.
  • Genesis NFTs — ecosystem‑wide master keys (mint permissions, early access, VIP perks).
  • Buyback EngineTWAP (time‑weighted average price) contracts that convert a fee share into $PXG and fill the Rolling Pool.
  • Oracle — allocates reward budget per title via demand signals with moving‑average (MA) dampeners, caps, and circuit breakers.
  • Rolling Pool (7d) — sum of tokens bought in the last 7 days; anchors today's payouts.
  • Daily Budget — ~1/7 of Rolling Pool, adjusted by today's buybacks and safety bounds (illustrative; subject to change).
  • Live Reward Ratehourly rate used for instant per‑activity payouts.
  • Energy Units (EU) — charge balance on a TG‑NFT; each eligible activity consumes EU.
  • Lucky Draw chance — per‑session base chance with a fairness boost when outcomes fall below expected bands; not proportional to raw spend; subject to diminishing returns and post‑win cooldowns.
  • CoverageB₇d/R₇d (tokens bought / tokens rewarded); target ≥1.0.
  • Faucet/Sink RatioFaucet₇d/Sinks₇d; target 0.8–1.2.

1. Problem & First Principles

What's broken today

  • ⚠️ Fragmentation: one token per game → thin liquidity & weak network effects.
  • ⚠️ Inflationary rewards: emissions tied to vesting lines, not to real usage, collapse trust.
  • ⚠️ Weak utility: tokens rarely matter in gameplay; sinks are shallow; speculation dominates.
  • ⚠️ Bad UX: on‑chain friction (wallets, gas, chains) blocks mainstream adoption.
  • ⚠️ Misaligned incentives: bots/farming drain value; honest spenders subsidize extractors.
  • ⚠️ Volatility & opacity: unpredictable emissions and poor treasury discipline amplify risk.
  • ⚠️ Short-term gambling behavior: most participants treat tokens as chips for quick bets, not long-term stakes, so economies must be robust to constant churn.

First‑principles

  1. Spend‑backed issuance: 100% of reward pool comes from protocol fees on real spend; there are no vesting‑line emissions.
  2. Fixed supply & pacing: $PXG is capped; distribution is TWAP‑gated to reduce reflexive pressure.
  3. Sinks‑first utility: core gameplay sinks (craft/merge/upgrade, entries, boosts) keep value cycling.
  4. Controlled variance, fair care: upside via Lucky Draws and skill; off‑chain perks cushion low outcomes.
  5. Frictionless onboarding: fiat on‑ramp, wallet abstraction, custody choices.
  6. Data‑driven allocation: oracle uses demand signals with moving‑average dampeners, caps, and circuit breakers.
  7. Investor alignment via utility: Genesis NFTs confer access/priority/boosts and signaling.

Definitions: Let total protocol fees in an epoch be F. Split: F = B + O + J, where B = α_buyback·F, O = α_ops·F, J = α_lucky·F, and α_buyback + α_ops + α_lucky = 1. Rewards are paid from B after buybacks; J powers Lucky Draws; O funds operations.

What we will measure (leading indicators)

  • Economy health: faucet/sink ratio, buyback coverage of rewards, sink utilization rate.
  • Player value: ARPPU, conversion %, D1/D7/D30 retention, instant reward per $1 spend, Lucky Draw EV (expected value) in target band.
  • Market quality: liquidity within bands, volatility vs. target, oracle uptime.
  • Investor/holder health: Genesis NFT retention, lock durations, participation in governance/quests.

2. Vision & Design Goals

Vision: Unite quality indie games under a single, sustainable rewards layer where fun, fair spend, and real utility drive value—not inflation. Premium Currency spend becomes on‑chain $PXG demand via buybacks, while rewards and progression stay cross‑game and player‑first.

Design Pillars (no fluff, actionable)

1️⃣ Economy & Token Discipline

  • • Spend‑backed issuance only; no vesting‑line emissions.
  • • Fees → Buyback Engine (TWAP) → $PXG → rewards → token sinks [+ optional burns].
  • • TG‑NFTs must be charged to enable rewards; outcomes scale with Skill • Luck • NFT Quality.
  • • Oracle‑based allocation with MA windows, caps, cooldowns, circuit breakers.
  • Targets: ≥100% buyback coverage of rewards on 7‑day MA; faucet/sink ratio 0.8–1.2 (illustrative; subject to change).

2️⃣ Player Experience & Retention

  • Instant rewards with clear feedback (why/how much).
  • Fair variance: periodic Lucky Draws with cooldowns & limits; off‑chain perks when outcomes underperform.
  • Cross‑game progression: one identity/inventory; seasons, events, prestige.
  • Transparency: visible odds, caps, anti‑abuse rules.

3️⃣ Partner‑Friendly for Indie Studios

  • • Complements, not replaces, traditional revenue (currency/NFT sales, DLC, premium).
  • Drop‑in SDK: entries, charging, quests, telemetry, anti‑exploit tooling.
  • Demand‑weighted allocation: pooled rewards split by per‑title demand with launch/event boosts.

4️⃣ Onboarding & UX (Frictionless)

  • Fiat on‑ramp and crypto pay; wallet abstraction; custodial/self‑custody options.
  • • Safety rails vs. bots/sybil; regional pricing/taxes.

5️⃣ Governance, Roles & Status

  • Genesis NFTs: access, boosts, allowlists.
  • • Creator/referrer programs with utility perks.

6️⃣ Risk & Compliance by Design

  • • TWAP usage, venue diversity, deviation checks, and kill‑switches.
  • • Reputation scores, activity diversity, device/account heuristics.
  • • Public dashboards: fees, buybacks, allocation, sink utilization.

7️⃣ Path to Multi‑Game Scale

  • • Onboarding criteria: playable demo, telemetry, economy fit, exploit tests.
  • • Phased rollout: core title → 2–3 partners → curated open SDK.

3. Ecosystem Overview

3.1 Core Entities (role & key properties)

  • $PXG — Ecosystem Utility: capped supply; used for high‑intent actions (craft/merge/upgrade, entries, boosts). Distributed via spend‑backed buybacks.
  • Premium Currency — Spend Layer: off‑chain/L2 balance; purchases, entries, TG‑NFT charging via NFT Stations; regional pricing/taxes.
  • Token Generation NFTs (TG‑NFTs) — Reward Enablers: charged → activecooldown cycle. Key fields: tier/rarity, charge_capacity, charge_efficiency, reward_modifier, cooldown_s, durability.
  • Per‑Game Crafting / Recharging NFT Stations — Mint/Charge Hubs: used to mint, upgrade or recharge TG‑NFTs; define costs, cooldowns, and gating per title.
  • Cosmetics & Artifacts — Non‑Emissive Sinks: cosmetic/craftable items and access artifacts; synergize with TG‑NFTs to improve reward drops; mint/merge/upgrade consume $PXG (sometimes Premium Currency).
  • Genesis NFTs — Access & Status: limited supply; allowlists, early features, seasonal boosts, signaling weight.
  • Buyback Engine — Demand Bridge: converts α_buyback·fees into $PXG using TWAP (venue list, window W, price/liquidity gates).
  • Oracle — Allocation Brain: inputs: per‑title spend, usage, marketplace activity, DAU/MAU (daily/monthly active users) weight, retention. Outputs: per‑title/activity Reward Pool slices with MA dampeners and caps.
  • Pools: Reward Pool (rolling 7‑day) and Lucky Draw Pool (cooldowns, EV bounds); Operations Budget for infra & liveops.

3.2 Economic Flow (step‑by‑step)

  1. ➊ Player buys Premium Currency (fiat/crypto).
  2. ➋ Player joins activities and charges TG‑NFTs via dedicated NFT Stations.
  3. ➌ Protocol fees accrue on spend and split into Buybacks / Operations / Lucky Draw Pool.
  4. Buyback Engine (TWAP) acquires $PXG within bands → fills Reward Pool.
  5. Oracle assigns per‑title/activity slices (see §12 for algorithm).
  6. ➏ Post‑activity, the game calls payout → player receives instant $PXG rewards (see §13 for caps/cooldowns).
  7. ➐ Player spends $PXG on sinks; optional burns support supply discipline.

3.3 Partner SDK (integration points)

  • • API hooks: entries/tickets, TG‑NFT charging, quest outcomes, performance metrics, inventory linking, marketplace listing.
  • • Telemetry: anonymized player/session IDs, server‑signed results, anti‑cheat flags.
  • • Security: signed webhooks, nonce/replay protection, rate‑limits.
  • • Launch boosts: temporary multipliers decaying via MA (to be finalized per title).

3.4 Custody & On‑Ramp

  • • Wallet abstraction (social login), custodial or self‑custody, exportable keys.
  • • Premium Currency on platform backend; $PXG & NFTs on chain (lazy‑mint/custodial vaults for newcomers).
  • • On‑ramp: card/Apple/Google Pay + crypto; region‑aware pricing/taxes.

3.5 Fairness & Compliance

  • • Anti‑abuse: reputation, activity diversity, device/account heuristics, per‑day caps/cooldowns.
  • • Lucky Draw safety: fairness‑first chance model with anti‑whale dampeners; published odds ranges and cooldowns; tiered max payouts; EV bounds.
  • • Regional rules: eligibility, age gates, optional KYC where required.

4. Tokenomics (Illustrative; subject to change)

Purpose: High‑level view of the initial token allocation. All figures are illustrative and subject to change after audits and partner onboarding. See §7 Token Utility for how $PXG is used across games and sinks.

Illustrative allocation (adds to 100%)

50% — Player Rewards & Ecosystem Programs

Supports seasons, launches, retention programs, and long‑term incentives. Subject to gated unlocks tied to Revenue / Usage / Market health (see §10.7).

Note: gameplay payouts are buyback‑funded from real spend; this reserve backs events, boosts, and backstops.

20% — Marketing & Growth

Creator programs, partnerships, user acquisition, cross‑game events. Subject to gated unlocks (see §10.7).

10% — Pre‑sale

Private/public sale allocations vest over time (cliffs + linear), with wallet transparency and monitoring.

10% — Liquidity

LP provisioning, market‑making, listings. Subject to gated unlocks and public disclosures.

10% — Treasury / Partners [TBD]

Operational runway, grants, partner incentives. Exact split to be finalized and reported on the dashboard.

Notes

  • • This chapter covers allocations only. Emissions to players in play come from buybacks, not from unlocking this reserve.
  • • All percentages are illustrative and may be tuned at TGE; changes will be announced with rationale and effective dates.

5. Player Journey & Value Cycle (Cross‑Game)

The Complete Player Journey

1

Onboard

Create account, complete tutorial, learn basics

2

Demo/FTUE

Experience gameplay, earn off‑chain perks

3

Acquire Currency

Buy Premium Currency via fiat/crypto

4

Mint & Charge

Mint or purchase TG‑NFTs, charge them at NFT Stations

5

Play

Engage in activities, compete, have fun

6

Get Rewards

Earn instant $PXG rewards based on skill & luck

7

Craft & Merge

Create Cosmetics & Artifacts, upgrade items using $PXG

8

Cross‑Game Progress

Progress carries across all games in ecosystem

5.1 Archetype Economy Loops (Principles)

The same Risk-to-Reward Gaming logic applies to any game. Only activity weights, effort thresholds, and sink mapping change; the buyback‑funded live rate stays the same.

PvP Shooter (arena/BR‑style)

Spend → Charge → Play → Instant Rewards → Sinks → Repeat.

  • Spend & Charge: buy Premium Currency; charge TG‑NFTs at NFT Stations (EU per match).
  • Play loop: queue ranked/unranked/event matches (SBMM — skill‑based matchmaking). Skill weight high (win, objectives, K/D/A (kills/deaths/assists)); duration moderate; synergy from gear/cosmetic sets.
  • Rewards: instant $PXG at results (live rate); Lucky Draws on clutch/MVP/event milestones (bounded EV, cooldowns).
  • Sinks: skins, gear, blueprints, boosts, entries.

Single‑Player Dungeon Crawler (roguelite)

Spend → Charge → Run Floors → Checkpoint Rewards → Sinks → Repeat.

  • Spend & Charge: buy Premium Currency; charge TG‑NFT (EU per floor/boss).
  • Play loop: seeded runs with checkpoint payouts on floor/boss clears; skill measured by depth, boss clears, no‑death; duration stronger; synergy from gear and artifacts.
  • Rewards: instant at checkpoints; Lucky Draws from rare rooms or perfect clears (bounded).
  • Sinks: crafting/merges, permanent unlocks, keys.

Trading Card Game (constructed ladder)

Spend → Charge → Queue Match → Instant Rewards → Sinks → Repeat.

  • Spend & Charge: buy Premium Currency; charge TG‑NFT (EU per match).
  • Play loop: Bo1/Bo3 (best‑of‑1/best‑of‑3) ranked/tournament; skill via MMR (matchmaking rating) delta, series wins, streak integrity; duration minimal to avoid stall; synergy from deck‑theme cosmetics/artifacts.
  • Rewards: instant post‑match; Lucky Draws as chest/pack openers (EV‑bounded).
  • Sinks: card crafting/fusion/foils, event tickets.

Applies to any game: define eligible activities, set effort thresholds (anti‑AFK), map sinks, and tune weights (skill/duration/synergy) per title. The Buyback Engine (§12) funds the Rolling Pool (§10), and Payouts (§13) use the same instant, live‑rate logic.

5.2 Player & Holder Archetypes

High Rollers / Degens

Motivation: Seek high-intensity risk, big upside moments and transparent odds they can quickly understand and grind.

How GemBit serves them. High-stakes, skill-weighted modes where Premium spend feeds $PXG buybacks and jackpots, plus VIP staking tiers that unlock softer fees, higher limits and access to exclusive pools.

Core Gamers & Grinders

Motivation: Want deep progression, fair economies and a sense that time and skill invested today will still matter next season.

How GemBit serves them. Cross-game progression, TG-NFT charge boosts and better reward caps for stakers, with Genesis NFTs preserving long-term account progress across multiple titles.

Collectors & IP Fans

Motivation: Value scarce items, status, and being early to worlds and characters they believe in.

How GemBit serves them: Limited Genesis and cosmetic drops gated by $PXG and staking tiers, holder-only events, frames and titles, plus IRL and cross-game perks that position them as visible "founding" members of the arcade.

Ecosystem Holders

Motivation: Prefer broad exposure to many games and risk-loops instead of betting on a single title or token.

How GemBit serves them: A single capped-supply token backed by spend and buybacks across the whole system, with staking providing better terms, early access and lightweight influence on ecosystem priorities.

Guilds & KOLs

Motivation: Need scalable, repeatable ways to engage their audience with meaningful risk, while securing better conditions for their communities.

How GemBit serves them: Dedicated features and tooling that unlock larger shared rewards, branded tournaments and custom pools, plus group-level perks and analytics across all connected GemBit games.

6. Asset Taxonomy

1️⃣ Ecosystem‑wide Genesis NFTs

act as master keys with mint permissions, early access, and VIP perks for the ecosystem.

2️⃣ Per‑Game Token Generation NFTs

generate token rewards; outcomes depend on charging costs, player skill, and NFT rarity/quality.

3️⃣ Per‑Game Crafting / Recharging NFT Stations

in‑game/service items used to mint or recharge Token Generation NFTs (costs, cooldowns, and rules set per title, according to ecosystem guidelines).

4️⃣ Cosmetics & Artifacts

cosmetic/craftable NFT items that improve reward drops when used together in gameplay with Per‑Game Token Generation NFTs; primary sinks via craft/merge/upgrade.

7. Token Utility (Across All Games)

  • • Crafting/merging/upgrading Cosmetics & Artifacts (core sinks).
  • • Entry fees/tickets to events, tournaments & leaderboards.
  • • Cross‑game unlocks & boosts; name reservations; vanity.
  • • NFT minting
  • • Marketplace fees, VIP tiers and discounts.

8. Premium Currency & On-Ramp UX

  • • Pack sizes, regional pricing, taxes/fees.
  • • Fiat on‑ramp flow (card/Apple/Google Pay) and crypto pay.
  • • Wallet abstraction, custody choices; charge mechanics for TG‑NFTs via NFT Stations.

9. Risk-to-Reward Gaming (Skill • Luck • Quality)

Goal: Convert real play + real spend into fair, instant, and bounded $PXG rewards, while keeping outcomes skillful, occasionally lucky, and budget‑safe.

This model resembles risk-to-reward games such as poker rather than traditional P2E: players put capital at risk within clear odds and limits; upside is tied to skill, luck, asset quality and rewards are always funded from real spend via buybacks.

Numbers & % note: All percentages, multipliers, caps, and windows in §9 are illustrative and subject to change per season.

9.1 Eligibility & Energy (TG‑NFTs)

  • Charged TG‑NFT required: activity is eligible only while a Token Generation NFT is charged (via NFT Stations). Each activity consumes Energy Units (EU) from the charge.
  • Valid activity proofs: server‑signed result packet (match/quest type, duration, difficulty, stats) + anti‑cheat flag must pass.
  • Minimum effort threshold: short/AFK sessions fall below cutoffs and award 0.

9.2 Budget Context (from §12–§13)

  • • The per‑title rolling allocation R_title,t (7‑day window) defines the available reward budget each day.
  • • A small per‑activity slice B_local is reserved at payout time using MA dampeners to avoid spikes.
  • • Lucky Draw budget J is separate and bounded (see §12 for triggers/cooldowns).

9.3 Per‑Activity Reward Formula

Let a user u complete activity j under title g at time t. The provisional reward before caps:

r_u,j = N · B_local(g,t) · w_mode(j) · w_duration(j) · m_skill(u,j) · m_quality(nft) · m_synergy(artifacts) · m_streak(u)

Where:

  • B_local(g,t) – local budget share derived from R_title,t (keeps totals within budget).
  • w_mode, w_duration – activity weights (e.g., ranked match > casual; long quest > short).
  • m_skill(u,j) – performance bracket multiplier (see 8.4).
  • m_quality(nft) – TG‑NFT rarity/level/charge‑efficiency multiplier.
  • m_synergy(artifacts)Cosmetics & Artifacts synergy used with active TG‑NFT (capped).
  • m_streak(u) – small integrity/consistency bonus, resets on AFK/abuse.
  • N – normalizer so that Σ r_u,j across all players/activities ≤ R_title,t.

Caps & floors (applied after r_u,j):

  • Per‑activity cap: r_u,j ≤ C_activity(tier); Per‑user daily cap: Σ_j r_u,j ≤ C_daily(account_level).
  • Floor: symbolic floor F_floor can exist for near‑miss cases (not paid if anti‑cheat flags trigger).
  • Energy use: each activity consumes EU_j from the TG‑NFT; when EU = 0, eligibility ends until recharge.

9.4 Skill Multipliers (transparent brackets)

  • • Players are placed into performance percentiles per title & mode on a rolling window.
  • • Higher brackets receive a higher skill multiplier, mid brackets get baseline, and lower brackets get a reduced multiplier.
  • • Brackets are computed from role‑appropriate stats (e.g., objectives secured, damage/healing done, winrate) and recalibrated regularly.

9.5 Quality & Synergy Multipliers

  • TG‑NFT quality increases rewards within a rarity band; charge efficiency/decay further adjusts effective quality within that band.
  • Cosmetics & Artifacts synergy adds a bounded boost when items are used with an active TG‑NFT. Cosmetic‑only items grant small boosts; Artifacts with gameplay hooks can grant a larger boost, up to a published cap.
  • • All bands, boosts, and caps are seasonally tuned and listed on the dashboard.

9.6 Luck (Lucky Draws — fairness‑first chance model)

Purpose: excite smaller spenders and cushion low outcomes;

How chances work:

  • Base chance per eligible session: every integrity‑checked session (meets effort thresholds) has a base chance to trigger a Lucky Draw roll.
  • Fairness boost: if a player's realized rewards trend below an expected band (vs. charge × performance), their chance increases within a published bound; the boost decays after recovery.
  • Odds floor: eligible small accounts have a chance to win too each draw.
  • Payouts: tiered prizes from the Lucky Draw Pool with daily/seasonal limits; no stacking multiple big wins in a short window.
  • Transparency: publish odds ranges, fairness‑boost bounds, and cooldown policies; results are server‑signed and auditable.

All chance ranges and bounds are illustrative and subject to change; live values appear on the public dashboard.

9.7 Off‑Chain Perks (Care Mechanism)

  • • If a session's net tokens fall below a fairness band relative to charge cost, the user may receive non‑redeemable perks: time‑boosters, in-game currencies (off-chain), cosmetic assets, temporary synergy buffs for the next N plays or even tradable NFTs.
  • • Perks escalate gently with repeated underperformance, then decay after recovery to avoid exploitation.

10. Emissions & Deflation

Principle: Player rewards are not printed. They are funded by real revenue via TWAP buybacks and paid instantly from a rolling 7‑day pool. Emissions to players therefore equal tokens previously bought on the market, with optional partial burns to maintain long‑term scarcity and price hygiene.

Numbers & % note: All numeric ranges and percentages in §10 are illustrative and subject to change during seasonal tuning.

10.1 Sources & Splits

  • Protocol fees F (Premium Currency purchases, entries, primary sales, marketplace fees) split as:
  • F = B + O + J, where B = α_buyback·F, O = α_ops·F, J = α_lucky·F and α_buyback + α_ops + α_lucky = 1.
  • Buybacks (B): executed as TWAP across approved venues with liquidity/volatility gates; fills the Rolling Pool.
  • Lucky Draw Pool (J): bounded EV and cooldowns; does not leak into base rewards.
  • Operations (O): infra, audits, security, SDK, liveops.

10.2 Rolling Pool → Daily Budget → Live Rate

  1. Rolling Pool (7d): sum of tokens bought over the last 7 days (incl. today).
  2. Daily Budget: baseline ≈ 1/7 of Rolling Pool, adjusted by today's buybacks and safety bounds.
  3. Live Reward Rate: recalculated hourly to allocate the remaining budget fairly to expected credits; bounded change, e.g. ±15%/h.
  4. Instant Payouts: on activity completion, pay credits × current_rate. Small end‑of‑day correction target ≤3%.

10.3 Coverage & Balance Rules (auto‑tuning)

  • Buyback Coverage (7d): with B₇d = tokens bought last 7 days and R₇d = tokens rewarded last 7 days,
  • Coverage = B₇d / R₇d ≥ 1.00 (target ≥ 1.10 green, <1.00 red). If <1.00 → dampen reward multipliers, raise cooldowns/caps, or increase α_buyback until back in band.
  • Faucet/Sink Ratio (7d): Ratio = Faucet₇d / Sinks₇d with target 0.8–1.2.
  • • Sinks include burns and irreversible token uses (craft/merge/upgrade/entries when they permanently remove or time‑lock tokens). If >1.2 → increase sink pull / trim multipliers; if <0.8 → ease sinks / lift multipliers cautiously.

10.4 Spend‑Time Buyback (STB)

  • Buy when value is consumed: execute buybacks primarily when Gems are spent (e.g., charging TG‑NFTs via NFT Stations, entries, crafting), not merely at purchase time. Aligns buybacks with reward‑liability creation and reduces timing risk.
  • • Maintain an intraday β‑buffer (e.g., 10–20% of forecast daily budget) for instant payouts; TWAP the remainder across the day.
  • • Under volatility spikes: widen TWAP window, throttle new session starts briefly, or trigger circuit breakers.

10.5 Burns & Liquidity Policy

  • Optional burns: route 10–30% of buyback tokens to a burn address; 70–90% to Rolling Pool payouts. Tune seasonally to avoid starving liquidity.
  • Price bands & depth: execute within predefined price/volume bands; if depth is thin, slow the pace or widen windows.
  • Transparency: on‑chain proofs of buybacks & burns; daily/weekly summaries on the public dashboard.

10.6 Epoch Tightening ("Halving"‑style)

  • • At season/epoch boundaries, gradually tighten reward weights/caps (e.g., lower m_quality ceiling, reduce cap_synergy, or raise Energy Unit costs) to shape long‑term issuance without printing.
  • • Lucky Draw parameters (odds/cooldowns/max payout) adjust with the same cadence.

10.7 Reserve Unlock Gates (Non‑Player)

Player payouts are never funded by these gates—they are always revenue‑funded. Gates govern only non‑circulating reserves (e.g., ecosystem development, marketing, and liquidity, if used). Private‑sale allocations, if any, unlock on a timed vesting schedule.

  • Gate A — Revenue: recent Premium Currency revenue above threshold; refunds/fraud low; visible share has already funded buybacks.
  • Gate B — Usage & Demand: enough paying players actually playing; anti‑abuse metrics healthy.
  • Gate C — Market: sufficient order‑book depth; turbulence below threshold.
  • Rule: at least two gates green; daily unlock cap = min(share of last‑30‑day revenue, share of today's buybacks, volatility cap). Destinations: LP with locks, partners with cliffs/vesting, development with transparent vesting — never player rewards.

10.8 Defaults (tunable; illustrative)

  • Daily budget:1/7 of Rolling Pool.
  • Live‑rate change cap: ±15%/h.
  • Coverage: ≥1.00 (target ≥ 1.10).
  • Faucet/Sink: 0.8–1.2.
  • Lucky Draw EV: bounded by season targets; share of daily credits ≤10%.
  • Cosmetics & Artifacts synergy cap: +25% combined; diminishing returns.
  • End‑of‑day drift: ≤3% correction.

11. Revenue Model & Fee Policy

  • • Sources: currency sales, primary NFT mints, marketplace take rate, paid entries.
  • • Standard fee split (e.g., 60/25/15 or project‑specific): buybacks / ops / lucky draws (illustrative; subject to change).
  • • Partner game rev‑share; SDK fees; infra costs.

12. Buybacks, Oracles & Allocation

  • • Buyback engine: TWAP over window, exchange venues, caps.
  • • Oracle inputs: per‑title demand signals (spend, mints, trades, DAU/MAU (daily/monthly active users) weight).
  • • Allocation: base share + seasonal/launch boosts; moving average dampeners.
  • • Security: price oracle sanity checks; circuit breakers.

13. Payout Mechanics & Timing

  • Instant payouts after a match/quest.
  • • Rolling 7‑day pool sizing for stability; daily limiters per user.
  • Lucky Draw triggers: per‑session base chance with fairness boost, per‑win cooldowns, diminishing returns, tiered prize limits, and anti‑whale dampeners.

14. Investor & Holder Motivation (Long‑Term)

  • Genesis NFTs: access, boosts, allowlists, VIP status.
  • Staking tiers: lock for vote weight, utility perks, cosmetic status.
  • No revenue promises: gameplay‑first, utility‑focused.

In a market where most participants come to speculate or gamble with short horizons, $PXG is designed to reward those who play, commit, and return. Holding and staking $PXG changes how you experience the ecosystem: which rewards you can get, how much you can risk, how much you pay in fees, and how your cross-game progression unfolds.

15. Game Onboarding Criteria (Partner Policy)

  • Quality: fun‑first, playable demo, telemetry, economy fit.
  • Integration: SDK, QA, launch playbook, LTV targets.

16. Risk, Compliance & Policy

  • Risk: market/volatility, oracle manipulation, liquidity stress, circuit breakers.
  • Compliance: regional eligibility, KYC/AML, no financial advice, gameplay‑first.

17. Architecture & Security

  • Contracts: token, staking/VIP, reward vaults, fee router, buyback executor, marketplaces (planned), upgradability, audits.
  • Infrastructure: wallet abstraction, key management, custody, data pipelines, monitoring.

Economy Math (Appendix A)

  • Formulas: F, B = α_buyback·F, R_ops = α_ops·F, J = α_lucky·F, A_i = f(demand_i, boosts, MA windows), r_u = g(skill, luck, NFT_quality, caps).
  • Examples: 3‑play scenarios, win/break‑even/sub‑win + perks, Lucky Draw coverage + upside.

Unit Economics (Appendix B)

  • Metrics: ARPPU, conversion, retention, CAC/LTV, payback, sensitivity, liquidity stress.
  • Sensitivity: fee %, buyback %, lucky draw %, TG‑NFT charging cost, faucet/sink balance, abuse vectors.

Living document: This litepaper will continue to evolve. Features, parameters, and policies may be amended as playtests, audits, and partner integrations progress. Where details are not final, we mark them inline as (to be finalized) or [TBD] and publish updates on the public dashboard. Naming note: $PXG is a placeholder ticker; chain selection and naming will be finalized before launch.