4.4 Conversion between MA token and JONG token

The way of currency conversion in The Maverse is to use the brand new auctions models – 10% price sealed-bid auction. The mechanism of it goes: players have one day to subscribe single MA token price they’d pay for and total amount of subscription they want to buy. Before the result is released, players can amend the quantity and price of the bids. The selling price would be the lowest bid from previous 10% participants and will be sold to the persons who placed top 10 highest bids among them at the total amount of how much each person wanted to purchase. Please note that once the price is announced, additional purchase will not be acceptable.

For instance, if there are 100 players placing a bid today, the highest bid is at 100 JONG token for 1 MA token and 10 MA tokens to purchase, total subscription is 1,000 JONG tokens. The 10th highest bid (lowest among the 10% subscribers) placed a bid at 10 JONG token for 10 MA tokens, total subscription is 100 JONG tokens; so, the price of each MA token will be 10 JONG token and they will be sold to top 10 players. The selling price is the total amount of bidding divided by 10.

When the auction finishes, selling price and quantity will be announced in the game, allowing players to have the information of fluctuation in price and be ready for the next bidding. Meanwhile, total issuance quantity solely depends on the daily issuance situation, and it will not be limited.

In order to control currency issuance amount, bidding cycle will be adjusted per the amount of remaining MA tokens, the bidding cycle will be settled at once per week and players can amend the price anytime. The adjustment mechanism is to hold an auction every three days when remaining MA tokens drop to its 75%; and to hold an auction once in a week when remaining MA tokens drop to its 50%.

The goal for this approach is to avoid gaming studios to use this mechanism to harm other players’ interests. When price is unknown, they could not guarantee the purchase will be a good deal. We hope to design a mechanism when studios buy MA tokens, they will have to buy at a decent price. As the profit is up in the air, the studios will eventually drop out from this project.