Updates to the Rewards Pool and Space Vault: giving back to the community with a $BLS buyback program
TLDR: In preparation for the launch of our P2E game Infinite Battles we will decommission the Rewards Pool and Space Vault on 1000Blocks.space. Users will no more receive $BNB for their staked $BLS. Instead of that, we are introducing a Buyback program. This means $BNB collected will be used to support the PA of $BLS with random timed buybacks and marketing campaigns. This change will significantly simplify our technical landscape, and user experience and prepare $BLS for a potential CEX listing. An updated staking option will come later, shortly before the launch of Infinite Battles.
Rewards Pool and Space Vault today
When launching 1000Blocks.space we introduced a Rewards Pool and Space Vault.
The logic was simple: users participate in the co-creation of Spaces on 1000Blocks.space and yield $BLS for it. The majority of $BNB proceeds from the Spaces went to the Rewards Pool. Users could stake $BLS in the Space Vault and yield $BNB from the Rewards Pool.
At the onset of the project, we strongly believed that this was the best way to reward community members in the long run.
Over time, we continue to learn and adapt. Accordingly, it has become clear changes are necessary to fuel our continued growth to win in any environment, together with our community.
Decommissioning the Rewards Pool and Space Vault
- As of Sunday, the 15th of May we will decommission the Rewards Pool.
- The Space Vault will be decommissioned on the 5th of June.
What does that mean for 1000Blocks and the community?
- Rewards Pool will be replaced by Space Treasury
2. $BNB proceeds will be used for $BLS buybacks and marketing campaigns
The positions in the newly established Space Treasury will be used to execute random $BLS buybacks and targeted marketing campaigns.
3. The current amount in the Rewards Pool will be fully distributed to the community
The current amount in the Rewards Pool will be fully paid out to the community until the 5th of June→ Relative to the staked amount of $BLS in the Space Vault.
4. A new $BLS staking option will be introduced at a later point
Users are able to stake/withdraw $BLS into the Space Vault until the 5th of June. A few days before that we will introduce a new staking option.
5. Harvest your $BNB asap
Users will be able to harvest their $BNB until the 5th of June through our UI on 1000Blocks.space. After that, it is possible but much more cumbersome. We thus recommend everyone to harvest asap.
Reasons behind the change
Overall there are multiple reasons why we believe this is the best way forward. Three big ones are explained in detail below:
More utility of $BLS incoming with Infinite Battles. Buybacks are needed for sustainability but also to support the price levels of $BLS.
The utility is a key factor for the success of any token project (outside of the meme names perhaps). You have to ask yourself, what does this coin really represent, and is that unit of value generally accepted across the marketplace?
Until today the utility of $BLS was the ability to participate in Space-02 and yield $BNB from the Rewards Pool (a point we will expand on further in point 3).
As we enter the world of Infinite Battles, our P2E strategy game, the utility of $BLS will grow considerably. $BLS will be the base token for in-game actions, yields, and asset exchanges. E.g. in-game items which can then be sold on the open market (such as Altura) for other cryptocurrencies or perhaps even fiat money.
With the growing utility, we see growth in demand. Pair that up with our plan to have crazy yields on the Blocks in Infinite Battles, a fixed supply of 42M and the token is deflationary… we see a need of bringing $BLS back to the Treasury in order to make the system sustainable thus having a Buyback program is the logical next step.
The majority of Spaces on 1000Blocks.space reward the community in a token/asset other than $BLS. Removing the Rewards Pool and Space vault will thus simplify the platform.
When we started with 1000Blocks users always yielded $BLS for participating in Spaces. Our Space-01 and Space-02 launches saw tremendous levels of success, giving back nearly $400,000 USD dollars in community rewards by staking $BLS and yielding from the Rewards Pool.
The addition of Exclusive Spaces provided another venue to earn rewards with partners in the form of their tokens and NFTs. Going forward most of the Spaces will be Exclusive Spaces tied to a crypto project not yielding $BLS. Effectively, the role and utility of $BLS on the 1000Blocks platform needs to change too.
Having the Rewards Pool, Space Vault, Platform Yields vs Space Yields makes the platform complex from a technical and user experience perspective.
Removing it will simplify the setup radically: participate in a Space and you will be rewarded from that Space.
We need full legal compliance to formalize into a corporate entity. Making sure $BLS is undoubtedly a utility token makes CEX listing easier.
The third point is centered around global regulatory uncertainty especially considering actions taken on other projects. The glaring example in this space is what has happened to Ripple with their XRP token.
On December 21st, 2020, The United States Securities & Exchange Commission filed a lawsuit against the executives of Ripple, which immediately resulted in the delisting of the crypto off major exchanges around the world.
The debate is centered around if XRP is an asset or a security. This decision has ramifications that will extend beyond Ripple and will touch the entire crypto community. In a way it already did. Today CEX exercises great scrutiny on this topic as a prerequisite for listing.
How the utility of a given token is coded in smart contracts is extremely important in that determination. You don’t want to give any perception of being a security, as that comes with an extraordinary level of regulation and scrutiny.
Crypto Classification: Security vs. Commodity
There’s been a big debate going on in the crypto markets about how to classify crypto assets and which regulatory body…
After a few conversations with different legal offices from various countries, the message was clear. Due to the ability to stake $BLS and earn $BNB, it can be argued that $BLS is security. Which makes it really hard for us to proceed with forming a legal entity and do any listings on CEX. It simply requires too many financial resources that we strongly believe are invested better otherwise (e.g. development, marketing…)
Your input is greatly appreciated
We are continuously evolving and any feedback from our community is greatly appreciated.
Join our Discord to ask any questions or provide feedback: https://discord.gg/UsKu4Arba9
Space Ape holders have access to the Space Ape Club and VIP Discord channels that will continue to receive early news and developments with the project.
Another Ape Fiasco (AMA with founders) will be set up after the next medium article release to make sure everyone hears the updates directly from the team and has a chance to ask their questions.
We are excited about this next step in our journey and are so grateful for your support and enthusiasm!