1 $PENCIL = 1 $PENCIL. $PENCIL is the utility token that fuels the 2+2 Ecosystem. It is not an investment and has NO economic value.
Please note this is version 1.0, and can be modified as we bring on more utility for $PENCIL.
$PENCIL began with an initial claim on 12/31/2021 for all current holders of a Genesis 2+2 (addition) and a Gen 2 (subtraction).
The amount holders were able to claim was based on the rarity of their Genesis 2+2 (addition) as shown in this chart:
This initial claim of $PENCIL utility tokens results in a total available supply of 522,800 tokens IF all wallets have a Genesis (addition) and a Gen 2 (subtraction) - shown here:
Gen 3 Claim:
After this, if holders have a Genesis (addition), a Gen 2 (subtraction) and 200 $PENCIL in the same wallet, they will be able to claim a Gen 3 (multiplication). All holders who took advantage of the Initial Claim were given the amount necessary to make sure they could claim a Gen 3 (multiplication).
If all 100% of wallets were active, had at minimum a Genesis (addition), a Gen 2 (subtraction) and 200 $PENCIL from the initial claim, this this would result in a token burn as shown below:
Utility Token Accumulation Begins:
The base token accumulation of $PENCIL is based off of rarity of the Genesis 2+2 (addition) NFT - the below chart shows the different amounts:
This amount however can be modified by a Gen 3 (multiplication) being held in the same wallet at the following amounts:
If you hold multiple Genesis and Gen 3’s in your wallet, the smart contract was written in such a way that your highest rarity Genesis (addition) is automatically paired with your highest rarity Gen 3 (multiplication) to apply the modification. The second highest rarity Genesis (addition) will be automatically paired with your second highest rarity Gen 3 (multiplication) to apply the modification, etc. etc.
Based on the above numbers, the daily accumulation numbers both pre and post Gen 3 are shown below:
The Daily Token Yield (Pre Gen 3) means that at a minimum, 13,070 $PENCIL will be able to be claimed per day by the holders of a Genesis 2+2 (addition). Using a weighted average of 1.3x - if all Gen 3’s are claimed then the Daily Token Yield Average would be 16,589 available to be claimed per day after the multiplier has been put in.
Tokenomics around Breeding:
The first primary major utility around $PENCIL will be to “breed” currently held NFT’s in the 2+2 ecosystem to create new NFT’s.
It works as following:
You can breed a Genesis NFT (addition) and a Gen 2 (subtraction) NFT + 500 $PENCIL to create a Gen 4 (division).
Gen 4’s will enable access to an NFT section on the 2+2 Discord - where both people who own a Genesis and/or a Gen 4 will be able to talk and share about NFT’s. Gen 4 will also serve as our upcoming LaunchPad platform - in order for you to be eligible to get on any future potential whitelists/early access launches for other projects, you will need a Gen 4, and $PENCIL.
You can breed a Genesis NFT (addition) and a Gen 3 (multiplication) NFT + 600 $PENCIL to create a Gen 5 (squared)
Gen 5’s will enable access to a Staking/IDO section on the 2+2 Discord - where both people who own a Genesis and/or a Gen 5 will be able to talk and share about staking/IDO’s. Gen 5 would also serve as the platform upon which we could pursue IDO’s/pools together as a group - in order for you to be eligible to participate, you will need a Gen 5, and $PENCIL.
You can breed a Gen 2 NFT (subtraction) and a Gen 3 (multiplication) NFT + 750 $PENCIL to create a Gen 6 (square root).
Gen 6’s will enable access to a Gaming section on the 2+2 Discord - where people who own a Genesis and or a Gen 6 will be able to talk and share about Gaming, P2E and Metaverses. Gen 6 will serve as our gaming platform - we already have some talks going about getting early access/beta access to certain games/metaverses/p2e games - in order for you to participate you will need a Gen 6, and $PENCIL.
If you hold a Genesis, Gen 2, 3, 4, 5 and 6 + 1000 $PENCIL you will be able to claim a Gen 7 (cubed).
Gen 7’s will be our first foray into real life - where you’ll gain access to IRL events and parties as they come about. You will have to hold both a Genesis and a Gen 7 to access these IRL events. There will be special contests and giveaways for Gen 7 holders as well.
In the above chart - you can see the total amount of $PENCIL needed to produce a total of 1,953 Gen 4 (division), 1,953 Gen 5 (squared) and 1,953 Gen 6 (square root) as well as the further burn for 1,953 potential Gen 7 (cubed). This means that even with the weighted average of accumulating a total of 16,589 $PENCIL per day divided amongst all Genesis (addition) holders - it will take 336 days for enough $PENCIL to be accumulated to attain Gen 4 through Gen 7.
As you can see in the chart above, with the above tokenomics, that at the end of Year 1 - if all 100% of Gen 4/5/6 and 7 are claimed, that there will be 405,916 $PENCIL left in circulation - when we add back the 132,200 left (post Gen 3 claim amount) - there will be a total of 538,116 $PENCIL token in total circulation around the end of Y1.
Overall - these numbers are assuming that 100% are claimed, 100% of the multipliers are taken into effect, and that people claim efficiently.
Based on all of these numbers - there is a solid deflationary trend to $PENCIL for at least the first 11 months - solely based off the breeding mechanism of Gen 4/5/6 and the claim of Gen 7.
Future and potential other utility use cases for $PENCIL include but are not limited too:
- $PENCIL may be used to secure spots on Whitelists/Early Access and the LaunchPad for other projects based on opportunities from Gen 4 Utility
- $PENCIL may be used to secure spots within pools based on opportunities from Gen 5 Utility
- $PENCIL may be used to secure spots within early access P2E games, Beta tests and other opportunities in the “metaverse” from Gen 6 Utility
- $PENCIL may be used in the future for exclusive access to things like merchandise, apparel, events, prizes and future items.
- $PENCIL may be used to secure spots in a membership art based community with artists from around the world contributing art collections ex: Gen.Art Membership
- $PENCIL may be used for DAO Governance of 2+2
- $PENCIL may be used in partnership with other projects and programs who wish to also use $PENCIL within their ecosystem