tldr

G3N3SIS NFT's will have a set supply and will be divided by rarity class. Each G3N3SIS NFT holder will be entitled to a share of a special stake "pool" proportional to the rarity of the NFT(s) they hold. The higher the rarity, the better staking rewards (because less NFT's occupy the pool)

When you claim sOHM from your NFT the yield weight goes down, which will result in a lower fair market value of your NFT. When you do not claim the sOHM from your NFT, the yield "weight" of your NFT goes up, which will result in a higher fair market value.

Odyssey utility 2.1

Drafted by Girth, JeffX, and Utility team.

Rewards:

• NFT sOHM awards and organic rebase allocations will be stored and managed by the G3N3SIS fragment
• sOHM held by G3N3SIS will accrue organic rebase rewards every epoch like a 3,3 pool
• Every 33 epochs the treasury will send an additional sOHM award to the G3N3SIS stake pool
• The sOHM award each period will be equivalent to 0.33% of the total rebase distribution for that epoch
• G3N3SIS stake will be governed by smart contracts which maintain accurate proportionality between NFT accruals over award and organic rebase distribution cycles
• Any G3N3SIS NFT holders will be entitled to a share of the stake equal to the rarity of NFT(s) they hold
• Rewards do not automatically accrue for an individual holder in their wallet, they accumulate in the G3N3SIS vault, relative to their share, until the holder exercises their claim on an NFT- In order to claim, the nft is "reset" -- meaning all sOHM is transferred from the NFT's allocation in the G3N3SIS vault to the NFT holder's wallet.
• Redeeming claimable sOHM reduces the yield for a given NFT relative to the holders in that rarity class. This creates room for other holders to gain more because organic rebases are distributed within the pool as a ratio of an nft's claimable amount to the rest of the fund.
• Note: An additional mechanism discussed (but not yet decided on) is triggering a cool down period on claim which would skip the next 33 epoch for that NFT and distribute the difference amongst the remaining holders in that NFT's rarity class.

Quantities: 3 genesis33 rare 333 uncommon 3333 common

G3N3SIS Yield Mechanics: Every 33 epochs an sOHM award is distributed to the G3N3SIS pool ==> totalRebase * 0.33%

Distribution within the pool is allocated evenly between the rarity classes (1/4 each) and then subdivided by the number of NFTs within those rarity classes. This distribution mechanism creates a slow but consistent vesting cycle of sOHM. Because the bonus amount received differs with rarity the sOHM subsequent rebases will yield longterm value for the holder and holding a rarer nft grants access to a larger share of the cyclical award --> larger compound on total sOHM yield

G3N3SIS awards for individual NFTs in a given rarity: G = B(0.25) / 3 R = B(0.25) / 33 U = B(0.25) / 333 C = B(0.25) / 3333 where B is the total bonus award for a given cycle

Example: G3N3SIS receives 100 sOHM award Genesis: 25 sOHM / 3 ==> 8.33 per nft Rare: 25 sOHM / 33 ==> 0.833 per nft Uncommon: 25 / 333 ==> 0.0833 per nft Common: 25 / 3333 ==> 0.00833 per nft

Rewards Breakdown:

1. Every 33 epochs the Olympus treasury mints an sOHM award (Dai > OHM > sOHM) and sends to the G3N3SIS pool
2. Upon receipt, the pool contract will divide and allocate the award. The award allocation for any NFT in the collection can be calculated as:

a = A(0.25) / r

where a is the allocation for a specific nft, A is the total pool award for a give cycle, and r is rarity coefficient.

Example: common NFT, 100 sOHM total fund award a = 100(0.25) / 3333 = ~0.0075 sOHM

3. In addition to the 33 epoch award cycle, the sOHM in the G3N3SIS vault will accrue rebase rewards similar to a stake pool
4. Organic rebases will be managed by a separate contract within the G3N3SIS that distributes the earned rebase reward based on claimable amount per NFT within the pool (ratio of nft allocation to the rest of the pool)

This can be expressed as: r = R( c / G)

where r is the epoch reward for a given NFT, R is the total epoch reward received (in sOHM) by the pool, c is the current claimable allocation for that NFT and G is the total sOHM held by the G3N3SIS vault.

Example: common NFT, Pool holds 100 sOHM, organic rebase amount is 0.4% r = 0.4 x (0.0075 / 100) = 0.00003July 31, 2021 1:32 PM (EDT)