\text{Pool Inflow per Key Risked} = \$0.10
[Fees (Rake)](/core-docs/dungeons/supplementary/fees-and-incentives.md) are not taken at deposit **-** they are assessed at the point of Dungeon Coin generation. A percentage $$r$$ of the Coins that would have been issued to the player on cashout are instead accumulated to the **Cambria Treasury account**. $$ \text{Player Coins} = \text{Gross Coins} \times (1 - r) $$ $$ \text{Treasury Coins} = \text{Gross Coins} \times r $$ The Treasury account holds these Coins as a normal participant through the epoch and receives its pro-rata USDC distribution at the weekly resolution snapshot alongside all other Coin holders. At resolution: $$ \text{Treasury USDC} = \text{Treasury Coins} \times \text{Redemption Rate} $$ This means: * **Rake scales with risk volume**, not deposit volume. A week with high run activity and high Coin issuance generates proportionally more Treasury Coins and therefore more Treasury USDC at resolution. * **Rake earns nothing from unplayed Keys.** Keys purchased but never risked generate no Coins and therefore no revenue allocation. * **Rake is subject to the same redemption rate as players.** If the pool runs below target depth in a given epoch, Treasury USDC is compressed proportionally - the platform bears the same redemption rate risk as the player base. Rake rates are fixed per season and published in advance. Rate changes (if any)will be preceded by 72-hour notice and will announced via the official Discord and Dashboard. #### Phase 1: Weekly Full Resolution *(Current)* The initial settlement model uses a **weekly full resolution** cycle - a clean, auditable cadence designed for the launch period while the pool builds depth and the game mode grows. #### Resolution Process Pool resolution is triggered weekly via the **Cambria Oracle**. At resolution, **all outstanding Dungeon Coins are forcibly converted** - there is no opt-out and no carry-forward. Every Coin in circulation at the snapshot block is settled simultaneously. 1. **Snapshot** - the Cambria Oracle takes a snapshot of all Dungeon Coin balances and the pool balance at the resolution timestamp 2. **Proposal** - the Oracle submits the aggregate Coin supply and pool balance 3. **Challenge Period** - a 24-hour window during which any discrepancy between on-chain state and the proposed settlement can be flagged and adjudicated 4. **Forced Conversion** - all Dungeon Coins are burned and USDC is distributed pro-rata to holders based on the snapshot balances $$ \text{Redemption Rate} = \frac{\text{Pool Balance}\_t}{\text{Circulating Coin Supply}\_t} $$ **Pool Balance definition:** Pool Balance represents the USDC in the pool corresponding to Keys that have been **risked on runs** during the current epoch - not Keys purchased and held unplayed. Unplayed Keys retain their face value ($0.10 USDC each) and are not counted against the pool until the Key is consumed by entering a run. This ensures the redemption rate reflects actual risk volume rather than total Key issuance. $$ \text{Pool Balance}*t = \sum*{\text{epoch}} \left( \text{Keys Risked} \times $0.10 \right) $$ At target pool depth, the redemption rate approaches 1:1. Actual rate fluctuates with risk volume and extraction output within the epoch and is published in real time on the Dashboard. #### Dungeon Key β Dungeon Coin Market Beyond direct play, Dungeon Keys and Dungeon Coins trade peer-to-peer on the Cambria Trading Post. This creates a secondary market for run-output speculation outside the main game loop. Ingame UI will also make it easy to "withdraw" Dungeon Coin winnings back to crypto, by automatically filling orders (with safeguards around slippage, low liquidity, etc.). *The spread opportunity:* A player who believes the current week's pool will resolve at a premium to spot Coin prices can purchase Coins on the secondary market at a discount and hold through resolution. Conversely, a player who has extracted Coins and prefers immediate liquidity can sell at a discount to the expected resolution rate rather than waiting for the weekly event. For those who played our last season, this model mirrors the Cambria Gold Rush OTC silver market - skilled traders can earn on the spread without engaging with the primary game loop at all. **Pairs available:** * Dungeon Keys β Dungeon Coins * Arena Tokens β Dungeon Keys Liquidity depth + bid and asks for each pair is published on the Economy Dashboard and also visible in the Trading Post in game. #### Market Maker Program Cambria operates an informal program for players who provide consistent liquidity in size on the Dungeon Keys <> Dungeon Coins pair. **Benefits:** | Benefit | Detail | | ------------------------- | -------------------------------------------------------------------------------------------------------------- | | Dedicated support channel | Direct access to Cambria team for issue resolution | | Liquidity incentives | Rebate structure on qualified volume (rate disclosed to participants) | | Zero-fee Key redemption | Qualified players can redeem Dungeon Keys directly back to USDC from the pool with no fees, via Support ticket | To apply: create a ticket in-game or via Discord. #### Transparency Cambria publishes the following in real time on the Economy Dashboard: * Dungeon Liquidity Pool balance and depth * Circulating Dungeon Coin supply, Current Keys risked in Period * Current implied redemption rate (Pool Balance / Coin Supply) * Weekly volume by pair on the AMM * Top X Dungeon Coin extractors leaderboard ### Phase 2: Floating Pool Model *(Roadmap)* {% hint style="info" %} Note: Phase 2 is not yet live. We will transition to Phase 2 when the risk volume warrants tighter spreads on the Dungeon Key <> Coin pair, reducing arbitrage leakage from circular redemption flow. All of the below is speculative and intended mostly to give some ideas on how we're thinking about this. {% endhint %} As pool depth, game mechanics / balancing, and trading volume mature, Cambria will transition the Dungeon Coin settlement mechanism to a **continuous floating pool model** - a structure where Dungeon Coins trade as a floating instrument against USDC. Unlike a perps or prediction market, Cambria has no exogenous index / source of eventual truth for what a Dungeon Coin "should" be worth. Coin output is a function of artifact drop tables, multiplier distributions, mob balance, and player behavior - all of which can shift with game patches. There is no fair price Oracle could publish. The only meaningful price is the live pool NAV: $$ \text{NAV}\_t = \frac{\text{Pool USDC}\_t}{\text{Circulating Coin Supply}\_t} $$ Published continuously on the Economy Dashboard. NAV moves whenever Keys are risked (pool grows), runs complete (Coins issued), or redemptions clear (both pool and supply drop in lockstep). It is the redemption rate, the implied secondary-market ceiling, and the live mark all at once. High player inflow creates temporarily elevated NAV. #### **Continuous Redemption** Coin holders might redeem at NAV at any time, subject to throttle parameters: * **Per-transaction cap** - caps any single redemption to prevent one-shot pool drain * **Rolling 24h global cap, Ξ±% of pool** - Ξ± is governance-adjustable, target range 5β15%. Redemptions exceeding the cap queue with preserved order and clear as headroom opens * **MM access** - recognized Market Makers (or other token holding-related criteria) could retain priority queue access in exchange for committed two-sided depth on the secondary market There would be no resolution event. Coins can be held indefinitely and redeemed when the holder chooses, subject to throttle. #### **Secondary market behavior** With direct NAV redemption available, the Keys β Coins secondary market clears at a natural discount to NAV: $$ \text{Secondary Price} \approx \text{NAV} - \varepsilon $$ Where Ξ΅ reflects queue and timing risk (how long until redemption clears), dilution risk (how much new Coin issuance is expected before exit), and liquidity preference (the premium for instant exit vs. queueing). Ξ΅ compresses when the pool is deep and queues are short. It widens when redemption pressure outpaces the throttle. This self-regulating spread is the discipline mechanism - no funding rate is needed, because NAV redemption itself is the arbitrage path that closes any gap. Skilled traders remain rewarded for understanding game balance. They take positions on expected NAV trajectory - patch impact on drop rates, weekend Key inflows, leaderboard-event, incentive programs etc. etc. extraction spikes. The secondary market is the venue for those bets. #### **Governance and parameter discipline** Ξ± is the most consequential parameter. Too low, and queues build under stress and the secondary market widens into a slow-motion bank run. Too high, and concurrent large redemptions can outpace Key inflows. Ξ± changes will likely the same 72-hour notice protocol as rake adjustments, with targeting informed by trailing 30-day extraction velocity, secondary market depth and spread, and observed redemption demand vs. throttle utilization. #### **Game Updates & Balance Changes** Game patches are a unique risk vector in this model - Dungeon Coins as an asset is defined by drop tables, multiplier distributions, and mob balance, all of which sit inside our patch cycle. We also recognize, however, that this is where some of the most interesting gameplay lives. Players reading patch notes, modeling impact, running characters on the test realm, and taking positions on expected NAV trajectory is exactly the alternative gameplay loop the secondary market is designed to support. The goal of the framework below is not to neutralize patch impact - it is to make patch impact *legible and tradeable* rather than hidden and exploitative. The stakes scale with pool depth. At low NAV and shallow pool, a parameter tweak moves a few thousand dollars and the speculative game around it is more sport than serious. As the pool grows, the same tweak moves real money, and discipline around timing, disclosure, and access becomes load-bearing. When we get here, we'll release more info on tightened frameworks for Disclosure cadence, Patch window throttles on redemptions, and other live systems to pick up bugs, etc. *** ## Arena Token Economy :coin: Arena Tokens (AT) are the main in-game currency in the Dungeons / Islands world, primarily used to trade items p2p on the Trading Post, purchase items from Viktor's Shop, wager on [Bar Games π§](/core-docs/dungeons/bar-games.md), perform [Island Skilling](/core-docs/dungeons/islands.md) activities, purchase Cosmetic Chest Keys, and more. #### Sources * Mando's Relics, obtained from [Island Skilling](/core-docs/dungeons/islands.md) activities (scaling on Energy consumption) * Alchemizing Cosmetic Items into Arena Tokens (obtained from Chest + Chest Keys) - "flooring" cosmetic mechanism that sinks Cosmetics #### Sinks * Biweekly [Arena Token Burn Auctions](/core-docs/dungeons/islands/misc.md#weekly-arena-token-burn), funded by 50% of Energy Orb (Island Skilling) proceeds * Trading Post Fees (2.5% per listing, 4% per tx completion) * Chest Key sales in Shop (50% goes to [Cosmetic Shard](/core-docs/nfts/cores-nft/cosmetic-shards.md) burners, 50% burned automatically) * Other Items sold in Viktor's Shop for Arena Tokens (100% burned) * [Bar Games π§](/core-docs/dungeons/bar-games.md) fees, 5% of total wagered. Sword in Stone has a 20% sink on total wagered. * AT Buybacks from Dungeon Growth treasury --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://cambria-1.gitbook.io/core-docs/dungeons/economics.md?ask=