FAVEs - Boardroom Challenge

Intrinsic Value of FAVEs (continued)

Boardroom Market Challenge – Shareholder-Style Market Prediction Game

Favrr introduces an innovative gamified utility called the Boardroom Market Challenge, allowing FAVE holders to participate in real-world event prediction as if they were shareholders making consequential strategic decisions.

1. Prediction-as-Shareholding Each FAVE is more than a collectible—it’s a vote of confidence. Holders can participate in market-based predictions tied to the real-world subject of their FAVE (e.g., “Will Celebrity X win an award?”), with binary outcomes and fixed timelines.

2. Commitment-Based Staking Users select a side (e.g., “Yes” or “No”) and stake up to the number of FAVEs they hold. Their stake acts as both a prediction weight and a potential claim on the reward pool—mirroring shareholder influence.

3. Dynamic Pricing Per Vote (Supply/Demand Mechanism) Commitment pricing adapts based on real-time demand for each outcome:

   • If 88% of committed shares are on the “Yes” side and 12% on “No,” then one vote on “Yes” costs 88 FAVEs, and one vote on “No” costs 12 FAVEs.

   • This creates asymmetric upside for contrarian (but correct) predictions—mirroring risk/reward logic in investing.

4. Decision Reversal Penalty (Exponential Decay Curve) - Future Phase Users may withdraw or switch sides before the event concludes, but doing so incurs a penalty fee that increases exponentially the closer it gets to the prediction deadline.

   • This deters impulsive flipping and rewards early conviction.

   • Penalties are deducted as a percentage of the committed FAVEs and redistributed to the reward pool.

     

     • x = time elapsed as a percentage of the total game duration (from 0 to 0.95)

       • y = penalty as a percentage of the committed FAVEs (from 0% to 50%)

       • T = predefined penalty threshold time (we’ll use 75% or 0.75)

       • P_max = maximum penalty (50% or 0.5)

       • Interpretation:

         • If a user changes their vote early in the event (e.g., 25% of the way in), their penalty is minimal (about 5.5%).

         • If they change it at the halfway point, the penalty is around 22%.

         • Once 75% of the game time has elapsed, the penalty reaches the maximum of 50%.

         • No matter how late the vote change occurs after 75%, the penalty remains capped at 50%.

         This structure rewards conviction and early decisions, while still allowing flexibility to adjust — but at a cost that reflects increasing informational clarity as the event nears resolution.

Through this mechanism, FAVEs gain active financial utility, encourage market-savvy behavior, and build a bridge between community conviction and real-world outcomes—further deepening their intrinsic value.