FAVEs - Intrinsic Value
Summary
Intrinsic Value of FAVEs (ERC-1155 "Stock NFTs")
The value of FAVEs is derived from two kinds: financial rewards and utility value. Together, these elements establish the intrinsic value of FAVEs, ensuring their continuous demand and long-term engagement within the Favrr ecosystem.
The intrinsic value of FAVEs is derived from three core aspects:
Financial Rewards (as detailed in the "Staking" and "Perpetual Reward Pool" sections)
Utility Value I: Exclusive Access to the Prediction Game
Utility Value II: Exclusive Access Rights with Celeb FAVEs
1. Financial Rewards (as detailed in the "Staking" and "Perpetual Reward Pool" sections)
2. Utility Value I: Exclusive Access to the Prediction Game (a.k.a. Boardroom Market Challenge)
One of the key utilities of FAVEs is granting holders the exclusive right to participate in prediction games tied to real-world events related to their specific FAVE. This feature enhances both the intrinsic value and demand for FAVEs by continuously engaging users with fresh, event-driven opportunities.
A. The Prediction Game (Boardroom Challenge) Mechanism
Exclusive Participation Rights Holding a FAVE NFT provides exclusive access to participate in prediction games linked to real-world events associated with that FAVE.
Binary Outcome-Based Commitment FAVE holders commit their holdings to predict the outcome of an event, choosing between two possible outcomes (e.g., "Yes" or "No").
Reward and Risk Dynamics
If their prediction is correct, they win rewards proportional to their committed FAVE holdings.
If their prediction is wrong, they lose proportionally, similar to investment risks in traditional stock markets.
The larger the commitment, the greater the potential reward or risk, mirroring real-world financial decision-making.
Economic Incentives and Constant Demand
Every new real-world event creates a fresh opportunity to participate in the game, ensuring ongoing demand for FAVEs.
Users can engage in the prediction game or trade their FAVEs on the exchange to capitalize on increasing demand from others wanting access to the game.
B. Strategic Decision-Making and Market Influence
Real-World Market Dynamics in a Virtual Setting The game simulates the decision-making process of major shareholders in a company. Participants act as if they are large stakeholders voting on crucial company decisions, except the outcomes are based on real-world events, and the risk is contained within the platform.
Market-Driven Signaling Effect
The collective commitment of FAVE holders on one side of the prediction acts as a market signal, much like a boardroom discussion where investors analyze consensus.
If a participant notices a majority shift, they may reconsider their stance. However, switching decisions comes with a penalty proportional to the time elapsed since the game started.
This prevents market manipulation and encourages strategic, well-informed decision-making.
High-Stakes Rewards for High-Conviction Players If the losing side has committed more than the winning side, the winners receive disproportionately larger rewards. This mirrors how visionary investors and entrepreneurs profit by making bold, contrarian decisions in traditional markets.
3. Utility Value II: Exclusive Access Rights with Celeb FAVEs
Celeb FAVEs offer an additional layer of intrinsic utility beyond financial incentives. Holders of celebrity FAVEs gain exclusive access rights to special events, art, media, and other exclusive experiences associated with the celebrity.
Flexible and Customizable Access
The exact nature of these perks depends on agreements with the celebrities.
Potential benefits include VIP access to celebrity events, signed digital art, early media releases, private meet-and-greets, or exclusive content.
Enhancing Demand and Utility
Holding a Celeb FAVE provides ongoing incentives beyond speculation and financial rewards, ensuring continued demand.
Unlike traditional stocks, Celeb FAVEs represent not just ownership, but access, making them highly desirable to fans and collectors.
This dual-utility model—combining financial incentives with unique access rights—creates a compelling reason to hold FAVEs, driving long-term engagement and sustained market demand.
Conclusion: Why FAVEs Have Real Intrinsic Value
By combining financial incentives with real-world-linked utility, FAVEs offer more than just speculative value—they serve as active assets within a dynamic ecosystem. Holders benefit from: 1. Staking rewards (as detailed in the Staking & Perpetual Reward Pool). 2. Exclusive access to the Prediction Game. 3. Constant demand driven by the game’s perpetual cycle. 4. Market liquidity as new participants enter.
Ultimately, FAVEs are not just collectibles—they are engagement-driven, investment-like assets that reward strategic decision-making while providing a unique way to interact with real-world events.
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