Additional Rules

How does the liquidity work

Horseman Royale is designed to be a PVP betting game, in the long run, 50% of the losers will pay out the 50% winners. However, in the short run it is possible to see more winning fights/ losing fights, so it is important to have a baseline bankroll to support volatility caused by the short term deviation from the bell curve. The team will provide 5000-20000 Matic to the bankroll to kickstart the game.

In the future, we plan to offer 'Counter-Betting Bot' for LPs to inject liquidity into the bankroll. This is similar to Uniswap Pool, but LPs will be exposed to greater volatility as they must unconditionally match 50/50 bets. LPs can expect roughly 0.2% edge per fight. This will make the bankroll more decentralized and robust.

Early Game Buff

In order to kickoff the round, the first 2000 fights will receive 100% additional loser power. This will incentivize players to come in building up the jackpot.

Wager Size

To ensure liquidity in the bankroll, a maximum wager size limit will be implemented. Currently, there are four default wager sizes available: x, 2x, 4x, and 8x and so on. The maximum wager size accepted by the smart contract will be set to a value smaller than 1/100 of the bankroll.

Initially, the smart contract will only accept the smallest wager size, which is x. As the game progresses and the bankroll expands, the options for 16x, 32x, and 64x wagers will be automatically activated.

Dynamic Fee

The Fomo3d mechanism is primarily designed to bootstrap the game. In the long term, we expect the loser tax to diminish drastically. In order to transition the game to a more fair and sustainable state, the game will automatically reduce jackpot tax to 1% when the jackpot exceeds 10,000 Matic. The jackpot tax will further be reduced to 0.2% when jackpot exceeds 200,000 Matic.

Additionally, if a winning fight resulted in obtaining the crown, the player will have to pay double the tax. This will sustain the growth of jackpot and also reward early participants with more loser tax.

Loser Tax Decay

When the round begins, loser tax is set to be 6% universally. For every successful transaction, there is 1/1000 probability to trigger tax reduction event, lowering global loser tax by 1%. Loser tax rate will not be lowered below 2% in the end.

VRF and the combat system

Centralized randomness is opaque, and on-chain randomness is extremely insecure. The best solution is VRF powered by Oracle. In order to keep the gas reasonable and performance ideal, we designed a simple architecture as such:

When player submits a transaction, part of the gas is used to retrieve a random number between 0 - 9999 from chainlink VRF. The outcome of the game is determined by this random number. The frontend then randomizes a combat scenario that matches the result.

Referral System

We are excited to introduce a new referral system that allows players to earn additional rewards. By referring friends to the game, you can now enjoy extra benefits. When your invitee wins a game, you will receive 1.5% of their winnings as a reward. Furthermore, the invitee will receive a 1.5% tax exemption from the loser tax, ensuring they bear no loss through the invitation. Additionally, as the inviter, you will also earn 0.5% from the invitees of your direct invitee, maximizing your potential rewards.