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Stud Farm's Economic Impact
This section is meant to explore the Stud Farms economic impact on the CryptoZoo ecosystem.
Currently in the CryptoZoo ecosystem if a Zookeeper wants to breed 2 animals both those animals must be in the same wallet.
For example if
- A BlobFish is 1,000,000,000 $ZOO
- A Naked Mole Rat is 1,000,000,000 $ZOO
In this example for a Zookeeper to have the opportunity to breed the 2 animals they must have 2,000,000,000 $ZOO. This results in a small pool of Zookeepers that have the resources to breed for this hybrid.
The opportunity cost is so high in the previous example because there is no way for Zookeeper to purchase just a single breed instead they must purchase the animal outright. The Stud Farm provides a way to purchase single breeds.
For Example if
- A BlobFish Breed is 250,000,000 $ZOO
- A Naked Mole Rat Breed is 250,000,000 $ZOO
In this example it only cost the Zookeeper 500,000,000 $ZOO for the opportunity to breed instead of 2,000,000,000 $ZOO. This 4x reduction in cost results in a much larger pool of Zookeepers that have the resources to breed for this hybrid.
Retailers are individuals that make a profit by buying goods in bulk fractionalize them and selling them to consumers. The Stud Farm opens a new economic opportunity of Breed Retailing for Zookeepers.
For example a Retailer purchases a virgin Gorilla for 100,000,000 $ZOO from the CryptoZoo marketplace. They then Stud 6 breeds on the Stud Farm for 20,000,000 $ZOO each. In total they receive 120,000,000 $ZOO turning a profit of 20,000,000 $ZOO or 20% return with 1 breed remaining.
This mechanism is important because it provides economic incentives to provide breed liquidity to the Stud Farm.
Earlier we talked about the 3 utilities that give Base Animals value however, there is no way to realize the breed value of a Base Animal without selling the animal. The Stud Farm introduces the ability to realize a portion of your animal value with out selling the animal.
For example a Zookeeper with a single Egg and no $ZOO hatches a Gorilla. They Stud 1 breed on the Stud Farm and receive 20,000,000 $ZOO. They then breed their Gorilla with a Lion for 20,000,000 $ZOO on the Stud Farm and receive a Gorilla x Lion Hybrid Egg. Without the introduction of any additional capital the Zookeeper was able to obtain a Hybrid Egg using 2 breeds on a single animal.
There are many other cool ways of how this concept can be used to obtain desired Hybrid Eggs without the introduction of more capital.
The Stud Farm uses the CryptoZoo utility token $ZOO for all transactions on the platform expanding the token's utility and creating higher transaction volume for the coin.
The lowest price in the Stud Books is the current Market Price to breed with that Base Animal. Defining the Market Price of a breed allows for a quantifiable price of Base Animal breeds.
The Stud Books introduce Market Depth for Base Animal Breeds by creating order books of sells offers. Market Depth is important because it goes beyond market price to help define the value of an asset as demand changes.
The Stud Farm gives Zookeepers a Liquid Breed Market and lowers breeding Opportunity Cost.
Lowering the opportunity cost to breed will result in more animals being breed and more diverse hybrids. This will create greater market volume across the board helping to grow the CryptoZoo economy. It also lowers the economic barriers for new Zookeeper to enter the ecosystem.