What is Aavegotchi and How does it Work?

Aavegotchi is not just another name in the vast world of cryptocurrencies; it is an innovative combination of decentralized finance (DeFi) and non-fungible tokens (NFTs), bringing the best of both worlds together. Aavegotchi is fundamentally a blockchain-based game in which players interact with ghost-like avatars known as “Aavegotchis.” These avatars are not mere digital images; they are NFTs with unique characteristics and value, backed by the aTokens of the Aave protocol.

The name “Aavegotchi” is a play on “Aave,” a leading DeFi protocol, and “Tamagotchi,” the popular digital pet of the 1990s. Aavegotchis require interaction, just as Tamagotchis did. However, rather than feeding or playing, you increase the value and rarity of your Aavegotchi by equipping it with wearables and increasing its stake.

GHST is the native token of the Aavegotchi ecosystem. This token is more than just a means of exchange; it is the lifeblood that drives various activities in the Aavegotchi universe. From purchasing portals to summoning Aavegotchis, from purchasing wearables to staking and earning rewards, GHST is the key to abundant opportunities.

However, Aavegotchi is not just a game or a collectible. It reflects a larger trend in the crypto space that emphasizes community participation and decentralized governance. The AavegotchiDAO, a decentralized autonomous organization, gives the community the ability to influence the direction of the project. Token holders can vote on various proposals, ensuring that the decentralized nature of the project is maintained.

Aavegotchi is a fascinating combination of gaming, finance, and community. It is a world in which your digital pet is also an investment, where play meets profitability, and where the community’s voice truly matters.

History of Aavegotchi, Origins and Key Persons

Aavegotchi’s inception is a testament to innovation and creativity in the crypto space. Launched by Pixelcraft Studios, the project has quickly become a prominent name in the NFT and DeFi sectors.

Mission and Vision

The mission of Aavegotchi is to bridge the gap between DeFi and NFTs, creating a unique ecosystem where digital collectibles meet finance. The project aims to provide a platform where users can interact with their investments, not just financially but also through gaming and community participation.

Aavegotchi’s vision extends beyond mere entertainment. It seeks to democratize finance and governance, allowing users to have a say in the project’s direction through the AavegotchiDAO. This commitment to decentralization reflects a broader movement within the crypto community, emphasizing transparency, inclusivity, and empowerment.

The Team Behind Aavegotchi

Pixelcraft Studios, the team behind Aavegotchi, is composed of talented individuals who share a passion for blockchain, gaming, and decentralized finance. Their combined expertise has created a project that transcends traditional boundaries, merging different domains into a cohesive and engaging experience.

• Cofounders: The project was co-founded by Jesse Johnson and Daniel Mathews. Jesse, also known as “Ghsthead,” has a background in blockchain and has been an active contributor to the Ethereum community. Daniel, known as “Coderdan,” is a full-stack developer passionate about gaming and blockchain technology.
• Advisors and Contributors: Aavegotchi’s success is also attributed to a network of advisors and contributors who have provided valuable insights and support. This includes individuals with diverse backgrounds in crypto, finance, gaming, and technology.
• Community Involvement: One of Aavegotchi’s unique strengths is its vibrant community. The project has fostered a collaborative environment where community members, known as “GotchiGang,” actively participate in discussions, proposals, and the overall growth of the ecosystem.

A Journey Towards Decentralization

A commitment to gradual decentralization has marked Aavegotchi’s development. It began with the founding team organizing a DAO-governed token distribution event (DAICO) and has evolved through different phases, including Genesis, Cocoon, Metamorphosis, and Oasis. Each phase represents a step towards complete decentralization, culminating in a DAO-governed game where the AavegotchiDAO votes on all decisions related to mechanics, spending, and upgrades.

How does GHST Work?

GHST, the heartbeat of the Aavegotchi ecosystem, is not just a digital currency. It’s a multifaceted token that powers, incentivizes, and binds the community and the platform together.

Tokenomics and Distribution

GHST’s distribution was methodically planned in three stages:

1. The Private Sale: Held in August 2020, this sale offered 5,000,000 GHST for 0.05 DAI per GHST. The funds raised were allocated to Pixelcraft Studios, the mastermind behind Aavegotchi, ensuring the game’s successful development.
2. The Pre-Sale: Conducted on 14 September 2020, this sale had 500,000 GHST priced at 0.1 DAI per GHST. The funds from this round were used to bootstrap liquidity in the Token Bonding Curve reserve pool.
3. Public Bonding Curve Sale: This ongoing sale has no limit on GHST supply or duration. The price started at 0.2 DAI per GHST and fluctuates based on the curve. Through a tap mechanism that is under the control of GHST token holders, Pixelcraft Studios can access the proceeds from this sale.

Additionally, there are two special funds:

• Ecosystem Fund: Comprising 1,000,000 GHST, this fund is locked similarly to the Private and Pre-Sale rounds. Unlocked funds can be deployed for various legitimate use cases via proposals made to the AavegotchiDAO.
• Team Fund: This fund also contains 1,000,000 GHST, locked similarly to the Private Round. Once fully unlocked, they will be distributed over a 3-year vesting schedule, with the remaining funds locked for another two years for the Aavegotchi core team.

Revenue Sharing Overview

GHST’s tokenomics is designed to benefit all stakeholders:

• EARN IT (40%): This segment rewards active engagement in the game’s ecosystem, especially through rarity farming. The top rarity farmers are rewarded with the revenue earned from portal sales and wearables.
• DAO IT (15%): Emphasizing community governance, this portion goes to the AavegotchiDAO’s treasury. As the DAO matures, this percentage might increase, aiming for the DAO to manage and upgrade the protocol autonomously.
• BURN IT (5%): To counterbalance the potential downward pressure on GHST’s price, 5% of all GHST earned via portal and item sales is permanently burned. This action locks DAI within the bonding curve, creating a rising price floor for GHST.
• BUILD IT (40%): This portion is allocated to the development team, ensuring they have the resources to enhance the Aavegotchi experience.

Purpose and Utility of GHST

GHST is the lifeblood of the Aavegotchi ecosystem, designed to serve multiple purposes:

• Primary Currency: GHST is the main currency for purchasing various on-chain assets within the Aavegotchi universe. This includes Portals for summoning Aavegotchis, wearables to customize and enhance Aavegotchis, and consumables that can be used within the game.
• Staking: GHST can be staked to earn rewards, specifically the GAX Liquidity Token Reward (GLTR). Staking GHST not only provides players with rewards but also plays a role in securing and enhancing the Aavegotchi network.
• Governance: GHST token holders have the power to participate in the AavegotchiDAO, allowing them to vote on various proposals and influence the direction and decisions of the project. This emphasizes the project’s commitment to decentralization and community involvement.
• Rarity Farming: GHST is integral to “rarity farming” within Aavegotchi. Players can earn GHST by enhancing the rarity of their Aavegotchis through various means, such as equipping wearables or staking.
• Economic Incentives: GHST plays a pivotal role in the economic incentives of the Aavegotchi ecosystem. When players spend GHST on various activities, a portion of the spent GHST is redirected to the DAO, ensuring continuous funding for the ecosystem’s development. Additionally, players can earn GHST rewards for active participation in the DAO and engage in rarity farming.
• Liquidity and Exchange: GHST can be traded on various decentralized and centralized exchanges, providing liquidity and ensuring easy access for players and investors.

In essence, GHST is the cornerstone of the Aavegotchi ecosystem, driving user engagement, ensuring project sustainability, and fostering a sense of community and ownership among its holders.

Main Features of Aavegotchi

Staking

Source: Wiki of Aavegotchi

In the Aavegotchi ecosystem, staking is more than passive activity; it’s a gateway to deeper engagement. When users stake their GHST tokens, they don’t just earn FRENS as loyalty points. They’re also committing to the Aavegotchi universe, signaling trust and long-term involvement. The FRENS earned act as a bridge to exclusive opportunities, allowing users to purchase raffle tickets. These tickets open doors to rare wearables and coveted items, turning every staking decision into a potential treasure hunt. The mechanism ensures that the more you invest in the ecosystem, both in terms of time and GHST, the richer your experience becomes.

DAO (AavegotchiDAO)

Genesis: The Inception

The journey of AavegotchiDAO commenced with the Genesis phase, which was intrinsically linked to the DAICO. Launched with the GHST token distribution, this initial phase granted GHST token holders the authority to influence the funds channeled to Pixelcraft Studios, the team behind Aavegotchi. On 18 October 2020, a significant decision was made with a 99% approval rate to increase the monthly tap from 50,000 DAI to 100,000 DAI. As the DAO evolves, token holders will play a crucial role in deciding migrations, such as the anticipated shift to AavegotchiDAO Metamorphosis. It’s noteworthy that during this phase, there were no GHST rewards for participation.

Features:

• Governance anchored on GHST tokens.
• Absence of smart contract interactions or upgrades.
• Functioned on the Ethereum Mainnet via the Aragon platform.
• No rewards were allocated for participation.

Cocoon: The Transitional Phase

As an intermediary between Genesis and Metamorphosis, the Cocoon phase emphasized influencing game mechanics. This stage introduced two distinct voting mechanisms: Signal Proposals, which anyone could initiate, and Core Proposals, which were binding and introduced by Pixelcraft based on successful Signal Proposals. Once a Signal Proposal achieved a quorum of 20% of circulating GHST eligible for voting on Polygon, it transitioned into a Core Proposal. Those who successfully initiated Signal Proposals were acknowledged with 150 XP for their Aavegotchi.

Features:

• Contract calls initiated by Pixelcraft.
• Governance remained rooted in GHST tokens.
• Operated on Polygon through the Snapshot/Discourse platform.
• Rewards encompassed XP for Core Votes.

Metamorphosis: The Evolutionary Stage

Metamorphosis, the second iteration, was centered around managing basic game mechanics of Aavegotchi, such as determining the total supply of Aavegotchis, introducing new collaterals, and outlining their functionalities. As the DAO advances, migrations like the anticipated shift to AavegotchiDAO Oasis will be determined through collective voting.

Features:

• Ability to execute smart contract calls and modify specific mechanics.
• Governance incorporated both Aavegotchi and GHST.
• Functioned on Polygon using a custom dapp front-end.
• Rewards consisted of XP and badges for voting participants.

Oasis: The Culmination

AavegotchiDAO Oasis symbolizes the pinnacle of the DAO’s progression and signifies the onset of a game entirely overseen by a DAO. Every decision, from game mechanics to REALM functionalities, falls under the jurisdiction of the AavegotchiDAO.

Features:

• Capability to execute smart contract calls and modify certain mechanics.
• Governance integrated both Aavegotchi and GHST.
• Functioned on Polygon within the Aavegotchi Realm.
• Rewards comprised XP and badges for voting.

AavegotchiDAO Treasury

The treasury of AavegotchiDAO benefits from 0.3% of all trades on the Aavegotchi Bonding Curve on the Ethereum Mainnet. Members of AavegotchiDAO will have a significant role in determining the allocation of these funds.

Wearables

In the Aavegotchi realm, fashion meets functionality. Wearables are more than just aesthetic enhancements; they can amplify an Aavegotchi’s potential. Each wearable, be it a hat, a pair of glasses, or a mystical artifact, carries with it specific attributes. These attributes can significantly boost an Aavegotchi’s rarity score, making it a sought-after entity in the bazaar. The thrill lies in finding, trading, or crafting the perfect wearable that complements your Aavegotchi, ensuring it stands out in the crowd.

To learn more about and check rarity, visit: https://wiki.aavegotchi.com/it/wearables

Mini-Games

The Aavegotchi universe is brimming with playful challenges. Mini-games offer a dynamic playground where Aavegotchis can showcase their skills, compete, and earn rewards. But these aren’t just mindless distractions. Each game is meticulously designed to tap into different Aavegotchi traits, ensuring a level playing field. Whether you’re relying on luck, strategy, or quick reflexes, there’s a mini-game tailored for every Aavegotchi and their owner. And with the AavegotchiDAO’s Development Fund, the horizon of gaming possibilities is ever-expanding.

Source: wiki of Aavegotchi

Rarity Farming

Rarity farming, a groundbreaking game mechanism introduced by Aavegotchi, is designed to reward users who engage deeply and thoughtfully with the ecosystem. The essence of rarity farming lies in nurturing the rarest Aavegotchis and reaping rewards for the effort.

Several avenues allow users to delve into rarity farming:

• Selecting an Aavegotchi with rare traits during the summoning phase.
• Equipping wearables to alter the traits of an Aavegotchi.
• Participating in mini-games.

However, it’s essential to understand that an Aavegotchi’s rarity is fluid. It evolves as the distribution of traits and wearables within the Aavegotchi universe shifts. For instance, if most players focus on enhancing a specific trait, that trait’s rarity diminishes, affecting the Aavegotchi’s overall rarity.

Calculating Rarity

Rarity is determined through two scores: the Base Rarity Score (BRS) and the Absolute Rarity Score (ARS).

• Base Rarity Score (BRS): This score stems from the combined rarity of an Aavegotchi’s traits, its equipped wearables, and its age. The BRS for traits is calculated using a specific formula, while the BRS for wearables depends on the wearable’s rarity. As Aavegotchis age, they accrue additional BRS.
• Absolute Rarity Score (ARS): The ARS reflects the specific rarity of an Aavegotchi’s traits within the broader Aavegotchi ecosystem. It’s calculated as percentiles out of 100 for each trait. If a trait is less common among Aavegotchis, it contributes more to the ARS.

Source: wiki of Aavegotchi

The Final Rarity Score is the sum of the Traits BRS, Wearables BRS, and Traits ARS.

Rewards

Each rarity farming season sees the rarest Aavegotchis rewarded with a share of GHST tokens, which their owners can claim. The rewards are derived from all GHST-involved sales. Initially, there were three categories for rarity farming rewards: Aavegotchi Rarity Scores, Kinship Scores, and Experience. The distribution of rewards follows a descending curve, with top-ranking Aavegotchis earning more GHST rewards than those lower on the list. The AavegotchiDAO determines the proportion of rewards for each category. As the game evolves, more categories will be introduced.

Rewards are funded by redirecting 40% of all GHST spent on wearables, consumables, and other game items into the Rarity Farming rewards pool. The dynamic nature of an Aavegotchi’s final rarity score means players must strategize their interactions to maximize rewards.

Rarity Farming Seasons

Rarity farming is segmented into distinct seasons, each with unique competition categories, reward pool size, and distribution curve.

Collecting Rewards

Rewards from rarity farming are sent to individual Aavegotchi inventories. Users can access Aavegotchi’s inventory to view the GHST rewards earned from rarity farming, along with their equipped wearables.

Gotchiverse

The Gotchiverse is not just a virtual realm; it’s an expansive universe where Aavegotchis and their owners can explore, interact, and embark on adventures. This digital metaverse is designed to provide Aavegotchi owners with a unique experience beyond mere collectibility.

Source: wiki of Aavegotchi

Lands and Parcels

The Gotchiverse is divided into different types of lands, each with its unique attributes and functionalities. These lands are further divided into parcels, which can be owned, developed, and monetized by players. Owning a parcel in the Gotchiverse provides players with the opportunity to earn passive income, as other players might need to pay a fee to access certain activities or services on that land.

Alchemica

Scattered across the Gotchiverse are various resources known as Alchemica. These resources, which include Kek, Fud, Alpha, and Fomo, can be harvested by players and used in various in-game mechanics. Alchemica is essential for enhancing one’s Aavegotchi or for crafting new items in the game.

Liquidators

While the Gotchiverse is a place of fun and adventure, it’s not without its dangers. Liquidators, the arch-nemeses of Aavegotchis, roam the realm. Players must strategize and collaborate to fend off these threats and ensure the safety of their Aavegotchis.

Travel and Exploration

Navigating the Gotchiverse is an adventure in itself. Players can explore the vast realm, discover hidden treasures, and interact with other Aavegotchis. The Gotchiverse is designed to be a dynamic environment, with events, challenges, and mysteries waiting to be uncovered.

Economic Opportunities

The Gotchiverse is not just a game; it’s an economy. Players can trade, offer services, or set up businesses on their parcels. With the right strategy, players can earn GHST tokens and other rewards, making their journey in the Gotchiverse fun and profitable.

A Living, Breathing Metaverse

The Gotchiverse is constantly evolving. New features, lands, and opportunities are regularly added, ensuring the experience remains fresh and exciting for players. Whether you’re an adventurer, a strategist, or an entrepreneur, the Gotchiverse has something to offer everyone.

Recipes & The Forge

Craftsmanship takes center stage at The Forge. It’s here that players transform raw materials into coveted wearables. But crafting isn’t a mere transaction; it’s an art. With the guidance of recipes, players combine Schematics, Cores, Alloy, and sometimes, Essence, orchestrating a symphony of components to birth a wearable. This intricate process ensures that every wearable is a product of effort, strategy, and a dash of luck. And in a universe where wearables carry real-world value, The Forge acts as a guardian, ensuring that the balance between novelty and value preservation is always maintained.

Is Aavegotchi a Good Investment?

Determining whether GHST is a suitable investment for you depends on your individual situation and tolerance for risk. Cryptocurrencies are known for being high-risk assets, and it is recommended that you conduct your research and assess the amount of risk you are comfortable with before investing. It is essential only to invest money that you can afford to lose.

How can you own GHST?

Going through a centralized cryptocurrency exchange is one approach to acquiring GHST. The first step is to create a Gate.io account and complete the KYC process. Once you have deposited money into your account, follow the instructions to purchase GHST on the spot or futures market.

News on Aavegotchi

Q4 2020: The Beginning

• Aavegotchi Litepaper Release
• GHST Token Launch
• Aavegotchi Staking

Q1 2021: Expansion and Engagement

• Aavegotchi Mainnet Launch
• First Haunt
• Rarity Farming Season 1

Q2 2021: Enhancements and New Features

• AavegotchiDAO Metamorphosis
• Gotchiverse Litepaper
• Bridge to Polygon

Q3 2021: Diverse Offerings

• Rarity Farming Season 2
• AavegotchiDAO Oasis
• Gotchiverse Alpha

Q4 2021: The Future Awaits

• Gotchiverse Mainnet Launch
• Realm Parcels Sale
• Rarity Farming Season 3

Q1 2022 - Q4 2023: Breakout

Aavegotchi Roadmap Phase 2: Breakout

Strategy: Establish Aavegotchi as a community-owned gaming platform with mainstream appeal

• Milestones: 1M MAU / 25K DAU
• Aavegotchi Builder SDK
• REALM Public Land Sales
• REALM third-party Dapp Integration
• GotchiGang Referral Program
• Aavegotchi Mobile App alpha launch
• More Haunts (planned)
• AavegotchiDAO V3 (Oasis)

Q1 2024 and Beyond: Ubiquitous

Aavegotchi Roadmap Phase 3: Ubiquitous

Strategy: Fulfill the Aavegotchi vision of making a crypto game with mass mainstream appeal

• Milestones: 10M MAU / 50K DAU
• More Haunts (planned)
• REALM Public Land Sales
• Aavegotchi Minigame Builder
• Aavegotchi Hardware Wallet

Take action on GHST

Check out GHST price today, and start trading your favorite currency pairs.

• GHST/USDT
• GHST/ETH