Imagine a world where your favourite pixelated pet isn’t just a nostalgic digital companion, but a valuable asset backed by the power of decentralised finance (DeFi).
This is the innovation that is done by the team behind Aavegotchi, where a virtual NFT Pet can become an asset that can be used in the DeFi Ecosystem.
The decentralised innovation is also governed by a DAO which makes Aavegotchi an interesting project to look at, especially when diving deep into what DAOs can govern.
What is AaveGotchi?
Aavegotchis are more than just adorable, pixelated ghosts; they’re unique digital collectables residing on the Polygon blockchain. Unlike typical NFTs, each Aavegotchi can earn you passive income, blending the world of collectable characters with the power of decentralised finance (DeFi).
What truly sets Aavegotchis apart is their clever use of DeFi protocols. When you acquire one of these charming spectres, you deposit interest-bearing tokens (aTokens) from the Aave lending platform. Your Aavegotchi cleverly uses these aTokens as collateral, earning you interest over time. In a sense, your Aavegotchi becomes its little investment!
Aavegotchis aren’t just a clever financial tool; they’re bursting with personality! Each one possesses randomly generated traits that determine their rarity and how well they perform in various games. To add even more character, you can dress them up with wearable NFTs, boosting their stats and making them even more distinctive.
Your Aavegotchi’s home is the Gotchiverse, a virtual world teeming with possibilities. Participate in mini-games, quests, and social gatherings within the Gotchiverse to earn GHST, the realm’s native currency. Keep in mind, your Aavegotchi’s unique traits and wearables will influence their success in these activities.
Aavegotchis can become virtual landlords! The Gotchiverse features parcels of land called REALM, which you can purchase, develop, and even rent out for additional rewards.
Aavegotchi’s future lies in the hands of its players. The game is governed by the AavegotchiDAO, a decentralised organisation where GHST holders can vote on various proposals that shape the direction of the game.
Aavegotchi is a prime example of innovation within the blockchain space. It merges delightful collectables, earning potential, and vibrant community engagement, making it a fascinating testament to the power of engaged players and developers alike.
How Does its DAO Work?
The Aavegotchi project isn’t just about collecting adorable pixelated ghosts; it’s about fostering a community-driven experience through the AavegotchiDAO (Decentralized Autonomous Organization).
This DAO, powered by the GHST token, empowers players to actively shape the fate of the Aavegotchi ecosystem.
GHST serves as the lifeblood of Aavegotchi. It’s the native utility token used for various activities within the Gotchiverse, including:
- Purchasing Aavegotchis: You’ll need GHST to participate in auctions, and raffles, or buy Aavegotchis directly on the marketplace.
- Playing Games: Many Gotchiverse games require GHST for entry fees or in-game purchases, with potential GHST rewards for winning.
- Wearables and REALM: Equipping your Aavegotchi with wearables or acquiring virtual real estate (REALM) often involves spending GHST.
But GHST’s true power lies in its role within the AavegotchiDAO. Here’s how it functions:
- Voting Rights: Owning GHST grants you voting rights within the AavegotchiDAO. The more GHST you hold, the greater your voting weight.
- Proposals and Decisions: The DAO considers various proposals impacting the game’s future. These might involve changes to game mechanics, tokenomics, or even development priorities. GHST holders vote on these proposals, ultimately deciding the direction of Aavegotchi.
The AavegotchiDAO is currently in its “Oasis” phase, where GHST holders have full voting power on a wide range of proposals. This includes:
- Game Mechanics: Voters can decide on adjustments to mini-game rules, breeding mechanics, or how Aavegotchis interact with the Gotchiverse.
- Ecosystem Spending: The DAO determines how funds are allocated within the Aavegotchi ecosystem, potentially affecting development efforts, marketing initiatives, or community rewards.
- Smart Contract Upgrades: Proposals for modifying the underlying smart contracts powering Aavegotchi are also voted on by GHST holders.
Actively engaging with the AavegotchiDAO offers several advantages:
- Influence the Game: You get to have a say in how the Aavegotchi world evolves, ensuring it aligns with your vision for the future.
- Protect Your Investment: Voting on proposals that promote healthy tokenomics and sustainable growth can benefit the entire ecosystem, indirectly increasing the value of your GHST holdings.
- Community Building: Participating in the DAO fosters a sense of ownership and fosters a stronger, more invested community.
The AavegotchiDAO, fueled by GHST, is a prime example of decentralized governance in action. By giving players a voice, it shapes Aavegotchi into a truly community-driven experience where everyone has a stake in the game’s success. So, if you’re an Aavegotchi enthusiast, consider becoming an active DAO member and help shape the spooky future of the Gotchiverse!
Aavegotchi’s Token Ecosystem
Aavegotchi’s vibrant ecosystem thrives on a dual-token system, each playing a crucial role in fueling the play-to-earn experience.
GHST serves as the primary utility token within Aavegotchi. It’s the currency you’ll use for most interactions:
- Acquiring Aavegotchis: Whether you seek a spooky companion through auctions, raffles, or the marketplace, GHST is your key.
- Enhancing Your Aavegotchi: Want to personalize your ghost friend with stylish wearables or secure a plot of virtual land (REALM)? GHST is essential.
- Participating in the Gotchiverse: From entry fees for mini-games to in-game purchases, GHST fuels your Aavegotchi’s adventures.
GHST also empowers you to be an active citizen in the AavegotchiDAO (Decentralized Autonomous Organization). By holding GHST, you gain voting rights on proposals that shape the future of the game, ensuring your voice is heard.
While GHST fuels your journey within the Gotchiverse, aGHST offers a passive way to earn rewards. Here’s the deal:
- Staking: When you lock up your GHST for a set period, it becomes aGHST. This act of staking contributes to the stability and security of the Aavegotchi ecosystem.
- FRENS: As a reward for staking (holding aGHST), you’ll accumulate FRENS points. These points act as your key to exclusive Raffles where you can win exciting prizes like unique wearables for your Aavegotchi.
Think of aGHST as a way to put your GHST to work while you play. You can easily convert aGHST back to GHST whenever you need it for in-game activities.
In essence, GHST is the currency you spend to play and participate, while aGHST offers a way to earn passive rewards for supporting the ecosystem. This dual-token system fosters a thriving and sustainable Gotchiverse for players and enthusiasts alike.
Conclusion
Looking at AaveGotchi, it can be seen that its DAO is more or less normal and has no real innovations it, aside from the staking mechanism it proposes.
However, this project can be a good example for other projects that want to introduce a DAO to their ecosystem, especially if the project has an NFT and a token, where the developers want to fully integrate the decentralisation concept into it.
This project seems to be developing something new, which is why it is currently lacking a bullish structure. But, looking at how solid the longevity of this project is, if the bull market comes, then this project can become the leading project in the GameFi and NFT Sector, especially if there are new developments involved.
