Game Theory
What Is Nash Equilibrium?
Nash equilibrium, a concept in game theory, describes a state where all participants in a game or interaction achieve their best possible outcome without any having an incentive to change their strategy independently. In simpler terms, it's a situation where everyone involved is satisfied, and no individual would benefit from altering their actions or strategies since it's the most optimal outcome.
Rico's Revolving Door Hypothesis: Achieving Nash Equilibrium in Meme Coin Ecosystems
Objective:
Maximize project growth by spending newly acquired community funds & burning tokens daily to attract new members through a self-sustaining ecosystem that rewards both Participants and Developer, while maintaining transparency and trust.
Rules:
When a participant enters or exits the ecosystem by buying or selling $PUPPY tokens, there is a 'transfer tax' of 3.5%, allocated as follows:
2% to the community wallet
1% to daily token burning
0.5% for operational costs
Participants conduct daily audit checks on developer activities to ensure transparency and trust within the ecosystem:
-verify expenditures written on a ledger and then in combination, correspond the list with transactions on the community wallet address using a Solana blockchain explorer to match the written records are True.
Ledger, a book of records of funds spent: https://ledger.aipuppy.org/
Community wallet address: aipuppy.sol
-verify the dead wallet using a Solana blockchain explorer. This ensures that $PUPPY funds are burned daily, making them permanently inaccessible to all.
Burn wallet address: 1nc1nerator11111111111111111111111111111111
Community growth by engaging members through interactive tools like Telegram voting polls. By allowing users to cast their votes, they play an active role in shaping the project's development and contributing to its continuous value appreciation for all $PUPPY token holders. This collective effort steers the future direction of the project.
If a member (Jeeter) permanently leaves the organization, the 2% tax proceeds (Jeet Money) from their transaction still goes directly to the community wallet, fueling the revolving door effect by generating more promotional funds to attract new members. This ensures that the project remains sustainable even in challenging times.
Objective for players:
-Participants: Increase token value through active involvement in voting polls, sharing Ai Puppy memes, and benefiting from taxes allocated to promotional advertisements or development
-Developer: Maintain daily token burns, allocate funds toward community needs, document transactions on a ledger for public verification, and retain a 0.5% commission for operating costs.
Outcome:
The Revolving Door Hypothesis underscores the importance of a mutually beneficial relationship between the developer and participants in creating a thriving meme coin ecosystem. Through continuous participation, promotional efforts, and project improvement, the ecosystem can achieve sustainable growth, while daily audit checks on developer activities help maintain transparency and trust.
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