Premise

NFT collections are, for most, a fraction of what they once gathered: attention, economics, community. The pinnacle of the most known collection sits so high it feels impossible to reclaim: fueling a vortex of doom, (i) the team feels overwhelmed and seen as underdelivering relative to acquisition prices, (ii) holders cling on in despair, hoping for a fraction of their investment to be saved, (iii) newcomers are left with no incentives to look.

Several strategies and mechanisms have been tested throughout the years, each addressing a piece of the problem: airdrops, buybacks.. None of them, on their own, were enough to meaningfully address the decline of NFT collections.

Perennials is an attempt to bring them together into something coherent. To understand Perennials, one has to understand the forces involved, each reinforcing the next:

• Rewarding the believers is the most important step, without them, the very principle of Perennials (or any attempt) wouldn’t even be allowed to spark. They should have a major stake in every decision, and be the ones that are awarded the most for the least amount of action.
• Opening the door to new believers is the next important milestone: being expensive, most NFT collections price out the very same people with the most incentive to work for it. At the same time, lowering the floor price would harm the believers that held through. The token offers solutions to that problem through raffles, being tied to the collection’s success and more mechanisms.
• Raising the value of the collection is necessary to keep the momentum: it is known that the health of the floor price is directly tied to a collection’s health. The treasury accumulation from fees and sweeping of the floor price process helps increase value linearly, automatically.

The token mission should not interfere with or harm the collection. It should be a net positive, unequivocally. Without a token, most of these forces would interfere with each other. Raising the floor price would price out even more newcomers. Airdropping only once and then forgetting the believers would look like abusing them and would not give them any incentive to stay involved and so on.

Bootstrapping the token

Perennials airdrops 51% of its token supply to the collection holders, the airdrop is free, claim-less and verifiable on-chain.

Each airdropped recipient also receives 5000 PP, allowing them to become a Perennian instantly if willing to.

If price were the only driver of value, the airdropped tokens worth would be unpredictable and range significantly depending on the token price appreciation. That is, if the token’s only appreciation comes from price.

Tokenomics

• 51% to collection holders.
• 49% to liquidity pool.
• 6% buy/sell tax
• 1 Billion supply

Appreciating the native token beyond price

At a high level, there are three axes through which Perennials increases token’s value beyond price.

• Perennials Points are earned through actions tied to the project, which are then used for multiple advantages.
• Voting power is carried in each token, and every decision taken by the Perennials Engine can be altered with vote. Initially, airdrop beneficiaries hold majority voting power. (51%)
• Dividend power is carried in each token, and when applicable, is used to calculate how much you receive from the Perennials Treasury proceeds.
• Raffle power is carried in each token, and when applicable, is used to calculate your chances of winning a raffle.

By embedding these mechanisms in the Perennials Engine, Treasury and more, tokens aren’t just financial assets anymore.

Perennials Points (PP)

PP are points that are earned by interacting with The Perennials system. Being community centric, having no incentive to participate would drastically reduce the power of Perennials. It’s the easiest way to measures engagement.

Tokens measure capital; PP measures presence. Both end up mattering for dividends. But PP is the one anyone can earn, regardless of how much they hold.

Earning PPs

Every day at 00:00 UTC, the Perennials Registry checks for three sources of earnings:

Holding the native token

$$\text{daily holding PP} = \min!\left(\frac{\text{tokens held}}{1{,}000},; 100\right) \times \text{streak}$$

The formula can be broken down as follow:

• Each 1000 tokens earns 1 PP per day.
• Holding PP is capped at 100 PP/day to avoid whale dominance. After 100000 tokens, you will not earn more by deploying more capital.
• Streak multiplier starts at x1.00, and grows +0.5% per consecutive day without selling. Capped at x2.00.

Holding the underlying collection

A flat 10 PP/day bonus is awarded to every wallet holding the underlying NFT collection. Does not compound with the streak.

Voting and raffles

In order to incentive the community centric systems, Perennials offers the most PP while interacting with its core features:

• Vote in a poll: 50PP
• Enter a raffle: 10PP
• Lose a raffle: 15PP

Spending PP

While PP is not by itself a currency but a measure unit of engagement and belief, it can be used for two actions:

Becoming a Perennian

For the cost of 5000 PP, one wallet can become a Perennian, granting him eligibility to Dividends.

Boosting a raffle ticket

For the cost of 100PP, one ticket can see its odd of winning multiplied by x1.5.

The Perennials Core

The Core is a set of variables that can be override inside the different contracts deployed by Perennials.

Upon community request, a set of polls can be issued to:

• Define the percentage higher to list each NFT at. (default: 20%)
• Define the default action to set for the proceeds of a sold NFT

Once resolved, these changes are done to the respective contracts.

The Perennials Treasury

Without a treasury, it is increasingly difficult to do anything meaningful for a project. But Perennials is community centric at its core. So the treasury actions should be, for the most part, taken deterministically.

The treasury is fed through (i) enforced 6% buy and sell fees, (ii) Acquisition proceeds (if so voted). These two sources are complementary: trading fees are a continuous yet relatively low flow of incomes while the Acquisition proceeds are an occasional yet relatively high flow of incomes. Together, they make the treasury grow exponentially.

The treasury allocations are divided as follows:

• 70% used to acquire new NFTs. (to: Engine Wallet)
• 15% used for dividends. (to: Dividends Wallet)
• 15% for the team sustainability (to: Team Wallet)

Each of these concerns has its own wallet to ensure transparency and ease of tracking.

The Perennials Engine

The orchestrator that manages it all. Transparent, verifiable and provably-fair. The Perennials Engine is what accelerates the token, because without acceleration, everything inevitably falls, especially a token that has been recently bootstrapped.

The engine has two distinct processes it operates on:

Acquisition

When a transaction is confirmed from the Treasury and that, added to the previous balance, it exceeds the current floor price (+5%), the Acquisition process starts:

• Check available listed NFT of the collection available for purchase at floor price + 5%.
• If voted by the community, can target a specific listed NFT #. If get unlisted, fallback to normal targetting by rarity. Specific listed NFT cannot be 50% more than floor price to prevent “infinite” chase.
• Run a rarity check on all of the listed pieces.
• Select the rarest within the buying power.
• Acquire the piece.

Perennialization

When an NFT is acquired by the Engine, it goes through Perennialization. A set of mechanisms designed to make perennial the collection through community voted outcomes.

Immediately upon acquisition, a double poll is emitted with the following options available:

What to do immediately after acquisition

1. List the NFT at a higher price. (Important: defined by the Core settings) (default)
2. Start a raffle to win the NFT. (Important: limited to 1 time per 3 acquired NFT)

What to do after selling or raffle:

1. Buy and burn the native token. (default)
2. Inject into the Liquidity Pool.
3. Hyper-acceleration: send to Engine Wallet.

It is important to note that only 80% of the proceeds are used for the above decision, as 20% are sent to the Dividends Wallet.

Together, these two processes involve the community deeply. Perennials adapts to what the community truly wants and each outcome benefits a different set of people, in a different way.

The Perennials Raffle

In order to lower the entry barrier, one may win the NFT through The Perennials Raffle. The raffle comes with a few limitations:

• The price of entry is fixed at 0.5% of the price of acquisition.
• Multiple raffles can run at the same time, and a ticket is only tied to a specific raffle.
• 1 ticket per wallet per raffle.
• A raffle lasts for 48 hours, and the result is instant, so is the transfer of the NFT.

If the accumulated ETH value of all bought entries exceed 80% of the NFT listing price, the raffle will take place. Else, all participants are fully refunded.

Protection in bear market

Raffles help the Engine ride out bear markets. Demand for NFTs falls, sales slow down, and the Engine, which depends on those sales, feels it.

But bear markets also push floor prices down, and since raffle entry is priced as a percentage of the acquisition cost, cheap floors mean cheap tickets.

Profitability over a direct sale

When you can buy a shot at a high-value NFT for almost nothing, more people enter. At 0.5% per ticket, you don’t need many entrants to beat what the NFT would fetch in a direct sale. A couple hundred is enough.

If Perennials Raffles become extremely popular, the raffle may earn more than twice what a direct sale would bring in.