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Golden Tickets (GTKs) are the premium VIP asset of the NFTR Ecosystem. They are highly versatile within NFTR. The multiplicity of potential uses allows holders to deploy varied + dynamic strategies.
Golden Tickets are ERC-20 tokens that can be purchased with ETH off of a bonding curve here. Since Golden Ticket liquidity lives on a bonding curve, holders are afforded instant and allocated exit liquidity, providing a partial (or complete) refund option, depending on the progress along the curve. Ticket holders may burn their ticket to get ETH in return without needing a counter-party buyer. A Golden Ticket holder can, at any time, sell their Golden Ticket for 90% of the value the last Golden Ticket was minted for. This assurance allows for protected reconsideration after purchase. Every time a new Golden Ticket is minted, 10% of the ETH submitted is kept by the Golden Ticket contract as a mint fee. The other 90% of the mint cost is accumulated in the bonding curve (contract reserve) as exit liquidity. Each GTK that is used (Spent, or redeemed for a Top 1000 Name) or otherwise removed from the supply raises the minimum redemption value by one step, as that GTK can't be burnt anymore.
Once Golden Tickets are redeemed or spent, ETH exit liquidity is no longer needed for those tickets. This ETH will be directed to the NFTR Team + Treasury.
Golden Tickets (GTKs) can be bought off the bonding curve and held in a cold wallet, either for future redemption (Top 1000 Naming) or burning (for current ETH exit liquidity).
GTKs must be redeemed (in addition to 0.01 ETH) in order to claim a name from the NFTR Top 1000. The list of 1,000 special names that require burning a Golden Ticket can be found here. The list includes highly coveted names such as Vitalik, 0x0, Steve Jobs, Bill Gates, Danny, single digits 0-9, etc. Redeemed Golden Tickets are forever removed from circulation. GTK Redemptions raise the Bonding Curve floor forever, since redeemed GTKs can never be burned for ETH.
GTKs can be burnt in exchange for ETH equivalent to the highest 90% allocation remaining on the bonding curve from a minted Golden Ticket.
The NFTR Protocol will implement additional uses for Golden Tickets in the future to further prioritize and serve GTK holders as the premium participants within the NFTR ecosystem.
To elaborate on how 100% of the fees are ultimately collected by the NFTR Protocol: Once x Golden Tickets are redeemed or spent, x less Golden Tickets can be sold back into the Bonding Curve. This enables the NFTR Protocol to claim the 90% of ETH supporting the cheapest x Golden Tickets along the curve.
The bonding curve is defined as follows, where f(x) is the next Golden Ticket mint price:
f(n) = (0.01n)² + 0.1
where n denotes the price of the nth ticket, and
1 <= n <= 1000
According to the curve, the first Golden Ticket will have a price of 0.1001Ξ and the last one (1000th) will have a price of 100.1Ξ.