Methane Token White Paper

Overview

A massive part of the utility for the Bulls & Apes Project is the gamified tokenomics framework that has been delivered with our erc20 token, Methane, as a backbone.  Our gamification is fun, engaging, and is brought to life by rich storytelling seen in our lore.  The combination of our lore and tokenomics creates an interactive Bulls & Apes Project universe with ongoing strategy, decision making, and entertainment.

Purpose

Methane is an in-game utility token that is a means to an end, the fuel of our gamified B.A.P. ecosystem hosted on our website – BullsAndApesProject.com.  Holders of our NFTs or NFTs of any of the Tokenized Communities (as identified on B.A.P.’s website) earn Methane tokens by owning certain NFT characters and/or engaging within the NFT platform.  With Methane rewards, holders are able to trade in Methane tokens for new NFT elements or characters that further enhance and unlock additional gameplay elements.

Contracts

BAPMethane – erc20 contract controlling the minting and transfer of Methane

BAPMethaneVesting – contract controlling the vesting schedule for vesting allocations

Orchestrators – set of contracts used to control Holding Rewards business logic

Version 1 Allocations

Holding Rewards                 210m

Treasury                              22.4m

Treasury Vesting                 187.6m

Team Wallet Vesting 140m

Version 1 Allocations were developed and implemented prior to our first product launch and were based on assumptions that have now evolved and require a new set of allocations based on current assumptions.  We originally intended to use the Team Wallet Vesting allocation for team member rewards.  This allocation still resides in the BAPMethane contract.  None of the allocation to team members for rewards was ever issued.

Version 2 Allocations

Holding Rewards                 300m

Treasury                              22.4m

Treasury Vesting                 237.6m

The use cases and participation in our gamified tokenomics have increased dramatically with the next phase of our tokenomics implemented and warrants a revision to our Holding Rewards allocation from 210m to 300m.  This will allow for a more aggressive and continual flow of Methane supply to offset the demand pressure created by the increase in use cases and participation.

Recirculation

When we first launched our tokenomics we wanted to balance recirculation with supply control and implemented a 50/50 approach where 50% of all Methane traded in was burned, removing that Methane from the supply, and 50% was directed to the Treasury for future recirculation.  The original approach will result in a total of 20.9m Methane burned and removed from the supply.  Now that we have more insight with respect to the participation, use cases, and supply vs. demand, we will no longer employ the 50/50 approach going forward and will instead employ a 100% recirculation approach whereby 100% of Methane traded in will be recycled into Treasury and available for future recirculation.

Supply vs. Demand – Holding Rewards vs. Use Cases vs. Participants

In a perfect scenario the supply of Holding Rewards would perfectly balance to the demand of use cases by participants.  This will never be the case as the variables involved are influenced by the behavior of holders and participants.  Holders - those owning NFT collectibles eligible for rewards - are required to engage and collect rewards based on engagement.  Participants - those holding Methane - decide which use cases to participate in and how often they participate.  We will monitor these variables on a monthly basis and evaluate discrepancies that require adjustments, but also recognize that imbalances could cause supply imbalances.  To help fill in supply shortages we are offering Methane bundles for sale through our NFT platform on our website.  By offering Methane bundles current and potential Participants can purchase Methane when there is a supply shortage.

Methane Pricing

Methane is an in-game utility and intended to be used as a means to an end within our NFT platform.  In a perfect scenario Methane would have a price that is relatively stable.  Pricing is certainly influenced by the supply and demand considerations addressed above, but is also influenced by the fluctuation of Ethereum to fiat currency pricing.  Our NFT platform is on the Ethereum blockchain and as such all NFT elements or characters are transacted using Ethereum.  Ethereum, like all crypto currencies, has a highly volatile price translation to fiat currencies such as US Dollars. These price fluctuations are outside the B.A.P. ecosystem and influence the price of Methane.

To help maintain price stability we have introduced DynaPricing for Methane bundles and for access to certain elements and characters.  DynaPricing will use a proprietary algorithm that will analyze participant behavior within our ecosystem to adjust associated costs automatically.  DynaPricing will remove human subjectivity by analyzing participant behavior to determine cost adjustments.  The automated cost adjustments based on participant behavior combined with Methane bundles balancing supply will smooth imbalances for stability and relativity.  We will monitor factors and DynaPricing results on a monthly basis for adjustments to the algorithm and/or technology supporting DynaPricing.  We will also have exception reporting for DynaPricing to catch potential issues as they occur.

Conclusion

Our goal is to provide a healthy in-game utility token that maintains value stability, satisfies demand, and enables participation in the ecosystem.  With the complexity of supply/demand and Ethereum volatility, offering Methane bundles with DynaPricing will help maintain the health of Methane. 

Disclaimer

PLEASE READ THE ENTIRETY OF THIS "DISCLAIMER" SECTION CAREFULLY. NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, BUSINESS OR TAX ADVICE AND YOU SHOULD CONSULT YOUR OWN LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) BEFORE ENGAGING IN ANY ACTIVITY IN CONNECTION HEREWITH. NEITHER BULLS & APES PROJECT, LLC, ITS PARENTS, AFFILIATES, OFFICERS, DIRECTORS, MANAGERS, EMPLOYEES OR AGENTS  (THE COMPANY) SHALL BE LIABLE FOR ANY KIND OF DIRECT OR INDIRECT DAMAGE OR LOSS WHATSOEVER WHICH YOU MAY SUFFER IN CONNECTION WITH ACCESSING THIS WHITEPAPER, THE WEBSITE AT BULLSANDAPESPROJECT.COM(THE WEBSITE) OR ANY OTHER WEBSITES OR MATERIALS PUBLISHED BY THE COMPANY.

Nature of the Whitepaper

The Whitepaper and the Website are intended for general informational purposes only and do not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, or any offer to sell any product, item or asset (whether digital or otherwise). The information herein may not be exhaustive and does not imply any element of a contractual relationship. There is no assurance as to the accuracy or completeness of such information and no representation, warranty or undertaking is or purported to be provided as to the accuracy or completeness of such information. Where the Whitepaper or the Website includes information that has been obtained from third party sources. Further, you acknowledge that circumstances may change and that the Whitepaper or the Website may become outdated as a result; the Company is under no obligation to update or correct this document in connection therewith.

Token Documentation

The information set out in the Whitepaper and the Website is for community discussion only and is not legally binding. No person is bound to enter into any contract or binding legal commitment in relation to the acquisition of any Methane(the “Token”), and no virtual currency or other form of payment is to be accepted on the basis of the Whitepaper or the Website.

Deemed Representations and Warranties

By accessing the Whitepaper or the Website (or any part thereof), you shall be deemed to represent and warrant to the Company as follows:

• In any decision to purchase any Token, you shall not rely on any statement set out in the Whitepaper or the Website;
• You will and shall at your own expense ensure compliance with all laws, regulatory requirements and restrictions applicable to you (as the case may be);
• You acknowledge, understand and agree that the Token: (i) may have no value, whatsoever, (ii) may have no liquidity, and (iii) is not an investment product, investment contract, or investment of any kind; and
• The Company shall not be responsible for or liable for the value of the Token, the transferability and/or liquidity of the Token and/or the availability of any market for Token through third parties or otherwise; and

THE COMPANY DOES NOT, AND DOES NOT PURPORT TO, MAKE, AND HEREBY DISCLAIMS, ALL REPRESENTATIONS, WARRANTIES OR UNDERTAKING TO ANY ENTITY OR PERSON (INCLUDING WITHOUT LIMITATION WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS OR RELIABILITY OF THE CONTENTS OF THE WHITEPAPER OR THE WEBSITE, OR ANY OTHER MATERIALS PUBLISHED BY THE COMPANY. TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE COMPANY SHALL NOT BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR OTHER LOSSES OF ANY KIND, IN TORT, CONTRACT OR OTHERWISE (INCLUDING, WITHOUT LIMITATION, ANY LIABILITY ARISING FROM DEFAULT OR NEGLIGENCE ON THE PART OF ANY OF THEM, OR ANY LOSS OF REVENUE, INCOME OR PROFITS, AND LOSS OF USE OR DATA) ARISING FROM THE USE OF THE WHITEPAPER OR THE WEBSITE, OR ANY OTHER MATERIALS PUBLISHED, OR ITS CONTENTS (INCLUDING WITHOUT LIMITATION ANY ERRORS OR OMISSIONS) OR OTHERWISE ARISING IN CONNECTION WITH THE SAME. PROSPECTIVE PURCHASERS OF BULLS & APES PROJECT NFTS SHOULD CAREFULLY CONSIDER AND EVALUATE ALL RISKS AND UNCERTAINTIES.

Informational purposes only

The information set out herein is only conceptual and describes the future development goals for the project and network to be developed. In particular, the project roadmap in the Whitepaper is being shared in order to outline some of the plans of the Company, and is provided solely for informational purposes and does not constitute any binding commitment. Please do not rely on this information in making purchasing decisions because ultimately, the development, release, and timing of any products, features or functionality remains at the sole discretion of the Company and is subject to change. Further, the Whitepaper or the Website may be amended or replaced from time to time. There are no obligations to update the Whitepaper or the Website, or to provide recipients with access to any information beyond what is provided herein.

Regulatory approval

No regulatory authority has examined or approved, whether formally or informally, any of the information set out in the Whitepaper or the Website. No such action or assurance has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of the Whitepaper or the Website does not imply that the applicable laws, regulatory requirements or rules have been complied with.