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#Abstract

While adoption of blockchain technology has increased in recent years, it has yet to reach mass adoption. There are a myriad of issues that need to be resolved in order to lay the foundation for mass decentralization. Some challenges include educating adopters on blockchain-isms, fair distribution of tokens into the ecosystem and tokenomics models that eventually lead to growing transaction fees.

This paper proposes a blockchain protocol that focuses on real world application usage, initially targeting the gaming industry. It attempts to tackle each of the aforementioned blockers to mass adoption with features such as developer friendly SDKs, delegated transaction fees, ethereum compatibility and many others aimed at easily onboarding new members into the community.

#Introduction

Aetheras was founded in 2018 to create Agence, a protocol that democratizes the notion of ownership in digital worlds. Agence enables a future where assets are not restricted to centralized services and are wholly in the custody of the end user. Agence is a state of the art, community governed, application focused blockchain protocol built on top of the Substrate Framework.

Many of the features built into Agence are a perfect fit to disrupt the ~$200 billion dollar gaming industry [1]. Agence enables game developers to easily collaborate across disparate centralized systems, alleviates the hurdles of adopting blockchain for traditional games, and provides a source of provably fair Randomness for unique asset generation.

#Non-Fungible Tokens (NFTs)

Non-Fungible Tokens, or NFTs, are a type of Blockchain asset that are individually unique and non-interchangeable. In a game, this could refer to your character or a unique sword that you own. Your character is individually unique from other characters, since it has its own set of attributes and characteristics.

Many games in recent years have adopted a free-to-play model, with players paying for certain assets, such as equipment, characters, and skins. One pain point of this model for players has been the lack of true ownership. While players own the rights to use the assets they bought, they are completely at the mercy of the game developers. If and when the developers decide the game is no longer profitable and should be shut down, all of the assets bought by the players simply vanish.

Storing the assets on Agence as NFTs decouples the data from the existence of the game. It enables players to truly own the assets, since games cannot alter the data, and the data will continue to exist even if a game ceases to.

#Vision for NFTs

Aetheras envisions a future where traditional games mint a subset, if not all, of their assets as NFTs. We realize due to various reasons, such as gameplay and economic ones, it may not make sense to mint everything in a game as NFTs. For example, minting something very common like a health potion in a role-playing game could be unnecessarily cumbersome and economically silly, since the creation and usage of them could be very frequent.

This future would also allow game developers to easily find the NFTs they’ve minted to support in a game, as well as ones that they care about, but may have been minted for use in another game, or even by another developer.

These NFTs can be easily minted by developers without having to learn another programming language or learn how to write smart contracts, but can still write smart contracts if they need the capability. They can be traded, auctioned, and lent on-chain to provide security and royalties for the minters. Developers can choose how much royalty they receive at the time of minting, which will be provided in the form of the chain’s token, HME.

#HUME Token

Hume (HME) will be the native token of Agence. The token will be used for transaction fees, staking, rewards, governance, and other state transitions in the blockchain. Transaction fees are integral to the security of the network. Every transaction on the chain requires a transaction fee, with the amount determined by the complexity of the transaction. The creation, trading, and auctioning of NFTs can all be performed via consumption of HMEs.

#Rewards

Participants can reap rewards from the network in a variety of ways. Block production rewards a portion of transaction fees along with some HME inflation to validators for running the network. NFT creators receive royalties whenever their minted assets are sold, traded, or lent out using the on-chain escrow modules.

#Features
#Built-in NFT support

Designed with gaming and applications in mind, NFT support is baked into the chain as a native module on the blockchain. The blockchain industry has given birth to standards such as ERC-20 and ERC-721/ERC-1155. Agence supports some of these interfaces natively without requiring Smart Contract development. Users can mint and trade NFTs without needing to learn a blockchain specialized programming language, such as Solidity.

#Ethereum Virtual Machine (EVM) Compatibility

It is impossible to ignore the powerful network effects of the Ethereum community and interoperability in the current landscape of the blockchain industry. Ethereum compatible wallets connected to chains derived from upstream ethereum source code such as Binance Smart Chain and Gnosis Chain highlights this reality. Having a fully programmable virtual machine such as the EVM allows further development towards future standards. Agence will support the ethereum RPC interface along with a fully functional EVM in order to take advantage of the network effects.

#Delegated Transaction Fees

Token ownership and transaction fees are still a primary blocker to adoption and usage for blockchain networks. However, it is vital in the deterrence of attacks on the network, as each action has an economic consequence. Keeping transaction fees low is also a strategy that aligns inversely to the growth model of a blockchain. As the value of the network grows, so do the transaction fees.

Agence solves this by re-aligning the incentives. Transaction fees can be thought of as customer acquisition cost (CAC). It is possible for entities or individuals to delegate access to their token balance to pay for someone else's transaction fees. Friends can help onboard friends and companies can easily onboard their customers.

#Fair Random Number Generator (RNG)

With the prevalence of loot boxes in games, fairness to randomly generated assets become increasingly important as countries start to regulate these types of games. Loot boxes are purchasable boxes that contain unknown, randomized items. Since buyers only know the contents after purchase, some countries consider loot boxes to be similar to slot machines, and therefore regulate them with gambling laws.

Some regulations require games to reveal the rates of their loot boxes. The natural next step for regulations is likely for developers to prove that the rates are what they claim to be.

One solution is to have random number generators on-chain, so the generation of items or loot boxes can be transparent and proved to be random. To do so, Agence will support state transition functions (stfs) using web assembly, and let forges buy them. Then, forges can use the on-chain generated random to mint items fairly.

#Forges

To support the concept of companies operating multiple games, different versions or categories, the Forges module makes this feasible. A forge is an entity that can be controlled by one or more wallets, and all assets can be identified by which forge minted the asset.

This enables games to, for example, easily query and identify all the assets a particular user owns that is compatible with the game.

#Assets and Asset Kinds

Another feature baked into the chain is Asset Kinds. All assets created are based on a base template, or the asset kind. While all assets contain unique attributes about themselves, they also belong to an asset kind, which defines shared properties of all assets in that kind. For example, a certain model of a car could be defined as an asset kind, describing the specifications of that model. An instance of that car could have individual minor differences with each other.

The combination of Forges and Asset Kinds allow game developers to easily index and track which assets they’d like to support in their games.

#Trading

Trading assets can be performed atomically on-chain in the form of multi-signature transactions. These transactions will require the signatures of both parties, and will allow them to trade assets for other assets or fungible tokens.

#Lending Assets

Assets can be lent out to other wallets, and be returned to the owner after a certain time period. The owner can charge a fee for this, part of which will be given to the asset creator (i.e. forge) as royalties. The concept is similar to renting out a movie or game, allowing players to try out assets temporarily, but also allow both the lender and asset creator to benefit.

#Auctions

Agence provides on-chain capabilities for sellers to list their NFTs directly for sale, or in an auction listing.

Listing an NFT locks it from being transferred until it is delisted or complete. The owner can still continue to use the assets since it doesn’t change ownership.

Whenever an asset is sold via auction, a percentage of the sale will be given to the asset’s forge as royalties.

#Architecture Overview
#Consensus

Agence will be using a Nominated Proof of Stake (PoS) consensus, which will require validators to lock or stake HME tokens to participate in the running of the blockchain. For finalization, it will be using the GRANDPA algorithm, and BABE as its block production engine.

#Staking and Rewards

All token holders that aren’t able to become validators can vote with their tokens by nominating validators to represent them. Nominators not only share rewards, but also share the punishment, or slashing, of validators they support.

The rewards are based on activity and performance, and not the amount of stake. For each time period, or era, validators accumulate points for the activity they’ve done. Once the era finishes, the total reward is distributed to each validator according to the amount of points they have earned. Each validator then distributes its reward to its nominators.

#Governance

All token holders will be able to participate in the governance of the chain. Proposals can be submitted by any active token holder, and then voted on by all HME token holders and council.

Approved proposals move on to the referendum phase, which then requires voting for the change to be approved for the network.

In all voting, validators have equally weighted votes. In other words, validators will not have more votes than another validator, even if they have more stake.

#Fees

One of the biggest challenges of using NFTs for games right now is the expensive transaction costs of block chains such as Ethereum. As of November 22, 2021, the base transaction cost on Ethereum is $9.64 USD. To put that into perspective, around 6 transactions would be equal to the amount of a full Xbox or PlayStation game. Hence it would be unreasonable to mint everything in a game as NFTs.

Many new chains have appeared to attempt to solve this problem by starting with a low token price. However, this likely will still be a problem as the chain gains popularity and the token value increases.

Chains can, of course, adjust the transaction fee via governance, but the more flexible and useful multi purpose the chain is, the more the token value will be affected.

Agence, on the other hand, tries to keep the chain gaming-focused, and therefore decisions will be made on how things make sense for games.

#Roadmap
#Phase 1
  • HUME Token
  • Private Token Sale
  • Public Token Sale
  • Public Token Claims
  • EVM Compatibility
#Phase 2
  • NFT Interface
  • On-chain NFT generation function
  • Trading
  • Auctions
#Phase 3
  • Bridging with Ethereum-like Networks
  • Multi-signature transactions
  • Lending
#Tokenomics
#Total supply

The total supply for HME is 1,100,000,000 tokens.

#Distribution

The distribution of the token is as follows:

A non-profit organization dedicated to Agence development will be established, which will control the Foundation funds. The Foundation fund will be used for further development, and growth opportunities.

The reserve fund is the planned amount to be allocated to the Public or Strategic funds as deemed necessary.

Seed

2 year vesting. Unlock begins on the 10th month.

Strategic

2 year vesting. Unlock begins on the 4th month.

#Transaction Fees

All transactions can be paid using HME tokens, and are priced based on the amount of computation and storage used.

#References

[1] Clement, J. (2021, May 31). • Video game market value worldwide 2015. Statista. Retrieved February 4, 2022, from https://www.statista.com/statistics/292056/video-game-market-value-worldwide/