There is high demand for luxury items from each faction among the Empire’s elite, leading the Empire to post regular procurement announcements to officially import these luxuries.
The Black Market (DEX) will be unavailable for 30 minutes immediately after a procurement is created, and the Claim function will be unavailable for 1 hour after the procurement is created.
Procurement plans are created twice daily, at 00:00 UTC and 12:00 UTC. At these times, the exact posting time remains hidden from users. Instead, each procurement goes live at a random time slot, excluding 00:00 UTC, 06:00 UTC, 12:00 UTC, and 18:00 UTC.
Specifically, plans created at 00:00 UTC are posted at a random time between 01:00 and 11:00 UTC (covering 10 time slots). And plans created at 12:00 UTC are posted at a random time between 13:00 and 23:00 UTC (also covering 10 time slots).
The quantities and prices of these imported luxuries fluctuate. Since managing these variables is critical to controlling inflation in the black market, we have developed an Automated Token Distributor (ATD) and integrated it into the procurement system. The ATD automatically adjusts the daily procurement quantities and prices, helping stabilize $VALOR’s inflation.
The Automated Token Distributor (ATD) is a core component of VALOR's token distribution strategy. This document explains the ATD’s budget distribution mechanisms.
The below models can be updated due to the balance update
ATD’s budget distribution framework employs a probabilistic approach based on a standard normal distribution to allocate resources effectively across various tokens and market segments.
Normal Distribution (PDF): A probability distribution function used to allocate budgets fairly, with a mean of 0 and a standard deviation of 1.
Budget Allocation Ratios: Ratios are derived from the PDF to determine the portion of the total budget allocated to each token.
Total Budget: It is set at 110% of the inflow over 12 hours. It is rounded down to 9 decimal places, and the remainder is discarded.
Total Budget Calculation:
Case 1 (Accumulated Inflow < Accumulated Outflow):
The total budget is set at 110% of the inflow over the past 12 hours plus any carried-over budget
The ATD's price-setting mechanism dynamically adjusts token prices around an ideal price to reflect market values.
Ideal Price (): The target price for the tokens.
Reference Price (): The market price of the token in Black Market.
Next Price (): The price of the token after adjustment.
These variables will be initialized on the procurement creation
The standard deviation is calculated as:
This calculation determines the range of price fluctuations around the ideal price , adjusting for market volatility.
This model dynamically calculates the next token price using a probability distribution function centered on .
Detailed Process
Define Price Range:
Establish the effective price range for the next pricing cycle:
Generate PDF:
Here, Inflow is the inflow over the past 12 hours.
Case 2 (Accumulated Inflow > Accumulated Outflow):
The total budget is set at sum of each sSPL supply and ideal price.
Maximum budget = (Accumulated Inflow - Accumulated Outflow) * 1.1
Random Factor Generation:
Generate a random number within the range of [-0.5, 0.5] from a normal distribution with a mean of 0 and a standard deviation of 1. This controls the variability in budget allocation.
Calculate the probability density p(xi) for each random factor xi. This density influences how the budget is divided. The probability density function is:
Budget Allocation:
Convert these densities into budget allocation ratios:
Allocate the total budget to various tokens using these ratios:
Standard Deviation (σ): Controls the spread of price values around Pidl.
Create a normal distribution centered on Pidl with the calculated σ.
Calculate Area Under Curve:
Determine the total probability area under the PDF within the defined range:
Generate Random Factor and Set Next Price:
Select a random value within the range [0, A], and determine the corresponding price using the inverse cumulative distribution function (CDF):
Here, f−1 is the inverse function of the CDF, accurately determining the price corresponding to the random value r.
Final Quantity Adjustment:
Calculate the maximum quantity that can be purchased with the allocated budget:
Round down to ensure accurate quantity calculation. (If Qi<1, set Qi to 1)
Adjust the final price using the actual quantity purchased:
The final price is rounded down to 3 decimal places.
Used Engine ($UE)
35.9697
Enhanced Bullet ($EB)
57.8595
Oil Lighter Case ($OLC)
72.0052
Voodoo Doll ($VD)
5.5515
Gold Teeth ($GT)
6.8204
JB Whiskey ($JBW)
10.3219
Canteen ($CT)
11.2677
G Badge ($GB)
13.2835
Holy Water ($HW)
21.7118
