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The Lootverse - Consultative Paper 2022

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25-Jan-2022

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Government of the Lootverse Consultative Paper - Draft 25 January 2022, The Great Empire of 2 49 The Lootverse, Year 2022 Updates, Developments and Focus Lootizens, Our nascent ecosystem is growing. After the festivities of Creator's Day, the first Lootversian public holiday, the building and discovery of our parallel world continue. The challenge in this evolution is ensuring we make the right moves at the right time. As a recap, over the past few months, we have experimented with various designs, pushed the boundaries of innovation, built significant technological capital while resolving countless issues with radical transparency together with the Lootizenry. We started from the ground up and had no frames from reference to follow or other models to copy to fast-track our evolution. Instead, we engaged in a heightened practical research and development process while running a business. Today, we are guided by ecosystem data and consultation with Lootizens. Before turning to the specific topics listed in this document, I want to thank our fantastic community, the talented creators that have come before and are yet to come, curators, world builders, and everyone that contributes to achieving a Lootversian future for all. Your enthusiasm is the fuel with which we drive forward. The Great Empire The Lootverse The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 3 49 THE STRUCTURE OF THIS DOCUMENT Our parallel world caters to people with various interests. Therefore, the information we share may be relevant to some but not others. Below is a quick guide for which section applies to you. 01 OUR ETHOS Our approach to building the Lootverse 02 BRIEF OVERVIEW Provides a summary of Lootverse for consumption by everyone ANNEXES: DETAILED INFORMATION A WORLD BUILDERS (for Plot, Building, Unit, or Plant Owners) B PORTAL OPERATORS (for those conducting business in the Lootverse) C CENTRAL BANKERS (for miners, curators, and creators) D PARLIAMENTARIANS (for those interested in member governance) E RESIDENTS (for everyone wanting a deeper dive) F IMPORTANT UPDATES (prior knowledge required) Lootizen Support Have any questions or seek clarification about something? Ask us (or our community) at our customer service and discovery channel on Telegram (t.me/lootnft). The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 4 49 The Lootverse, Year 2022 A look at Plot H117, Isle of Talos, The Lootverse. Design and architecture to scale (and with floor plans) by Heavenly Developments, LALL (a Lootversian Business ). Consultative Paper - Draft 25 January 2022, The Great Empire of 5 49 01 OUR ETHOS 01.1 Radical Transparency We believe that there is more to decentralization than Web 3.0. To us, this means having a radically transparent and truth-first approach to the work we do and how we communicate and a business model that empowers others. The Lootverse is a long-term project that we chose to run in that manner. However, this means that (a) there is a significant amount of information available on the Lootverse (since we do our best to document our progress), and (b) our experimentation, decisions, and the evolution of our product are public. It is like being party to a product's design and building process instead of the usual secrecy and big reveal approach. The tradeoff to our community members is that combining innovation and radical transparency means that information quickly becomes stale. Progress from a design or ecosystem perspective is made in iterations, explosive growth, and contractions before maturity is achieved. Thus, especially at the early stages, participants must constantly keep abreast of the happenings in the ecosystem. On the other hand, this also means that everything we do is out in the open and constantly under scrutiny. Our ultimate goal is to create a decentralized metaverse with a specifically designed internal economy. We do this by running a business with a working product and not raising capital. In time, we plan to evolve from a semi- centralized structure to as much of a decentralized ecosystem as possible based on technology, user experience, and regulatory compliance. 01.2 MANIFESTO Too often, expressions of self and human progress are limited by the judgment of others. We all dream of doing passionate work, experimenting, being creative, building something crazy, or maybe something extraordinary. Colors, shapes, and norms do not apply when we are in this parallel world devoted to who we are. There, we live true and become free. The Lootverse honors you without the numbing and time-killing escapism. Do more, be more. Collectively, we are bigger than just a metaverse. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 6 49 02 BRIEF OVERVIEW The Lootverse is a metaverse project with a fantasy parallel world theme. It aims to replicate a real-world feel to interactions using non-fungible tokens (NFTs) as transferable support structures. Over time, we expect crowdsourced creativity to provide layers of artistic exploration and gamified dynamics. We hope this engages users to discover an entertaining world, launch pet project businesses, add to and consume Lootversian ingenuity. 02.1 A Non-Pixelated World The Lootverse contains seven core sites that are yet to be unified. Introducing an interactive map for the Lootverse will change this (similar to Google Maps). From there, anyone can become a Lootizen by signing up at the Government. Using Loot Tickets (LTT), the Lootverse's native currency, they can rent or buy a place to live and participate in the rewarding offerings of this world. The Lootverse, Year 2022 Fig.1: A familiar design with NFT land to scale and portals to games, businesses and other activities. Consultative Paper - Draft 25 January 2022, The Great Empire of 7 49 The Lootverse, Year 2022 Plot S171 in the Royaume De Satoshi, the Lootverse.This rendering features 20m sqft of building space. Developments by Heavenly Developments, LALL A Lootversian Business A First Look at the Royaume Consultative Paper - Draft 25 January 2022, The Great Empire of 8 49 The Lootverse, Year 2022 S171 Royaume De Satoshi Lootverse Courtesy of Heavenly Developments, LALL A Lootversian Business Consultative Paper - Draft 25 January 2022, The Great Empire of 9 49 Lootizens must maintain a positive Health Points balance. At times, random events, like a tornado, can affect assets and health while, on the other hand, also shower Lootizens with benefits. Lootizens die and go to the "Underworld" when they run out of Health Points. They live again by re-establishing a positive Health Points balance. Anyone can visit the Underworld by toggling the map. Looking up, Lootizens can explore a sky map made up of valuable NFTs sold in the Lootverse. They can visit Lootversian businesses by navigating the map to buy products and services (and maybe also in person through Augmented Reality), participate in play-to-earn games, explore the world, or even get LTT through LTT faucets (described as a "Job" in the Lootverse). They can also trade items for USDC. A strategic plot-based war game allows them to band up with landowners and rule another plot. For this, Lootizens need weapons or shields and LTT to contribute to the war efforts. Rulers get rewards from the land. Lootizens wanting to do more can govern in the Parliament, manage assets in the Fund, become an in-world central banker, offer products and services, etc. They can also store their LTT and NFTs in their Web 3.0 Metamask wallet. Making the above a reality is our focus in 2022. In the future, maybe Lootizens hold birthday parties with virtual reality at their Lootversian residences with views over a parallel world and bridge real-world interactions and commerce with the virtual. Building a metaverse with robust foundations for the future matters. 02.2 A Take on Virtual Land and Spaces Many laughed at "fake" gold because they had the actual physical thing. Today, they own bitcoin to complement their physical gold holdings. Likewise, many fail to appreciate the value of digital land because they don't need "fake" land as they already have real-world properties they can touch and live in. Many metaverses will likely exist with different flavors, much like bitcoin, Ethereum, and Cardano, co-exist in the digital coin space. We are not pressured to cut corners but build a world with an economic system and in-world GDP that provides the most value to Lootizens. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 10 49 The Lootverse, Year 2022 Courtesy of Heavenly Developments, LALL A Lootversian Business Consultative Paper - Draft 25 January 2022, The Great Empire of 11 49 ANNEXES: DETAILED INFORMATION Note: The Lootverse is complex and intricately designed. We have released several white papers for those that want to dive deep into how the ecosystem is built. The content in these annexes updates some of that information such that some prior knowledge of our work is required. Further, some of the content may not apply to different users within the ecosystem. Note that most of this complexity will be abstracted from the resultant user experience. The Lootverse, Year 2022 Land X Consultative Paper - Draft 25 January 2022, The Great Empire of 12 49 A WORLD BUILDERS World Builders describe Lootizens that own plots, buildings, units, natural resources, and or plants. They are third parties that collaborate to provide depth and context to the Lootverse. (a) The Lootverse is made up of virtual land called plots. Plot stories (historical portrayals of stories on plots) and in-ground natural resources are permanently tagged to plots. However, Lootizens can trade them individually (as they are NFTs). These are either done in Satoshi's Lounge or via Portal Operators for LTT and can be converted to USDC. (b) Buildings can be tagged to plots and have living spaces (called Units). They can only be separated by burning (that is, destroyed) the NFT, but only if the building owner also owns all the Units therein. (c) Lootizens must have a residence in the Lootverse. They can buy or rent Units. Plot, building, or Unit owners are de-facto residents of the relevant plot. (d) In-ground natural resources can unlock natural resource tokens. The Lootverse has freedom in configuring natural resources, unlike the real world. The Lootverse, Year 2022 Fig. 2: The Components of the Lootverse Consultative Paper - Draft 25 January 2022, The Great Empire of 13 49 The in-ground natural resources are: (i) Resource A - Coal, Natural Gas, Oil (Pollutant - P1) (ii) Resource B - Nuclear, Natural Gas, Dragons Breath (Pollutant - P2) (iii) Resource C - Gravity, Star Power, Wind, Water (Clean) (iv) Perpetual crystal deposits for additional resources only available from partnerships with other token projects or offered by Loot NFT. These are classified as either Resource A, B, C, or Offsets. The Lootverse, Year 2022 Fig. 3: An example of in- ground natural resource field, Shezmu Basin, the Lootverse Consultative Paper - Draft 25 January 2022, The Great Empire of 14 49 (e) A Natural Resource Extraction Plant (NREP) (an NFT), must be permanently tagged to in-ground natural resources on a plot to release Resource A, B and or C tokens. Unlike extraction plants on earth, the NREP looks like the "Tesseract"as depicted in the Avengers movie. The NREP release tokens over time based on their ratings (R1, R2, R3). When these tokens are entirely consumed, the NREP is burned. R1 - 1% per month R2 - 5% per month R3 - 20% per month (i) NREP owners can burn LTT (amount TBD) to increase their ratings. (ii) NREPs (R1) are available for purchase only by in-ground natural resource owners. LTT spent is burned. The NREP is automatically tagged to the in- ground natural resource following the purchase. (iii) NREPs are located underground in the middle of the natural resource patch. (f) Utility plants are domed structures (of 25 sqm by 5m tall) tagged to plots that convert natural resources to Consumable Utilities (CU), 1 for 1. In the process the natural resource tokens are burnt. Depending on the type of natural resource consumed by a utility plant, they produce Pollution Units (PU). P1 - 5 Pollution Units P2 - 1 Pollution Units (g) To counteract pollution, utility plant owners must purchase Offset tokens to achieve a zero pollution footprint before CUs can be transferred. One Offset The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 15 49 token is created per US$ 0.0001 the Lootversian Foundation spends on buying and retiring real world Carbon Credits (or contributing to green or charitable activities). Polluters must burn the equivalent of US$ 0.0010 in LTT to retire (burn) 1 Pollution Unit. (h) Utility plants are limited in number per realm (TBD) and are for sale (including, from Satoshi's Lounge) for LTT. They may be further limited to only provide CUs to specific realm. A note about R&D in Natural Elements We may use real-world meteorological data, maps, and patterns in the Lootverse, allowing us to use real-time or predicted weather to power in- world renewables utility plant. It means that a new type of Utility Plant may be needed to create Consumable Units (CU) for this. We believe that we are the first metaverse project to attempt this mesh. (i) Unit owners burn CU for each Unit they rent, at the time rent is paid. (j) Plot owners must engage the services of a Portal Operator offering builder services to lodge a building plan(s) for their plot. Builders fulfill a vital role by standardizing and ensuring the production of hyper-realistic buildings to scale (together with floor plans). Total structure footprints must not cover more than 70% of any plot (excludes Utility plant footprint of 25 sqm). All plots have an easement for roads along boundary lines to connect to the main arteries of the Lootverse. An impact fee in LTT is paid to lodge building plans for approval. The fee is assessed on the number of Units in a building that is expected to start at 1 LTT per Unit (irrespective of the size of the Units). Note that in the Lootverse, only one resident can exist per Unit (no multiple tenancies). (k) Each Lootizen at sign-up is given 100 Health Points (0.01 US cent per point). Every day, Lootizens lose 3 Health Points. NFTs won by a plot owner containing Lootversian power can be tagged to a plot to release Health Points when rent is received (until Lootversian power is depleted). The amount released is set by the NFT owner. This can create desirable regions within the Lootverse. (l) The Lootverse Levy (or LL) receives a flat 15% of all economic activity from the Lootverse, including a plot. 5% of this is re-directed to the Ruler of the land (which initially is the plot owner). If the economic activity is from a Portal Owner, then Lootizen that have a "job" there receives 5% from the LL. Note, "Jobs" do The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 16 49 not require approval or work and is like an LTT faucet, where residents on which the business is located can register to receive these "airdrops." However, Jobs are limited per Portal Operator (minimum of 10 jobs). (m) Lastly, a strategic war game can be waged amongst rulers to take over the 5% economic activity of ruler(s) of a plot. Ownership of items like plots, buildings, etc., remain with the owners and cannot be lost in war games. A.1 Plot Stories, Buildings The creation of plot stories can be complex and consumes administrative time. It will be mandatory for all stories to be lodged by an in-world historian license holder. A historian can create ready-made stories that can be customizable to plots or work with a plot owner on custom stories. Following approval, the plot owner can publish the same. Historian's fees in LTT cover the administrative cost of minting the NFTs (burned). This federated model (curators use the same in Loot Arena) benefits Lootverse by ensuring consistency and high standards. A.2 Practicalities The types of currencies, commodities and "living" tokens are shown in a Lootizens wallet with the relevant functionalities to simplify transactions. For The Lootverse, Year 2022 Fig. 4: Token Wallet Consultative Paper - Draft 25 January 2022, The Great Empire of 17 49 e.g., utility plant owners can convert resource A to CU immediately, or use Offsets to offset Pollution Units instantly. (i) CU burned when rent is paid by residents to Unit owners is automatically taken out of the CU balance of a Unit owner. 1 CU is required per Unit rented per month; this may vary. (ii) If a Unit owner has a zero CU balance when rent is paid, the rent is burned (i.e., the LTT paid by the resident is burned). Residents that fail to pay rent on time will from that point on no longer hold resident status. A.3 Plot Resale Plots can only be resold once all plots for listings in Satoshi's Lounge have been listed. Due to the rising reserve of plot listings, we expect some plots to remain available in the treasury (government land). This allows interactions in the Lootverse to grow organically like in the real world. A.4 Sales and Rental, General Notes (i) Rent is paid to Unit owners and not plot or building owners. (ii) Buildings or Units sold creates a permanent "tenant" on the land until (and only if) the building is burned. (iii) Only plot owners can tag a building to plots they own. This is done following lodgment by the in-world builder (Portal Operator) and approval by the Lootversian Foundation. Plot owners then has the option to tag or not. A.5 "Is this air that you are breathing?" Morpheus said to Neo. As a concluding note to the World Builders section, note that latitude is given in building our parallel world. E.g., the Lootverse is not a globe, but a rectangle. Gravity may not work the same way or apply to some plots; air is not the same (e.g., water is a natural resource that must be mined). The sky is also rectangular. The Lootverse is more like Thor's home, Asgard, in the Marvel representation. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 18 49 B PORTAL OPERATORS We use the term Portal Operators to mean Lootizens that operate a commercial activity in-world. They get access to the relevant API keys to authenticate and build extensions to Lootverse. B.1 Metaverse App Store For Portal Operators, Lootverse is a map-driven metaverse app store with a parallel world theme. It allows Portal Operators to provide products and services (including play-to-earn games) using multi-reality mediums (real-life portals, 2D, 3D, AR, and VR). E.g. say, Nike releases shoes entitled "The Lootversian." Their store is accessed from the maps. If they geofence their stores on earth, they can include the product available for LTT with Augmented Reality. While everyone in the store sees shoes offered for "Earthers," the portal allows Lootizens to see the Lootversian product by scanning with their phones. In this context, there may be a few reasons for Portal Operators to offer something that people can find in, say, a store on earth; for this, they can use other applications, their metaverses, etc. The Lootverse is where Portal Operators can offer products and services of a Lootversian feel. B.2 Licenses (a) There are no restrictions to obtain licenses, except that the activity must not offer offensive content or bring the Lootverse into disrepute. All licenses must be applied for together with a "Lootversian" business name and a business plan, choosing amongst other things the API endpoints to be used. We may implement a fee for API usages (this will be paid in LTT that is burned). All such "businesses" will be accompanied by the acronyms LALL (for Lootversian Association Limited by Liability); the registration papers and the business plan is blockchain notarized. (b) A Portal Operator must be a Lootizen (responsible party) and own a Unit on a plot to which a license is tagged. Units with tagged licenses cannot be sold until (i) the license is relocated to another Unit or (ii) the business portal is removed (burning the portal). The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 19 49 (c) Portal Operators are responsible for fulfillment to their customers. Loot NFT Co (or the Lootversian Foundation) is not an arbiter and cannot act to resolve matters. As such, all obligations to customers or liabilities to the latter remain with Portal Operators. (d) All Portal Operators set their fees or sales prices in Credits, which is displayed in LTT based on an in-world exchange price feed. Lootizens pay in LTT, and Portal Operators can (using an exchange bridge) receive USDC. (e) We have received several requests for Portal Operator licenses, and we will address them in time. Currently, testing of the Lootverse's integration with the Lootnance Exchange (an in-world exchange for in-world Credits and LTT, then other assets) is underway. It is essential to restate that Lootnance can only authenticate for Credits and LTT (and Credits are used to buy LTT, BUN, or pay for shipping); it is a way for others to accede to obtain LTT without mining. (f) We keep our public APIs and webhooks to a strict minimum. We will develop more in time as we address various commercial solutions. The following base interactions have been developed to date: (1) Send and receive LTT and Credits; (2) User authentication; (3) Pay with LTT; (4) LTT to Credits bridge; and (4) Utility APIs and Webhooks. The following are soon to be developed. (1) LTT direct debit (inwards and outwards); (2) Additional user authentication services; (3) Send and receive NFTs to Portal Operators; (4) Send LTT and NFTs to Metamask; (5) Additional Utility APIs and Webhooks; (6) LTT and Credits bridge to exchanges. While plots, structures, and natural resource NFTs can be traded for LTT (therefore, Credits and USDC) in Satoshi's Lounge or via a Portal Operator, there is no immediate plans to send them to Metamask at this stage. Further, while NFTs that can be used to get degrees can be extracted to Metamask, this The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 20 49 causes these NFTs to be burned (since peer-to-peer trading can affect degree earning and mining ratios). (g) Certain commercial use cases require core Lootversian functionalities, such as builders and historians. The same goes for creating NFTs for sale and re-listing items n Satoshi's Lounge. These functionalities will be available from the Fund and follow the following format: (i) Submitting information for an action (either from a Portal Operator or the responsible owner/creator of a particular item); (ii) Review and approval by the Lootversian Foundation - a fee may apply for some submissions (the fee will be burned); and (iii) Publishing (or tagging) which is always an action of the responsible owner. (j) We offer the relevant information and support as required for API integrations. API, webhooks, or other network calls to the Lootversian core system may be throttled or require you to pay a fee in LTT to be increased. (h) Lootizens can send or receive LTT (depending on the business) to buy products or services from Portal Operators. Some portals can receive Credits (e.g., an exchange) or NFTs. Portal Operators can also exchange LTT for Credits for their economic activity through an exchange connector (depending on exchange liquidity). Credits for such trades are convertible 1 for 1 to USDC. (i) Portal Operator licenses cannot be traded in the Lootverse. However, the responsible party owner of the license can be amended so long as the incoming responsible person has passed a know-your-customer (KYC) check. B.3 Updates The first Portal Operator licenses issued (or to be issued shortly) are: (a) Lootnance Exchange, LALL to Aya Trades, LLC for an in-world exchange. (b) Heavenly Developments, LALL to Heavenly Developments, LLC for architectural drawings, buildings, and renderings. (c) Origins, LALL to Aya trades, LLC for to create plot stories. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 21 49 (d) The Lootverse News Network to J+E Enterprises Ltd The first test of core Lootversian integration will be with Lootnance Exchange which is scheduled to open shortly. B.4 The Possibilities The full breadth of creativity and solutions available to Portal Operators are hard to understate. For example, it may be possible to have real-world treasure scavenging connected to prospecting in the virtual world. Salvagers could invite Lootizens to authenticate with their Lootversian portal to prospect the Lootversian seas and charge Lootizen prospectors an LTT fee to discover whether a treasure is found. This action would cause the salvager to search for treasure in the real world. If found, an NFT can be created that grants the owner of the real-world item (which could be held in custody at a museum). That NFT can be resold in Satoshi's Lounge along with the rights to the underlying item. The process of custody is the same as used in Loot Arena today. In another embodiment, a Portal Operator can charge a small fee to witness battles or a Virtual Reality fly through Lootverse. Or maybe hold a virtual reality concert with LTT ticket fees. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 22 49 C CENTRAL BANKERS (PRIOR KNOWLEDGE REQUIRED) We use the term Central Bankers (in-world, fantasy) to mean those that control the issuance of LTT, the native currency of the Lootverse. They are also called miners or bidders of Loot Arena. They are third parties that play a game to win NFTs and, in the process, receive LTT for playing. We built Loot Arena with a few goals in mind, namely: (a) Democratize access to valuable NFTs; (b) Recognize talented creators, no matter their brand power or location; (c) Provide liquidity in trading creations; and (d) A mechanism for the Lootverse Tickets (LTT) to be issued out of an entertaining protocol(based on the Proof of Play protocol). We changed the equation of how creations are valued (see articles on the topic at medium.com/lootnft). We called this "battle-bidding auctions." However, Loot Arena is not a typical auction but a game of being the last to spend a BUN when the timer expires. The winner receives the NFT and publishes the creation in a chain of other previously concluded games. Then, players receive LTT based on their mining ratio (in proportion to BUN they spent). NFTs are chained to NFTs previously won. We make the following critical observations: (a) While the goal is to win the NFT, players come to mine LTT, the native currency of the Lootverse, and the products and services offered for them. (b) In theory, anyone can win, although it is time-consuming, and the players with bigger wallets are much more likely to win than others. (c) Brands have a reduced effect on an NFT in Loot Arena unless their followers also see the value of the Lootverse and engage with the players. The demand for LTT in the Lootverse plays an integral part in the value received by creators. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 23 49 (d) The Proof of Play invites creators to link their works to a chain of talented works that have come before and that are yet to come. The challenge is then to achieve the most successful financial outcome. Nevertheless, the privilege is to time capsule their work on the blockchain with a creation that defines them and lives forever linked to other talented individuals and their work. (e) With the federated network of creators that can publish and get rewarded from Loot Arena, the fact that we deal with physical and digital works, the NFT reward has no equal in the industry (in our opinion). In essence, Loot Arena is an in-world fantasy "Central Bank" and cannot function as a standalone product or NFT marketplace. We cannot associate Loot Arena with traditional NFT marketplaces without wrapping it within the Lootverse. C.1 What does this all mean? (a) Loot Arena site is being streamlined to its target audience: miners on the one hand, and on the other hand, creators that want to take up Loot Arena's challenge to contribute their work to the chain. This chain contains over 100 works from talented creators around the planet. (b) The stars arena will move to Satoshi's Lounge (bidding in LTT). This will count as an NFT for obtaining degrees, and be able to contain easter eggs. Anyone that wins those NFTs can join Loot Arena without an invite or joining fees. However, NFTs sold there will not release LTT (unless the Curator adds LTT that has already been mined as an easter egg). (c) all sign-ups will be through the soon-to-be-released the Lootverse Government page. No one will be able to sign up to the Arena directly (however, miners will still log in on the Arena site). (d) in addition to the above, the following shall be implemented: (i) 42:1 mining ratio, no staking bonuses and arena joining fee at 25 LTT by 31 January 2022. This joining fee will double every week thereafter until it reaches 500 LTT. On the day the first tournament is held (see what a tournament is below), the joining fee will be set at 500 LTT, irrespective of whether it conforms to the fee doubling schedule. All joining fees are burned. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 24 49 (b) The ability to invite others from Loot Arena and the "I'm Interested" functionality will be removed. (c) Usernames will be able to be changed for a fee of 10 LTT from the newly implemented government page. (d) There will be no restrictions to hold at least 1 LTT, 1 BUN, or 1 NFT to access Loot Arena. (e) The relocation of staking from Loot Arena and NFTs for re-listing to The Fund and the relocation of all profile details to the Citizenry Affairs tab at the Government. (f) The purchase of in-world Credits with USDC will be allowed in packs of 5 Credits for 5 USDC from the Government only. All BUN purchases will be done with Credits (to the exception of the tournament players explained below). (g) The relocation Badges page to the Wallet page. (h) The introduction of a new Tournaments page for groups wanting to avail themselves to NFT drops in the Loot Arena format. The Tournament's section is only accessible to invited persons. At the end of the Tournament, those that win an NFT get access to Loot Arena, and everyone else can do so by paying the prescribed joining fee. Tournament NFTs have an unraisable hard cap of 2,100 BUN, meaning that the maximum amount of BUN that can be purchased is 10,525 BUN for a total of USDC2,105. Each curators can list 1 Tournament of 5 NFTs per month. (i) the footer page will be updated to focus solely on Loot Arena information. (j) All invites to the Arena will be either via whitelisting by a Type B plot owner (each whitelisted email costs 1 LTT, which is burned) or winning an NFT that is listed as a set of 5 (termed "Arena NFT"). Note that the referral URLs will cease to be used for people to sign up (however, they can still be used for whitelisting). The referral URLs will then solely be used for tournament signups. (k) Only tournament participants will be able to buy BUN with USDC ERC20. Once the tournament ends, users will not be able to buy BUN unless they pay the joining fee to Loot Arena (in LTT) or win an NFT in the tournament (note tournament participants mine LTT). The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 25 49 (l) To address bots in Loot Arena, the following will be implemented: (1) all miners can bid up to 20 times manually in the last 11 seconds of an auction before being locked out of that auction for 30 minutes (called a "timeout"), (2) following the timeout, they can bid again (including bidding up to 20 times manually in the last 11 seconds), so on and so forth, and (3) a bid bot activated in the last 11 seconds counts as a manual bid. (m) Miners are service providers to the Lootverse. All freshly mined LTT can be sold through an in-world exchange connector for USDC (transiting via Credits and pending liquidity, and preconditions, such as executing a services contract and passing a Know-Your-Customer check). If miners transfer LTT in-world (e.g., to an in-world exchange) without going through the connector, those LTT can only be used to obtain in-world tokens (e.g., in-world Credits) or products and services (including, NFTs). (See section F of this document for more on this) (n) Do not send LTT to Lootnance Exchange unless you want to receive Credits (which can be used to buy BUN, LTT or pay for shipping only). If you would like USDC, you must comply with the preconditions and use the connector (release date for this TBA). As indicated previously, no additional badges will be issued, except for the Genesis Army badge, the Mining Ratio and Mystery Gift. Further, benefits of the Pioneer Badge and Invite Bonuses will be significantly reduced by year's end. C.1 The following upgrades are still under consultation and modeling for Loot Arena (these may be implemented shortly): (a) The re-listing feature for future (not past) NFTs to be done from Satoshi's Lounge. Winning a re-listed Arena NFT that forms part of a set of 5 grants immediate access to its winner to Loot Arena. These NFTs can be used to achieve degrees or complete NFT sets, but not mine LTT. (b) Loot Arena's joining fee (for those who did not win an Arena NFT) shall be dynamic based on the last sold Arena NFT in Satoshi's Lounge or 500 LTT, whichever is higher. E.g. to join Loot Arena, a Lootizen would either need to win an NFT in an "Arena" set or get an invite and pay the price of the last auction of such Arena NFT sold in Satoshi's Lounge. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 26 49 (c) Each Curator (Type P Plot owner) will be required to list at least 2 NFTs in Loot Arena (but no more than 5) or a maximum of 3 NFTs in Satoshi's Lounge (i.e., between 0 and 3). (d) The supply of BUN may be halved (to 250m) and the price of BUN to double ($0.40). Along with this, all the bid caps would be reduced from 10,000 to 5,000 and 500 to 250 for hard caps. In that event, the account cap will be reduced to 25,000, and the purchase of 1 BUN pack to increase to $10. Those who have already purchased BUN at $0.20 each shall retain these BUN in Loot Arena. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 27 49 D PARLIAMENTARIANS We refer to those that take part in the governance of the ecosystem as "Parliamentarians." The Parliament can only vary certain variables within the Lootverse that do not affect its core functions. D.1 Loot NFT and the Lootversian Foundation The core ecosystem built by Loot NFT is designed to provide a core product (much like the Linux Foundation's work) that is extensible at the edges by third parties. We do not own LTT. Each Credit mirrors one USDC in custody until extracted out (at which point, mirrored Credits are burned). Currently, only participation in Loot Arena (Credits that purchase BUN) results in the extraction of the USDC. This will be extended to those that sell products and services in the Lootverse, including trade by Portal Operators. Shortly, the current home page of lootnft.io will evolve into the Loot NFT Co LLC and the Lootversian Foundation site. These "Earther" entities sit outside the ecosystem and ensure that the Lootverse is managed properly. On that site, we will provide all of the information relevant to the ecosystem, including developer information that taps into the Lootverse to enable portals by Portal Owners. In keeping with the parallel world theme, the language on the site will be from the perspective of behind-the-scenes managers of the world or those building extensions to it. It ensures we keep the experience of the Lootverse distinct from those that maintain or extend it. We created the Parliament to give a voice to Lootizen and to guide us in ensuring the ecosystem evolves in accordance to the value of Lootizens. D.2 Updates We created a group on Discord for the Parliament (The Parliament of the Lootverse) ahead of the in-world Parliament feature of the Lootverse. We set up the group to hear from Lootizens (that want to be part of the Parliament when it is released) on matters of importance to the Lootverse. Participation fees are offered at a 70% discount, and the position will last for one year after the Parliament feature is released. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 28 49 Parliamentarians will first have access to any information regarding the platform and may be asked to vote on some issues of importance to the community (much like a focus group). Loot NFT will have veto rights over parliamentary decisions until the ecosystem matures. When the Parliamentary features are released, the system will operate to give a voice to all Lootizens programmatically, as stated previously. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 29 49 E THE RESIDENTS AND EXPERIENCE SEEKERS Anyone that signs up to the Lootverse is considered a tourist. While they can access the Lootverse map, they can not interact at any core Lootversian sites or authenticate (participate) on any maps. E.1 Lootizenry The first requirement to be a Lootizen is to take up residence in Lootverse. This requires the purchase of Credits to buy LTT and pay rental for a residence. Residences grant access to all core sites and portals, except the X section of Satoshi's Lounge (X by SL). Only residents of the Isle of Talos and the Kingdom of Xbysl can access X by SL. Multiple residences are allowed. The Lootverse, Year 2022 Fig. 5: Lootizen Character Attributes Consultative Paper - Draft 25 January 2022, The Great Empire of 30 49 To access Loot Arena (and become a Central Banker), a Lootizen must win an "Arena" NFT listed in X by SL or in an Arena tournament. Failing this, they must be whitelisted and pay a joining fee in LTT to the Arena. The second requirement applies to Lootizens that want to become Portal Operators, sell products or services, send LTT or NFTs to their custody on Metamask, and receive physical products. For this, they are required to pass a KYC (know-your-customer) Check to have a verified account. Lastly, anyone who buys an initial pack of Credits will receive 100 Health points. These decay by 3 points a day to mimic life expectancy. E.2 Profession Lootizens are either: (a) Central Bankers (miner), (b) World Builders (property owner), (c) Portal Operators (business owners), (d) Parliamentarians (governance members), (e) Resident Workers, or (e) Unemployed. Lootizens can share multiple professions or be unemployed. Resident Workers reside on a plot where they can tag themselves (subject to availability) to receive LTT "airdrops" from Portal Operators. The latter must have a minimum of spots for airdrops that must be paid out of their economic activity. Resident Workers are not required to perform any work. Airdrops are shared equally amongst people who tagged themselves to a Portal Operator. Resident Workers can untag themselves at any time and join any other Portal Operators on a plot they reside in. Resident Workers cannot tag themselves to two or more Portal Operators. E.3 Ownership A Lootizen can own the following: 1. Plots, buildings, Units, and Utility plants; The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 31 49 2. In-ground natural resource; 3. A Portal Operator's license (non-transferable); 4. NFT creations (Plot Stories, Arena NFTs); 5. NFT in-world items (Treasures, Shields, Weapons, etc); 6. In-world Tokens; and 7. Real-world products. E.4 Items 1, 2, 4, and 5 will have access to resales functionalities in Satoshi's Lounge under a Lootizenry product section. At that point, Satoshi's Lounge will act as an in-world marketplace where Lootizens can trade items they own. The sales are received LTT but can be automatically converted (through sales at an exchange, based on liquidity) to Credits. These Credits are convertible to USDC. E.5 LTT and NFTs will be available to extract to Metamask for custody purposes. If an account sends out 10 LTT, the only amount capable of being sent back in the Lootverse from that account is 10 LTT. E.6 Health Lootizens can purchase Health Points, the equivalent of 0.01 Credits each, paid in LTT at market prices. LTT used to buy Health Points is burned (removed from circulation). Lootizens need at least 1 Health Point to be considered "Alive." Lootizens with 0 Health Points (or less) are considered "Dead." Lootizens can have negative Health Points (i.e., the simulation of death). To be alive again, they must buy Health Points or items granting Health Points to get back to a positive balance. Lootizens can only buy Health Points from the government if they have less than 100 Health Points and only such that they can re-establish a balance of 100 Health Points. If they want to acquire more Health Points, they must buy items (NFTs or other products) that grant Health Points (either in Satoshi's Lounge or from Portal Owners). They can resell those items for LTT that are convertible to USDC through an exchange connector (subject to liquidity). E.6.1 Health Derivatives By introducing Health points, it is possible to tie real-world items such as a T- shirt with a specific amount of Health points. By not allowing Lootizens to buy The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 32 49 more than 100 Health Points at a time (or $1), they must scavenge or buy items to have more Health Points. This does not stop the burning of LTT for Health points but rather shifts the burden of burning these to a third party. With the implementation of the Lootversian chain of title for authenticity (see below), it is possible to transfer Health between Lootizens in the real world (while also transferring that in the virtual). This could also be done for weapons, shields, and other items. The commercial applications of the above can be significant. In essence, the decaying Health Points of Lootizens acts as life expectancy in- world, which can provide in-world data such as mortality rates and make extensive data correlations with in-world natural events and more. E.6.2 Health Benefits from Plots Loot Arena NFTs can contain easter eggs which are generally termed Power. If applied to a plot, the easter egg will make the plot more welcoming as it can distribute Health from the Power to its residents over time until depleted. E.6.3 God Matrix and Health Some God Matrix events can cause health damage or grant benefits at random to Lootizens. E.g., a lighting strike (or a King Kong or Alien Attack) may cost 200 Health Points. If affected, a Lootizen with 100 Health Points would result in a balance of -100 Health Points. A purchase of at least 101 Health Points is required to be considered alive again. On the other hand, the God Matrix may give LTT to exemplary Lootizens. While the Health Points a Lootizen can lose are not limited, the God Matrix can only affect a Lootizen's LTT between 1 and 5%. Both Health Points and LTT are burned in the process. This can be extended to include other in-world tokens or items in time. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 33 49 The Lootverse, Year 2022 Weather in Lootverse We are currently investigating the use of real-world meteorological data for use in Lootverse's God Matrix, by matching earth co-ordinates to Lootverse. Consultative Paper - Draft 25 January 2022, The Great Empire of 34 49 E.6.4 Deaths, generally When Lootizens die, they live in the "Underworld" (a section of th map of the underworld is shown on the following page). They can still interact at the various Lootversian sites, receive LTT, bid, purchase items, and the like. However, they cannot buy Credits or use in-world portals to send and receive LTT or Credits. Some Lootizens may have so much health points that they could be considered immortals, much like the concept of "time" in the movie In Time. E.7 Lineage Any Lootizen can be part of the Ruling Class of the Lootverse. Initially, plot owners are the rulers of their land. However, with the introduction of war games (see Pt 8 below), a plot owner can be removed as a ruler. The new rule (or rulers) acceded to the ruling class on another's plot by winning a war. All Ruling Class is entitled to 5% from all commercial activity of a plot, shared amongst themselves. To note, (i) A plot owner cannot add residents from their plot to be part of a Ruling Class. This is reserved for residents that have joined an army and won a war. (ii) Members of the Ruling Class are always lead by a Plot Owner. E.8 Wars in the Lootverse Conflicts are a part of the real world, as in the Lootverse. Following R&D to mimic real-world interaction, we designed a new war game. (a) A plot owner can start a war on another ruler(s) by setting up a war fund, an armory, and identifying the plot to attack. A plot owner can act unilaterally or create an army that can rule over a targeted plot if the attack is successful. If the owner elects to invite residents to an army, all participants lock LTT to a war fund and weapons (NFTs) to the armory. (The "Aggressors") (b) Once the Aggressors want the war process to start, the ruler(s) of the target plot is notified. A delay of 100 hours is allowed to set up a war fund and an armory (or create an army, if he so chooses). Residents can join the army if they escrow LTT to the war fund and shields (NFTs) to the armory. (The "Defenders") The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 35 49 The Lootverse, Year 2022 E.6.5 The Underworld An inverted Lootversian map visually represents the Underworld. There the mineral deposits, sea floor, lakes and the like profiles are shown as mountains. We intend to showcase the number of dead Lootizens. Consultative Paper - Draft 25 January 2022, The Great Empire of 36 49 (c) Weapons and shields are NFTs with specific Health Points damage or protection they provide. (d) If the Defenders match the Aggressors war fund, war is averted. 15% of the Aggressor's war fund is burned, and 15% is distributed to the Defenders in proportion to their escrowed LTT to that of others. The weapons and shields are then returned to their owners. (e) If the Defenders cannot match the Aggressors war fund, the war goes ahead. The following ensues: [i] The weapons' Health Points damage is tallied and matched against the shields' Health Points protection. [1] If the Health damage is more than the shields' protection, the Aggressors win. [2] If the shields absorb all of the weapon's damage, the Defenders win. [ii] Any outstanding weapons damage is inflicted in round-robin one at a time on the residents of the Defenders' plot until all of the weapon's damage is used up. At that time, the weapons are burned. Likewise, any outstanding shield protection is returned proportionally to the relevant shields. [iv] If the Defenders win, they keep 50% of the Aggressors war fund while the other 50% is burned. The Defenders' reward is distributed based on LTT escrowed to the war fund (and the Health Points value contributed by shields). [v] If Aggressors win, they rule the Defenders' plot. They receive 5% of the economic activity from the land distributed pro-rata their contributions to the war fund (and the Health Points value contributed by weapons). E.g., The plot on which Lootnance Exchange is on gets attacked. If the attackers win, they stand to collect 5% of the exchange's LTT revenue. They stand to lose 100% of their war fund if they lose. E.8.1 War, specifically (i) No one can attack rulers that are (or are in the process of) being attacked. (ii) Only plot owners can initiate wars. Only residents there can join an army initiated by the owner of the plot. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 37 49 (iii) Rulers can display their brands publicly on all plots they rule. (iv) Rulers may choose a different residence without affecting their benefits. (v) Rulers are removed by losing a war. Wars are waged between rulers (and plot owners), meaning that rebellion can take back a plot. (vi) Two or more plot owners cannot fight together, and two or more rulers cannot defend. No attacks can be made on two or more rulers simultaneously. (vii) Any plot owner can attack any rulers in the Lootverse. (viii) No one that participates in a war loses their assets other than LTT, weapons, shields, or Health Points. Plots, buildings, commodities, etc., are not lost. E.8.2 Displays Wars are displayed on the Lootverse map. The Lootverse, Year 2022 Fig. 6: Wars in Lootverse Consultative Paper - Draft 25 January 2022, The Great Empire of 38 49 E.8.3 A World of Possibilities The Lootversian map can be used for activities designed by portal operators. E.g., using the map as a chessboard and introducing pieces as elements that move on the map; maybe, a snake and ladders game and even scavenging and treasure hunt activities. By searching the map areas for these, Lootizens can enjoy fun activities from Portal Operators in the Lootverse. The Lootverse, Year 2022 Fig.7: A di erent take on map based games from a metaverse built for adults. Consultative Paper - Draft 25 January 2022, The Great Empire of 39 49 F IMPORTANT UPDATES (PRIOR KNOWLEDGE REQUIRED) F.1 The following name changes will apply when the new map gets released. The Isle of Fund will be renamed The Medici Principality HABN Island will be renamed The Isle of Talos The Kingdom of X by SL will be renamed The Kingdom of Xbysl Territorio LTT ST will be renamed El Territorio None of the NFT title documents will change. Instead, a statement of change of realm will be tagged to the relevant title documents, much like is the case in the real world, and form an inseparable part of the plot NFT title documentation. F.2 The God Matrix (a) The God Matrix can affect the amount of LTT or Health Points of Lootizens. While the Health Points a Lootizen can lose are not limited, the God Matrix can only affect a Lootizen's LTT (and maybe Commodities balance between 1 and 5%). Both Health Points, LTT and Commodities are burned in the process. (b) As discussed, we are investigating the use of real meteorological data from earth to be overlain as part of the god matrix functionality (e.g., natural disaster on earth, impacting Lootverse at relevant coordinates). F.3 In-World Economy The Lootverse, Year 2022 Fig. 8: God Matrix Structure Consultative Paper - Draft 25 January 2022, The Great Empire of 40 49 (c) The LTT, while issued from the Proof of Play in whole numbers, will be fractionalized to 4 decimal places for all interactions. (d) Product and services from Portal Owners (or resellers) will be listed for Credits, and the LTT pricing will fluctuate with the in-world market price of the LTT for purchasers. However, some items in Satoshi's Lounge may be fixed in LTT (e.g., plots). (e) Products introduced for resale by Lootizens in Satoshi's Lounge will either be from purchases through Portal Owners or items we (or a Type P owner) previously sold. Sellers will automatically use a connector to push LTT to an LTT or Credit exchange. Credits received through a connector are shown as USDC as they are extractable. (f) The world's GDP can be calculated from the economic activity in-world for all purchases made by Lootizens. F.4 The Lootverse Levy The welfare of our ecosystem matters. The Lootverse Levy (or LL) rewards Lootizens and ensures the proper management of the Lootverse. This fee is a flat 15% of all economic activity in the Lootverse, except for items offered by Loot NFT (these burn LTT and are subject to some reward allocations). The Lootverse Levy is taken automatically from a trade, as follows: (a) All economic activity from a plot, including Portal Operators residing there. (i) Portal Operators (LTT only sales): 5% burned, 5% for jobs, 5% to rulers; The Lootverse, Year 2022 Fig. 9: Lootverse Levy - Land Activity Consultative Paper - Draft 25 January 2022, The Great Empire of 41 49 (ii) Portal Operators (using connector to USDC): 5% for jobs (LTT), 5% to rulers (LTT), 5% to Loot NFT. Note the exchange sell fee is paid out of the Loot NFT fee [this is shown as convertible credits to USDC in Figure 8]; and (iii) Unit and Plant Operators (LTT only sales): 10% burned, 5% to rulers. (b) 15% from sales in Satoshi's Lounge as follows: (i) Sales in LTT: 85% to the seller, 13% burned and 2% to plot owners (Royaume De Satoshi and El Territorio); and (ii) Connector Sales (USDC): 85% Seller, 7% Stakers, 2.5% Type S, 5% Loot NFT (Exchange fee is paid out of that). (c) Sales from Satoshi's Lounge for Loot NFT items: Note: (1) The God Matrix Pool is a rewards pool to reward lootizens at random as part of a "benefit" event. (2) The Lootverse Levy does not apply to recipients of rewards (including Loot Arena, God Matrix recipients, etc). F.5 Convertibility of Credits to USDC (a) All items in the Lootverse (to the exception of BUN purchases for tournament participants in Loot Arena, LTT, or the payment for shipping), must be made in The Lootverse, Year 2022 Fig 10: Satoshi's Lounge, Lootverse Levy Fig 11: Satoshi's Lounge,General Consultative Paper - Draft 25 January 2022, The Great Empire of 42 49 LTT. However, product sellers set prices in Credits; purchasers see the LTT value at the time of purchases (this refreshes regularly from an exchange price feed). (b) Sellers can use an exchange connector (when released) to automatically place a sell LTT order for Credits, and (pending the exchange), receive USDC that can be extracted out of the Lootverse. Note, the Lootverse Levy is applied as per section F.4. (c) Sellers that do not use their bridge will not be able to receive USDC. It is important for compliance purposes that the sale of an item be directly connected to the money received from such sales. Sales can be for various items, including NFTs. (d) A note of caution: the above is dependent on a robust in-world exchange. Low activity may mean that receiving USDC may not always be instant and may take some time (e.g., elements of slippage). F.6 Tracking of Physical Items Verifying and tracking the authenticity of physical goods tied to NFTs are tricky. Several solutions exist, from salting to NFT tags. Indeed, Governments face a The Lootverse, Year 2022 Fig 12: Currency Circulation. Follow the paths to get a full picture of the inputs and outputs to the Lootverse. Consultative Paper - Draft 25 January 2022, The Great Empire of 43 49 similar issue with counterfeit currency. At the same time, the precious gems industry does not have a foolproof way of tracking blood or conflict diamonds, even with several multi-party accords. To demonstrate the non-scalability of correctly identifying counterfeit items, consider that it is expensive to distinguish lab-grown diamonds and natural diamonds even today. Indeed, DeBeers had to develop an expensive device to detect the difference between natural and lab-grown diamonds. At Loot NFT, we implemented a process and tools to custody physical items (in use in Loot Arena by curators) to ensure the authenticity of NFT trades. However, once the NFT leaves the Lootverse, there is little way of ensuring that the NFT owner is also the owner of the physical piece (thereby causing a split). We will soon introduce an authenticity tracker that records the authenticity and owner of the physical piece. Both parties to a sale of an NFT linked to a physical item custodied by the seller must ensure that transfers are appropriately recorded. The tracker is the relevant record of authenticity, not the physical piece itself. If the seller and buyer do not acknowledge the transfer of the physical piece, future sellers will not be able to prove their ownership of the item, and the item may be valued less in future resales. This can mean that counterfeits become originals and vice versa in the eye of the record of authenticity. The system has some limitations and must start with an item from the first seller (origin) and not apply to items (such as gems) whose physical characteristics can be identified. In our case, it does provide a workable solution in the case of collectibles. We are already following this system for collectibles of Arena NFTs. We will extend this to other physical items sold in the Lootverse. F.7 Skymap All the Arena NFTs are expected to populate a Sky Map where the set name will be the constellation name. Curators (Type P plot owners) will set the X and Y coordinates and the intensity for these and shall be either stars or planets and explorable from the Sky Map sections of the Lootverse map. However, celestial objects will only be placed in "sky" plots (using the same Lootversian plots as a reflection in the sky). Hence, someone looking for a particular constellation can identify it from a plot number instead of X - Y coordinates. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 44 49 The Lootverse, Year 2022 The Lootversian Skymap Consultative Paper - Draft 25 January 2022, The Great Empire of 45 49 F.8 The Fund Currently, the Fund houses plots. The following upgrades will be implemented for the Fund as an in-world asset management portal: (a) Staking shall be moved to the Fund and shown under the Wallet section; (b) NFTs won in the Arena will be available under a new tab ("Arena NFTs") and later can be displayed on particular plots (if it has attached power, then this power will seep through regularly to the Lootizens residing there). Re-listings Arena NFTs will be controlled from the Fund; (c) Structures will show under a new tab ("Structures"). This will allow Lootizens to manage their buildings and units. Initially, plot owners will have to engage an in-world property developer to get their plans and structures lodged; (d) Licenses will show under a new tab ("Portal Operator") and allow Lootizens to get the authentications required to build their portals, create NFTs, sell NFTs (add Health Points) via their portal; (e) Other in-world NFTs will appear under a new tab ("In-World Items"), which will contain the ability to manage NFT Stories, War Game NFTs, and Natural Resources NFTs. Once held, they can be re-listed in Satoshi's Lounge to a Lootizenry Marketplace. Several improvements will also be introduced for Type P, B, and S plot owners. The relevant sections will also offer the ability to send invoices and use the exchange connector to USDC. F.9 X By SL We had initially planned a standalone site for X by SL (which we, in fact, almost completed building) along with hardware devices for which we had manufactured prototypes. After consideration, we have decided to shelve those for the time being and include X by SL (standing for X by Satoshi's Lounge) in Satoshi's Lounge itself. X by SL will list Arena NFTs (including stars arena) and Re-Listed Arena NFTs. In time, honor-based auctions with honor-LTTs and exclusive items can be listed by Curators (Type P plot owners). The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 46 49 We believe that transacting in LTT is better for the entire ecosystem and for stakers to receive rewards from the exchange connector for all of Satoshi's Lounge sales using that bridge. Regarding the hardware units: we see our evolution more from an app perspective in the short term while we take stock of the various mobile, VR, and AR developments before progressing towards a hardware play. F.10 Talos When we started this journey, we had big plans for HABN as a low-cost metaverse-focused blockchain. Today, with the looming rebranding of HABN, we are not far from achieving this aim as the underpinning infrastructure layer of the Lootverse. As an EVM-compatible blockchain, we have successfully tested the ability to send LTT and NFTs directly from a portal in-world to Metamask. The current HABN explorer will be updated and rebranded to Taloscan. At the same time, Storage Plus will become a Talos Document Management System allowing blockchain notarization of documents with Talos to everyone. These will be accessible from portals in the Lootverse as well. (a) Why Talos For The Metaverse Talos' rebranded gas (HABX) will be termed ICHOR and available to in-world exchanges. The ICHOR is designed to be at a significantly low cost (we expect a fraction of a US cent) since the network's economic benefit is linked to the Type H plot and not the sale of the ICHOR itself. Only 1 Type H plot exists, divided into 15 sub-NFTs that are validator keys to the network. ICHOR will be required to be used as gas for peer-to-peer transfers. (b) Real World Applications of Talos driven with LTT The different designs of the Lootverse can be utilized for real-world applications as it replicates real-life interactions very closely. Through a portal, it is possible to create applications (by Portal Operators) or to white label core Lootversian sites (by Loot NFT) for enterprises. The ability to baseline all interactions in USD (but pay in LTT) allows customers not to be affected by volatility risks. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 47 49 Linking the metaverse and real-life applications can allow businesses and their customers to jump frictionlessly between world assets while interacting with blockchain-powered technology. F.11 Land Zonings (a) Type A, B, R, S, F, P, and H land zonings cannot contain buildings or any other structures; hence, they cannot have residents, portals, or Portal Operators. These are to be considered government land. They can, however, be used to create plot stories. These plots cannot participate in wars. (b) Type F will be reduced from 13.5% to 12.5% of BUN sales, with the extra 1% going to Type H, such that type H is now 1.5%. The Type H is allocated to the 15 validators on the Talos blockchain. Any overflow for blockchain fees was anticipated to come out of Type F, but restructuring it in this way makes for a clean separation. The Type F will remain in the custody of Loot NFT to cover the running costs of the Lootversian Foundation (software maintenance, administration, marketing of the ecosystem), as previously advised. F.12 Marketing and Communication The way we describe the Lootverse continues to evolve due to its highly innovative nature. With each passing iteration, our language becomes more refined and focused. Loot Arena, which was once the focus of the Lootverse, is now a cog in the puzzle pieces that create the Lootverse. We work hard to keep our community free of shillers, spammers, the "rekt" or to the moon crowd, etc. Our Telegram group is like a public customer service channel and a discovery channel (announcements, showcases, and more). While we are a welcoming group, we will continue to conduct regular clean-ups of our Telegram group (as much as possible). We are not concerned about the number of subscribers we have but the quality and value we provide to the community. We have grown our in-house marketing personnel and engaged some leading professionals in the advertising space to shed light on the Lootverse. Like you, we are all looking forward to attracting like-minded people this year and building a framework for an inclusive metaverse The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 48 49 CONCLUDING REMARKS All seven core sites of the Lootverse are now, in one form or another, deployed (the Government is currently in testing and will be released in the coming days). They may still be visually rudimentary and missing features and functionality, but those foundational elements are critical for us to expand, test, and refine. A significant amount of work is still required to be done. The Lootverse metaverse project is a long-term commitment. However, we are now well underway on this path. We will continue to execute our goal with the diligence, care, open dialogue, and radical transparency we have employed so far. We know that there will be difficult times, that we will have to iterate and fix mistakes, but we will progress together one step at a time until we reach our destination. Collectively, we are bigger than just a metaverse. The Lootverse, Year 2022 Consultative Paper - Draft 25 January 2022, The Great Empire of 49 49 The Lootverse, Year 2022 Government of the Lootverse

The Lootverse - Consultative Paper 2022