LoC Staking

We offer LoC community the opportunity to stake the legends in Team LoC in exchange for a share of their winnings.

How Poker Staking Works

◆ Your NFT represents a specific percentage of a player’s stake in a specific tournament, i.e. NFT player staking $ value divided by the total $ value of the tournament buy-in.

◆ (Use the WSOP Main Event 2023 as an example, a $30 player staking value equates to a 0.05% Team LoC’s stake in this $60,000 buy-in tournament).

◆ Should the player win, the NFT holder’s Gross Winning equals the % of player total prize that corresponds to the same percentage per NFT represents.

◆ Net winning occurs if Gross Winning surpasses original NFT price; if not, Net Winning is zero. Player gets 20% of Net Winnings as Performance Bonus.

◆ Net Winnings will then be sent to NFT holder’s wallet after the players received the prize from WSOP

Traditional Poker Staking:

Players are often charging a MARKUP. (an additional percentage added to the buy-in when staking a player) This can cause many potential problems:

◆ UNREASONABLE MARKUPS: Players may set exorbitant markups that are disproportionate to their actual skill or potential profitability.

◆ MISALIGNED INCENTIVES: Higher markups may incentivize players to prioritize personal profit over optimal decision-making during the game. They might be inclined to take riskier or suboptimal plays.

◆ OVERSOLD ACTION: Players are selling more than 100% of the share in a tournament, since they have charged markup, they will be incentified to bust the tournament to secure the markup profit.

LoC Unique Staking Model:

Team LoC DOES NOT charge any markup, NFT holders will give 20% of the Net Winning (Gross Winning-original NFT price) to the players as a Performance Bonus.

This incentive model is widely used in the financial world, we bring this to the poker world:

◆ NO UNREASONABLE MARKUP: as part of the NFT utilities, NFT holders can get professional players’ action AT COST, there is no markup even for world-class players.

◆ PERFORMANCE-BASED INCENTIVES: Players will be rewarded ONLY when they deliver a positive Net Winning for the NFT holders. Players are incentivized to deliver the best results for their backers, eliminating the potential moral hazard.

◆ BUY AND CLAIM VIA CRYPTO: Easy and fast process to avoid unnecessary transaction fees and admin costs.

◆ ON-CHAIN RECORD: backers’ staking action is recorded on-chain and evident by a transferable NFT in their wallet.


Team LoC (total of 6 players) is allocating 5% of their total actions, ie 5% share of the Team’s combined total winnings for the WSOP event, to be part of the NFT collection’s utilities.

Total dollar value of this 5% action = $10,000 x 5% x 6 = $3,000.

Sample

Each NFT gives you $30 worth of player staking value, i.e. 0.05% share of the Team’s combined total winnings for this event.

If Team LoC combined winning is $10,000,000,

Your Gross winning : $10,000,000 x 0.05% = $5,000
Original NFT staking value = $30
Performance Bonus = ($50,000 - $30) x 20% = $994
Your Net winnings after Perf. bonus = $5,000 - $994 = $4,006

Your % return is (4,006-30) /30 = 13,253%

*Please note that a portion of the Gross Winnings, specifically 30%, could be withheld as tax from certain players. The tax refund will possibly take 6-12 months.

If that happens, we will first distribute the pre-tax winnings to the NFT holder. When the tax refund is complete, we will airdrop the rest of the returns into the NFT holder’s wallet.

The NFT will continue to be tradeable in perpetuity, with more utility to come!

(There is a small admin fee charged by external service provider)