In the past, we always used gold and gold ornaments to compare BTC and colored coins. Many people would think that this metaphor emphasizes the value preservation of ARC20, but ignores the ceiling of added value.
After discussing with friends today, I found another metaphorical perspective of traditional online games. A limited "equipment" that can be worn, removed and upgraded may better highlight the premium principle of colored Satoshi over white Satoshi.
Ordinary Satoshi, we call it white Satoshi, which is the smallest unit of Bitcoin that has not been dyed (0.00000001 BTC)
The process of "dyeing" is to let a white Satoshi wear rare and limited "equipment". (In traditional online games, similar metaphors can also be skins, fashions, steel stamps, etc.)
Some people compare colored Satoshi to a rare Satoshi, but in fact, the logic of the two is different.
On the one hand, it is the source, the difference between innate and acquired; on the other hand, it is the characteristics of "wearable equipment" - a piece of equipment, worn on a Cong, its state is "soul bound", it cannot be directly removed and not used, but it can be destroyed by "de-dying", or it can be replaced by other Congs, and one Cong can wear multiple equipment at the same time (this is more complicated, not tried at this stage).
Finally, these dyed Congs we have in our hands are the "high-level Congs" with unique and scarce equipment attached.
The "equipment" here has several characteristics:
1. Acquisition cost: At the beginning, it costs money to obtain these equipment. The process of creating equipment and putting equipment on Cong is mint (dying).
2. One coin for one Cong: Equipment must be worn on Cong to play its value. One coin naturally corresponds to one satoshi. Even if the equipment is rotten, the satoshi is still valuable. If the equipment is very good, the combination of "equipment + satoshi" will naturally be more valuable.
3. Series differentiation: Equipment in the same series, such as equipment named Quark, is always homogeneous (FT); while different FTs, such as Atom and Quark, belong to different series of equipment and have completely different values.
4. Limited total quantity: Once each series of equipment is issued and manufactured, the total quantity is limited. For example, there are 21 million pieces of atom equipment and 10 billion pieces of quark equipment. Today, one piece of atom equipment plus satoshi is worth 4.3u, and one piece of quark equipment plus satoshi is worth 0.0023u.
5. Added value: In the past, we compared dyed coins to gold ornaments, perhaps emphasizing the value preservation function. However, from the perspective of "Satoshi + Equipment", Satoshi is used to preserve value, while the value of equipment has no ceiling. It is determined by narrative, application and other aspects to its endless upgrade and advancement since its minting.
When you deploy a new ARC20 token, for example, called xxx, 21,000 pieces, 1,000 coins per piece, you are actually a limited equipment factory that has produced 21 million legendary equipment; the process of minting by others is the process of putting these equipment on white Satoshi. If you successfully mint one piece, you will wear equipment with the appearance of "xxx" for your 1,000 white Satoshi.
The value of this "xxx" equipment is defined by the public. It can be a pure meme fashion or carry various narratives. It can be upgraded (empowered) with the blessing of the community, so that an equipment that initially only has appearance can be gradually tempered, advanced, and upgraded.
When we give an interesting narrative to xxx equipment, for example, we say that this is equipment recognized by Thor, then everyone's xxx equipment will have its intrinsic value improved and promote consensus recognition; when we empower xxx equipment and develop applications, then everyone's xxx equipment will have external functional improvements and enhance practical value.
Equipment, since it is scarce, can naturally be hyped.
In itself, from the perspective of "fashion" and "skin", there is a difference in aesthetics (narrative), which is also the most direct value perspective as a luxury product and scarce crafts; of course, from the perspective of "defense" and "durability", there are also attribute value additions in terms of empowerment, application, and rights (no upper limit on the addition points).
The above. Understanding "dying" and "smart" separately may also be an interesting perspective to explain dyed coins.
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When I told my friend about this idea, he recognized the concept, but raised a question-how to "add points" to the equipment?
I said that this idea is right. Adding points to equipment is where its added value is highlighted. It also emphasizes that dyed coins are not only value-preserving, but also can appreciate.
When we put it into the goal of "upgrading equipment", we can actually put the community into a new role. We say that a token community must persist in doing things and persist in building. In fact, the "building" thing is to "add points" to the attributes of equipment.
Writing articles, writing one article after another for it, gathering a magnificent narrative (improving durability); exporting MEME culture, using visual pictures and cultural genes that can be spread in the community, gathering a long-lasting consensus (improving beauty and charm); application empowerment, based on the functional construction of tokens, giving more targeted practical value (improving special effects and passive skills); cross-project and cross-track development linkage, cooperation rights between multiple projects, etc., let people get unexpected returns from tokens (increasing drop bonus and experience bonus); for those with sufficient funds, market making and market protection are the most direct market promotion (improving attack and defense, mana); after years of preaching, ambush for a marketing point that may explode in advance, every step of construction has its significance (improving critical hit rate)...
In fact, Build can be built anywhere, and these things can be done with any token. But when and only when we understand "dyeing" as "wearing equipment", Build has a more exciting interpretation.
From this perspective, casting equipment, hoarding equipment, and polishing equipment to make your "smart" army more powerful is not a "fun" route?
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