The TULIP Mania Game - Rules and Guidelines - 8 August 2019
The TULIP Mania Game is designed to be a mixture of a starting auction and a trading middle game. The aim is to make a profit from buying and selling TULIP tokens on the Steem Exchange DEX.
Many of you already hold some free TULIP tokens, so that making a profit shouldn't be too hard. Making a much larger profit will take some skill and judgment. Everything is out in the open; there are no tricks or sudden changes.
I, the game master @Busbecq am not allowed to play in the game but perform administrative tasks such as setting the token price-points and, later, will manage the end-game of cashing out.
When these types of games are performed under experimental conditions, all players are present and ready to roll! This isn't always possible online so, as the first such mixed game, the start will be a bit slow to allow everyone to login and decide what to do.
The whole game is divided into three phases: Phase 1 is a Dutch auction; Phase 2 is the trading game; and Phase 3 is the end-game and cashing out.
Phase 1: The Dutch Auction
The Dutch auction will start at a price of 1.00 STEEM and descend until 48 price-points have been created by @Busbecq.
The distribution of prices and the number of tokens created has been decided before the game using a mathematical formula. There will be no deviation from this, whatever the players in the market decide to do. If the price seems to be rising towards the starting value, then higher price-points will be created using the same formula.
Some 10,000 TULIP tokens have been distributed either as freebies or prizes and a further 10,000 allocated to the management account for the cost of setting up the game and the leased SP. These will be deducted from the token amounts at the two lowest price-points thereby minimising any effect on the overall average price.
There will be a "start post" published just before the game starts, at the set time of 13:00 UTC on Thursday 8 August. This will be the communications gateway between @Busbecq and the players.
The TULIP Mania Game will last for 28 days, at the end of which all accrued funds, including profits, will be divided up between those players holding tokens at that time.
This is not a zero-sum game. The STEEM created by the sale of TULIPs is used to generate profits during the 28 days, so that each token will be worth more than the average paid for it on the market. This also means that more people should end up in profit. In theory, everybody could end up smiling, but that also depends on a player's skill.
If you have not seen either ONECENT or ADDAX, please have a look at how those games are going and read some of the informational posts on how to develop some trading strategies.
The Dutch auction is envisioned to last about 12 hours. This may be the slowest Dutch auction in history, but I've explained the reasons above.
During the Dutch auction, players may freely buy and sell the tokens created or leave strategic orders on the market. That is all part of this phase. As prices are falling, we are not responsible for how Steem Engine processes orders at identical prices.
When the last price-point has been created, @Busbecq will announce it in the "start post". That will signal the end of the auction and the start of the trading phase.
Phase 2: The Trading Game
The vast majority of the 28 days is spent trading TULIP tokens between players.
On Day 2, so about 48 hours after the start, the first price indicator will be published. This will be given as an asset backed value (ABV) in STEEM. This figure is the total value of the fund divided by the number of tokens, thereby giving essentially the average price per token.
Daily posts will be published with fresh data, a new ABV for the day and any further information about strategies. The TULIP Mania Game does have a serious aim: to help inexperienced traders learn a little bit about how to buy and sell more volatile tokens. This game is a micro-environment to test out strategies under conditions where nobody should really be losing any large sums.
It is this ABV that causes a slowly moving dynamic as players buy and sell to make some extra profits on the spread around this value. Again, you can see how this works on either ONECENT or ADDAX.
The 28 days duration of the game means that powering up Steem Power is not an efficient use of funds as it then takes 13 weeks to power them down. Most of the funds will go into short term upvote tokens and those that do not require long-term staking. I shall describe this in more detail as the game progresses.
As the TULIP Mania Game develops, players have a choice of whether to take profits early or hold out till the end.
Phase 3: The End Game
After the end of the last day, so on the 29th day, @Busbecq will publish the final official price at which tokens can be exchanged for STEEMP. This will include an estimate of forward earnings 7 days ahead.
This will obviously be very close to the previous couple of days, so will be of no surprise. At that point, the game is officially over and the ABV will not increase, but as the market is still open players may carry on dealing if they wish.
Cashing in your tokens at the end of the game will happen over a few days as STEEMP becomes available. The game master will create buy orders at the final ABV price and it is the responsibility of each player to sell his or her tokens at that price. This process will continue until all game tokens are back in the game master account.
I see no good reason to keep hold of such tokens as the next game will take place after some days.
Having described the end-game, there is one other mechanism that @Busbecq may do in order to speed up the last few days. The game master is allowed to offer to buy back tokens at the day's ABV. Because the game is still in progress, such tokens bought will be burnt by sending to the null account. This token buy-back mechanism may be requested by a player at any time by leaving a comment in the "start post". The actual number of tokens shall be determined by the liquid funds available.
That's it!
Best of luck to everybody!
Any questions, please ask in the comments section below.
Disclaimer. We are not responsible for your actions. We are not responsible for the functioning of third party software. If the game needs to terminate early for any technical reason (HF21 springs to mind) then liquid funds will be distributed at the earliest possible opportunity on a pro rata basis or the game paused and restarted. Do not play with funds you cannot afford to lose.
[BUY MAPR] - [READ MAP REWARDER]
[BUY MAPXV] - [READ MAPXV]
ONECENT: The First Strategic Token Investment Game (STIG)
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