Gold Withdrawals (5%)

To increase the value of Gold and provide another way to convert in-game earnings into real-world value, 5% of the weekly QFT issue will go to users in exchange for burning Gold via the auction mechanic.

Throughout the week, users add their bids to the system auction. Since the price of QFT is volatile and can change throughout the week, bids include the amount of Gold along with its dollar price.

This way, users can be sure that when they place a bid at the beginning of the week, they will get the amount of QFT whose dollar price is exactly what they want, regardless of QFT fluctuations.

Bids are sorted by the dollar price users offer for burning their Gold - the lower the price, the higher the bid in the queue. And since the amount of QFTs available for each auction is limited, the order of bids is very important, as there will not be enough QFTs to fill them all.

In this way, the system is guaranteed to burn the most Gold for the fixed amount of QFT. However, there are two types of user bids: one for the real price (actual bid) and one for the sort order (effective bid).

And users can lower their effective bids and move up in the queue by increasing the Trading attribute, which can give up to a 20% discount, or by bidding as early in the week as possible, which can give an additional 10%.

Rewarding early bidding discourages last-minute bid manipulation and allows users to spend less time tracking the auction.

As a result, users can have an effective bid that is up to 30% lower than the actual bid. Therefore, Gold can be sold to the system for QFT at better prices that would otherwise not pass due to auction competition.

There will always be enough bids in the auction because the price of Gold above 1¢ creates an arbitrage opportunity, as users can buy Gold from the system at 1¢ and sell it in the auction at a higher price. More likely, the market nature of the auction prices will result in the price of Gold being lower than 1¢.

This difference can be thought of as a spread.

If this were the only mechanism for withdrawing Gold, the price difference between buying Gold from the system at 1¢ and at the withdrawal auction could be quite large. However, there is another way to withdraw Gold.

This is done through crafting and item trading. Users who wish to withdraw Gold can spend it on the Questfall marketplace or on loot boxes to obtain items needed for crafting. They can then craft items of higher rarity (C,B,A) and sell them for QFT.

As a result, trading and the Gold withdrawal auction complement each other, providing users with two independent mechanisms for extracting value from the system, which they can choose based on actual market conditions.