Tear and Wear Core-fused NFTs' Tear and Wear Status

Regulations:

• Price (EP) = The price of an uncharged EP traded on the market.

• Price (NFT Core) = The price of an NFT Core on the market.

• Price (Core-fused NFT) = The price of a Core-fused NFT on the market.

An NFT Core has the following parameters:

• A: The number of Active EPs contained within the NFT Core.

• Nfee: The cost to create a Core-fused NFT from the NFT Core, determined by the issuing team. The cost may be in SAE or in-game currency.

• Nloss: The wear and tear parameter set by the issuer and held constant thereafter. This represents the number of times the Core-fused NFT can be used in the game. If the usage count reaches Nloss, the NFT becomes unusable, requiring repair to be used again.

• Alpha: The wear and tear coefficient (Alpha ranges from 0.2 to 0.8).

• Alpha*Nfee: The cost to restore a Core-fused NFT when it has fully depreciated.

• N: A parameter indicating the number of times the Core-fused NFT has been used (N <= Nloss).

From the table above, we have the formulas to calculate the value of Core-fused NFT at each moment:

Price(Core-fused NFT) = Price (NFT core) + Nfee - Repair Cost (I)

Price(NFT core) = A*Price(EP) + A*0.1SAE + (A-1)*0.01 SAE (II)

New NFT creation cost: Repair cost = (Alpha* Nfee*N)/Nloss (III)