Ponzi Coin Whitepaper

Ponzi Coin is a satirical blockchain-based investment pyramid game built on the Solana network. Players build and manage virtual investment schemes, recruiting investors and earning real $PONZI tokens based on their pyramid's performance. This whitepaper outlines the game mechanics, tokenomics, and the intentionally transparent "Ponzi-style" structure that makes this the most honest game in crypto.

Disclaimer: This is a game and social experiment. While the mechanics are inspired by Ponzi schemes for satirical purposes, all rewards are generated through a transparent smart contract with no actual pyramid recruitment requirements. It's crypto gaming, not financial advice.

Core Gameplay

Ponzi Coin simulates investment pyramid operations where players:

• Build and upgrade their investment pyramid
• Recruit investors to join their scheme
• Upgrade their pyramid to increase yield capacity
• Earn $PONZI tokens based on their total returns

Investment Pyramids

The player's investment pyramid is the foundation of their yield operation:

• Each pyramid has a level, maximum investor capacity, and yield rate
• The initial pyramid starts at level 1 with 5 investor capacity and 50 yield capacity
• Pyramids can be upgraded to increase capacity and yield potential
• Upgrade costs increase exponentially with each level
• A cooldown period of 6 hours exists between upgrades to prevent rapid scaling

Investors

Investors generate returns and require yield capacity:

• Different types of investors have varying return rates and yield requirements
• Players start with one free Small Fish in their pyramid
• Investors are recruited using $PONZI tokens. The initial pyramid is purchased with SOL.
• Total yield requirements cannot exceed the pyramid's yield capacity

Removing Investors

Players can remove investors from their pyramids. This might be necessary when managing capacity or yield requirements for recruiting higher-tier investors. To remove an investor, click the remove icon in the pyramid view.

• Important: Removing an investor is irreversible.
• Players will NOT receive any refund for removed investors.
• The investor is permanently removed, freeing up one slot and its yield requirements.

Returns System

The returns system distributes $PONZI tokens based on:

• A player's proportional share of the total network returns
• A block reward that follows dynamic era-based adjustments
• Players can claim their accumulated returns at any time
• Players can refer others using their unique referral link, earning 2.5% of all $PONZI their referrals generate

Token Utility

$PONZI is the native utility token of the Ponzi Coin ecosystem:

• Used to recruit investors and upgrade pyramids
• Earned through investment pyramid operations
• Can be traded on decentralized exchanges
• Features deflationary mechanics through strategic burn mechanisms

Reward Distribution

Rewards are distributed based on the following formula:

Where Block_Reward follows a dynamic era-based schedule:

• Initial reward for Era 0: 578.703704 $PONZI per block
• Blocks are produced approximately every 1 second
• Rewards are adjusted at the end of each era. An era lasts for 345,600 blocks (approximately 4 days).
• At the end of an era, the reward per block is typically reduced (e.g., by a factor defined by `rewardReductionNumerator`/2), but can also be manually set by the admin for the new era. The reward aims to remain above a minimum threshold.

Burn Mechanism

To create deflationary pressure and maintain the scheme's sustainability:

• 75% of all $PONZI spent in-game is permanently burned
• 25% goes to the treasury for ecosystem development
• This mechanism reduces supply over time, creating scarcity and potential value appreciation

Ponzi Coin features a transparent "pyramid-style" referral system:

• Players can recruit new investors using their unique referral link
• When someone joins through your link, you become their upline automatically
• Referrers earn 2.5% of all $PONZI their referrals generate
• No limit on recruitment - build your network as large as possible
• Unlike real Ponzi schemes: All rewards come from the smart contract, not from newer players' money

Ponzi Coin is built on the Solana blockchain, ensuring transparency and immutability:

• Smart contracts written in Rust using the Anchor framework
• Player state stored on-chain, including pyramids, investors, and earned returns
• Global game state tracks total returns, block number, and accumulated rewards
• Price oracle for SOL payments
• Automatic returns calculation based on proportional contribution
• Fully auditable and transparent - no hidden mechanics

Contract Architecture

Key components of the smart contract include:

• GlobalState - Tracks game-wide variables like total returns and era information
• PlayerState - Stores individual player data including pyramids and investors
• Investor - Represents recruited investors with return rates and yield requirements
• Pyramid - Represents investment pyramids with level, capacity, and yield output

The Ponzi Coin development roadmap includes:

Ponzi Coin represents a new paradigm in crypto gaming - complete transparency about being a Ponzi-style game. By leveraging Solana's efficiency and implementing genuinely fair tokenomics (unlike actual Ponzi schemes), we've created the most honest game in crypto. All rewards are mathematically generated, not dependent on new player funds, making this a sustainable and entertaining satire of the crypto space.

Remember: This is entertainment and social commentary on crypto culture. While inspired by Ponzi mechanics for humor, all systems are transparent, fair, and backed by immutable smart contracts. Always invest responsibly and never more than you can afford to lose.

This whitepaper serves as a living document and may be updated as our pyramid scheme... err, game evolves based on community feedback and the inevitable market cycles.