The Serpent's Due

24 hours after minting (or Summoning) an NFT, a user is able to burn their NFT to claim the backed $MZI tokens via The Wyrmhole, subject the Serpent's Due as described below:

To encourage long term participation with the protocol, the Serpent's Due applies to all NFT "Burn to Claim" transactions for the first 28 days after a user mints an NFT. If users decide to swap their NFT for $MZI tokens earlier than 28 days, they will forfeit a percentage of tokens that get sent to Mizuchi's Hoard to help fuel Perpetual Daily Auctions.

Since the Serpent's Due is based on when a user mints an NFT, those who mint earlier during the 8-day supply creation phase have an advantageous position since their tokens will become fully unlocked sooner than those who mint later.

The Serpent's Due Details

• Users are able to burn their NFT(s) to claim the backed $MZI tokens 24 hours after minting (or Summoning) an NFT.

• 24 Hours After Minting: The amount of $MZI available to users vests linearly for 28 days with 2% becoming available each day. If a user chooses to claim their tokens early, they will forfeit a percentage of $MZI tokens which are sent to Mizuchi's Hoard to be used in Perpetual Daily Auctions.

• Day 28 Onward: 28 days after minting, the 'Standard Due' will set in at 3% and be applied to all NFT "Burn to Claim" transactions through The Wyrmhole to help support the Perpetual Daily Auctions. Please see the table below for the Serpent's Due vesting schedule:

The Serpent's Due Schedule

Laddering Strategy

To provide flexibility and manage market volatility, users can implement a laddering strategy during the 8-day NFT minting phase of the $MZI token. This approach involves minting NFTs at various tiers. By doing so, users have the option to selectively burn some of their NFTs during the vesting period to access the underlying $MZI tokens earlier, particularly during price increases. This strategy allows users to claim part of their investment without needing to liquidate all their NFT holdings at once.

The Serpent's Due by default takes the forfeited $MZI tokens and sends them to Mizuchi's Hoard to help support the perpetual auctions.

There is a three-way switch in the contract that also allows those tokens to be either burned or sent to the payout pool. At some point in the future, there may be a community vote to change the routing of these tokens to be either burned or used for rewards.