πŸ“„ether.fan Litepaper

The NFT that pays you

Summary

ether.fan is a fun way to stake your ETH and mint a fan NFT that you can use to earn membership points and get boosted staking rewards. In addition, your fan NFT lets you participate in exclusive events and show off your commitment to Ethereum decentralization.

When you stake ETH via ether.fan you mint a fan NFT. The fan attributes consist of:

  • Traits: provably rare and randomly assigned at time of minting

  • Flair: deterministic and proportional to the amount of ETH staked

  • Membership tier: starting at Bronze, increasing over time resulting in boosted staking rewards

The fan NFT represents your staked ETH and accrues staking rewards automatically. You can add to your stake or withdraw your ETH at any time.

All ETH staked via ether.fan is allocated to solo node operators who are using DVT and running physical nodes in diverse geographic regions.

The fan NFT participates in a membership loyalty rewards program that boosts your share of staking rewards and protocol revenue the longer you stake.

Staking is done via the ether.fi non-custodial staking protocol and all revenue from the protocol goes back to stakers and solo node operators to subsidize the cost of staking hardware, with a small share to feed the ether.fi interns.

Minting a Fan

When you deposit ETH (minimum 0.1 ETH) via ether.fan the ETH is staked using ether.fi and allocated to solo node operators in diverse geographic regions. As part of your deposit you mint a fan NFT that represents your staked ETH. The fan continues to accrue staking rewards automatically over time.

Every new deposit mints a new fan, and you can hold as many fans as you like in your wallet. Think of them like trading cards, and eventually you will be able to participate in a variety of games and activities with your fan set.

You can use your fan NFT as a PFP to show your support for Ethereum and decentralization.

The fan NFT attributes consist of 3 components: traits, flair, and membership tier. See below for a brief explanation of how these work.

Traits

Traits are the unique properties of your fan character such as eyes, hair, and skin as well as intangible traits like charisma, strength and agility. Each trait has different levels of rarity and together they give your character its unique personality. Traits are determined randomly at minting time. Each fan has an overall rarity score that takes into account the rarity of the individual traits.

For more detail please see the traits section below.

Flair

The flair of your character depends deterministically on the amount of ETH that it contains. As you stake more your flair updates dynamically to represents the total amount of ETH staked.

For more detail please see the flair section below.

Membership tier

The membership tier of your fan depends mostly on how long you've been staking. The longer you stake the higher your membership tier and the greater your share of staking rewards and protocol revenue. Every fan initially starts at the Bronze membership tier and over time progresses up to Platinum.

For more detail please see the membership section below.

Upgrading a Fan

You can deposit more ETH (minimum 0.1 ETH) to upgrade a fan NFT at any time. Every time you upgrade you will get updated flair.

There are some restrictions when it comes to upgrading. You can only increase the ETH staked in your fan by a maximum of 20% per month without impacting your membership tier. If you increase the ETH staked by more than 20% it will decrease your membership tier.

Why is this restriction in place? Because otherwise someone would be able to deposit 0.1 ETH, wait until the fan gets to the Platinum membership tier and then deposit 100,000 ETH - this would effectively allow them to monopolize boosted staking rewards in the membership program.

The mechanism for upgrading fans is shown below:

// - topUpAmount: the amount of ETH for the top-up to the fan
// - currentDepositAmount: the amount of ETH deposit currently in the fan
let maxTopUpAmount = 20% * currentDepositAmount;
let topUpBeyoundLimit = topUpAmount - maxTopUpAmount;
if (topUpBeyoundLimit > 0) {
  // If a fan top-ups more than 20%, 
  // the tier points get diluted proportional to the excess top-up amount.
  let newTierPoints = (topUpAmount * tierPoints[user]) / (currentDepositAmount + topUpBeyoundLimit);
  updateTier(newTierPoints);
}

If you want to significantly boost your ETH staked via ether.fan the best approach is to simply mint a new fan. Over time as new ether.fan features are released it will be valuable to have multiple fan NFTs to participate in a variety of games and activities.

Burning a Fan/Withdrawing your ETH

You can withdraw some or all of the ETH in your fan at any time, but when you withdraw ETH you will be bumped down at least one membership tier.

With respect to withdrawals of ETH, you are unable to withdraw greater than 50% of the all time high value of your ether.fan without burning it. This means that you cannot continue to withdraw 50% of the ETH in your fan until you effectively go to zero.

If you want to withdraw more than 50% of the max amount of ETH this fan has ever contained, you will need to burn the fan NFT and get all your ETH back.

The withdrawal mechanism is shown below:

// - currentTier: the current tier of the fan
// - curTierPoints: the current tier points of the fan
// - withdrawalAmount: the amount of ETH for the withdrawal from the fan
// - currentDepositAmount: the amount of ETH deposit currently in the fan

// 1. point deduction if we kick back to start of previous tier
let prevTier = (currentTier > 0) ? currentTier - 1 : 0;
let degradeTierPenalty = curTierPoints - requiredTierPoints[prevTier];

// 2. point deduction if scaled proportional to withdrawal amount
let ratio = withdrawalAmount / currentDepositAmount;
let scaledTierPointsPenalty = ratio * curTierPoints;

// 3. apply the penalty as the max of them
let penalty = max(degradeTierPenalty, scaledTierPointsPenalty);
let newTierPoints = tierPoints[user] - penalty;
updateTier(newTierPoints);

Regarding the withdrawal flow for ether.fans:

  1. withdrawal for ETH

    • Withdrawal Request NFT is generated and the Oracle will finalize them after 1 ~ 2 days. Then, they can claim ETH once the validator is exited. For re-staked positions, this will include an additional 7 days to exit restaked EigenLayer pods.

  2. unwrap for eETH

    • instant swap for eETH Both flows will charge the burning fee if the fan NFT does not meet the burn fee waiver period (183 days).

Traits

Traits are determined randomly at the time of minting and give your fan a unique personality and rarity.

Traits Gender

TraitRarityRestriction

Female

20%

Male

80%

Traits Background

TraitRarityRestriction

Purple

25%

Green

25%

Pink

15%

Teal

10%

Ocean-green

10%

Ocean-yellow

10%

Mars

5%

Traits Skin

TraitRarityRestriction

Light

35%

Pink

5%

Light brown

15%

Red

20%

Brown

15%

Dark brown

10%

Traits robe and hat

TraitRarityRestriction

Space lord

20%

Green bishop

20%

Only male

Grey wizard

25%

Blue wizard

15%

Only female

Fire mage

10%

Only male

Dark Sorcerer

15%

Only male

Knight

10%

Blue knight

20%

Only female

Assassin

10%

Only female

Trait expression

TraitRarityRestriction

Warrior blue male

10%

Only male

Warrior brown male

20%

Only male

Zen brown

15%

Only male

Zen blue

10%

Only male

Exotic blue

10%

Only male

Exotic brown

15%

Only male

Intense blue

5%

Only male

Intense brown

10%

Only male

Laser eyes

2%

Only male

Morpheus male

3%

Only male

Serene blue

20%

Only female

Happy blue

20%

Only female

Happy pink

15%

Only female

Warrior brown female

10%

Only female

Warrior blue female

10%

Only female

Somber brown

10%

Only female

Somber blue

10%

Only female

Morpheus female

5%

Only female

Trair hair

TraitRarityRestriction

Bearded brown

20%

Only male

Bearded blonde

15%

Only male

Martial brown

10%

Only male

Martial blonde

10%

Only male

Elder brown

10%

Only male

Elder blonde

10%

Only male

Dandy brown

10%

Only male

Nordic blonde

5%

Only male

Flaming pink

5%

Only male, no hats

Short blonde

15%

Only female

Long blonde

15%

Only female

Flowing brown

10%

Only female

Rogue brown

15%

Only female

Pixie purple

5%

Only female

Fire

5%

Only female

Serious brown

10%

Only female

Flowing blonde

20%

Only female

No hair

5%

Traits scepter

TraitRarityRestriction

Magic orb

10%

Enchanted orb

15%

Laser sword blue

5%

Laser sword red

10%

Battle axe

10%

Fire axe

5%

Wizard staff

10%

Diamond staff

15%

Burning staff

10%

Inquisitive staff

4%

Wisdom pipe

3%

Wisdom coffee

3%

Flair

Flair displayed on the fan NFT is deterministic based on the amount of ETH staked.

Each fan NFT will have an approximate representation for the amount of ETH staked with up to 3 flair images based on the table below.

Size in ETHScale FactorColorSizeGlowInscription

0.1

0.5

green

tiny

none

none

0.3

0.7

green

tiny

none

none

0.5

1.0

green

tiny

none

none

1

0.5

yellow

small

none

none

3

0.7

yellow

small

none

none

5

1.0

yellow

small

none

none

10

0.5

red

medium

slight glow

none

30

0.7

red

medium

slight glow

none

50

1.0

red

medium

slight glow

none

100

0.5

purple

medium

intense glow

none

300

0.7

purple

medium

intense glow

none

500

1.0

purple

medium

intense glow

none

1,000

0.7

white

large

intense glow

inscribed

3,000

0.8

white

large

intense glow

inscribed

5,000

1.0

white

large

intense glow

inscribed

10,000

0.7

rainbow

large

rainbow glow

inscribed

30,000

0.8

rainbow

large

rainbow glow

inscribed

50,000

1.0

rainbow

large

rainbow glow

inscribed

100,000

1.0

white

full background

white glow

inscribed

For example: if someone has 135 ETH => the fan NFT will have the 100 ETH flair, 30 ETH flair, 5 ETH flair. Another example, if someone has 1,000.05 ETH then only the 1,000 ETH flair will be shown.

Membership

Membership program is a loyalty rewards system. The longer you stake, the higher a share of rewards you get. The longer the fan has been around the higher its membership tier. Each fan earns loyalty points over time. Loyalty points will be used for a variety of incentives and activities, such as auctions for ETH and other assets or experiences.

The amount of time staked determines the membership tier of the NFT (See the below table).

Membership TierTime to next tier (days)Weight

Bronze

60

1

Silver

90

2

Gold

120

3

Platinum

-

4

The proportion of protocol revenue distributed to each tier is determined by the weight of that tier. The weights and time required to move to the next tier will change from time to time at the discretion of the protocol.

For EAP users, how to convert (EAP point, EAP deposit amount) to Tier?

Let x = (EAP point) / SQRT(EAP deposit) * k where k == SQRT (1e15) = 3.16228 * 10^8

  • x >= 7002 β€”> Platinum

  • x >= 5348 β€”> Gold

  • x >= 0 (EAP users) β€”> Silver

  • Non-EAP users β€”> Bronze

Ether.fan Loyalty Points

This will address Loyalty Points as they relate to ether.fans only. To reiterate, ALL LOYALTY POINTS (from ether.fi or ether.fan) ARE THE SAME. This includes Loyalty Points earned from the Early Adopter Pool, ether.fan, eETH and weETH. A point is a point. There are simply just some more nuanced use cases for them in ether.fan that relate to the gamified environment that the community has created, and we envision the same for eETH as we continue to hit on our roadmap.

Are Loyalty points attached to the NFT?

YES. Loyalty points are attached to the NFT. This means that if you sell your NFT, the loyalty points move with it.

Where will points be displayed.

They will continue to be shown in the ether.fan Dapp once you connect your wallet and will continue to accrue in real time. Business as usual for those that have been with us from the beginning.

What can I do with Loyalty Points?

Loyalty will play a role in decentralized governance. Stay tuned for more πŸ‘€

As a member of the ether.fan community, you can also use your Loyalty Points to participate in the permissionless auctions.

How to earn Loyalty Points.

Simply stake your ETH in ether.fan and watch your points accrue. No additional work necessary.

Will there be a change to the ether.fan Loyalty Points calculation?

No. Loyalty Points will continue to accrue in the same way they always have.

As a refresher, by staking .001 Ether, you will receive 1 Point / day. This simply means that:

Loyalty points earned = ETH staked * 1000 * days staked

Example: If you have 5 ETH staked for 6 days, you will receive 30k of loyalty points (5 * 1000 *6) πŸ’ͺ

For our whales, there is a sizeable cap on total loyalty points earned of 10ΒΉΒ².

Will I be able to migrate my Loyalty Points earned in ether.fan to eETH?

Yes. Users will be able to swap the ETH in their fan, and associated Loyalty Points, directly from ether.fan to eETH come November 15th. Walkthroughs of this process will be provided. There are a few technical lifts involved with this, so it may take a few weeks for your loyalty points to display in the ether.fi dapp, so please be patient if you don’t see your points right away. Note however that if you minted your fan less than 6 months ago, you will still incur the ether.fan burn fee with this swap.

Can I lose my Loyalty Points?

Yes. There is only one way you can lose your Loyalty Points, by burning your ether.fan and exiting the protocol.

If you burn your ether.fan by swapping into eETH, you will maintain your loyalty points. As mentioned above, these Loyalty Points will transfer to your eETH position on ether.fi.

Points szn - Ether.fi x EigenLayer

ether.fan holders will earn EigenLayer points in addition to ether.fi Loyalty Points, as ether.fi will be restaking on EigenLayer. We will be remitting 100% of these points received to our eETH holders from day 1, and will be displaying their allocation of the EigenLayer points in their dashboard shortly after launch. More to come on this calculation. EigenLayer points are not attached to the NFT. This means that if you sell your NFT, the EigenLayer points do not move with it. They'd stay with the original ether.fan holder.

Operation Solo Staker

Ethereum nodes are too centralized and concentrated

All ETH deployed via ether.fan goes to Operation Solo-Staker (OSS.)

The goal of OSS is to help decentralize Ethereum.

First Ethereum node in Guatamala.

Wen Utility

There are many perks of being an ether.fan.

Governance role in ether.fi DAO in the future through accrued loyalty points.

Fees

Minting, staking more, and upgrading are all FREE.

Burning your fan, however, costs 0.05 ETH.

Initially all fees go back to stakers. After some period of time the fees will be split between staker and node operators and to buy ramen for ether.fi interns.

Why charge fees? to keep program sustainable, and return more revenue to solo stakers so they can afford to run distributed nodes.

Last updated