AI vs AI Fights & Wagering

Battle Modes
Loot Mode: Winner steals a portion of the loser's market cap, directly affecting token prices. This creates high-stakes competition where victory translates to immediate financial rewards for shard holders.
Pot Mode: Multiple monsters contribute to a shared prize pool, with the winner claiming the entire pot. This mode allows for larger tournaments and multi-monster competitions.
Battle Scheduling
Early Development: Battles occur every 2-3 days during the initial launch phase, giving new monsters time to develop their AI personalities and allowing players to build their positions.
Scaling Frequency: As the ecosystem grows and more monsters join, battle frequency increases progressively, creating continuous competitive opportunities and more dynamic market movements.
Admin Oversight: Battle coordinators handle scheduling and matchmaking, ensuring fair pairings between eligible monsters based on level ranges and availability.
Battle Execution Flow
Battle Initiation
Validator receives battle request between two specific monsters
System verifies both monsters meet eligibility requirements (not currently in battle, adequate level, etc.)
BattleManager contract initializes on-chain battle state
Both monsters are temporarily locked from trading to prevent manipulation
Off-Chain Combat Simulation
Advanced battle simulation runs using each monster's current stats, moves, and AI personality
Comprehensive combat log tracks every move, damage calculation, and strategic decision
Winner determined when one monster's health reaches zero or turn limit expires
On-Chain Resolution
Validator submits verified battle outcome to BattleManager contract
Results include winner/loser identification and exact transfer amount
Smart contract validates battle authenticity and ensures timeout compliance
Economic settlement executes automatically
Market Impact Settlement
ETH value transfers directly between monster token contracts
Winner's market cap increases while loser's decreases by the transfer amount
Trading locks are removed and normal market activity resumes
Market Cap Transfer Mechanics
When battles conclude, ETH transfers between monster contracts and the bonding curve automatically readjusts to maintain price equilibrium.
Technical Process
Pre-Battle State:
Price Formula: token_price = supply / curveMultiplier
Current Supply: existing_tokens
ETH Reserve: current_eth_backingPost-Battle Adjustment:
New ETH Reserve = current_reserve ± battle_transfer_amount
new_multiplier = (supply × (supply + 1)) ÷ (2 × new_reserve)Real Impact Example
Winner (Gains 5 ETH):
Before: 1000 tokens backed by 50 ETH
After: 1000 tokens backed by 55 ETH (+10% backing)
Result: Token prices increase ~9% due to stronger ETH backing
Loser (Loses 5 ETH):
Before: 800 tokens backed by 40 ETH
After: 800 tokens backed by 35 ETH (-12.5% backing)
Result: Token prices decrease ~11% due to reduced ETH backing
Battle Prediction Factors
AI Strategy Evolution: Each monster's AI adapts during battle using reinforcement learning. Monsters can overcome statistical disadvantages through superior tactical decisions and move selection.
Core Statistics: Health, Attack, Defense, and Speed stats heavily influence outcomes. Higher-level monsters possess superior base stats, creating natural advantages in extended fights.
Critical Hit Mechanics: Random elements including critical strikes ensure battles aren't purely deterministic. Even weaker monsters can score upset victories through fortunate timing.
Type Advantages: Elemental matchups (Fire vs Grass, Water vs Fire) provide significant damage multipliers that can swing battle momentum.
Experience Levels: Monsters gain experience through battles and training, unlocking new moves and stat improvements over time.
Safety & Security Measures
Battle Timeout Protection: All battles must complete within 5 minutes. Timeouts result in no value transfer to prevent system abuse.
Transfer Limits: Maximum transfer amount capped at 3% of the losing monster's total ETH reserve to prevent excessive market volatility.
Validator Authorization: Only whitelisted, verified validators can initiate and resolve battles, ensuring system integrity.
Anti-Manipulation: Trading locks during battles prevent coordinated pump-and-dump schemes around battle outcomes.
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