Cypher Quest - White Paper

Abstract

Cypher Quest is a groundbreaking cryptocurrency project that combines real-world treasure hunts with blockchain technology. Participants engage in quests by scanning QR codes or interacting with augmented reality objects. Upon successfully solving a simple cypher, users are rewarded with CypherQuest coins (CYPH). This white paper outlines the purpose, tokenomics, and mechanics of the Cypher Quest ecosystem.

1. Introduction

Cypher Quest aims to revolutionize the way people explore their surroundings by gamifying the process. By integrating QR codes, augmented reality, and cryptographic puzzles, we create an immersive experience that encourages users to venture out and discover hidden treasures.

2. Purpose

The primary purpose of Cypher Quest is to provide an exciting and interactive way for users to explore an environment. Participants can embark on quests, each associated with a physical location, where they must solve the clues or follow a map to find the target QR code.  Once found they must solve a cypher to unlock CYPH rewards. The combination of real-world exploration and cryptographic challenges makes Cypher Quest a unique and engaging project.

2.1 Commercial Opportunities

Beyond the thrill of discovery, Cypher Quest offers compelling commercial opportunities for businesses and entrepreneurs. Quest owners can strategically leverage the platform to drive users to their establishments:

1. Boosting Quests: Businesses can boost quests by adding additional CYPH tokens. Boosting increases a quest’s visibility on the map and enlarges the payout, making it more likely for users to encounter it during their explorations. For example, a café owner could boost a quest located in their establishment, enticing passersby to stop by for a coffee while participating in the treasure hunt.

2. Targeted Marketing: By strategically placing quests near their storefronts, businesses can attract foot traffic and engage potential customers. Quests become not only a fun activity but also a means of promoting local businesses. Imagine a boutique clothing store creating a quest that leads participants to their shop, where they can unlock exclusive discounts upon solving the cypher.

3. Collaborations and Sponsorships: Businesses can collaborate with Cypher Quest to create custom quests related to their products or services. These quests can feature branded content, special promotions, or tie-ins with specific events. For instance, a bookstore might sponsor a literary-themed quest that leads participants to famous book-related landmarks in the city.

3. Tokenomics

3.1 Total Supply

• The total supply of CYPH is fixed at 100 billion tokens.

3.2 Initial Allocation

• The majority of CYPH tokens are allocated to the Quest Reserve, ensuring a fair distribution without whales or investors holding majority tokens.  All of these tokens will need to be earned over the next 10 years.
• 5 billion CYPH are allocated to liquidity pools to facilitate trading, these will be held in a separate wallet and allocated to various pools overtime, initially we are allocating to a Raydium sol/cyph pool.
• 5 billion CYPH are reserved for the development team to cover operational costs, marketing and other expenses.

3.3 Distribution Over Time

• The bulk of the CYPH tokens are held in the CypherQuest pool.
• These tokens will be distributed to Quests over a 10-year period.
• Each quest mints a proportionate slice of CYPH based on an algorithm that considers the time elapsed since the last quest was minted and the quest’s duration, using a non-linear calculation.
• Longer gaps between minting will result in quests with higher payouts.  
• Too much minting in a short period of time will loiwer the current supply, the 'current charge' will be represented on the website as a battery level, however the exact amounts allocated to each Quest is kept secret.
• In practice 25 million CYPHs can be allocated out per day with each Quest minted on the day getting their share.  

3.4 Quest Self-Destruction

• Each quest has a predetermined time limit, up to 10 years that can be set by the Quest creator.
• The shorter the quest to faster its allocation will payout, but a short Quest will receive less overall coins than a long dated quest.
• Alternatively, quests self-destruct when the treasury is empty after 10 years from the game beginning.

4. Quest Mechanics

4.1 Quest Activation

• Quests appear on the map and users will navigate to the target location using GPS, maps, compasses etc...
• Users activate quests by scanning the QR code placed in the physical locations.  This could be a sticker, poster, 3D print, or placed inside some sort of container.  The Quest creator can choose any of these methods.
• Once scanned a simple Cypher game will appear that they need to solve.  These games will be added to over time and may involve community building and suggestions.  They may also be some sort of quiz that requires knowledge from the location to solve, i.e. a 2 factor approach to ensure the user is not spoofing their location.
• Alternatively augmented reality objects can be placed at specific GPS coordinates and the user must come withing several meters of these to activate them.

4.2 Payout Calculation

• When a user scans a quest, the payout is calculated based on the time elapsed since the Quest was last scanned, the quest’s duration and the Quests remaining payout amount.
• This level can be tracked and visualised as a battery level. 
• The finder receives 83% of the reward, incentivizing participation.
• The quest owner receives 5% - incentivizing creating Quests.
• Liquidity pools receive 2% - allowing us to reinvest in liquidity to support trading.
• Guardians, defined as users who previously found the quest, receive a 10% payout divided amonst them - inventivizing users to leave Quests intact and help others find the Quests.
• A user cannot scan a quest again while they are still a guardian

4.3 Guardian Cap

• The number of guardians is capped at a level set by the quest creator (maximum 100).
• This ensures that quests remain discoverable and motivates users to leave them in place for others.
• If more than 100 people scan a quest then the guardians will get replaced in a first in first out manner (queue).  After this point a hunter can rescan a quest to receive another payout and rejoin the Guardian list.

4.4 Boosting

• Users can boost quests by adding additional CYPH.
• Boosting increases the quest’s visibility on the map and enhances the reward.
• Commercial users can strategically boost quests to attract participants to specific locations.
• Boosting incurs a 5% burn tax, incentivising token value.
• Boosted Quests get access to additional features as detailed below.

4.5 Additional Quest Options

We have introduced exciting additional features to enhance the Questing experience. These options allow for greater customization and creativity:

4.5.1 Augmented Reality Objects

• Quest creators can deploy augmented reality (AR) objects alongside physical QR codes.
• These AR objects will be in .glb format and will be available in our library.
• Users will also have the freedom to upload and share their custom AR objects.
• Coming in Phase 2

4.5.2 Location Accuracy

• Users can fine-tune how accurately the GPS coordinates represent their quest location.
• The quest will need to lean more heavily on the clues than just the coordinates but opens the opportunity for far more cyptic clues and puzzling Quests.
• Additionally, there’s an option to have no fixed location at all.  This feature can allow a Quest creator to share a particular QR code via social media or other means and everyone can scan it and start the hunt.  it's a great way to kick off a treasure hunt and get it out there for multiple users.
• This flexibility allows for creative quest placement:
  • Attach a QR code to your vehicle, turning it into a mobile quest.
  • Wear a QR code as part of your attire, making yourself a walking puzzle for others to discover.
  • Attach to your mobile food truck and broadcast your location on our map
  • Make a social media post advertising the start of a Quest that ultimately leads to your business.

4.5.3 Self-Destructing Quests

• Quest creators can choose how long a quest remains active.
• Whether it’s a short-lived adventure or a long-lasting mystery, the self-destruct timer adds an element of urgency.
• Quests can last anywhere from a few hours to the maximum of 10 years.

4.5.4 Time Windows

• Users have the option to set specific local time periods during which a quest is active.
• For instance:
  • Place a quest on the top of a hill and make it available only during sunrise hours.
  • Create a nighttime quest that reveals hidden clues under the moonlight.
  • Align quests with specific events or natural phenomena for added intrigue.
  • Have your quest active only during 'happy hour' or a time window you want customers to enter your premise.

5 Burning and Leaderboard

5.1 Burning Mechanism

In the Cypher Quest ecosystem, burning serves as an essential mechanism to enhance scarcity and incentivize strategic behavior. When users choose to boost a quest, a 5% burn tax is applied to the CYPH tokens they contribute. Here’s how it works:

1. Boosting Quests: Users can voluntarily add CYPH tokens to a quest to increase its visibility and reward potential. However, this action comes at a cost—the burn tax. By burning a portion of their tokens, users actively participate in maintaining the ecosystem’s balance.  Boosted quests unlocks multiple more options to customize the quest.  You can also add messages and a URL to display to users when they scan.

2. Scarcity and Value: The burned tokens are permanently removed from circulation. As more users boost quests, the overall supply of CQT decreases, leading to increased scarcity. This scarcity contributes to the value of remaining tokens, benefiting all participants.

3. Leaderboard: To recognize and celebrate the most committed contributors, we’ll introduce a leaderboard. Users with the highest cumulative burn rates will be prominently displayed. Weekly NFT rewards will be distributed to the top burners as a token of appreciation.

5.2 Additional Burn Mechanisms

Beyond quest boosting, here are some other burn-related features we’re considering:

• Player cusomization burns: Allow users to spend CYPH to customize their quests and player avatar further. For example, they could change the appearance of their avatar or add unique sound effects and images upon completion.

• Exclusive NFT Burn: Introduce limited-edition NFTs that users can acquire by burning a specific amount of CYPH. These NFTs could grant special privileges within the Cypher Quest community and serve as collectibles.

• Augmented reality sales: Users could share their AR objects with other quest creators and receive CYPH for their efforts with a proportion paid by the creator as burn tax. 

Burning isn’t just about reducing token supply—it’s about fostering engagement, creativity, and community participation. 

6.  Phantom Wallet Integration

• Users can top up or withdraw CYPH to/from their Phantom wallet.
• The Solana blockchain powers the Cypher Quest game, ensuring security and scalability.

Conclusion

Cypher Quest introduces a novel way to explore the world while earning cryptocurrency rewards. By combining technology, adventure, and community, we create an ecosystem that encourages discovery, engagement, and fun.

Disclaimer: This white paper is for informational purposes only and does not constitute financial or investment advice. Participants should conduct their own research and due diligence before engaging in Cypher Quest. 🌟

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