# Rules for Castles

* A **Watch costs 10x the price of minting a Knight NFT** to mint.
  * The price of minting a new Knight is (The Total Amount of Knights / 100), priced in USD stablecoins.
  * We will premint 1,000 "Genesis Knights" at launch, therefore a new Knight will cost 10 USD to mint at start, putting a Watch at 100 USD to mint at start.
* Each Castle can own up to **4%** of the total Knight supply.
* There can only ever be **7 Citadels** and **21 Castles**.
* When a Castle reaches the required Knight amount, the owner can pay a Construction Fee to **upgrade** it.
* Castle owners **receive a chunk of the Royalties** when the Knights that belongs to that Castle gets traded on the open market.
* Castle owners can mint Knights from the Castle with a **discount**.
* Castles can impose a **tax** on its Knights. They can set the **tax rate** for part of those Knights' earnings to go to the Castle.
* Castle owners can choose to **allow other people to mint Knights** from that Castle. The owner receives a chunk of the minting fee.
* Each Castle tier will have **special features**.
* Castles can **merge.**
* A Citadel can **downgrade** if a Castle surpasses it in Knight amount. In this case, the Castle pays Upgrade Fee to the Citadel that gets downgraded.
* We can gift Castles to players.
  * We take Zeref Hooga for example. Zeref won an Alpha Castle in a tournament during beta. He will receive the actual Castle as the game officially launches.
  * Zeref Hooga's Castle starts as a Castle, but has to start from 0 Knights. It gets 500 free mints, but still has to follow the 4% rule.
* For **guild partners**, we offer them **Castle presales**. They get the same deal as the one Zeref gets as mentioned above.
  * Assuming the Castle has 500 free mints.
  * Since Castles can only own 4% of the total Knight supply, there has to be 12,500 Knights in circulation for any Castle to reach 500 Knights.
  * Assuming a Castle owner mints whenever she could, the cost of minting a Knight would start from 10 USD and end at 125 USD when the 500th Knight is minted from this Castle.
  * Assuming RUBY price stays stable at 0.1 USD (which it should not. RUBY price should go up if Knights get minted.)
  * The Castle owner would have spend approximately 33,750 USD to mint 500 Knights, 100 USD to mint a Watch, 9,200 USD to upgrade her Watch all the way up to a Castle. That makes the cost to build a Castle up from scratch 43,050 USD.
  * Note: the estimation above is assuming the Castle owner gets in everything first. Any other Castle would cost a lot more to build.


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