Double Spent operates as an autonomous ecosystem governed by immutable mathematical principles and catalyzed by rational self-interest. Leveraging Cardano's extended UTXO model, the protocol creates a unique equilibrium where individual actions naturally align with collective prosperity.

The protocol implements dual incentive mechanisms:

A burn mechanism that rewards early participants when the collection grows.
A prize pool that massively(?) rewards the most recent minter after a time delay which is pushed farther into the future with each mint.
These mechanics create a revolving interplay of incentives where individual self-interest drives collective growth maintaining a mathematical balance to encourage the different stages required to scale.

> Buy early to burn | Buy last to win

## Dual Value Extraction
Double Spent creates two distinct paths for participants to extract value:

### 1. Burn Mechanism
Rewards early participants when the collection grows:

- Only NFTs with index < total/2 are eligible
- Burning destroys the NFT but yields ₳200
- Net profit: ₳94 (88.7% +) per eligible NFT
- Just under half of all NFTs will eventually qualify



### 2. Prize Pool
Rewards the most recent participant:

- Accumulates ₳4 from each mint
- Claimable only by the last minter
- Must wait until timer expires
- Value grows linearly with collection size
- Position transfers with each new mint

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## Game Theory
Double Spent creates a economic environment where individual incentives drive collective behavior in predictable yet complex ways.

### Participant Motivations
#### 1. Early Participants
Motivated by securing positions that will become eligible for burning as the collection grows. Each position has potential for ₳94 profit when the collection doubles their position.

#### 2. Middle Participants
May acquire NFTs hoping for continued growth to reach burn eligibility. These participants create the necessary growth for early positions to become eligible and for the Prize Pool to grow to a desirable amount.

#### 3. Late Participants
Increasingly motivated by the growing Prize Pool. As this value grows, the incentive to become the last minter increases proportionally.

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## The Minting War Scenario
As the Protocol grows, a fascinating dynamic emerges around the Prize Pool:

1. Value Growth: The Prize Pool accumulates ₳4 with each mint
2. Economic Threshold: When the Prize Pool exceeds ₳106 (after 27 mints), it becomes theoretically profitable to mint solely to claim it
3. Competitive Dynamic: As the value grows substantially, multiple participants may compete to be the last minter
4. Escalation: Each new mint in this competition further increases the Prize Pool value while transferring the claim rights
5. Timer Extension: Each mint adds 20 minutes to the timer, preventing immediate claims and allowing for more competition

#### Theoretical Minting War
Consider a scenario where the Prize Pool reaches ₳4,000 (after 1,000 mints):

The value now exceeds the mint cost by nearly 40x
This creates strong incentive for participants to compete for the last position
Each competitor must balance:
1. The cost of minting (₳106)
2. The probability another participant will outbid them
3. The extended waiting time with each new mint
This competition could theoretically drive continuous growth

## Emergent Equilibrium
The dual incentive structure creates a self-balancing system. The burn mechanism rewards early participation, while the Prize Pool creates increasing incentive for late participation. Together, these mechanics create a protocol where individual greed fuels collective growth, potentially driving the system toward various equilibrium states determined by participant behavior and economic conditions.

### Game Mechanics Analysis
The protocol can be analyzed through several game-theoretic lenses:

### Prisoner's Dilemma Aspect
Participants face a classic dilemma: minting immediately to secure a position versus waiting for others to mint first. While collective restraint (waiting) would minimize overall costs, individual incentives push toward aggressive minting, especially as the Prize Pool grows.

### Auction Mechanics
The competition for the last minter position resembles an all-pay auction where each bid (mint) incurs a cost, but only the final bidder receives the reward. This creates a natural escalation dynamic as the Prize Pool grows to significant values.


### Long-Term Behavior Patterns
Initial exploration: Early phase characterized by experimental participation with limited capital commitment
Growth acceleration: As burn eligibility proves profitable, participation increases and collection grows geometrically
Competition phase: Prize Pool values become significant enough to drive competitive minting wars
Professional optimization: Advanced tools and strategies emerge to maximize returns, potentially including automated minting bots
Equilibrium establishment: Growth eventually stabilizes at a level determined by market conditions and participant resources
The Double Spent protocol creates a rare economic laboratory where game theory principles play out in real time on a blockchain. By aligning individual incentives with collective growth through carefully balanced mechanisms, the protocol demonstrates how structured competition can drive emergent behaviors that benefit both early and late participants through different value-capture methods.
Technical Architecture
Double Spent is implemented on the Cardano blockchain using Aiken for smart contract development and Mesh for offchain integrations. The architecture consists of several interconnected components that work together to maintain the protocol's state and enforce its rules.

## Artwork & NFT Generation
Each NFT in the Double Spent collection is procedurally generated, creating a unique visual representation derived from its index number.

NFT 1: ![Alt text](https://double-spent-image.vercel.app/api/double-spent/1)
NFT 53: ![Alt text](https://double-spent-image.vercel.app/api/double-spent/53)  
NFT 99: ![Alt text](https://double-spent-image.vercel.app/api/double-spent/99)  
Collection Specifications
The artwork for each NFT is generated using a deterministic algorithm that:

Uses the NFT's index as a seed value
Creates 300px × 300px minimalist designs
Employs mathematical functions to determine visual elements
Ensures each piece is unique while maintaining collection coherence
"The artwork serves as a visual representation of position within the protocol. Early NFTs with lower indices feature distinct visual characteristics from later NFTs, creating a visual language that reflects the mathematical properties of the collection."

Double Spent

Products

CETF is the Cardano Native Governance Token for the CETF Hybrid DAO and its Asset Pools

CETF

A consortium of DeFi projects with the goal of standardizing Plutus and Cardano best practices within the DeFi world.

Cardano Alliance

Alliance

Alliance

CETF

Cardano DeFi Alliance