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  • GoGoPool AMA #1 — Project Overview (Recap)

    GoGoPool AMA #1 — Project Overview (Recap)

    COMMUNITY QUESTIONS

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  • GoGoPool X Avalaunch: IDO Announcement

    GoGoPool X Avalaunch: IDO Announcement

    Introduction

    The demand for Web3 technology is growing exponentially, and will result in the onboarding of millions of new users in the coming years. In its current form, Web3 is built for thousands of users and can not meet the scaling demands of these anticipated millions. One truly popular app could completely break any layer 1 chain. The only way to scale Web3 and meet this demand is through appchains—and GoGoPool thinks Subnets are the best (and only) option to create this safe and scalable solution.

    Subnets partition blockchain networks into smaller, more manageable parts, each with their own set of validators and levels of security. Basically, Subnets are their own sandboxes that are customizable, flexible, and scalable. It’s a private blockchain with batteries included.

    Avalanche is unlike any other network in that it was specifically designed to support the creation and management of Subnets. The blockchain’s consensus mechanism is unique because it allows for fast and efficient validation of transactions across the network. This makes creating Subnets with their own features, consensus mechanisms, and governance models easier.

    Avalanche is uniquely positioned to engineer a future where Subnets are responsible for network scalability, flexibility, and interoperability cross-network for Web3.

    GoGoPool is working to advance the adoption of Subnets by making it simple for builders to create and manage them.

    In their own words, “we make Subnets easy.”

    About GoGoPool

    GoGoPool is keenly aware of the challenges arising for builders as the Subnet ecosystem begins to grow. In particular, there are three noted obstacles: high validation costs, inefficient tooling, and a lack of community onboarding.

    Every validator node of a Subnet must also be a validator of the Primary Network, which costs 2000 AVAX. That means to get started, a Subnet which requires 5 nodes will force a project to source 10,000 AVAX. This prohibitive cost makes experimentation with a Subnet untenable. Projects need a way to quickly source hardware and AVAX easily.

    The first release is GoGoPool; a permissionless staking protocol designed specifically for Avalanche Subnets to make sourcing validator nodes easy. At launch, GoGoPool reduces the AVAX requirement to launch a new validator node by about 50% via liquid staking.

    When using GoGoPool to liquid-stake, users swap AVAX for ggAVAX token, a new staking token which represents their staked AVAX plus any rewards it has accrued in real-time. Users can sell, hold, or spend ggAVAX. Effectively, they can use ggAVAX in the same way they use AVAX. No technical knowledge or hardware is required, and there is a 0.1 AVAX staking minimum.

    You use ggAVAX to grow the Subnet Ecosystem while liquid staking.

    Once a liquid staker swaps AVAX for ggAVAX, they start earning rewards automatically. The AVAX is held in the Deposit Pool smart contract where it gets matched to node operators.

    To launch a new validator node through GoGoPool, users supply their own hardware and register minipools by staking only 1000 AVAX (instead of the normal 2000) and stake 10% of that value via the GGP token. Because node operators stake AVAX and GGP, they earn rewards in both AVAX and GGP. New minipools are placed in a queue to get matched from the ggAVAX deposit pool.

    Once matched, minipools are launched as full AVAX validator nodes.

    Minipools are non-custodial and were designed for maximum safety and freedom for node operators and liquid stakers. Operators retain full ownership of their node and may use it to validate Subnets, and it is this commitment to maintaining a permissionless protocol that makes it easier for participants to launch a Subnet!

    Benefits to Users

    The primary users are liquid stakers, node operators, and subnet operators.

    Liquid stakers now have a direct way to support the Subnet Economy, as every AVAX they stake gets matched directly to a minipool. This lowers the cost of hardware and sourcing AVAX for a Subnet; helping Subnets launch faster. Liquid stakers still earn AVAX staking rewards, while not needing any technical knowledge. Avalanche Network penalties and rewards are socialized across the pool, creating a safer and more stable experience than solo delegation. If a node operator’s rewards are slashed, their GGP collateral is also slashed to help make stakers whole. The ggAVAX token can be used in DeFi the same way AVAX can.

    Node operators are able to launch more validators at a cheaper cost, while earning more. They earn in 3 ways: staking rewards, monthly GGP rewards, and an operator commission from the matched liquid staking funds. Minipools are permissionless and noncustodial, giving full ownership to operators. Operators are also able to participate in the GoGoPool DAO, giving them access to Subnets who are looking to test their technology and find product market fit.

    Subnet operators can launch their own nodes through the protocol, and tap into the community as they need to scale and decentralize. Projects that partner with the GoGoPool DAO will also get access to Subnet tooling (more details on this coming soon!) to help them launch faster with less engineering costs.

    Token and Utility

    ggAVAX

    When a user deposits AVAX into the deposit pool, they receive a synthetic derivative token called ggAVAX.

    ggAVAX represents a staker’s deposit plus the rewards it gains over time. This token is considered liquid and can be used like AVAX whereby users can:

    • Hold it to accrue staking rewards
    • Sell it, or 
    • Use it to earn additional yield. 

    If there is floating AVAX in the deposit pool, users will be able to exchange ggAVAX back for AVAX (which burns the ggAVAX, and draws AVAX from the deposit pool). Alternatively, they will have the option to exchange it for any token they would like on exchanges that list the token.

    GGP

    GGP is an ERC20 token and serves as the protocol token for GoGoPool. The GGP tokens allow Node Operators to launch minipools i.e. full Avalanche Validator nodes matched with user funds for 1000 AVAX.

    Node Operators have to stake a minimum amount of GGP tokens to secure their assigned staking funds as insurance for good behavior. At genesis the minimum will be 10% of their AVAX staked amount, but the operator can choose to stake as much as 150%. The higher their GGP stake, the higher their monthly GGP rewards will be. Node Operators can use these GGP rewards to launch new validator nodes, increasing their overall yield. In the future, Node Operators may restake their monthly GGP rewards to request AVAX delegation from liquid stakers onto existing minipools.

    If a node operator has excessively low uptime and causes a loss of rewards for the protocol, stakers can be compensated from the GGP insurance put up by the Node Operator. This socializes the risk of being matched with a bad operator, and minimizes any potential losses. Slashed GGP can be sold to token holders at a discounted rate, with AVAX proceeds awarded to Liquid Stakers.

    GGP token holders will have the ability to participate in the GoGoPool Protocol DAO, which allows members to propose and vote on a range of governance issues including inflation schedule of GGP, removing/replacing bad actors, smart contract upgrades, payment of community developers for future work, and rewarding outstanding members of the community (as well as other configuring the settings of the protocol).

    GoGoPool DAO

    GGP’s goal is to have every component of the protocol be configurable by the ProtocolDAO. Anyone with a GGP token has the ability to partake in the ProtocolDAO, proposing and voting on new items. Members of this DAO will be responsible for pushing the limits on what DAO members can and will do, and set the standard for other web3 projects.

    The ProtocolDAO will maintain a treasury to pay for security audits and reward community/developer contributions.

    Some of the governance factors the ProtocolDAO members will have influence over are listed below:

    • Depositing funds into the treasury wallet.
    • The GGP token inflation schedule and rate.
    • At genesis, there will be 0% inflation for 4 years, at which point the DAO can contemplate adding a 2-5% inflation rate to be used as rewards.
    • GGP reward distribution between Node Operators and DAOs.
    • Configure protocol settings like min/max staking amounts, enabling/disabling registration, etc.
    • Deciding on liquidity mining and bootstrapping reward programs.
    • Blacklisting / whitelisting Subnets.

    Snapshot voting will be used to gauge sentiment, and outcomes will be executed on by the GoGoPool Foundation. The Foundation is a Cayman entity which has an independent Director, and is in charge of executing DAO proposals and guiding the progressive decentralization process for the protocol.

    There is a second DAO which is responsible for maintaining the health of the protocol in its earlier days. The RialtoDAO is initially made up of the core developer team, and will be decentralized over time. This DAO operates Rialto (MPC software) and maintains a few important functions for the GoGoPool protocol (distribution of Avalanche staking rewards, initial price oracle to the protocol). See docs for more information.

    Traction

    GoGoPool – Links and Team

    Website | Discord | Medium | YouTube | Twitter

    Partners and Backers

    “GoGoPool isn’t just another Liquid Staking Protocol, it’s an LSP and a coordination mechanism that allows subnets to be deployed easier and cheaper. With their innovation, we believe GoGoPool could become a core infrastructure component for the Avalanche ecosystem, which is at the forefront of blockchain technology. Disclaimer necessary: This testimonial does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product.”
    – Brian Johnson, Republic Capital

    “We believe GoGoPool is on the forefront of innovation in Avalanche scaling and growth by addressing the two most critical points: reducing the friction of launching and operating a subnet, and lowering the barrier to entry for staking participants who seek to reinforce the network. If you’re a supporter of Avalanche, you should be very excited by the important tech that the GoGoPool team continues to roll out for the ecosystem.”
    – Brandon Potts, Framework Ventures

    “I have been an Avalanche validator since day 1 and believe subnets are key to truly scaling blockchains. The GoGoPool team has the potential to help achieve that dream, by creating a rich platform connecting validators like me to web3 builders eager to launch their own subnets. The team has strong technical expertise, a community-focused vision, close ties with Ava Labs, and no obvious competitor. I can envision a future where the GGP token plays a crucial, bedrock role in a dynamic subnet economy.“
    – B_Tanyeri, Avalanche Validator

    Conclusion

    GoGoPool aims to make the adoption of Subnets in Web3 seamless and efficient. By addressing the challenges of high project costs, inefficient tooling, and lack of community onboarding, it is empowering builders, node operators, and users to participate in the rapidly growing Subnet ecosystem. The permissionless staking protocol reduces the AVAX requirement for launching validator nodes, making it more accessible for a broader range of participants while giving liquid stakers a way to directly help the Subnet ecosystem.

    The mission is to drive the future of blockchain technology through network scalability, flexibility, and interoperability, as envisioned by Avalanche. By offering benefits to liquid stakers, node operators, and subnet operators, it fosters a more collaborative and interconnected blockchain landscape.

    The introduction of the ggAVAX and GGP tokens further enhances the functionality of the platform, providing a way for node operators and liquid stakers to work together to grow Subnets. The GoGoPool DAO ensures that the platform’s future is shaped by its community, giving GGP token holders the power to influence governance decisions and drive the platform’s direction.

    GoGoPool is a crucial step toward the realization of a truly interconnected Web3 world. By streamlining the creation and management of Subnets on Avalanche, we are making this cutting-edge technology accessible to a wider audience and helping to build a future where blockchain networks can seamlessly communicate and collaborate with each other while handling a Web2 level of scale.

    Join in the journey to revolutionize the blockchain landscape and advance the adoption of Subnets for a more connected and decentralized world.

    “It’s been great working with Avalaunch, and it’s awesome to be a part of this whole thing. We are all-in on making Subnets easy, reducing launch times for projects, and creating an ecosystem in order to scale Web3 and bring blockchain to the world. If we as a community play our cards right, I believe that in 3 years 80% of appchains will be powered by Avalanche Subnets.”
    – Steven Gates, GoGoPool Co-Founder

    The GoGoPool launch on Avalanche represents a truly community-centric, cooperative piece of infrastructure that will go a long way in moving Subnets forward.

    Funding Numbers

    To ensure fairness, transparency and community support the original private sale and public sales are at the same price. Public participants will note that the private sale is subject to a significant lock as are the pre-IDO partners whom are also buying at a premium over the public round. GGP feels this is important to make sure that all parties are correctly aligned at launch – there are no pricing differences between what is paid by private investors (VCs, angels, etc) and the Avalanche community. This way, everyone is sharing the same risk and rewards at genesis and fosters equality and fairness.

    GGP believes that every person involved in both sales will directly help the protocol decentralize and scale for the years to come.

    Total Supply: 22.5M GGP Tokens

    • Seed Round—5M USD at $1.33 per GGP 
    • Pre-IDO Partner Sale: up to 1.35M USD at $2 per GGP*
    • Avalaunch Validator IDO: 50K offered to validators at $1.33 per GGP
    • Avalaunch Stakers IDO: guaranteed 250K USD at $1.33 per GGP**

    *The pre-IDO partner sale is ongoing and GoGoPool will not accept more than 1.35M although interest may exceed this number. GGP reserves the right to sell less and any remainder will roll over to the foundation.

    **Total IDO allocation is up to 1% of the total supply. Any remainder after 90 days rolls over to Foundation.

    SUPPLY BREAKDOWN & VESTING

    Total Supply: 22,500,000 GGP

    • GoGoPool Foundation: 41.42% | The below allocations are subject to change according to DAO voting. Snapshot voting will be used to gauge sentiment, with recommendations executed by the Foundation.
      • DAO Fund: 16.42% | allocated as per the DAO — eg. growth capital, additional grants, liquidity incentives, airdrop schemes, strategic alliances, advisors, etc.
      • Ecosystem Development Grants: 15% | To fund engineering, business development, and marketing.
      • Liquidity Incentives: 10% | To be deployed as the DAO sees fit.
    • Original Team: 20%
    • Seed Round: 15.58%
    • GGP Staking Rewards: 15%***
    • Advisors: 3%
    • Pre-IDO Partner Sale: up to 3%
    • Liquidity: 1% 
    • IDO: up to 1%. Any remainder rolls over to Foundation

    ***GGP Staking Rewards are split between 3 parties, and unlocked when issued:

    • 70% to node operators
    • 15% to Rialto DAO
    • 15% to Protocol DAO Treasury

    Vesting Following TGE:

    • GoGoPool Foundation: Locked for 3 months, to be deployed under DAO snapshot voting over the following 48 months.
    • Original Team: 12-month lock up, 36-month with quarterly vesting.
    • Seed Round: 12-month lock, 36-month with quarterly vesting.
    • GGP Staking Rewards: 48 months, monthly vesting. 
    • Advisors: 12-month lock, 36-month with quarterly vesting.
    • Pre-IDO Partner Sale: 
      • Tickets under 100k USD: minimum 12-month lock with 12-month quarterly vesting.
      • Tickets over 100k USD: 12-month lock, 36 month quarterly vesting. 
    • Liquidity: Fully unlocked at TGE. 
    • Avalaunch IDO: Fully unlocked at TGE.

    Initial Supply: 187,970 GGP

    • Liquidity pool—500K ($250K AVAX + ~188K GGP)
    • IDO sale: 300k USD—225,000 GGP tokens
    • Initial Market Cap (excluding liquidity): ~250K USD

    Note: The only day 1 circulating tokens, excluding liquidity, will belong to Avalaunch IDO participants.

    REGISTRATION SCHEDULE:

    Registration Opens: Tuesday, April 18 at 3:00 p.m. (UTC)
    Registration Closes: Sunday, April 23 at 6:00 p.m. (UTC)

    SALE SCHEDULE:

    Validator Round Begins: Tuesday, April 25 at 6:00 a.m. (UTC)
    Validator Round Closes: Tuesday, April 25 at 3:30 p.m. (UTC)

    Staking Round Begins: Tuesday, April 25 at 3:30 p.m. (UTC)
    Staking Round Closes: Wednesday, April 26 at 6:00 a.m. (UTC)

    Booster Round Begins: Wednesday, April 26 at 6:00 a.m. (UTC)
    Booster Round Closes: Wednesday, April 26 at 10:30 a.m. (UTC)

    Introducing Avalaunch Refunds

    The upcoming GoGoPool x Avalaunch sale debuts Avalaunch’s innovative refund policy, focusing on safeguarding user participation. This includes a 14-day price performance guarantee, making users with unclaimed tokens eligible for refunds in the event of poor token performance. Refunds can be conveniently processed via the Vesting Marketplace, enabling simple requests and fast completion.

    For more detailed information about the refund policy and its requirements, please refer to the main article.

  • The Future of Esports – How BFG Will Shape Web3 Gaming

    The Future of Esports – How BFG Will Shape Web3 Gaming

    From wanting to be professional athletes, kids now want to be professional gamers. The competitive spirit that lives and breathes within us always wants to prove its merit. Tournaments, leagues, and Esports events bring millions of fans to watch players compete. Social media is flooded with gaming videos, creators, and the gates have been opened by icons like Dota 2, Fortnite, and CS: GO. Now, Web3 gaming is making its first step, and it’s ready to pack a punch. Enter Battle For Giostone, the game that encompasses the future of gaming and the future of Esports.

    The Rise of Battle For Giostone

    From a concept to a fully playable game, it has taken Battle For Giostone a little over a year to turn a dream into reality. Founded by experts and lifelong gamers Mile Gramatikov, and Theeban Siva (1437), it quickly amassed a community of dedicated and competitive gamers. The MOBA genre walked so that Battle For Giostone could run. Building on the main weak point of current Web3 games, Battle For Giostone is actually fun to play. You can check that out for yourself and play for free.

    The unique mechanics make it different from titles like League of Legends, Dota 2, and Smite. Players get to forge their Heroes out of six Hero Classes and 72 Abilities. Not only that, but the duration of matches will be limited to 30 minutes and include Battle Royale elements. The Giostone mechanics make it incredibly fast-paced. Last but not least, players can trade their assets and get rewarded.

    The Impact of Battle For Giostone on Web3 Gaming

    Gaming is a multi-dimensional niche. Some people look at it as a method of relaxation. Others look at it as a place to compete. And then there are those who want to make a living out of it, either through esports, in-game earning, or creating content.

    Battle For Giostone hits on the key points of each player persona. You can play solo or as a team in 5vs5 matches and choose whether you want to play casually or compete. The free-to-play aspect allows everyone to test out the waters and see if they love MOBAs. Easy to learn and hard to master immediately brings in a community of people who want to explore every crevice and emerge victorious through skill and effort.

    Here’s what a Community Game Night looks like:

    The Future of Battle For Giostone in Esports

    As Battle For Giostone continues to grow and evolve, the future in Esports will look brighter than ever. The game is becoming more popular by the day, and the continuous game nights, tournaments, as well as the Primal Giostone League have a snowball effect when it comes to interest.

    There are countless possibilities for how new technologies can push the boundaries of competitive gaming. With a fully equipped production studio, the team hosts and casts events and creates content to remain fresh and exciting for both players and spectators alike.

    The ongoing development ensures the game remains fair and balanced, making it incredibly lucrative for gamers who want to compete and showcase their skills. Ultimately, the future of Battle For Giostone is intertwined with the future of Esports. It’s well on its way to becoming a leading force in the industry in the following years.

    Here’s a tournament that was hosted recently:

    How Battle For Giostone Will Shape Web3 Gaming

    The Web3 space is evolving rapidly, and new trends are constantly popping up. But one thing has always been true of the world. People always want to know who is the best. Whether that’s the Olympic Games, the World Cup, the Superbowl, the International, or the Primal Giostone League, there’s always a question of who will win.

    With a heavy focus on skill, teamwork, and strategy, Battle For Giostone can capture the minds of millions and evolve proactively. Whether you’re a die-hard fan of MOBAs already or a complete newbie makes no difference. There’s never been a better time to start playing, become a part of the community, and experience the thrill and excitement of competing!

  • Introducing Avalaunch IDO Protection & Refund Policy

    Introducing Avalaunch IDO Protection & Refund Policy

    Introduction

    The rapidly evolving world of crypto has given rise to innovation and opportunity along with the volatility that accompanies genuine disruption. Among these opportunities, IDOs have become a popular method for launching new tokens and raising capital for promising projects. Avalaunch is committed to providing a secure and transparent environment for users to participate in token sales and IDOs. Because investing in this dynamic landscape can be challenging and unpredictable at times, Avalaunch has established a comprehensive refund policy designed to address specific situations to better safeguard our users’ interests.

    The Importance of a Refund Policy

    A well-defined refund policy not only instills trust and confidence but also serves as a protective measure against unforeseen market fluctuations and project shortcomings. By outlining clear eligibility criteria and a streamlined process on a per sale basis, Avalaunch ensures that users can make informed decisions when participating in token sales and IDOs, while also having a safety net in place should the need arise.

    Our Next Sale Policy

    Given that each sale is unique with varying terms and vesting periods, Avalaunch will provide a bespoke solution on a per sale basis to best serve our users. Avalaunch focuses on price protection in three primary ways:

    1. Liquidity—Teams must believe in their pricing and must provide a tradable environment for their token. Initial liquidity provision should be roughly equal to the value of the circulating supply at IDO price.
    2. Price Uniformity—Retail buyers often have the luxury of unlocked tokens while private investors are subject to vesting but may receive tokens at a heavily discounted price along with a percentage of their allocation at TGE. This substantially lowers the cost basis of circulating tokens, creating misaligned incentives.
    3. Price Protection—teams must provide a period where the tokens remain at or above the IDO price.

    Price Protection For Our Next Sale:

    • 100% unlocked at TGE so there are no vesting considerations
    • 14 Days of price performance guarantee
    • Token must remain at or above IDO price for 85% of the time in aggregate and must not fall below IDO for a consecutive period of more than 24 hours
    • Users who have not claimed their tokens will be eligible for a refund

    Please note that the price protection policy for subsequent sales will likely have tweaks and modifications to best optimize the user experience.

    Refund Eligibility Criteria

    To be eligible for a refund under our policy, users must fulfill the following conditions related to the specific sale in question:

    • No Prior Token Claims or Vesting Marketplace Interaction: Users must not have claimed any tokens from the sale or interacted with the Vesting Marketplace for that particular sale before requesting a refund. By claiming tokens or engaging with the Vesting Marketplace for the sale, users are deemed to have accepted the associated risks and rewards, making them ineligible for a refund.
    • Token Price Criteria: Refunds can be claimed and activated only when the token’s value falls below the IDO price, as defined above, within a 14-day refund window. This refund window begins on the date the token is listed on its first supported exchange, decentralized and other. Should the listing project not meet the price protection criteria, eligible users may submit a refund request which will be made available on the Vesting Marketplace.

    Refund Process

    As part of the newly launched Vesting Marketplace rollout, Avalaunch has designed a straightforward refund experience for eligible users.

    To request a refund, simply follow these steps:

    • Connect your wallet to the Avalaunch app and navigate to the Vesting Dashboard.
    • Locate the relevant project and click the “refund” button.
    • Review and accept the refund terms and conditions.
    • Submit your refund request, and our team will process it—please allow up to 48 hours for the refund to be processed.
    • Any fees associated with the original transaction, such as gas fees, may not be refunded.
    • Additionally, please note that users provide collateral for their purchase in AVAX and will be refunded in AVAX.

    Support and Assistance

    We understand that navigating the complex world of crypto investments can be daunting. Should you encounter any issues or have any questions regarding the refund process, please do not hesitate to contact administrators in the official Avalaunch Telegram channel for any assistance.

    Conclusion

    In the fast-paced and often unpredictable world of cryptocurrencies, having a comprehensive refund policy in place is vital for both investors, projects and platforms alike. By offering clear eligibility criteria and a streamlined refund process, the Avalanche ecosystem can continue to thrive as its community confidently navigates the ever-evolving world of digital assets.

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  • Understanding Tokenomics – Models, Systems & Sustainability

    Understanding Tokenomics – Models, Systems & Sustainability

    To build on the overview on web3 gaming from last month, we wanted to explore the basics of web3 tokenomics. GameFi is still a nascent sector, but it has already crossed $14 billion in global value, with some studies indicating future growth upwards of $50 billion by 2025. However, for this to succeed there needs to be continued refinement on how game tokenomics is structured to ensure sustainability.

    Nearly every week, we see new crypto games released, but very few of them survive more than a few months. One of the main causes of this is poorly established tokenomics. Now this could be by design as we saw in late 2021-2022 with many DeFi clone type projects spiraling to zero. The more promising projects suffered from just not having a well-thought-out long-term strategy.

    One of the core components of every blockchain-based project, including games, is tokenomics.  This is especially true when it comes to investors who pay close attention to those sections of a project’s whitepaper to evaluate the game based on its tokenomics architecture.

    So what are tokenomics and what are some key things to look for when evaluating a game? Let’s explore.

    Tokenomics Overview

    Tokenomics encompasses a variety of concepts, including playing, staking, trading, governance, and other mechanisms designed by the game’s development team. By implementing these concepts effectively, game developers can create a self-sustaining ecosystem that rewards players for their involvement.

    One of the key benefits of a well-designed tokenomics system is the creation of a self-sustaining loop. This means that players are rewarded for their contributions, which encourages further engagement and creates a strong community around the game. This community can be a critical factor in a game’s success, as it can help to promote the game, attract new players, and provide valuable feedback to the development team.

    To ensure the success of a game’s tokenomics system, it’s essential to carefully consider the various economic principles at play and how they interact with each other. This includes factors such as token supply, inflation, and distribution, among others. By understanding these principles, game developers can create a sustainable and fair system that benefits both players and the game.

    Tokenomics Models

    There are essentially two main models we have seen projects build their tokenomics around, deflationary and inflationary.

    Deflationary models will typically involve a fixed token supply, where the issuance of new tokens will decrease gradually over time. The decreasing supply usually pushes prices higher as tokens become scarcer. Bitcoin is the best example of a deflationary model.

    Alternatively, an inflationary tokenomics model can be implemented which involves an unlimited cap of tokens. With this model, the token supply will only increase over time, but certain mechanisms can be implemented to limit inflation or potentially shift to create a deflationary system. A great example of this on Avalanche was the Treasure Under the Sea (TUS) token that was inflationary. The team put mechanisms in place to attempt to slow the inflation at various times through introducing different burning mechanisms for TUS.

    Choosing between an inflationary or deflationary tokenomics model is an important decision for game developers as it can significantly impact the long-term sustainability of the game. Both models have their advantages and drawbacks, and game developers need to carefully consider the needs of their specific game and audience when designing tokenomics.

    Inside of each of these models, there are two primary ways a team can approach slowing inflation. Throughout the last 18 months we have seen examples of all of these models and we would expect we continue to see teams incorporate these ideas into innovative ways to sustain a game economy.

    • Buybacks: Periodically a team will purchase tokens from the market and burn them. This will remove a certain percentage of the supply and attempt to bring a better balance to supply and demand.
    • Transaction Tax: Each transaction of a buy or sell would have a certain tax associated with the transaction. This tax would then be burned similar to the buyback model but occurs constantly.

    Two-Token Systems

    Outside of the inflationary/deflationary models we witnessed the rise of the two (or even three) token system in numerous games over the last year. The two-token system aims to distinguish between a utility token and a governance token. For example, Crabada implemented this model with TUS as the in-game token and CRA as the utility token.

    However, this system has faced some challenges. Both investors and players may struggle to grasp the advantages of holding one token over the other, and how they can benefit from the overall gameplay experience.

    It’s crucial to educate users about the unique roles each token plays in the ecosystem. The utility token serves as a means of exchange for goods and services within the game, while the governance token represents voting power for decisions that impact the ecosystem’s future. By clearly defining these roles, users can make informed decisions on which token best suits their needs and goals.

    It’s also essential to consider the potential risks associated with the two-token system, such as the possibility of the governance token becoming overvalued and negatively impacting the overall ecosystem. As a result, it’s important to carefully monitor and balance the distribution and use of both tokens.

    Web3 games need to be easy to understand and play without the average player becoming confused or frustrated.

    Sustainability (or lack thereof)

    Designing and choosing the right tokenomics is not an easy task, and can easily distract a team by focusing more on how to value the token(s) instead of developing a fun and engaging game.

    Developing an engaging and fun game is the primary goal, and it’s essential to prioritize this over simply focusing on token values. If the game fails to attract and retain players, it doesn’t matter how well-designed the tokenomics are. Therefore, it’s vital to focus on the gameplay experience and make sure it’s easy to understand and enjoyable for players.

    While tokenomics play a crucial role in incentivizing player engagement, solely focusing on how much players can earn may attract a player base only interested in extracting value. This approach can lead to a death spiral for the token, as we’ve seen in some cases over the past few years.

    To avoid this, game developers should design tokenomics that encourage engagement and reward players for their contributions to the ecosystem. This can be achieved by carefully balancing factors such as token supply, inflation, distribution, and other economic principles to create a fair and sustainable system.

    Conclusion

    In addition to basic tokenomics and sustainability, there are other factors that need to be examined before investing in a web3 gaming project. Some of these topics include evaluating the tokenomics distribution, token sale pricing and unlock schedule, a clearly defined governance model, more detailed utility examples, and reading and understanding the whitepaper. These topics are extremely important to evaluate as both a player and investor. In future articles we will take a look at each of these and how you can use the information to help guide your decision making process before investing or playing a new game.

  • Why Web3 is the Future of Gaming

    Why Web3 is the Future of Gaming

    What is GameFi and Why is it Important?

    GameFi is a term used to describe the fusion of finance and gaming. Combining the power of blockchain technology and the massive gaming industry will revolutionize the way we play, invest, and earn money doing something that so many people across the globe already do. GameFi does not just mean video games, but also includes other popular sectors such as sports betting, casino games, and even virtual real estate.

    There has been an unprecedented growth rate in the gaming industry. Blockchain technology and Web3 are about to transform it in a dramatic way. The gaming industry has always been lucrative, with billions of dollars in revenue generated every year. However, gamers have always had limited ways of monetizing their skills and achievements. GameFi offers a solution to this problem by allowing gamers to own, trade, create, and monetize their in-game assets and achievements. This not only provides a new source of revenue for gamers, but also creates a new market for investors who can invest in these assets. You can take a closer look at the GameFi analytics dashboard at footprint.network below for a detailed breakdown by chain activity.

     

     

    The importance of owning Web3 assets like non-fungible tokens (NFTs) is becoming increasingly apparent, and it’s time to pay attention to them. Here’s why owning Web3 assets is crucial for GameFi and how it’s going to change the way we play.

    Why is ownership of Web3 Assets Important for GameFi?

    There are a variety of reasons that ownership of assets will change the face of how we look at gaming, but from my perspective you can combine a majority of the benefits into a few main topics.

    • True Ownership
    • Interoperability
    • Scarcity
    • Transparency

    True Ownership

    This is probably one of the single largest benefits of web3 gaming. Unlike traditional in-game assets, Web3 assets are stored on a decentralized blockchain, and the owner holds the private key to access and transfer the asset. This means that the owner has complete control over the asset and can sell it, trade it, or even gift it to someone else. Traditional in-game assets, which are under the control of the game developers and studios do not allow for any trading, selling, or management of anything by the players. They simply collect your money through microtransactions and move on.  For instance, in Call of Duty, players frequently buy skins, weapon blueprints, and attachments. Once purchased they are bound to that account in that version of the game.  In 12-24 months when the next Call of Duty comes out, those purchased items are no longer usable and basically dead money. That player will now have to buy more skins or weapons in the current version.  In web3, those assets should be able to be brought into the next version of the game or sold throughout the existence of the old version to other players to recoup some or all of the original cost.  Rare, limited time skins could become valuable based on what the community wants and is not dictated by the gaming studio. Players can take advantage of all the potential given in this new GameFi environment and have full control over their Web3 assets.

    Interoperability

    Another advantage of Web3 assets is interoperability, which goes hand in hand with ownership. These assets can be used across multiple games, platforms, and even outside of the gaming world.  The possibility to take these NFTs and use them across multiple games opens possibilities that we have not even begun to scratch the surface of when it comes to gaming. This interoperability creates a new level of freedom and flexibility for gamers as well as creators and developers who can put their skills to work to bring numerous communities together.

    Scarcity

    Scarcity is another factor that makes Web3 assets valuable. Unlike traditional in-game assets, Web3 assets have limited supply, and their value is determined by the market demand as opposed to pricing by the game studio. A gaming studio rarely ever releases a limited amount of anything because this would cap how much they can make off the items so eventually, if the item is good, everyone will have it and it is just a requirement to stay competitive. With third party developers having the ability to create NFTs for a game, they can set the number of items for release. If the number is set low and the community loves the release or has a major impact on the game, this scarcity will make the assets more valuable, and this can provide an opportunity for gamers to invest and make money. The scarcity of these assets creates a market for collectors and investors, who are willing to pay premium prices for rare and unique assets.

    On the flip side of this however, this could potentially open game breaking releases. For example, if a skin was released by a developer that would blend into the background of an environment making them almost impossible to see, this could send the community into an outrage if the number of NFTs made it impossible to obtain. Since these assets are owned by the player they cannot be easily patched or removed as we have seen down in web2 games.  How these situations are navigated will be extremely important as the web3 space develops.

    Transparency

    A key part of web3 is transparency. Blockchain technology’s decentralized nature ensures that every transaction is recorded on a public ledger, making it transparent and auditable at any time. With this, gamers can track their assets and history more easily, and creators can see the price history of popular assets so they can improve on or rework them for future releases.

    Web3 is Poised for the Future

    With the right resources in place and the billions of gamers around the globe, web3 gaming is poised to take the place of traditional web2 gaming. There is still plenty of work to be done with ensuring each game has a sustainable economy, the appropriate security measures in place to avoid exploitation, and can seamlessly onboard traditional gamers who may have a negative opinion about crypto and web3 gaming. That being said, with industry titans like Epic Games, Amazon, and more entering the market, it’s clear they’ve done their research and realize the potential that web3 has to completely change how we have looked at gaming during the last 3 decades.

  • Introducing: The Avalaunch Vesting Marketplace

    Introducing: The Avalaunch Vesting Marketplace

    Avalaunch has been busy and in the coming months will release a number of new features and products in an effort to expand as well as optimize its native offerings. Avalanche is evolving and we have every intention of growing right alongside it.  

    Stressing utility and flexibility for XAVA holders is a priority and initially, the team is excited to release its vesting marketplace and token dashboard. Beginning with the Deepwaters IDO, this new offering will enable IDO participants to trade their locked/vesting tokens with other users in an open marketplace inside of an experience optimized for flexibility and usability. In other words, buyers can acquire the right to claim tokens when they unlock as if they had participated in the IDO regardless of whether they actually did or not. 

    The Avalaunch Vesting Marketplace introduces several fundamental shifts for both users of the platform and the projects launching on it:

    1. IDO participants can now deploy more sophisticated strategies that involve retaining select portions of their locked tokens, while offering others up for sale on the marketplace — oftentimes at a discount to the buyer.
    2. The vesting marketplace is of tremendous value to projects launching on Avalaunch as it allows buyer and seller to transact off the order books and without an impact to price. Additionally, these locked tokens can now be transferred to holders who presumably have a longer-term interest in the project. Prior to the marketplace, a user might sell these tokens as soon as the unlock simply because it was the only option. Now, they can trade them well before the unlock, freeing up capital while simultaneously putting the tokens into the hands of holders with an extended time horizon on the project. This is a win-win-win for buyer, seller and the project.
    3. The IDO occurs at the very beginning of a project and doesn’t allow future supporters an opportunity to participate. The marketplace affords projects a brand new ability to engage and excite fresh users well after the IDO and a platform for these users to acquire a position in the earliest opportunity available, well after it has occurred.
    4. IDO participants are only offered a limited allocation based on sale size and registration numbers. Now, if they are especially bullish on a particular project they can acquire additional discounted tokens.

    The Vesting Marketplace is a first for all of crypto, giving way to new market dynamics that benefit both project and user while allowing Avalaunch to continue to establish itself as a market leader with respect to functionality and usability.

    Token Vesting, Liquidity & Market Dynamics

    Crypto is a space where early stage companies are traded; giving rise to great speculation and volatility versus traditional markets where far more mature assets comprise a given exchange’s tradable assets. Risk tolerance among individuals varies greatly and crypto, generally speaking, is an ongoing fight for liquidity where moving in and out of positions can materially impact price and sentiment. Vesting tokens are often released in relative bulk, often creating chaos at the moment of release causing unlocks to often be bearish events.

    Ideally, token distribution schedules should be timed with anticipated demand, however, investors require firm dates where they can expect to receive tokens. The result is quite challenging for projects as they hope to offset inflation with fundamental developments.

    Token vesting, in essence, is a process by which tokens are released gradually over time instead of being issued all at once. This mechanism is intended to align the interests of issuers and investors by ensuring that tokens are distributed in a controlled and strategic manner. 

    Ideally, token vesting is meant to encourage long-term engagement and prevent market saturation, however, this is often not the case. A token vesting marketplace can redistribute tokens into the hands of longer-term participants before tokens are “in the wild.” Avalaunch has developed a platform that allows token holders to buy and sell token vesting schedules, enabling them to trade the right to receive tokens in the future.

    Avalaunch’s vesting marketplace is a tool to incentivize long-term engagement that enables token holders to trade their vested tokens, which can result in a more liquid and efficient market. For projects, these marketplaces offer a new way to engage and attract supporters by incentivizing long-term investment. 

    For token holders, a crypto token vesting marketplace offers a new opportunity to trade their vested tokens to mitigate against risk, free up capital or realize returns in favorable market conditions. For supporters seeking to take a position, they are too often forced to bid up the market with high slippage or negotiate risky OTC deals with prohibitive fees.

    For launching projects, offering a fully audited, cost free, state-of-the-art vesting tool and claim portal can be as advantageous to launching projects as it is to users. The Avalaunch marketplaces aims to add market efficiency for launched projects and broader token support. It can prevent supply shock, add liquid flexibility for holders and offer new opportunities for those with longer investment horizons. Avalaunch believes that a trading marketplace for vested tokens can ultimately take the sting out of a growing circulating supply while offering participants a novel way to unlock value.

    Avalaunch Vesting Marketplace: Understanding the Features and Functionalities

    Avalaunch presents a public-facing dashboard for users to realize value from their vesting positions that allows token holders to buy and sell token vesting schedules, offering them a way to trade the right to receive tokens in the future.

     

    Here are some of the key features and functionalities:

    1. Token vesting schedules: The dashboard displays the IDO token vesting schedules available for trade, including:
      • Unlocked Value—tokens which have been or are currently claimable
      • Implied Value—the total value of an allocation, both claimable and vesting.
      • The duration of the vesting period and the release schedule.
      • Total Token Position—both unlocked and vesting
    2. Trading functionality: a user-friendly platform for buying and selling vested tokens in real-time with order matching and settlement.
    3. Price discovery: The marketplace will not use algorithms to determine price but user supply and demand to ensure fairness and efficiency.
    4. Transparency: The Avalaunch marketplace provides users with a clear and transparent view of their balances and positions in order to make informed decisions.

    Let’s use a practical example to tie it all together. 

    A user participates in an IDO that vests over a period of 1 month, with two unlocks (one at TGE and one 30 days later), creating 2 vesting portions. They decide that they want to participate in the first unlock, but would like to put the remaining portion up on the marketplace. Because the unlock occur in the future and not having immediate access to the tokens creates additional risk, the claim to these tokens should be offered at some discount to make it attractive to potential buyers.

    At this point, anyone can come to the marketplace and purchase these tokens, or more specifically, the right to claim them once they unlock in 30 days. Buyers on the marketplace do not need to KYC or have participated in the IDO. Once they acquire the tokens on the marketplace, they will show up in their token dashboard, available to claim at unlock, as if they had participated in the IDO. In this example there were only 2 vested portions, however if there were more, they could offer up any combination of future unlocks to fit their specific strategy.

    Wrapping Up

    The above was a simple introduction to the Vesting Marketplace, it’s features and implications for projects and users. We have released user guides for step-by-step instructions and will be talking more about it in the coming days and weeks.

    With a user-friendly interface, demand based price discovery and secure trading functionality, a token vesting marketplace is an essential tool for Avalaunch for launching projects and participants. Beginning with Deepwaters, Avalaunch believes that the functionality of a marketplace and the convenience of a robust dashboard will slowly become a staple in a growing list of forthcoming products and services. Avalaunch looks forward to sharing more detailed instructions and information as the launch date draws nearer.

    User Guide: Video Tutorial

     

  • How to Use the Vesting Marketplace

    How to Use the Vesting Marketplace

    Watch this video to learn how to claim, buy and sell vesting portions on the Avalaunch Vesting Dashboard & Vesting Marketplace.

    Importnat Note:

    All sales previous to the Deepwaters IDO in February 2023 will not have Vesting Marketplace support. In other words, you will not be able to buy or sell vesting positions on the vesting marketplace for any sale before Deepwaters.

  • Deepwaters AMA #2 – Technical Deep Dive (Recap)

    Deepwaters AMA #2 – Technical Deep Dive (Recap)

    Community Questions

  • Deepwaters AMA #1 – Project Overview (Recap)

    Deepwaters AMA #1 – Project Overview (Recap)

    • Maximum deposit size of $100000/day and $500000/month
    • Kaximum withdrawal size of $100000/day and $500000/month
    • Limited trading pairs: we are starting with the five trading pairs included in our testnet along with WTR-USDC. We plan to add more in the months to follow

    Community Questions

    https://discord.com/invite/Deepwaters
    https://t.me/deepwaters_dex
    https://twitter.com/deepwatersxyz

    We can’t say enough thanks to all the support our community has provided, and continues to provide. we hope we can live up to your extremely lofty expectations! Please help us to find and list the best tokens, and don’t let us miss your questions!
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