A proposal to evolve Axie into a digital nation...

GAMING CHRONICLES 134

Gaming Chronicles focuses on curating the latest crypto gaming news every week.

You will find the latest news, educational content, and game reviews.

TLDR :

• Overtake raises $7M

• Hytopia updates its tokenomics

• The Axie Constitution

🗞️ NEWS

OVERTAKE RAISES $7M

• Last week, OVERTAKE (OT) announced it raised $7M in strategic funding in a round backed by Sui, ItemMania, ItemBay, Immutable, and others

  • The announcement notes how this doesn’t include OT’s $20M internal funding. I assume this is a capital allocation coming out of ItemBay (IB) and ItemMania (IM), the companies that founded the company

• IB and IM are established Web2 digital asset trading platforms that facilitate P2P trading. Together, they do a combined $700M annual trading volume

  • The top 5 games (by popularity) on the platform include games such as MapleStory, Lineage (M), and R2

• OT is a P2P marketplace built on Sui, designed for the same purpose of facilitating a platform for trading game assets and currency. Furthermore, it has features such as:

  • Onchain escrow via multi-sig, fiat → crypto settlement, and creator-centric storefronts (with a revenue share)

• In May, OT rolled out its CBT. During it, the platform generated 195 trades worth $63,200. The number of trades was so low, as only 30 sellers were involved

  • And in June, the platform rolled out its open beta. As of August, the platform has accumulated 1,500 users with 500+ trades, accounting for $120K of trading volume

  • Currently, the platform only supports 2 games: Lord of the Nine and PoE 2. More games will be added with its official launch in September

• Recently (August 25), OT launched TAKE, serving as the primary currency for trading on the platform. ~70% of the OT’s transaction fees will be used to perform buy-backs

  • Currently, TAKE is trading at a ~$10.7M MC and ~$81.5M FDV. Most volume is being generated on XT (never heard of them)

• A good comparison to OT is DMarket, the Web2 item marketplace that was acquired by Mythical Games

  • Over the last 7 days, DMarket generated $4.5M in trading volume. The platform generates revenue based on trading and selling fees (2-10%). IB and IM also employ a volume-based revenue model

  • DMarket links to its game-specific marketplaces when you click NFL Rivals or Blankos, for instance. I wonder if IB and IM will use the same strategy, and whether OT will even list items of crypto games

    • Else, I don’t see much of a point in OT existing, because the Web2 and Web3 versions (kind of) compete with each other

• Overall, I’m most curious about OT’s expansion strategy from here

HYTOPIA’S TOKENOMICS UPDATE

• Yesterday, Hytopia introduced its tokenomics update, including changes such as a new token, an airdrop, supply, staking utility, nodes, and more. Here are the highlights:

  • The mission: restructure the token and NFT economy so long-term supporters and contributors are rewarded for the eco’s growth, instead of “band-aiding problems with unsustainable short-term emissions”

  • Hytopia is introducing a new token called HYBUX (replacing TOPIA at a 2:1 ratio), designed to solve the limitations of TOPIA, including: emissions > utility, poor stakeholder alignment, and limited access to liquidity

    • HYBUX will launch on Base with an initial supply of 10B. Inflation of the token will be variable, determined by staking activity, with a maximum of 10% per year

      • Currently, 835M out of the 5B (16.7%) TOPIA is circulating,

      • 10% of the supply will be added annually, but that doesn’t mean the circulating supply will increase by that number, as it will be relative to the total amount of HYBUX staked

        • Unclaimed staking rewards will be locked up in the Foundation Treasury, which can later be used for ecosystem growth

        • “HYBUX’s inflation works like an activity bonus, not a penalty. Each week, a small stream of new tokens flows to people who stake and participate”

      • Staking + holding NFT is the “over-hedge against inflation” = no dilution + rewards

        • I.e., by holding + staking tokens and NFTs, you increase your share of tokens relative to the circulating supply over time

    • Furthermore, it was mentioned, the old design over-rewarded passive holding and LP incentives, and the game and marketplace weren’t in a position to offset the selling pressure this created

  • New utility is coming to the NFTs (Nodes, Worlds, Avatars, and Gray Boys)

    • Staking as a hedge (as described above) and access to a new creator endorsement system (contribute to game dev to earn based on KPIs)

    • Nodes no longer require active ops. They will not have a single shared pool of tokens that accumulates slowly over time, and can be burned at any time to claim the entire pool of tokens, resetting the pool to 0

      • In 2024, Hytopia launched its node sale with the HYCHAIN. The total supply of Keys (Nodes) was 50,000, meant to distribute 250M of TOPIA (5% of the total supply) over 3 years

      • Within HYBUX, the Node Rewards Pool will also be 5%, but now holders compete for the rewards

• HYTOPIA has been around as one of the OG crypto games (formerly NFT Worlds), survived the crypto ban in Minecraft, and now has to be creative again for its ecosystem to survive and grow

  • Curious to see where this new approach to tokenomics will bring them

THE AXIE CONSTITUTION

• Axie has just introduced AIP-002, a ratification of the constitution for the Axie Infinity Community. A proposal that aims to establish an Axie Constitution, creating the foundation for community governance over the AXS Axie Treasury

  • Between September 1 - 6, Axie users and stakers can vote on the proposal

• The AIP-002 proposal will enable the team to establish a structure for decision-making regarding the Axie Treasury. Introduced by Baronar, Town Builders, and other contributors

• The Axie Constitution includes five Articles. Here’s a summary of the highlights:

  • Establishment:

    • The purpose is to make AXS act as a representation of fractional ownership of the Axie DAO and advance Axie via funding, development, and assets

    • This Government will rule over the AXS Treasury that holds $321M in assets right now

      • Funds in the Community Treasury will be subject to strategic distribution. All funds subject to distribution will require Governance

      • Portions of the Axie issuance from the P2E and Ecosystem Fund allocations may be subject to Governance at the discretion of the Axie devs

  • Citizenship:

    • Any person who owns 1+ AXS or 1+ Axie in good standing qualifies for citizenship, a requirement for participation in governance

  • Voting:

    • 1 staked AXS = 1 vote. Votes are enhanced by users’ Axie Score (portfolio, activity, reputation), and no single Citizen may hold more than 10% of the voting power

  • Councils:

    • There will be Governance Councils in place to manage functions, elected by the Axie devs and contributors

    • Three different councils will work on 1) execution, 2) proposing economic strategies, and 3) managing Treasury funds, spending, and oversight

      • Furthermore, there will be a Supreme Court to resolve disputes, with the final rulings being binding

  • Amendments:

    • Amendments to the constitution will require a supermajority (75% of Citizen voting power, 66% of contributors, or 2/3 of Primary Council members)

• What does this change for Axie Infinity?

  • Currently, Sky Mavis has near-total control over decisions on tokenomics, Treasury, and future rollouts. This proposal makes it function more as a “digital nation”, through more transparent decision-making that’s also decentralized

  • AXS will not only be a utility/governance token, but also represent fractional ownership of the Axie DAO, aligning holders with the project’s long-term health of the ecosystem

  • The Community Treasury will have formal governance and structured distribution, with funds being able to be allocated strategically to devs, events, rewards, and ecosystem growth

• Overall, this proposal seems to unburden Sky Mavis from Treasury management and puts the keys into the hands of the community. In theory, this should lead to more effective and active capital deployment

  • Yet, I don’t always think DAOs are better decision-making organs than centralized teams can be

FLASH NEWS

• Spellborne is launching its BORNE token on August 29 on Blackhole

• Paradise Tycoon launched its $MOANI token yesterday

• The AI battle arena game Monsters is launching tomorrow

• YGG performs another buyback, completing a buyback valued at $1M

• GAMEDIA, the studio behind Spider Tanks, is migrating to Immutable

• Moonveil raises $5M from Unicorn Verse

• Sunflower Land announces Project II: a new game in a new genre

• SOMNIA released its tokenomics and is launching its token soon

🆕ALPHA CORNER

• Early Games: None for this week

Join our Telegram chat for daily updates & alpha as well: https://t.me/raidenalpha

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