SHRAPNEL ($SHARP)

SHRAPNEL is the world’s first AAA FPS game where skill-based competition, creative modding tools, and true digital ownership are all powered by blockchain and developed by a BAFTA and Emmy award–winning team of game industry veterans at NEON. Featuring the SHRAP token (ERC-20) used for governance, minting player-created content (PCC), staking, as a gas token on their Avalanche sub-net, and as a medium of exchange token on the Shrapnel marketplace.

LINKS
Website: shrapnel.com
Twitter: @playSHRAPNEL
Discord: /shrapnel
LinkedIn: /shrapnel-studio
Documentation: WhitePaper
Shrapnel Economy Paper

Hats off to SHRAPNEL Studio for doing such a great job.
Although I am an MMORPG player, I will definitely play, not so much for the in-game rewards but to try the gaming experience and the tokenization of the items because this is the best solution to merge the blockchain with multiplayer games. However, I have to complain about tokenomics, even if it doesn’t matter much in this case, because I am convinced that SHRAPNEL will attract more players than investors. Let’s dive in:

Is $SHARP a “AAA” Token?

TOKENOMICS
Max Supply: 3,000,000,000 $SHARP
Team & Advisory: 27%
Seed round: 20%
Strategic Round: 7%
Public Sale: 5%
Liquidity: 3%
Ecosystem Fund: 5%
Community Reward: 33%

Team members and advisors: At first glance, 27% with a 12-month cliff and a 24-month linear vesting for the team seemed exaggerated, but I changed my mind after reading the documentation and the background of the team. Although I am always against team allocations higher than 20%, this time I believe the team deserves at least 25%.

Token Sale: 32% is not sustainable, especially if only 33% is allocated to the community reward (not very profitable in the long term, considering that two rounds have the same cliff but different token allocations).

Seed Round: 6-month cliff + 6-month linear vesting, no unlock at TGE; I understand the need to have many investors at the beginning, but offering 20% of the total supply with such a low vesting period is not sustainable in the middle or long term. It does postpone the selling pressure, but it will not reduce the damage in the market.
Strategic Round: Not profitable at all. Same cliff as the seed round and higher vesting (12 months). This will be the hardest round to raise.
Public Sale: fair allocation compared to the others. 100% unlock at TGE.

Initial Liquidity: 3% is too low; it’s slightly more than 1/10 of the token sale (32%); this makes me deduce that the listing price will be 5x the seed price.

Ecosystem Fund: 5% is low, and the 6-month cliff + 36-month linear vesting is too high (no unlock at TGE); the team will need these funds in the short- to mid-term for advertising and development.

Community Rewards: 33% is a little bit low, taking into consideration that there is also the staking mechanism.

Conclusion ~ P2E or Play-for-Fun?

Is SHRAPNEL the first AAA FPS on Blockchain? Beyond doubt, “Yes it is!”.
The team never uses words like “Game-Fi” or “P2E”. The main purpose of SHRAPNEL is to guarantee the best gaming experience for all players and also allow them to earn from their time and investment. SHRAPNEL, in my opinion, is a play-for-fun game rather than a play-to-earn game focused.
CARPE FORTUNA ~ seize the moment when the time is right.

Mark ~ Mar 21, 2023

THIS IS NOT FINANCIAL ADVICE
Nothing in this report/analysis constitutes professional and/or financial advice. The shared content is for educational and informational purposes only. Do your own research before investing.

Arbitrum token ($ARB)

Arbitrum is an EVM-compatible Layer 2 scaling solution for Ethereum that makes transactions cheaper while preserving Ethereum’s security and decentralization.

Read more about Arbitrum on the Project Analysis Page.

LINKS
Arbitrium Website: arbitrum.io
$ARB Website: arbitrum.foundation
Twitter: @arbitrum
Arbitrum Bridge
Documentation: docs.arbitrum.foundation
Community: discord.gg/arbitrum

$ARB is the native governance token of Arbitrum (it is not a utility) whose main purpose is to decentralize Arbitrum and give decision-making power to $ARB holders. $ARB token will NOT be used to pay transaction fees on Arbitrum. Arbitrum’s DAO governance is self-executing, meaning that the DAO’s votes about on-chain actions will directly have the power to effect and execute its on-chain decisions without relying on an intermediary to carry out those decisions.

TOKENOMICS
Total Supply: 10,000,000,000 $ARB
DAO Treasury: 42.78%
Team/founders & advisors: 26.94%
Investors: 17.53%
User Airdrop: 11.62%
DAOs building apps: 1.13%

A token without a token economy(?)

As previously mentioned, the only role the ARB token will play in the Arbitrum ecosystem is as a governance token; no utility has been given to the token yet. In the official documentation, it is never mentioned what the token emission is; therefore, the token total supply will be minted at TGE and allocated as you can see on the left. Let’s get into it!

The DAO Treasury was given 42.78%, which would not be bad except that there is no information about how this allocation will be used (rewarding, airdrop, development, etc.). This has yet to be announced.
26.94% is allocated to the team with a 1-year cliff + 3-year linear vesting (2.7% monthly, too high for a governance token); it is a lot (almost 1/3 of the total supply), and personally, I do not like when Advisory and Team are one single allocation because it makes me think that the team does not have a plan and is looking to get as many tokens as possible.
17.53% allocated to investors (same vesting schedule); I haven’t yet seen any announcement regarding investors that already bought the token (SAFT for sure). The FDV during the token sale hasn’t been announced yet because the team token sale price will be based on the token price.
11.62% allocated to Arbitrum users (100% unlocked at TGE); too much… There is no need to give away tokens to users who will dump them on the market because they are not interested in governance.
1.13% is allocated to DAOs that are building applications in the Arbitrum ecosystem. I like it; rewarding builders and developers is the way to go!

What about initial liquidity? The team will not provide liquidity; therefore, the listing will be on CEX, and the LP will be initialized by $ARB holders.

CHECK ELIGIBILITY
Visit arbitrum.foundation, connect your wallet, and check if you are eligible for the airdrop.
If you are not eligible, be careful when you buy on CEX; the token might not perform as well as you think.

Conclusions and prediction

We’ve seen in the past few weeks that $BLUR and $COLLAB used Airdrop as a distribution mechanism, and we’ve seen the results: a non-healthy price action (forced price reset). Most likely, $ARB will perform in the same way.

Mark ~ Mar 17, 2023

Collabland ~ Free money?

Collab.Land is a user-friendly, tokenized, and automated community management system. Their system is designed for anyone to build tools to manage their community.
If you’ve ever been part of a web3-based community, you should know what CollabLand is; if you don’t, well, I’ll make it very easy for you: CollabLand checks that you are holding a certain asset in your decentralized wallet (which supports multi-chain and multi-tokens); if you are, you gain access to the community.

How does it work? Once you’ve joined a Discord server (the bot can also be used on Telegram), you can verify your assets with the CollabLand bot by signing a gas-free transaction, allowing CollabLand to look at your wallet and grant you certain permissions, gain access to private channels, get a role, and so on based on the assets you own.

CollabLand is now launching its native token through an airdrop (a distribution mechanism) on February 23, 2023. Let’s break it down.

LINKS
Website: collab.land
About the token: wagmi.collab.land
Proposal: collabland.mirror.xyz
Community: discord.gg/collabland

Is this a future-proofing tokenomics?

TOKENOMICS
Total Supply: 1 Billion (1,000,000,000)
Token Symbol: $COLLAB

50% DAO Treasury
25% Investors, Partnership, and Team
25% Retroactive Distribution (Airdrop)
Of which:
60% to Top 100 Discord Communities
16% Praton NFT Holders
16% Membership NFT Holders
8% Verified Community Members

$COLLAB is a governance token that will be deployed on Optimism. Holders will vote on feature requests, offer bounty programs, curate the marketplace, and more. 50% is allocated to the DAO Treasury and will be managed by the DAO based on the proposals voted on (most likely for community rewards).

The Collab.Land core team, investors, and partners have been allocated 25% of the total supply. This allocation is subject to a 1-year cliff and 4-year linear vesting (~2.083% monthly unlock). The remaining 25% is distributed as mentioned in the left paragraph. Any tokens that remain unclaimed on May 23 will return to the DAO Treasury. In the documentation, there is no mention of a vesting schedule.

OPTIMISM

Optimism is a low-cost and lightning-fast Ethereum L2 blockchain.

Website: optimism.io

COMPETITORS
There are many competitors out there, but only one deserves that title: Vulcan (by PREMINT). Vulcan does not require a signature to verify your asset.
For my Discord server, I am considering migrating from CollabLand to Vulcan.
Website: vulcan.xyz

Conclusions

I do not like it at all. We’ve already seen in the past that tokenomics using airdrops as a distribution mechanism has the worst price action. Also, I do not see an allocation for the DEX liquidity pool, which makes me think that the CollabLand team has no intention of initializing the pool on DEX; perhaps the listing will be on CEX(?) It does not make any sense, especially after reading in their documents that decentralization is their core value. Is it?🤔

Mark ~ Feb 21, 2022

$BYTES New Tokenomics

$BYTES is an ERC-20 yield token and was produced daily at a predictable rate by Neo Tokyo Citizen (NFT), based on its ID’s stats plus the vault modifier.

Neo Tokyo is an NFT-based community focused on gaming and the metaverse, founded by Alex Becker & EllioTrades. The community is composed of Web3 builders, project founders, crypto investors, and developers.

LINKS
Website: neotokyo.code
S1 Citizens: opensea.io
S2 Citizens: opensea.io
Discord: /neotokyocitadel
Twitter: @NeoTokyoCode
NT News Twitter: @neo_tokyo_news

Proposal V1: drive.google.com
Proposal V2: docs.google.com
NT Blog: blog.neotokyo.codes

$BYTES 1.0 is going to update to a deflationary ERC-20 token.
At the moment, $BYTES supply is ~2.16 million; once the BYTES 2.0 contract is deployed, investors will be able to yield $BYTES and approximately 800,000 $BYTES will be minted during the Yield Period over the first 208 weeks. In the meantime, yielding $BYTES will get harder.

Token emission through yield pools

$BYTES will be emitted through the staking mechanism in four yield pools with multiple options:

A 3% emissions tax in $BYTES is sent to the NT Treasury for all emissions.
Rewarding will be divided into the Base Reward, which can be claimed on a daily basis, and the Bonus Reward, which is forfeited if the citizen is unstaked before the end of the staking period.

S1 Citizen Identity Yield Pool: These emissions are split from a predefined amount of $BYTES that are generated every day equally among stakeholders. S1 Citizens with the “Credit Yield” trait receive a share of these emissions based on their point weighting (1 to 3).
The average daily yield of $BYTES shown below does not include any staking boosts.

1/(pow(2,(a/52)))
The formula above is used to calculate the Daily Yield Exponential Smooth Curve (Decay Math.JS Function).

PPC
Points per citizen are defined as: Identity Credit Yield · Staking Boost

S2 Citizen Identity Yield Pool: These emissions are split from a predefined amount of $BYTES generated every day. S2 Citizen staked receives a percentage of these $BYTES with the same weighting point: 1.

PPC
Points per citizen are defined as: S2 Allocation Yield · Staking Boost

Vault + $BYTES Yield Pool: These emissions are split from a predefined amount of $BYTES generated per day. S1 Citizens who are staked receive a share of these emissions based on the “Credit Multiplier” of their Vault card (the % of vaults staked needs to be based on the number of total S1 Identities, not the number of total Vaults minted because there are more Vaults than Identities right now).

PPC
Points per citizen are defined as:

Where the suffixes v, B indicate the boost tied to the duration of time that a citizen’s vault and $BYTES are locked for, i.e. they can be different.

A user cannot stake their Vault with $BYTES prior to staking an S1 Citizen. If the Citizen is unstaked, this will force the unstaking of the Vault and $BYTES. The Vault and $BYTES can be unstaked anytime, but the Bonus Reward Yield will be lost.

Conditions:

For every 200 $BYTES staked, you receive 1 point.
S2 Citizens can stake a maximum of 200 $BYTES.
Unvaulted S1s can stake a maximum of 200 $BYTES.
S1 Citizens with Vaults can stake a maximum of 2000 $BYTES.
Hand of the Citadel has the equivalent of the? vaults.
S1 Citizen and Vault staking periods are forced to be the same.
Vault or $BYTES staking can be a separate, shorter period, but not longer than the Citizen staking period.
A Vault can be staked separately with an assembled S1 Citizen that doesn’t already have a vault attached.
If a user tries to stake a new vault with an S1 that already has a vault attached, this fails. Vault overriding is not allowed.
Adding more $BYTES to be staked utilizes an amortized schedule (weighted average between the times of staking and the amounts staked).
Amortization Example: I staked 200 $BYTES for 24 months, then six months later I staked 1800 $BYTES for six months; now I have a total of 2000 $BYTES time-locked for 7.2 months (this staking boost would be 6 months = 1.5x).

Liquidity Reward: This pool won’t be available on launch; it will be added in the future. For every LP token staked, one point will be assigned, and LP tokens are not able to be withdrawn early. Rewards are paid directly.

PPLP
Points per LP token are defined by: (# of LP tokens · Staking Boost)

The Neo Tokyo Community is composed and managed by Web3 founders and investors with a background in the crypto space and in the Web2 entrepreneurship industry, making it a one-of-a-kind community.

The NT members are developers, venture capitalists, content creators, gamers, designers, lawyers, and researchers, and I could go on forever. The main purpose of this group is to connect with other like-minded individuals and build together new Web3-based products such as games, utility projects, metaverses, and tools.

The community is located on Discord, with access to everyone but with a special hub for NT Citizen holders (depending on the Citizen tier: S2, S1, and ELITE) where the good staff is, such as private events, voice chats, giveaways, investment opportunities (tokens and NFTs), and networking with leaders in the space.

You don’t know how good it is until you try it yourself.

What happens when you stake your Citizen?

To exchange $BYTES 1.0 for $BYTES 2.0, $BYTES owners will need to use a new tool on the Neo Tokyo website. When staking their Citizen, they will receive an ERC-721 placeholder NFT that will be placed in their wallet. When they un-stake, this placeholder NFT will be burned, and their actual Citizen NFT will be returned to their wallet. The placeholder NFT will be transfer-locked and cannot be sold or traded.

In the future, the NT Tokenomics team may make adjustments to the tokenomics if necessary for the health of $BYTES and the NT ecosystems.

WHAT IS A PLACEHOLDER NFT?
The placeholder NFT is a copy of the Citizen you own, and it performs two functions:

- Being able to see your NFT on secondary marketplaces even if blocked in another contract.
- Grant access to the private Discord server + Citizen @role.

Staking impact on FP
Staking the Citizen will impact the Floor Price of the NFT, increasing its value on secondary markets because there will be less NFT circulating available to sell.
According to the law of scarcity, if demand stays the same while supply decreases, the price will increase.

Law of Scarcity: If a desired item is thought to be scarce, it is likely to be seen as more valuable. This is because the appearance of scarcity can boost the perceived worth of the item.

Conclusion

So, what has changed from the previous tokenomics?
Emission rate and emission mechanism. $BYTES 1.0 was emitted into the market through NFT mining, and $BYTES was generated by holding the NT Citizen in your wallet. With the 2.0 version, the staking mechanism was introduced with a locked period.
Also, the $BYTES emission has changed from a fixed $BYTES emitted by S1 Citizens only depending on the ID and Vaults Points. With the 2.0 version, the amount of $BYTES emitted by S1s and S2s depends on how many NT Citizens are staked in the pool. With this new tokenomics, the token will move towards a deflationary nature.

Will this new tokenomics impact price action?
Yes, it will. The price will be influenced by the new Tokenomics since the emission rate will change. As you can see, the $BYTES’ price action is not looking good for the token. The liquidity pool was initialized on October 22, 2021, at a price of $4.5 per token, and in a little more than one month, the price went to $220 (~8500%). During this summer, the price went down to $1.4 (ATL) and is now back at $4.5 with a market cap of $8.76 million.
Although I am against changing the token metrics of a token after launch, there is a lot of room for growth for the token now that the token distribution method has improved.

Will this be enough to reach the ATH?
Well, it might. During the bear market, the NT Citizens have proven to be proud holders of their NFT, and in the meantime, they have been building new products in the past year, providing value to Web3 investors and consumers. $BYTES is a community-driven token; if the community keeps building, $BYTES will increase in value because, to get $BYTES you must lock your Citizen in the staking contract. Build, stake, and earn!

Mark ~ Dec 12, 2022

Arbitrum Token ($ARB)

Collab.Land is a user-friendly, tokenized, and automated community management system. Their system is designed for anyone to build tools to manage their community.

LINKS
Website: superverse.cool
Price Action: coinmarketcap.com

Read more about SuperVerse on the Project Analysis Page

TOKENOMICS
TGE: February 22nd, 2021.
Total Supply: 1,000,000,000 $SUPER
Circulating Supply: ~40%

Founders & Advisors: 100M $SUPER ~ 12-month cliff + 24-month vesting.
Development: 100M $SUPER ~ 12-month cliff + 24-month vesting.
Ecosystem: 90M $SUPER ~ 12-month cliff + 24-month vesting.
NFT Drops: 50M $SUPER ~ 12-month vesting.
Staking: 250M $SUPER ~ 12-month vesting.
Liquidity: 10M $SUPER ~ 100% Unlocked at TGE.
Seed: 50M $SUPER ~ 15% Unlocked at TGE, 6 -month cliff + 24-month Vesting.
Private1: 90M $SUPER ~ 20% Unlocked at TGE, 2-month cliff + 6-month Vesting.
Private 2: 150M $SUPER ~ 20% Unlocked at TGE, 2-month cliff + 6-month Vesting.
Private 3: 100M $SUPER ~ 25% Unlocked at TGE, 2 -month cliff + 6-month Vesting.
IDO/public: 10M $SUPER ~ 100% Unlocked at TGE.

Analysis

Token allocation – The only thing I do not like is that 40% of the total supply is allocated to the token sale with only 1% for the initial liquidity, making the staking unprofitable in the long term (even if 12-month vesting keeps the APR high).
I would have preferred a 20% token sale, 2% liquidity, and 40% staking (+3% to the team allocation) with a 24-36 month vesting.

Vesting Schedule – I feel the team’s long-term vision for the team with the 12-month cliff + 24-month vesting for all the allocations controlled by them.

Private rounds have different TVLs and different allocations but the same vesting schedule; I have to say, this was not very well thought out. Issuing this 7% of the total supply every month for six months in the early stages increases the selling pressure. Tokens unlocked at TGE are too high due to the high difference in TVL between the rounds; this has caused a very high Market Cap at TGE (almost equal to the funds raised).

Conclusions

The token has been live for almost two years (it launched at the peak of the previous bull market), and a good portion of it has already been issued in the market. Although the price action does not entice me to invest in the $SUPER token, given the fundamentals (rebranding + ecosystem upgrade), I would keep an eye on it. Follow them on Twitter and join the Telegram group. This might be a good entry for the long term in the next bull run.

Mark ~ Dec 5, 2022

Illuvium ~ AAA Game?

Illuvium is a fully decentralized RPG and collection game built on the Immutable X L2 Network. Illuvium has been engineered from the ground up to support the long-term sustainability of the game and governance and provide players with an AAA-rated blockchain gaming experience. What makes Illuvium unique is that stakers receive regular distributions and can vote on everything from tokenomics-related issues to the features in the game itself.

LINKS
Website: illuvium.io
Documentation: docs.illuvium.io

The team believes a decentralized gaming economy provides the best fusion between crypto, blockchain, and DAO enthusiasts and gamers looking for open access devoid of corporate interference.
The primary goal of the project is to create a fully decentralized game that can run autonomously.

Immutable X is the first layer two (L2) scaling solution for non-fungible tokens (NFTs) on Ethereum, with instant trading, massive scalability, and zero gas fees for minting and trading, all without compromising user or asset security.

Let’s break it down

TOKENOMICS
Total supply: 10,000,000 $ILV
Team: 15%
Treasury: 15%
Liquidity: 10%
Yield Farming: 30%
In-game Reward: 10%
Pre-seed Round: 5%
Seed Round: 15%

Token allocation is not bad, even if I would have given 30% to in-game rewarding and 10% to yield farming, but they decided to pump up the price before the investors could sell their allocation because Pre-seed and Seed rounds have a 12-month cliff + 12-month linear vesting (started in June 2022).

The vesting schedule does not make any sense at all. Investors join at different FDVs, but with the same cliff and vesting period (12 + 12), and the team allocation unlock is slower in the first 12 months to reduce selling pressure because a large number of tokens will be unlocked from June 2022 to June 2023 (high selling pressure -> dump).

Yield farming unlock is nonsense. To incentivize farmers, they unlocked 4.14% of the allocation per month for the first 12 months and then 2.08% for the next 12 months, which does not make sense in the early stages because prices rise until farmers start dumping tokens at the market. Here is the token distribution chart (I got bored doing it, so I didn’t finish it, and the information on the docs, discord, and website is unclear).

As you can see from the price action:

Massive pump duo to hype.
Farmers dumped the token after the end of the bull market.
The token keeps dumping even more after June 2022 (investors unlock stats).

BTW, I am sure that the team has already dumped Treasury tokens and what they have farmed so far.

Conclusion: Don’t be exit liquidity.

Mark ~ Nov 28, 2022