Thread by @3DGamersguild

WE ARE EXCITED to share our analysis of the Guild of Guardians TOKEN (GEMS)!

This game has mechanics to become a top 10 game in Play and Earn.

If you haven’t seen our first thread covering Guild of Guardians see here

https://twitter.com/3DGamersguild/status/1481278602851373060

Lets break it down! 👇 1/

The GoG token (GEMS) is the in-game currency for Guild of Guardians, different from Axie in they dont have 2 tokens, they only have one token which is a combination of AXS and SLP in one.

There are 1B tokens total tokens in the GoG ecosystem.

How does the token work? 2/

GEMS Utility
Ways to earn GEMS:
1. Playing the game
2. Adding value as a community member
3. Staking rewards

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Ways to spend GEMS:
In game upgrades- Minting a Hero, merging heroes to get a higher tier hero, upgrading hero stats, and crafting for tradeable items.

100% of the GEMS spent on in game NFTs, will be sent to the staking pool.

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In addition 20% marketplace fees as well as 20% of costs from dev mints will be sent to the staking pool as well.

What this means is that in-game transactions will go to stakers of GEMS.

We like that this incentivizes community to stake & hold the token rather than sell.

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The staking pool has two conditions to get rewards:
1. Stake GoG Token
2. Participate in game ecosystem by voting or playing GoG.

We like this because its prevents speculators from coming in to stake, and keeps the in-game rewards for active members of the community.

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The GoG NFTs have a deflationary mechanism: the GEMS cost of minting a NFT will increase with each NFT minted

This rewards early adopters and helps NFTs from being oversaturation but the downside is that it could price people out of the game.

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With staking rewards of GEMS, the direction we believe the Devs intended the GEMS token to always be used and to NEVER sell GEMS!!

Instead of selling you use your gems to either spend money in the game on NFTs, or staking your gems for a portion of the pool rewards.

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Where you can profit is instead is by selling your NFTs if you decide to stop playing, which will create more marketplace fees and additional rewards to the GEMS staking pool.

Wait ser, does this mean GEMS price only go up?

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Well not exactly but that is a start, to fully grasp this we will first go over the other mechanics of GEMS.
Starting with the GEMS token distribution

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GEMS are Distributed according to graph below
35% for P2E rewards
28% for Community Development (Rewards)
31% for Investors & Devs
6% for Liquidity and other uses

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Player rewards (35%)
This is rewards for in game activity. The cool thing is that the amount released per day will be a FIXED amount.

A fixed supply can prevent inflation, downside is that it could hurt earning potential for players as everyone is drawing from same pool.

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Overall we LOVE this mechanic, as the goal is to play the game for FUN aka play & earn, and not purely for farming.

Users can also vote to change the fixed distribution per day to match the current demands in the market

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Community Rewards (28%)
Purpose of this is give incentive to support the project from content, referrals, competitions, etc.

We love this. Instead of spending millions marketing, the community supports GoG and in-turn the community gets rewarded with EQUITY! its WIN-WIN

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The idea behind community rewards is that the growth of the game from community rewards must be greater than the amount of GEMS being given out or else there will be inflation.

If the game is FUN, this will EASILY be accomplished by the community

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Devs (20%)
The rewards for the team behind the game. Unlocked over 4 years with a 12 month cliff.
This is one of the selling pressures for the GoG token, and we will most likely see some selling pressure after 12 months when the devs get 25% of their tokens unlocked.

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Investors (11%) 110M Gems
Rewards for early supporters of the game. These are unlocked over 2.5 year with a 12month cliff. Again, selling pressure after 12 months with 40% of investors tokens being unlocked after 12 months.

What does this mean for you?

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We see the price action for GEMS looking like this:
Buy pressure - gamers buying GEMS to have fun in the game and upgrade and purchase heroes & items
Sell pressure - (31% of supply) Investors & Devs taking profits, and some gamers selling GEMS for profit

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The way the GEMS Tokenomics are designed, I don’t believe many people will be selling GEMS because of staking mechanism

The main balance is that the game needs to acquire enough users to keep the GEMS price stable once devs & investors start taking profits.

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The key for GoG success is making the game FUN and ability to retain players. Good thing Mobile games are naturally built to keep you reeled in, with exciting new sales and features at anytime!

From graph below you see there are many mobile games making $8M+/month in 2021

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We see two main possibilities:
Bull case: Gamers put in more money into the game than investors and devs take out, making GEMS & GoG NFTs go up 📈

Bear case: Game not fun enough, gamers don't put in money in game and GEMS price drops with Investors & Devs selling📉

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Overall we are BULLISH GoG and believe in the tokenomics & mobile gaming model and have acquired some GoG assets.

We will also be starting our GoG side of our guild for competitive gamers to join.

Join our discord for more info!
discord.gg/3dgg

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TLDR; GEMS is designed to not be sold by players, game success depends on players having fun in game and putting more money in than investors & Devs take out. NFT sales will most likely be best way to profit.

We are BULLISH the mobile gaming and this tokenomics structure.

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We will be covering gameplay next once we get access to the game. Stay tuned!

As always, Happy Gaming :)