Thread by @WarcMeinstein

0/ @BreederDAO is the TSMC of metaverse assets - transforming raw in-game materials into more valuable assets that are used by guilds and other crypto game players. Its token $BREED democratizes access to these data & capital-intensive processes.

1/ Nearly 1 year ago, we @MechanismCap announced our investment in @YieldGuild (mechanism.capital/ygg/) with one of our earliest takes on play-to-earn gaming, the guild ecosystem, and the metaverse.

2/ Since the public launch of $YGG, the number of blockchain gaming guilds exploded to over 10,000 supporting over 300,000 scholars & +3 million players worldwide.

These players mostly played @AxieInfinity, & in 2H2021 as demand skyrocketed these guilds ran into a bottlneck...

3/ They could not grow their asset base fast enough to satiate player demand.

Enter @BreederDAO: a protocol entirely focused on supplying in-game assets to players through breeding and crafting.

4/ For those newer to gaming, breeding is the process of crossing two in-game assets to produce a 3rd asset that contains traits of the two initial subjects, while crafting combines skills, materials, or other assets into a new asset/creation (NFTs in blockchain games).

5/ The BreederDAO team led by @Renz_BDAO, a methodical ex-consultant w a passion for crypto games, is highly analytical, diving deep into the nuances of breeding & crafting.

6/ The proprietary processes and technology they developed has reduced the time taken to generate new assets by a minimum of 50% depending on the game/asse

7/ This tech stack includes a game knowledge library that monitors existing & upcoming games, & a breeding & crafting optimization engine that tracks marketplace statistics, live financial analytics, token economics (burn/mint imbalances), & optimal asset traits & prices.

8/ This data is fed into an algorithm that determines which games & assets Breeder should allocate resources to for maximum ROI. Breeder’s goal is for its community to continue to tweak the algorithm until it is self-correcting and fully automated.

9/ Since inception, Breeder has “manufactured” over 100,000+ assets, growing their capital base nearly 2x and driving millions in revenue to the protocol.

10/ This includes hundreds of thousands of dollars in sales to ten of the leading gaming guilds, like YGG, with whom BreederDAO has an exclusive relationship.

11/ Purchasing assets from a supplier like Breeder allows these guilds to focus on the demand-side of the equation: player management, scholar growth, game analytics, and developing tools to improve the overall player experience.

12/ Demand is so strong for Breeder’s services that they've closed >300 guild partnerships, & they're rapidly adding games w/ +20 titles already. Their connections to both sides of the market should generate strong network effects & act as a powerful competitive moat

13/ Many crypto-gaming haters will argue that the Axie “ponzi” has unwound and play-2-earn is dead, but as my colleague, @wvaeu, explained in this research piece (bit.ly/3s01UEI) play-to-earn is evolving to play-&-earn by merging triple-A gameplay with crypto-incentives

14/ We're closer to this reality than you think; just check out @PlayBigTime’s current launch (we have no position in Big Time Studios, lest you think we only shill our own bags anon).

15/ For a simple-minded VC like me, a great rule is to just follow the developers: play-and-earn gaming continues to capture the minds of #buidlers from major gaming cos. Look no further than Mechanism Play-backed @TheConsortium9, @avalon, & @MaviaGame to spot the trend

16/ Many games will die, but there will be BIG winners along the way, and some of them might surprise us all (look at @Stepnofficial - breeding sneakers anyone? bit.ly/39r88XN)

17/ All of these games will have assets including land, characters, weapons, skins/clothing, that will interact, earn and multiply. @BreederDAO will continue to be at the center of it all.

18/ In the meantime, @BreederDAO's current traction is phenomenal - producing +100,000 assets across 5 core titles: @PegaxyOfficial, @PlayCrabada, @Fancybirdsio, & @CyBallOfficial, and generating millions in protocol sales to guilds

19/ Plus they've invested in over 15 new games that, and in the ethos of Web3, have open-sourced the game data they collect on a new platform called @PlayCore_io

20/ So what about the $BREED token? Yes, it will enable entry into BreederDAO’s dedicated alpha channel in which they share the findings of their optimization engine. But more importantly, it will play a critical role in the direction of the protocol

21/ BreederDAO Production Lines, are similar to @Tokenreactor, in that they allow $BREED holders to stake their tokens to vote on specific game assets where the DAO should allocate resources.

22/ BreederDAO Chutes allow BreederDAO customers like guilds to lock their $BREED tokens in exchange for early access to highly sought after in-game NFTs that BreederDAO manufactures - these NFTs will be distributed to players in proportion to the amount of $BREED they lock.

23/ For more info on BreederDAO you can check out their whitepaper: whitepaper.breederdao.io. And thank you to @eden_holdings for the intro to this one!

24/ DISCLAIMER: I am an investor in BreederDAO and excited to support them in their mission to “equip the next billion players & become a pillar of the play-&-earn economy.”

H/T @Rewkang, @kaymume, Steve Cho, @wvaeu, @brianfakhoury, @alec_korman for pushing me daily to learn