The quality of Web3 games and projects can be difficult to gauge
Developing or using a framework allows you to easily evaluate projects faster saving you time and money
Here are 8 research pillars you can use to make researching Web3 projects and games easier 🧵
Well go over 8 categories
1/ Team 2/ Core Gameplay Loop 3/ Tokenomics 4/ Niche/Originality 5/ Reach/Scope 6/ Progress/Development 7/ Runway/Funding 8/ Is the product good, would you use it?
Score them 1-10 as you go through them
Be brutally honest and objective
Avoid bag bias
1/ Team
I love the "bet on people not promises" @HustlepediaYT ethos
It sums up well how important it is to bet on people with previous related experience and have a high chance of delivering
This is to protect yourself in a place where a lot of promises are sold as products
Who would you bet on delivering?
First time anon dev who has never made a game before OR
TLDR if the FDV is many times higher than the market cap the token price can be 'overvalued' because there is supply that has yet to enter circulation
Cliffs - how long you have to wait for your token vesting to start
Vesting - how long it takes to get your tokens when your an investor before the public
Ex. 6 month cliff with 12 month linear vesting = get no tokens for the first 6 months, remaining tokens equally over next 12
Why is this important?
Low vesting and cliff timeframes for team and investors can indicate lack of commitment/cash grabbing
Makes you aware of potential significant supply increases during vesting (Ex. when multiple cliffs are expiring) to make sure that prices dont turbo dump
Some things ideally you want to see in tokenomics:
- A cliff of min 6-12 months for team and investors
- ideally 20% max to team
- not using vague categories such as 'marketing'
- team has longest vesting, gets all of their tokens last, takes min 1.5yrs average 2-3yrs
- liquidity 5-10% supply ideally no LESS than the TGE supply, this helps reduce sell pressure
These are guidelines
Ex. Its reasonable for a team to have a the higher 20% allocation of the supply if their vesting period for those tokens is 3+ yrs compared to 6-12 months
Some projects can have good products but poor tokenomics
Ex. Immutable X - Only 36% is currently in supply after large ~15% total supply unlock from investor and team cliff expiring
large cliff unlocks/ monthly float inflation increasing token emmissions starting in Sept 2022
before cliff unlock circulating supply ~15% at MC of ~150M at the time
This means that since the supply was effectively being doubled at this unlock there would have to be 150M of buy pressure just to keep the price at ~$0.60
Avoid getting dumped on by being aware of unlocks
Projects where the FDV is close to market cap have a lot less 'supply overhang' because most of the tokens are already in the current circulating supply
Ex. Phantasma, market cap is FDV = total potential circulating supply are all currently in circulation
Im not saying that Phantasma is better than all the other projects in its niche: Immutable, Gala ect
But from purely a tokenomics perspective, then yes because there is a lot less supply overhang
There isnt much incentive to accumulate IMX when there is 64% more supply to come
4/ Niche/Originality
How strong do they stand out to comparable products in their niche
Is it a distribution platform, game studio, blockchain, singular type of game, an investment guild, ect
If its a game how is it different from others in its genre
Seedify, vs Ultra, vs Gala, vs, Myria
Immutable X vs Polygon
YGG vs Merit Circle
Gods Unchained vs Splinterlands
If your evaluating a project and it feel like knock-off version of an already existing better similar product, why would you want to invest in it ?
5/ Reach/Scope - what the size of the potential users
Is it a singular game or an platform/ game studio ?
How large is the scope or pool of potential players, niche game or more broad game type (card games vs F2P FPS)
6/ Progress/Development - Is the project showing signs of making progress and achieving deliverables
How active are their socials, is there active communication and updates to the community
What are they doing in bear market to keep the community conviction high
Most projects will go silent when the bear hits and die silently
If they magically re-emerges in bull then degens and speculators are are going to have to pump the project
Ex. Gala lots of twitter updates, Immutable X and Polygon large raises and partnerships in bear market
7/ Runway/Funding - who funded them, how large was their raise, are they safe from contagion effects of larger funds
Projects need to be properly funded to make good progress in the bear
Projects that secure funding via VCs indicate to the market stronger teams and lower risk
8/ Would you actually play/use this product
If there wasent a financial incentive or a speculative premium would you actually play the game/use the product because its good ?
Be aware of your bias and recognize that others could enjoy the product even if you dont personally
To summarize
For each of the 8 pillars give the project a rating out of 10
Be brutally honest, you can always update the score later
Use this as a guide to help you evaluate project
No projects is going to have a perfect high score in every pillar category
2/ Edgy goes over what you should look into @StructFinance recently receiving over 1M in AVAX incentives and a recently launch points program that you can get in on early
Now available to mint on Zora for no cost is the open edition "The Arzidor Syndicate" NFT on Zora
"The Arzidor Syndicate is an uncontainable monstrosity fueled by its insatiable desire to feed on the naivety, liquidity and attention of new blood within the Web3 space
It likes to lure in its prey with salacious headlines and alluring AI generated thumbnails around the airdrop niche before ravaging any capital it can squeeze out of its unsuspecting victim before quickly deposing of its corpse in search of its next meal"
Open edition, no mint cap per wallet, open for 1 month, 25% of the mint funds/fees
(if there are any not sure how free mints on Zora work for creators)
will go to the wallet that mints the most NFTs
(Zora shows the wallet on the collection mint page)
Which trait/attribute will you pull with your NFT ?
Will it be "Insatiable Greed"
Discord "hack"
Free airdrop "script"
or maybe you'll pull a rare and get "Airdrop Fusion" or "Dropcoin"
Why you are not getting a lot of points on @EkuboProtocol and what you can do about it
points are purely based on fees, you earn more fees when LPing = more points
Most people will default to the ETH/USDC pair but unless you have larger size you'll be making way less points
As I mentioned in this post from 2 weeks ago
The Lords/ETH pool may be a better option due to the higher fees you generate
(from 2 weeks ago)
LORDS/ETH: 5.2k in fees, with 531k in 24hrs volume, and 924k TVL
in comparison top pair ETH/USDC: 1.3k fees, 2.5M 24hr volume, with 2.3M TVL
Since the fees in the top lords pool is 1%-2% instead of 0.05% to 0.1% in the ETH/USDC pool = Your earning a lot more in fees
Results:
wallet1 went from around 30k points to 134k points in 10 days with ~$1k in LP
rank went from outside top 1000 to around #150
wallet 2 went from around around 15k points to 56k points in 10 days with ~$500 in LP
rank went from outside top 1000 to around #380
Fees generated was around $40+ net positive after gas fees and lords token going down a bit
goal is to stay within top 500-1000 because you dont show up on the leaderboard at all once your pushed out of the top 1000
Its also important to set you range pretty narrow I like to do 10-15% above and below the current price, you can adjust range by changing sliders on bar chart graph as seen in image
Will be rotating funds to more wallets in the same cluster to diversify because imo having 5 wallets in the top 50% is better than 1-2 wallets in the top 10-20%
Obviously for reply guys like on last post there volatility/impermanent loss (IL) risk with LPing Lords token if it turbo dumps 50%+ your gonna be -EV obviously
But token has been pretty steady past couple weeks, accept and know the risks and act accordingly
Use my ref link pls sers ty, remove the space (didnt even know ekubo has ref links until today lmao)