Todd KochICO team member replied on 19 Mar 2018
Thanks Eugene for taking the time to look into our project. I agree with everything you said in the first part. We have had a lot of industry support and are continuing to add more game developers to the platform. We have solved a very real problem in the gaming world.
For the cons I would like to address each one individually
Cons:
1. I can't count the actual number of competing startups in this space. There will be a tough competition.
While there are several game style start ups in the space most are focusing on the skins economy while we are focusing on the actual mobile eSport competition. There is only one major competitor in this space which is skillz. So there is a lot of room to run here. By partnering with existing mobile game developers we are able to acquire users at a very rapid rate. With each game we add we also add all of that games active user base. So the more games we add the more "free" users that we add into our community.
2. No verifiable financial model. Both for the company and for the token economy. Only the same common blockchain-related ICO claims about the market potential, fixed token supply etc. As an investor, I'm I would love to know something about the way your company will create sustainable financial backing for tokens to drive their price up in a long run.
While I can no make any speculation in terms of the price increase of tokens. What I can do is explain the economy a little bit better.
Token mechanics
1/3 of the tokens will be distributed out during the sale (token loyalty pool). 1/3 of the tokens are slowly given out to players as prizing (game pool). 1/3 of the tokens are held in reserve and by the company.
Token flow
Free-to-Play Tournaments: The outflow of game pool tokens are tied to the revenue that is generated from advertising inside the free to play games. RewardMob uses 30% of the revenue that is generated from advertising as the ratio for distributing tokens from the game pool as prizing in the tournaments and rewards. This allows a gradual outflow of tokens from the game pool that is actually tied to the revenue that is generated by the company.
Pay-to-Play Tournaments: Tokens are the required currency that must be used to enter the tournaments either buy purchasing tickets or as a direct entry. These entries make up the prize pool of the tournament. At the end of the tournament RewardMob pays 80% of the tokens out to the winners and keeps 20% of the tokens as a commission for running the tournaments.
What do we do with the tokens earned from commission?
When RewardMob receives payments from sponsors and advertisers we offset the revenue that is taken in against the commission received. We then place these tokens back into the game pool therefore replenishing the game pool.
The RewardMob ecosystem is finely balanced with the inflow and outflow of tokens moving between the 2 main pools and the players of the games.
Token Economics
RewardMob has created its own economy. Tokens are required to purchase tickets to enter the tournaments. Commissions earned from running the tournaments are offset against the revenue generated from sponsorship and advertising so that these tokens do not need to be sold. They are instead placed back into the game pool to be distributed back out as prizing. This method creates only a positive flow of tokens in the economy.
Burning of Tokens After the sale
Tokens that have not been distributed following the conclusion of the sale will be burned in a way which reduces the overall token supply across all pools.
3. Minor bug: the Russian Light Paper feel less professional, than the original, it has some words missing and also contains several mistakes, that more or less change the meaning of the corresponding phrases in the English Light Paper.
Thank you I will talk through this with my Russian translator to make sure that there is no loss in the meaning in the terms.
For the cons I would like to address each one individually
Cons:
1. I can't count the actual number of competing startups in this space. There will be a tough competition.
While there are several game style start ups in the space most are focusing on the skins economy while we are focusing on the actual mobile eSport competition. There is only one major competitor in this space which is skillz. So there is a lot of room to run here. By partnering with existing mobile game developers we are able to acquire users at a very rapid rate. With each game we add we also add all of that games active user base. So the more games we add the more "free" users that we add into our community.
2. No verifiable financial model. Both for the company and for the token economy. Only the same common blockchain-related ICO claims about the market potential, fixed token supply etc. As an investor, I'm I would love to know something about the way your company will create sustainable financial backing for tokens to drive their price up in a long run.
While I can no make any speculation in terms of the price increase of tokens. What I can do is explain the economy a little bit better.
Token mechanics
1/3 of the tokens will be distributed out during the sale (token loyalty pool). 1/3 of the tokens are slowly given out to players as prizing (game pool). 1/3 of the tokens are held in reserve and by the company.
Token flow
Free-to-Play Tournaments: The outflow of game pool tokens are tied to the revenue that is generated from advertising inside the free to play games. RewardMob uses 30% of the revenue that is generated from advertising as the ratio for distributing tokens from the game pool as prizing in the tournaments and rewards. This allows a gradual outflow of tokens from the game pool that is actually tied to the revenue that is generated by the company.
Pay-to-Play Tournaments: Tokens are the required currency that must be used to enter the tournaments either buy purchasing tickets or as a direct entry. These entries make up the prize pool of the tournament. At the end of the tournament RewardMob pays 80% of the tokens out to the winners and keeps 20% of the tokens as a commission for running the tournaments.
What do we do with the tokens earned from commission?
When RewardMob receives payments from sponsors and advertisers we offset the revenue that is taken in against the commission received. We then place these tokens back into the game pool therefore replenishing the game pool.
The RewardMob ecosystem is finely balanced with the inflow and outflow of tokens moving between the 2 main pools and the players of the games.
Token Economics
RewardMob has created its own economy. Tokens are required to purchase tickets to enter the tournaments. Commissions earned from running the tournaments are offset against the revenue generated from sponsorship and advertising so that these tokens do not need to be sold. They are instead placed back into the game pool to be distributed back out as prizing. This method creates only a positive flow of tokens in the economy.
Burning of Tokens After the sale
Tokens that have not been distributed following the conclusion of the sale will be burned in a way which reduces the overall token supply across all pools.
3. Minor bug: the Russian Light Paper feel less professional, than the original, it has some words missing and also contains several mistakes, that more or less change the meaning of the corresponding phrases in the English Light Paper.
Thank you I will talk through this with my Russian translator to make sure that there is no loss in the meaning in the terms.
