Introducing a decentralised autonomous gaming co-operative.
This paper describes the framework for the mechanics of the first Decentralised Autonomous Gaming Co-Operative (“Gaming Co-Op” or “Common”), an automated gaming organization designed to use incentive chains to grow autonomously and build long-term value for all participants.
We call it “Babafa,” a play off the three 8’s Casino Game. The design of Babafa is inspired by The DAO, FOMO3D, growth incentive chains, Harberger Tax and Decentralised Autonomous Co-Operative’s (“DACs”).
Shared Commons within a DAO
Babafa operates and grows without any intervention as a DAO. The DAO is intertwined with incentive loops to make the player a user, worker, member, and even stakeholder of the greater organization. In short, the player becomes a custodian within a shared commons.
The Gaming Co-Op will grow organically by ensuring incremental value flows to those that engage with and protect it.
Growth incentives to bootstrap growth
Babafa decentralizes by design. Growth incentives are used to create network effects and referral loops for players. Players are incentivized to continue playing and refer new players by staking, with the possibility of sharing in a growing pool of on-chain cash-flows.
Custodians: users, workers, and shareholders
Cardholders are the property owners or stakeholders of the Gaming Co-Op (“Custodians”). Custodians control some decisions of gameplay. However, the decisions are limited in their scope and do not impact the growth mechanics inherently built into the organization.
Protecting the ‘Commons’ by taxing the beneficiary
A modified Harberger Tax is used to incentivize Custodians to fund the commons found in the Gaming Co-Op while also creating an open market or auction house for regular, compulsory acquisition, resale, and recycling of property ownership. This ensures a pathway for those that wish to maximise levels of profit as well as optimal distribution of ownership.
The ‘Commons’ builds value beyond its actors
Babafa builds long-term user value by giving back to the players and even the broader crypto-community. Players can accumulate guaranteed on-chain cash-flows with Card Custody and the crypto-community benefits via support of common causes. This long-term value could be supporting a charity focusing on gambling addiction or asset accumulation, such as buying (or holding) Bitcoin in perpetuity.
Babafa will return >98.5% of funds played to the players, giving it better odds than playing against any casino.
The more one engages, the more chance there is of benefit. Stated differently, Babafa looks after its members in a symbiotic relationship.
The Foundation: a necessary (decaying) evil
Babafa will need a foundation with an open constitution to support the launch of the game and its initial deployment. The foundation is a necessary evil given the tech stack to run the front of DApp websites does not yet exist. However, as the web moves back towards a decentralized peer-to-peer network the need for the foundation will cease to exist.
If you build it, they will …
Finally, the Litepaper is just that — a paper.
We have no current plans to build Babafa but hope to stir a lot of debate on what Common’s, Co-Ops, DAOs, and even organizations will look like in the future.
The paper presumes a team would build this on the Ethereum network.
However, similar Gaming Co-Op’s can, and likely will, be built on all smart contract networks including Tezos, Dfinity, RSK, and others.Also, we believe these networks will be built around every different concept we can imagine, from healthcare to schooling.
Also, the greatest thanks to James Prestwich for his technical prowess, thoughts and input.