DeFi Kingdoms Action Plan First Look— May 6, 2022

In light of all of the recent events — the DeFi Kingdoms team recently announced that they have an action plan in process to address many of the community concerns and today live streamed a review of the action plan.

Recording can be found here: https://www.youtube.com/watch?v=Ls_UIPBbHoo

Leadership Team Members Present:

Action Plan First Look

Frisky Fox — we’ve spent a lot of time discussing internally about what we want to continue doing and what we want to change and what will set us up for the future best and have put together an action plan that has many points to it. It’s a living action plan and we will continue to iterate. We have Dreamer, Mr. Faun, Kant, Boo and others who have a large role in trying to figure out what things we should be giving our attention to in the short term and the medium term to make sure we are on the right path. Dreamer do you have any thoughts before we hop into this?

Dreamer — This is intended to evolve over time. Many of these things we’ve been doing in practice even since the early days as a small team. As community grows and team grows people maybe aren’t paying as much attention or the trainings aren’t like they were or there’s less focus on people doing what we are supposed to be doing. So the action plan will be legitimizing a lot of our policies and procedures and also add some controls. Holding people accountable for certain things where maybe previously there wasn’t controls around it. Excited to talk about this and how it will be evolving in the future.

Frisky Fox — we’ve been very careful how we’ve been doing things, but we started out small and as we grew we recognize there are better ways to be doing the best practices as we grow and expand into other realms and how we manage our internal policies, while at the same time focusing on what we are building and making sure its providing the right utility and incentives to the ecosystems we build.

So what are we doing from a Kingdom Studios standpoint to make sure we are able to step forward into this new phase and make sure we have longevity and staying power and making sure we are line with all the regulations for a project to stay alive and healthy, so Dreamer do you want to take am minute to talk about Kingdom Studios?

Kingdom Studios Entity and Corporate Strategy

Entity Incorporation

Dreamer — we’ve been moving toward the direction of making things more professional and legitimate. Part of that is actually establishing the entity. Happy to announce that we do have an onshore Delaware entity with a Board — Fox, Dreamer, Beetle Dude, Rooster and Mr. Faun for now. The primary purpose is to appoint the key leaders (President, CEO and Treasurer). Fox has been listed as the executive director, myself as president and Rooster as the treasurer. This impacts how we can hire people, how we present ourselves to others, having a LinkedIn, signing documents, being doxed so that our agreements with audit firms or chain and game partners and NDAs as we share information becomes incredibly simple. This in addition to our previous entity in BVI and Panama help complete that.

Dreamer — The next part is C-level positions. We haven’t appointed any yet, but they will be appointed by the board. We will be careful. To be C-level at a project of this size and how big we could be (as markets improve), we want to make sure that the C-Level positions are nominated and executed with those that are most right for those roles in order for the company to serve the project. One of which is a CFO position. We have many with a lot of good background as it relates to that. Some have asked if we are going to put a CFO into place prior to this point. We haven’t had a board prior to this point and we haven’t had corporate financial statements and things like that. We’ve had offline budgets and practices, but now as a first thing we’ll appoint C-Level positions to help carry us to those next levels. Really excited for everything that comes with the Onshore entities, new hires, new potential on all levels, including C-level.

Legal Counsel

Dreamer — We’ve been working with external counsel for a while now. This isn’t a new topic. They’ve been incredibly helpful in setting up entities in Panama, BVI and now onshore. Internally we’ve been relying on knowledge of members on the team and then having a delay to go back to the external. A typical large company would have an internal expert of sorts. We are continuing to beef up our legal counsel externally, for example we are looking for new BVI counsel, but also an internal legal expert so that that kind of completes the overall legal view so that day to day we have good advice and people that are protected. Then as a second line of protection multiple external legal counsels to make sure that we are protected and making the right decisions and headed in the right direction in this regulatory environment that is very uncertain and always changing.

Public Relations

Dreamer— We are very focused on being transparent. We have so many people focused on community, Bolon, Alia and our knights, and people on social networks passionate about the project. We have Although sometimes things could be communicated in a more clear manner, or a more professional manner and we’d like to build that out. As more people grow in the community we should have more expertise in the area. This will be similar to the legal counsel answer, it would be great to have a PR expert, either as a contributor or as an employee of Kingdom Studios. There are also very many great PR firms out there with expertise in various parts of the world. These things take time and its not an couple day thing. We want to make sure the fit is right from anyone coming on and that their background is sufficient and build that out there. This is a focus and proactive but not a title, but going forward we’d like to put more effort and focus on this.

Frisky Fox — I’m really excited about this because having our own on shore entity is similar to what you see on Avalanche and Harmony that have their own chains. The entity allows us to more effectively manage all of those product lines that we have in this project, all of which are able to feed back into the utility for Jewel and our other assets as well. Also included in there are things like IP rights, merchandise and being able to more effectively market and hire on shore contractors. Really excited about that and flexibility it gives us. From a legal standpoint, we’ve had great counsel all along the way in how we should set ourselves up here in the US and in the world to follow all of the regulations that have been put out or that might come out to set us up for success.

Policies and Compliance

Frisky Fox — We’ve been thoughtful about this, both for brand and to protect us from risks internally and externally.

Multisigs

Frisky Fox — We’ve always employed and used multisigs all over the place. We are currently trying to switch up some things there so that there is a separation of interest between the boards, such that anyone on the Board of Kingdom Studios should not be on the multisig wallet. We’ve switched that up a little bit. There are people both inside and outside the USA that are closely associated with the project that are able to step up and secure that. It helps provide further layers of security for this project.

Time Lock

Frisky Fox — Time lock is another thing where we want to add at time lock when we make changes. This allows the community and others to see what's coming so there are no surprises.

Kingdom Studios and DFK Contributor Trading Policy

Frisky Fox — this is one we’ve had for a while and are now reaffirming. We have out treasury in JEWEL and are paid in JEWEL. It’s an interesting interaction with community.

Not selling over 0.1% price impact in time on a 6 hour period on an up day. On a down day its a .05% price impact. That’s to make sure that anything that’s done won’t be disruptive to price at any time. We’ve been pretty religious to trying to follow that all along. We are also appointing an internal compliance audit officer to make sure that’s being followed and to make sure there aren’t things that need to be corrected as we go forward. We are also very conscious of MNPI — material non public information that we can have access to. Any trades based on MNPI is prohibited and has been. This is to make sure there’s no trading on info that is not public and we have a strict policy for that.

Wallet policy for contributors.

Frisky Fox — Many of our contributors get paid by specific wallet, then they have a hardware wallet and then different wallets to play the game, as long as both wallets are known to be theirs and only one is used to play the game and one is used to store the funds that they own. Other than that you are not allowed to have other wallets. This is to enforce the compliance of this.

Compliance officer.

Frisky Fox — We have a person we are currently trying to fill that position. That will help us to stay true to these policies and making sure they are being followed.

Dreamer — there’s lots of people passionate about this. In the 0.1% price impact and the0.5% price impact, that’s per trading pair (because the price impact is based on a specific LP token) when you trade a token a price impact of 0.1% on that pair does not equal a 0.1% impact on Jewel itself because there are multiple pairs. So 0.1% is already far and there’s no one pair that makes up all of Jewel circulation. On down days we do 0.05%. We tackle this in two days. First we look at trailing 24 hour period. We are finalizing policy to release to make this all clear, but if price is flat and then one minute its negative then one minute its positive it makes it hard and so we would be focused more on when we can trade then doing our jobs, so the guidelines we are looking to put forward is more of, if the price over 24 hours is down 5% or more then you default to the 0.05% rule. Then we look at candles, if its a green candle its going up if its a red candle its going down. In Dexscreener in 24 hour view we’ll see a candle for every hour, this is where the compliance officer comes in. Most of the contributors aren’t traders, they get paid in Jewel and then to cover their liabilities they sell as needed. We will be receiving ongoing trading from the compliance officer so that we are aware and doing the best that we can and being transparent to the community. We’ll also be focusing on this policy, maybe the candle focus is too granular. Maybe 24 hour period isn’t right. But hopefully this shows how we are looking at this and so that we can give our best efforts. We think having a compliance officer to assist with this is a great action item going forward.

Mr. Faun — it’s important that our team is emphasizing that this policy applies in down markets but also up markets. I know its stated in the policy, and users are generally more affected on the effect in a down market, but its equally as important in an up market that we comply with this policy as we increase in value.

Frisky Fox — excellent point about this being per pool, because it’s even more conservative. The point is always to protect the value of our assets. A part of this as well is going to be transparency. This will be part of the internal audit stuff that we are doing. There are external tools and wallets being built to help with this. Our docs are a big part of this as well. We are constantly reviewing and trying to update so that we are up to date.

Dreamer — if there’s anybody out there scratching their head wondering why we are so focused on this, it’s one thing to have general guidelines, but we haven’t had an actual entity to employ people and we are trying to legitimize everything, but people have been, and I don’t know if the right word is guilty, but there’s been a trade where I thought I was in a green candle, Bing bam boom, get back to work, 0.1% price impact on one pair, and then someone reached out and said hey it's a down day you can’t do that and I’m like man I wrote this policy and I even in that moment didn’t follow it. Well son of a gun I need to do better than that. Regardless of our intentions an regardless of how professional you are you need someone to help monitor and ensure compliance with these kinds of things. Going against a policy is not always intentional its sometimes a mistake. Just wanted to hit it home. This isn’t to be looked as a negative to police us, but as a positive to help us be successful and protect us.

We are also looking at potential third party audits. This would be an unbiased person to check us. I haven’t found a clear audit firm that can do this for us, or a tool that can help with this.

Policies, training, checking it, and a third party to help audit.

Frisky Fox — It is important in this space. Audits of code. Audits of team. We are committed to doing what is best for the project and taking the best steps to help. Moving on we did want to talk about security and controls and audits.

Security, Controls, Audits in Terms of Policies Existing and being built for Smart Contract Audits, Community and Communication

Boo — For security controls want to make sure we are continuously keeping info up to date. Dreamer also mentioned audits. Some we want to be aware of and in front of are a white paper audit. We’ve started one with goals to make sure info is correct and to see if there is any info that should be included in there that isn’t.

Smart Contract Audits

Boo — with formation of Kingdom Studios we are looking to get a audit firm on retainer.

Documentation — Terms of Use

Boo — we are working on an official terms of use to create an official final version. We are working with legal team to create the final version. This would be for all persons, employees, users, etc. Once we have final version we will have vote on it. We are focused on decentralized environment. DFK Governance will maintain the responsibility to balance the need for protection against malicious users against the need to exercise unilateral powers. Users can modify terms by vote.

Initial Liquidity Tokens — LP Seeding

Boo —When seeding initial liquidity for the DFK power tokens, all such LP LP tokens would be seeded by the project and no individual. Initial liquidity shall be seeded by the Kingdom Studios, and sent to the marketing multisig on the respective chain immediately after receiving liquidity.

Frisky Fox — A lot of these policies as we go forward, especially new expansions (CV we did it this way) we’ll have the liquidity transferred into the marketing fund, which I believe is now updated on the docs, so if anyone has questions about that, that’s how that was handled. For terms of use, we’ve talked about doing potential things in our game, like a block list. A lot of times you have games that are very centralized, where you have to have moderators put in place to handle those, for them to have power you have to have terms of use. Ours is different. Because its decentralized. Any terms of use would have to go through a vote so that it says any violation would be enforced.

Smart Contract Audits

Mr. Faun — we could take the rest of the time on smart contract audits. When working with audit firms that aren’t on retainer that can put delays into our timeline. I’m excited with Kingdom Studios we can put a stronger relationship on that with firms that we are exploring that are very reputable with goal to get them going as soon as possible. I think it's sometimes missed by the community how complex this game is. There’s a lot of criticism about the actual game itself, which I think is being improved tremendously and there’s a lot of utility coming, but underneath the hood there’s a lot of complexity, but I’m excite to have an audit partner that better understands our contract system and has the expertise of a professional firm and is available on retainer. Kingdom studios will allow us to improve in a lot of areas, but his is one that I’m really excited about.

Frisky Fox — our processes are a lot better than they were before. Open Zeppelin, multisigs, multiple checks and balances. QA Proces is good. Process management is good. We have hundreds of smart contracts part of this game, others I’ve seen have 10–20 contracts per game and ours is very complex and we want extra checks to make sure everything is secure and that nothing is released that would destabilize that ecosystem.

Community and Communication

Frisky Fox — utilizing the communities' skills and feedback is important to us. Mr. Faun has been setting up things and Sunbear can also touch on the builders program.

Mr. Faun — first topic on this section is the Kingdom Builders program as a renewal of the prior builders program. I want to put some hype into this program. In looking to the future, short term and long term, the quickest way we can bring utility to the in game assets is via the community. I’ve strongly stated that the more we can become one with our community developers and provide them access to use our in game tokens, the faster we can provide utility other that relying on our current contributors.

Sunbear — This is a community program. When we first launched, we didn’t have DFK chain, we weren’t on Avalanche, we were a lot smaller, we were half the size as a team. We needed to revamped to make this YOUR program. We got feedback about the level of transparency, making it fair to people applying. Making feedback organized and standardized, providing support and guidance to team and also creating space for the community to be able to do that. In response to that we really revamped this. Build.defikingdoms.com is our landing space. Our vision is that this forum is to be focused on building, community and providing constructive and helpful feedback. There’s channels just focused on brainstorming, come in and brainstorm. Or bring a post about a grant and brainstorm with the community. There’s also a channel about collaboration. Maybe you have Talent and what to join a team, this is a hub for that kind of work. Just wanted to share that vison of community budling and support. IF you aren’t a builder, still come and share your views and be a part of that building process. It’s exciting we already have a few posts up there. This is an area we are very dedicated to this and builders in our community.

Mr. Faun — this is impressive and if utilized correctly by the community will be very successful. Moving forward the follow up to that is that I wanted to talk about action items to enable this and developers to have more access to our project. The first thing that has been my brain child for a while is a develoeprs.defikingdoms.com website. Many projects that strive to become a SaaS product developer a portal like this to allow community develops to have everything they need to integrate and have approved assets in the game. The preliminary items would be contract information and explanations on amore technical level for understanding different aspects of the game, there will be contract interfaces, ABIs and related documentation. As I’ve contributed to other products, I’ve seen that these pages are important to developers being able to really develop. I will say that his is a large undertaking and looking at how we can make it effective and maintain our current timelines. I’m pushing opt make sure that those in our community trying to build and be there for us have ethe resources they need.

API policy

Mr. Faun — kingdom studios will be contracted to prepare an API policy. It will be submitted to the community for a vote. I’m not as involved as someone like Pine Cone, but our APi is a very powerful tool and we want to develop a policy that would allow for grant projects to be able to access that. We’ll also look into partnership that could help us provide better data whether about DFK chain or the game itself.

Community Feedback

Mr. Faun — in the past a lot of our community Feeback has been informs or submission and I’m excited to push a proof of concept we pushed with the user voice platform. We think that the feedback we received was positive in being able to isolate and upvote the issues the community would like to see addressed. We’ll continue to maintain that as a place for AMA questions, but we’ll be adding additional forums. First forum is the AMA site to make sure that those who aren’t able to hop in line first for those AMAs can still submit questions and still have them addressed by leadership. Next will be product suggestions to that product managers have the info they need to make the best possible product. I’ll start with a story, but I’ve been upvoting Minecraft to come on oculus quest and it's been a top vote item on Microsoft’s pages for a while. I know that they know it's been upvoted and we don’t want to be like that. If there’s something we know lots of people want we want to work for that. But we have to understand that we can’t put something in that everyone wants in just one week, but it will be a great interaction for people in the community to provide input.

Frisky Fox — I’m also excited about that because we have community vote system, but that's for large changes, this will be a great way for people to share their thoughts in a very organic way.

Mr. Faun — I won’t ramble to much on that, but third section will be a general feedback section. This will be largely unfiltered but will be monitored. These won’t directly relate toa product implementation or feature change, but could be things about policy updates or other action items that the community wants to relay and have the leadership team consider. That portal will be developed over the next few weeks and we’re excited to use that as soon as we can.

Bolon — We have google forms now, and many are familiar with that, but the website will take this to a whole new level. Right now we go through those manually, we go through it every week. I personally go through questions and suggestions one. This will be so much cleaner, but I’m really excited for the voting aspect and to be able to see Mettez, who interacts with the community and asks questions on their behalf a lot and to have a process like that more automated. This will maximize the effectiveness of our AMAs.

Sunbear — a couple of weeks ago I asked for nominations for Charities. I have that list and am working on getting that into the system. I’m going to put them in the order of how many people actually recommended particular charities. You can come in and vote on those. So watch for that. Then another thing for the API policy, that came from the roundtable Frisky Fox held a couple of months ago about how people should be able to interact with our assets. this outlines the policy on how people outside the project can engage with our assets. It will never be more powerful than what you can gain in game for experience and we want to make that clear. But when people come in and want to do something outside of the policy or similar it would require a vote.

Frisky Fox — Part of what we are doing with DFK chain is building an ecosystem geared toward gaming. Trying to have the best tech to support that and to be a metaverse of integration between projects. Things like assets in game being potentially crossover events and other games. That’s really the exciting part of all of this for me to create a ready player one type of experience. So the API policy and what we can or can’t do will be very important and involving the community in that since we are decentralized project is very important to that.

Tokenomics and in game utility of assets

Dreamer — the first thing is related to other topics that as we have been going we’ve been very focused as it relates to which tokens we introduce, the utility of those tokens. if a new feature would be adding a source or a sink or adding a way to use or spend. We are trying to formalize that a bit. While a new feature may come from one department or individual, then over time people will add to that. So we are putting together an official tokenomics committee. And that committee will represent different departments. People that have different interests in the overall tokenomics. So that not one or two people are making final decision. Also while things are in beta, we can make the best efforts to have the best decisions put forth. But keeping in mind that while things change in the market there are things we can’t control, and some things may require adjustment. As new features come out we may have to adjust, and this committee would help to make decisions on how to preserve the value of assets. Things like whether our assets should be able to be used in other games. I’m really excited about the community and the ability to more formally and frequently monitor everything so that we can preserve value.

Frisky Fox — just wanted to highlight this. WE have lots of tokens. Heros are the main driver of interfacing with our game. In the short term we have some cool things coming out within the next few weeks that will be adding a lot of additional utility like Duel, Stone Carver and pets, that will be providing other ways to use your tokens to further your holdings in our game.

DFK Chain

Dreamer — there’s been questions about why did we launch this. Sure Gen0’s are cool. But what's the main value add of DFK Chain outside the obvious? A big part of that is tokenomics and utility. In web 3 when you think about ready player one you have to have a common area for things to live. We have a pixelated map where we have a DEX, in game marketplace and utility by means of questing and then using additional tokens minted through crafting and the overall utility and trade of them. To add to that other games that have their own NFTs and to gamify their front end is a huge part of adding utility for what we hold now or what we will hold. Jewel is gas not only being used to play DFK but to also do other things on DFK chain. We’re really working hard to cast those nets to find those people that are the right partner sand the right groups of people to collab on DFK chain so that long term, if you hold a hero for example, there are some mini games you can use your hero or token on, or maybe there are collabs outside of that that will recognize the holding of those tokens and give you benefits for that. Also same for us, where maybe we can give you certain profile pictures or have special quests for holding tokens from another game. It’s all about token utility and stability.

Frisky Fox — that was the last point we had in consideration this week. There’s been a lot of effort especially this week. We’ve spent a lot of time meeting internally and talking about where we’d like to be and how we get there. I hope this was helpful. Will open the floor to anyone else with last thoughts here.

Mr. Faun — the only thing I’ll add — I’ll spotlight Boo a bit. Last week was tough for the community, for the team, for crypto. Boo mentioned in an internal comms channel a story and I’ll slaughter this, but it was a story about the pots that are broken and put together with gold lining. Boo give us the rundown, but I’ll just highlight we are making the changes we need. It's unfortunate the mistakes that were made, but we are moving forward and making the changes that we need to and starting to build back trust. Thats what this action plan is for, to make changes immediately, but also what we need to do in the future.

Boo — so yeah the idea with the story is that there’s an old Shogun in Japan and essentially his favorite bowl was brokena nd wante dto repair it. Sent it to china — they stapled it and he didn’t like it so he tasked his team to fix it. They essentially used gold flakes to make a paste and put it together with that paste and making it something more beautiful than it was before. We are working to become better than we were before.

Frisky Fox — we had 9–10 people when we launched. We’ve grown the team to keep up with growth in the community. Every time we add someone to the team we add experience and a whole new look at what we should be doing and this project has evolved in scope. It’s not even the same scope from when we started out. It’s a much larger scope and ambitious plan. With that said we are always trying to examine ourselves and look and see how we can improve. This is an ongoing effort and not a one time thing and will be continuing to improve on these things. In two weeks we’d like to revisit this and follow up on some of these action items we’ve made and see what the progress has been and what additional points have been added.

We’re always trying to refine our processes and we are excited to be entering this new phase of our project. Thank you to everyone coming and for attending, and basically for participating in this amazing project. I haven’t been more bullish on this than I have at this time with the amazing prospects for this project and this team.