The Arcade Token ($ARCD) Swap and Community Disbursement Begins Now
Christopher David

First off — Bravo!

Ever since the potential of Ethereum blockchain D’Apps ‘clicked’ for me, I’ve been looking out for the decentralized version of Uber. Simple game theory suggests that, as long as your product is user-friendly and your incentives are properly apportioned, Arcade City should crush Uber and Lyft in a matter of years.

One thing I thought I’d offer, in case it already hasn’t been discussed, is a more pragmatic explanation of how your tokens’ value could eventually be actualized. I feel like a lot of people have a hard time grasping where the value of alt-coins will eventually come from, and I came up with a pretty simple way of explaining it that I hope you find useful in your raising of awareness.

Correct me if I’m wrong, but my understanding is that, as revenue is generated through the use of the app, a percentage will be given to the driver (i.e. 75%), and the remainder will be put into a communal pool (i.e. 25%). Of that remaining 25%, maybe 15% will go towards general company overhead like new investments, paying for developers, other resources, etc. Then the remaining 10% would be allocated as dividends for coin holders, based on the amount of coins a person holds. So, in this example, if there are 10B coins in existence, and a person owns 100 million coins (1% of all coins), they would be entitled to 1% of all dividends paid out. In a given day, suppose the D’App pulls in $100M in revenue from ride fares. $75M goes to the drivers, $15M goes to the overhead fund, and $10M goes to paying dividends. In this example, that individual holding 1% of the coins would reap $100K for that day.

Maybe a more realistic example for potential investors would be the individual holding 200,000 tokens, worth .002% of the entity. In this example, where the D’App is pulling in $100M per day, this individual would be paid out $200/day, or $73,000 annually. The eventual price of the coin will be determined by this annual earning potential. So, if a single coin could net you 36 cents per year, the sale price of the coin might be 10X it’s annual revenue, or $3.60.

I apologize for the long-windedness, but I truly love what you are doing here and I just think it’s important for people to understand this abstract economic dynamic.