Ending Support for FreshCut Diamonds (FCD) and Blockchain Feature Development

Today we’re announcing that FreshCut is ending its partnership with Penta Labs Ltd (the issuer of the blockchain asset FreshCut Diamonds, “FCD”) and removing the integration of FCD from the FreshCut platform. The FreshCut platform and company will no longer support FCD or blockchain feature development.

In the next month, a new version of the FreshCut app will be released with an updated experience that prioritizes gaming communities, rich content, and creators.

We understand that Penta Labs is implementing a recovery process for May 2022 launch participants and current FCD holders. If you participated in the May 2022 launch event and/or currently hold FCD, please see this article from Penta Labs, which includes recovery instructions and key dates.

Why is FreshCut doing this?

FreshCut’s mission is steadfast: helping gaming creators and communities grow and thrive through a dedicated content platform and creator-led economics and revenue share. In achieving our mission, we prioritize safety and stability for our community, and as a result, we are making the difficult decision to part ways with the web3 aspects of the business. Above all else, we believe in building and maintaining a safe environment for our users and community.

To provide further context on the matter, 2022 featured declining economic conditions, and was also an extremely disheartening year for crypto as headlined by bad actors and extraordinary fraudulent events as the fall of FTX, Luna, and many others have come to suggest. Consumers require safety and stability of the highest standard, and we are concerned that the web3 industry has yet to reach this standard. The current conversation around ‘crypto’ is turbulent and can introduce uncertainty among consumers of web3-based services and products. As a result, to alleviate any source of doubt from the FreshCut ecosystem, we are taking a step back from our initial web3 implementation plans so all current and future users can participate in the community, engage, and have fun worry-free.

With this said, we do not believe that all of ‘crypto’ is bad. We believe that web3 has enormous promise for individual empowerment and digital ownership — and we support these principles. However, at this time we believe it is in the best interest of the FreshCut ecosystem for us to devote our time and resources on non-web3 initiatives and products for our community of gaming creators and fans. There is still much to achieve and accomplish with the FreshCut community.

FreshCut Community: Options for Diamonds & FCD

What do FreshCut users with in-app currency (Diamonds) need to do?

1. For users who desire to keep the in-app currency without blockchain capability, no action is needed. In-app currency will continue to retain the same functionality as before, but will no longer be eligible to be exported as a blockchain token. On January 31, 2023 5PM PT, the value of Diamonds in-app will be set to $0.01 per Diamond.
2. For users who wish to exchange Diamonds into FCD on chain, simply follow the in-app prompts to convert your balance, located in the FreshCut wallet.

Please note: All users who choose to keep their Diamonds in the FreshCut app will be receiving a 2.5x balance multiplication on February 1, 2023. For example, if you have 1,000 Diamonds, your new balance will be 2,500.

What do users with existing FCD in the FreshCut in-app wallet need to do?

1. For users who wish to receive Diamonds, you can convert your FCD into Diamonds through January 31, 2023 5PM PT. Simply follow the in-app prompts located in your wallet.
2. For users who wish to take part in the FCD recovery process, you will need to transfer your FCD from the in-app wallet to a different on-chain wallet OR you will need to import your secret recovery phrase into a new, wallet application such as Metamask in order to view and access your FCD token balance. Your secret recovery phrase, which only you the owner can ever access, will be accessible in the FreshCut app for 90 days after the in-app wallet is removed. Make sure to record and save this phrase securely within the allotted time period — seed phrases will not be recoverable after this process is complete.

Please note: all users have 12 Days starting on January 19, 2023 to either (i) export current in-app currency for blockchain FCD or (ii) import blockchain FCD tokens (that aren’t in the app) into the FreshCut app in exchange for the future in-app currency. After January 31, 2023 5PM PST, the in-app wallet and import/export functionality will be removed.

FreshCut disclosure regarding Penta Labs’s funding, operations and recovery process:

FreshCut the company and the FreshCut Team are not participating in Penta Labs’s recovery process, have not sold any granted tokens (including FCD), and have not and will not receive or plan to receive any cash remuneration from Penta Labs. For clarity, the company team’s FCD pool is still under a one-year lockup at the time of this announcement and will be burned without remuneration. Furthermore, FreshCut is recognizing a multi-million dollar loss on its investments in its development of blockchain-related software and products.

Please refer to the Penta Labs article here for further details.

What’s Next for FreshCut?

FreshCut isn’t going anywhere. We have a passionate team who are dedicated to building for the next stage of the business and community.

If you have any questions, please direct them to hello@freshcut.gg or our Discord and open a ticket. For any and all ‘blockchain FCD’ questions please email labs@fcd.gg

SUPPLEMENTAL INFORMATION

Summary of Changes and Non-Changes to FreshCut

• “Blockchain FCD” integration and the FreshCut in-app wallet will be removed by January 31, 2023
• Access to seed/recovery phrases will be removed by April 30, 2023
• Diamonds will be the in-app virtual currency of FreshCut
• In-app currency will be repriced to $0.01 per Diamond on January 31, 2023
• All users who currently have in-app currency will have their balances updated to reflect the same value as before
• In-app currency purchases will be made available in the next month