The Battlestar eSports Economy

Jamie Thompson
Jun 14, 2018 · 6 min read

A Very MODN MODL

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In my previous article I discussed the process of how and why the cryptocurrency Battlestar coin [BATL] was created, citing the bold claim I had proffered to its dev team,

“Viable value proposition” — three words which, in these times of Billion-dollar ICOs and token ‘crowdsales’, are all but routinely relegated to the realms of ‘We’ll figure it out once your money has paid for the platform to be built’. Blockchain is magical fairy dust to the investing public, who are often long on enthusiasm and eagerness to ‘get in early’ on the latest and greatest epoch-defining decentralised future but short on the details of exactly how the numbers work out, or don’t, following their rush-to-buy.

Rather than dwelling on the fact that token-sale-funded-project math often struggles to equate to a viable financial model, let’s dive straight in to what we, as MODN METL, a private enterprise, are bringing to the table through our collaboration with Battlestar coin, a regular Proof-of-Stake open-market open-source community cryptocurrency.

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What is MODN METL?

It is both the name of our mobile application and that of our company developing it.

The mobile app matches, launches and manages competitive paid PvP challenge games between its users and credits them with rewards for victory. The games are integrated in partnership with the developer and can be for desktop, console and mobile platforms.

It is monetized eSports-on-demand, with users paying a fee to enter competitive rounds of their chosen game against other users, with the winner being rewarded in Battlestar coins either through outright victory against their opponents or distributed proportionally according to performance metrics, such as number of laps, flags, hits, achievements, damage inflicted/received etc.

A tale of two tokens

There are actually two ‘tokens’ at work in this business model, the traditional in-game currency bought by the user as an in-app purchase, we have called ‘Battlestars’, with which they are able to pay to enter a range of price-tiered competitive matches, as well as use to purchase in-game items and enhancements from our virtual store.

This is the usual centralised structure employed by most commercial game platforms and allows us to build and manage the system effectively and securely without the inherent risks associated with entirely decentralised blockchain-dependent environments.

The second ‘token’ is, of course, the Battlestar coin [BATL] cryptocurrency which the system awards to the victors and it is this which provides the user with the uniquely innovative value-added service. They are free to send these coins out into the wider cryptocurrency ecosystem and, utilising the many platforms already in existence online, can choose to pay for goods and services with them, exchange/trade them or, for the savvy forward-thinker, HODL them in their own Battlestar coin ‘staking’ wallet, helping to further secure the network while increasing their balance over time through earning block rewards.

How the math for this economic model, quite literally, adds up

Pay attention now, this is where things get seriously viable!

Battlestars, the regular centrally-managed in-app currency, is sold to our users in dynamically-priced bundles at 5% above the live open-market price of Battlestar coins [BATL], the slight premium warranted by way of the provision of our platform’s services to them.

At the same time a user buys, say, a $50 pack of Battlestars from us, our back-office systems place a bid offer at 10% below the open-market price of BATL for the same number of tokens issued to the user, resulting in an ever-expanding pool of liquidity on the buy-side of the coin’s public trading market. This ensures that every single in-app purchase made by our users actually provides for a growing fiat-currency value attributable to each Battlestar coin.

This is the key driver of the market’s viability, genuine utility backed by an in-flow of ‘new’ money to the BATL ecosystem over time which delivers a steady growth reflective of both the underlying business operation and the broader trading conditions for this coin going forward.

Wait…hold on…

Let me stop you there, you think you’ve spotted a major flaw in this process, correct? Our business operation stands to make 15% on each user purchase, yes, but only if our bid offer at 10% below the market price is sold into, right?

What if the market price for BATL rises and our discounted bid offer isn’t sold into, how will we secure the needed number of coins to match the number of in-app tokens bought? I mean, it’s all well and good for our users if the trading value of the cryptocurrency increases, true, but how would we then be able to fund their victory rewards in Battlestar coins if our bids are being buried under higher offers from people day-trading the market?

How about a 90,000,000 reserve pool of BATL to cover for this exact market condition?

Let me refer you to what I mentioned in my previous article:

So, if our bid offers are sold into on the open market we, indeed, acquire the requisite number of BATL purchased at a discount and, if the market becomes buoyant and our bids remain unfilled, we can simply utilise our reserve pool to cover for the amount needed.

We gain either way and, more importantly, so do our users in being able to pay to utilise our platform to enjoy the thrill of reward-based competition, while benefiting from the fact their purchase actually creates value for the cryptocurrency they stand to gain through victory.

Our 90,000,000 reserve holding in BATL lends value to our business operation both through the growth achieved in the open market trading price of the cryptocurrency itself, in that we are perpetually adding liquidity on the buy side through user purchases of our Battlestars in-app currency initiating a related open-market bid for the equivalent number of BATL cryptocurrency and, as an additional income stream, we stand to benefit from ‘staking’ this balance to secure the network and gaining plenty of Proof-of-Stake block reward coins each day through holding such a significant sum.

We have no qualms about being completely open and transparent about this model, as it not only financially benefits us as a private commercial enterprise, but also our game developer partners, who stand to gain from a wider audience able to easily make purchases for games, DLC and virtual items in a single in-app currency across all the titles we host, as well as our users as gamers and cryptocurrency enthusiasts being able to enjoy a unique on-demand service bringing reward and value on multiple levels.

A genuinely Viable Value Proposition, for all.

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Next up…

Ok, on to the app itself — Partnerships, Previews and Public Betas!

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