Analysis of the current business state and next steps.
A little of history
When Binamon project was launched, the expectations for the project were as a low cap project, we launched with a simple site where you can buy genesis monsters boosters with random stats and types, and for a while it was perfect, algorithmic cost helped users to visualize the probability and potential cost of their monsters. But the project at that point was little more than that, the launch funding was very little, along with a no-vesting period for the seed investors, and the price difference between the rounds, made the token go down on the first minutes of life, even when Nico made a rebuy of 900 BNB on the first day, the first week was terrible for the token, the tokenomics suggested by the advisors that launched the project were made specifically for their investors at expenses of the project.. they expected the project to die on the first week.
But.. they didn’t expect our comeback; without funds and with a very rudimentary product, we built a community, and there were a lot of people that supported us during those dark weeks… eventually, the deflationary nature of the token and the 100% burn of the boosters sales earn some interest in investors groups and the token grew, not one, but 2 times, by a lot, up to around 125x. But the problem there remained the same, for that token price, the project was perceived as overvalued, and the selling pressure was too high to sustain at higher prices, there wasn’t enough product development. Luckily for the project, that was enough to really fund the project and make the bases for the next Binamon phase, product development.
Present
Right now, Binamon is no longer that microcap project, the product development is way beyond that state, and that has a meaning in many ways, now the project is undervalued for the current development state, not counting the unreleased parts, but also the recurring costs and team size, and while we are not doing marketing moves right now, to reach the game targets, the required investment is higher than ever.
But the problem right now is that the original tokenomics were not prepared for a project of this size, even less to the size we are targeting, even if we sell all the monthly tokens destined to develop and grow, it is not enough to cover the monthly costs by far, so we would be only hurting the pool without really helping to cover expenses.
Limitations
The first thing is Binamon business model should be sustainable, token selling is not an option, and a business dependent on the token price is not sustainable at all, but that is even worst when there is so many holders waiting for the minimal pump to do scalping, every new user interested in the project, all the exposure and marketing done is then consumed by short term trading.
There are many investor groups interested in the project to invest but under the current token conditions, BMON is not attractive to them because of that.
If we do marketing, we will be spending at a faster rate and without a primary market available, secondary market competition, and scalpers waiting to sell, the project itself doesn’t get any funding, without that, the project is being suffocated, unable to do marketing and grow, and with the risk of exhaust reserves on the midterm, is like the drain from the runner rewards, but for the whole economy of Binamon.
How do we solve this?
Our vision is we all should be focused on the same result, instead of holders competing against the project, both should benefit when the Business is working. On our part we should make the project grow and expand the community after the game release, with intensive marketing, but holders should do their part, both in terms of communication to welcome new users and in terms of trading discipline, this requires trust in the project.
We believe with the latest demonstrations, Firewars game demo playable for anyone, Binamon Blockchain, and the latest delivers it is clear we are working a lot to deliver a great quality product to reach the next phase, where almost every part of the original project is under upgrade or review.
Our target is to reach a 5 Billion market cap company with Binamon, and that is simply not possible with the current tokenomics, which is a good sign, it means that the project grew more than the limits already. So the solution is to make a capital expansion to receive new funding directly for the project.
To do this, we have 2 main options:
A) The first option is to make a new BMON token with new tokenomics, open up a new funding round, adding around 10x total BMON supply, and a proportional liquidity pool from that funding. Current holders would have the opportunity firsthand of doing a capital expansion proportional to their current holdings to keep supply share, but it wouldn’t be mandatory.
The problem with this approach is that most holders don’t want the tokenomics of the main token to be modified so drastically, and also the token would be a new one, which means all the liquidity pools should be remade, even the CEX listings, is like starting over. Being BMON the main metaverse token, is not the best option right now.
B) Instead, we opt for a different approach, which is more interesting in many ways. BMON token remains as it is, same tokenomics, same token, same liquidity pool and listings, same use-cases, as the main metaverse token, required to any permanent nft asset, tickets, and in-game investments. Additionally, Binamon Chain has a native coin, BBM, required to pay gas fees, and as it is Proof of Stake, holders could delegate their tokens to validators and receive a passive stake based on the gas fees.
What is special about BBM coin?
BBM Coin doesn’t compete with BMON in any way, as they fit very different roles.
For a start, any serious investor won’t invest in a running project without a good deal, buying BMON tokens from the liquidity pool in big amounts is not tempting at all, as current holders sell after that. This kind of investor normally asks for OTC operations, with a good discount from the retail price. So BBM coin will be sold OTC with a discount as continuous funding, adding a lock and vesting to avoid the immediate dump.
The second benefit of the BBM coin is of course the Proof of Stake delegation to earn from gas fees spent on the Binamon Chain, this is Stake of BBM to receive BBM, which is finite.
The third benefit is another type of Stake over the same coin delegation, Stake from all the tokens spend in Binamon project, the Binamon Index Stake
Binamon Index Stake
Stake is something very demanded by the community, on the past, we did many types of stake, nft auto stake, nft power-based stake, missions, farms, external farms, and more, but as you know BMON token is limited supply, we cannot give rewards indefinitely and the original tokenomic rewards were delivered already. For this new Binamon phase we will give a stake based on all the sales and funding received, this means that we will distribute a part of the earnings to all the BBM holders in stake when any user:
- Buy boosters from primary market (Genesis, Z1, Energy Cards, Equipment, etc)
- Buy tickets for firewars game
- Buy BBM OTC from primary market
The distribution doesn’t end there as there will be also liquidity-related distribution.
- BBM OTC sales will reinforce the liquidity of the BBM pair and stable bridge with automatic buy and LPs
- BOOSTERS will reinforce the correspondent liquidity pool pair
Because OTC sales have a lockup period and vesting and the liquidity is being reinforced with buys and LPs, the more funding received, the stronger the pool and the higher the price, without sales during the lockup period, making it attractive to new investors. First investors also receive a stake from the new funding, making it ideal to stake during that long period. Funding allows big marketing efforts with the purpose of having the game rooms full at all times, with big tickets consumption, stake adds up and with a bigger community, there will be more boosters demand.
The lockup period will be dependent on the buy date, so it won’t be unlocked all at once, and vesting will slow down it too, but the main incentive to keep the coin staked after that period, may be the lost of the stake slot, it means that if the tokens are unlocked the holder loses the slot to stake from Binamon earnings, so the unlock to sell is not that attractive anymore if after that the holder should go through the warm-up period or worst, lose the slot to stake.
This is the plan, will you come with us?
