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GAINS Associates

BreederDAO — Telegram AMA — April 13

On Wednesday, April 13, we had the pleasure to welcome to our Telegram chat:

Renz
Jeth

We asked them questions about the development of BreederDAO.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Introduction

Q — Ayeley from GAINS: Please introduce yourselves. Tell us about your crypto journey so far and your roles with BreederDAO

A — Jeth from BreederDAO: My background is in business and finance. I founded a few local companies in varied industries, mostly in real estate, construction and e-commerce. I built these companies, sometimes solo and sometimes with co-founders, from the ground up, most of which are still in operation now. My exposure to blockchain started in 2013 when I bought my first bitcoin from Mt. Gox.

When I first heard about Axie Infinity, I dove right in being an avid gamer myself. My first blockchain project was a P2E guild — that guild is still operational today with 550 scholars. I saw the massive potential of P2E firsthand, and how it could change the lives of people for the better. This made me decide to pour all of my efforts into BreederDAO. My role is COO, I handle anything that has to do with games and guilds.

A — Renz from BreederDAO: Renz here, CEO of BreederDAO!

I started off as a consultant for established companies across multiple industries and different countries. Did a lot of strategy, business development and data analytics work during my time as a consultant. After which, I moved to startups, because I wanted more action and execution. Found out about major developments in crypto during one of my stints and after learning about blockchain technology implementation in gaming, I decided to commit full-time into the space.

During the middle of last year when Axie Inifinity boomed, we were watching its marketplace and we were surprised that the prices of assets went from USD200 to USD800. We immediately realized that there was a huge gap on the supply side so I capitalized on that opportunity and that’s how BreederDAO came to life.

We did the fundraising and was overwhelmed by the warm response from VCs — large thanks to the guys who also connected us like our friends from YGG. From there we scaled the team and started reaching out to our network based on what we believe we lack in terms of functionality.

About BreederDAO

Q — Ayeley from GAINS: What is the BreederDAO project about in a few simple sentences?

A — Renz from BreederDAO: BreederDAO is the go-to asset production factory for quality gaming assets of the Metaverse. It’s basically an FMCG company like P&G or Unilever but instead of retail consumer goods, we produce digital goods. We generate curated assets that deliver best value at scale for some of the largest guilds in the Metaverse so they can supercharge their growth.

Core business is really producing assets at scale. But it’s not just about the quantity but also the quality. You see when you look at the entire production line, there’s actually a lot more than just the actual generation of the assets. There’s also buying the resources, identifying the right assets to generate, optimizing for the ideal traits, then selling the assets. BreederDAO makes each of these various components more efficient to maximize profitability!

Q — Ayeley from GAINS: Please expand further. How do you work with the different metaverses? Do you need an official partnership with a metaverse project to produce assets for them? Or a third party or individual can acquire your services for a custom made asset?

A — Renz from BreederDAO: Right now we’re just limited to Game Metaverses. In the future though, we also aim to provide assets for any asset in the Metaverse (e.g. wearables for avatars, furniture for digital homes). We actually work very closely with the games and the success of the game ultimately translates to the success of BreederDAO. We actually act as market makers for these games in order to generate volume and a huge amount of transactions for them.

As a testament to this, when we entered the game Crabada, they were only doing 100k daily in terms of transactional value because of the lack of assets in the marketplace. When we came in and injected assets into the marketplace, that generated momentum propelling their transactions to as much as $5 million daily. Of course, we are not taking the entire credit for that, but it shows the value that we can bring to these games. More than that, we also work closely with the games to prevent overflooding their market with a ton of assets that no one will buy, and we continuously provide support by helping them with their token utility, specifically on the burning mechanism.

We don’t need official partnership with games at the moment because we only participate with already existing games. In a way, we are simply market participants. But it helps to work with game partners since we’re provided early access to gameplay and assets which allow us to study the game ahead of everyone else and create supply in anticipation of the demand.

A — Jeth from BreederDAO: Third party individuals can acquire our services. These are mostly guild partners, who tap us for custom built game assets. Other than this, we also provide liquidity to marketplaces

Q — Twitter user ROS_GO @ROS47187: How does BreederDAO work? Do you have already prefabricated a set of NFTs available for users and guilds in a Marketplace? Or do you work on demand? I mean, if my guild needs 30 Axies of such characteristics, I place the order and then you manufacture them?

A — Jeth from BreederDAO: We have several different models to choose from. We have a fixed price model where guilds or interested individuals can buy assets from our inventory at a fixed price. These will be assets that are in our usual line of production. No waiting time needed for this one!

Another service that we offer is a custom built asset order. These are for special types of game assets which require time to breed or manufacture. For this model, there will be a small lead time, but the assets are still guaranteed. This means what you order is what you get. Given the intricacies and probabilities of breeding, you don’t always get what you want. But we at BreederDAO shoulder the cost of these badly mutated or wrong assets. It’s what we specialize in, after all!

Another service we offer is the Breeding as a Service Model. This is where we act as the breeding department for guilds. We take either their assets, or funds and start a breeding farm for them. We use our in-house tools and models to make sure they get the best value for the money, creating top-notch assets for the least possible cost. You can think of this model as an outsourcing model. Here, we simply take a service fee on top of the costs of breeding.

If you are interested in ordering, do join our discord and fill out the form to be a guild partner! Alternatively, you can sign up on our website as a guild partner too. Just scroll to the bottom of the webpage and type in your email. We will be in touch with you!

Q — Telegram user samuel kenny: Hey From your explanation so far I can see apart from helping Metaverse to create assets, you also provide liquidity and help in the burning mechanism. So are there other things you offer apart from these? Any other things you offer that you didn’t mention so far.

A — Renz from BreederDAO: Hey From your explanation so far I can see apart from helping Metavers. samuel kenny

Of course!! We actually act as a bridge between games and guilds and support both sides in the process!

For games, pre-launch, we do a lot of consulting work and brainstorming sessions with regards to sustainability of the burning mechanism and economy. Post-launch, we constantly work with the team to monitor the progress and identify points of improvements. We also help them with their marketplace volume by injecting liquidity to the market and lowering overall barrier to entry by adding in adequate asset supply.

For guilds, on top of providing their asset requirements, we also share insights — what’s next and upcoming, do some consulting or recommendations — as to what builds work and which traits are superior and even share some deal flows — allowing even the smallest guilds to participate early in drops.

Q — Telegram user Habibi: How does BreederDAO choose which games to make NFTs from? I read that you have a kind of “Internal Score” that helps you when deciding. Can you explain what features you evaluate through this score? How do you make sure you invest resources in a worthwhile game?

A — Jeth from BreederDAO: How does BreederDAO choose which games to make NFTs from? I read that you have. Habibi

Good questions and I love that you know we have an internal scoring system. Several factors go into this criteria — gameplay, token model, numbers of active users, health of the overall economy, population growth of assets and breeding mechanics all factor into this decision. We try our best to filter through the best games in the space with sound economic structures.

We have built internal tools and dashboards to help us monitor the health of several dozens of games. This gives us a birds eye view of the P2E industry as a whole and allows us to properly allocate resources to the proper games.

Another factor is guild orders. We seek to make the operations of our guild partners easier. If they need assets for a particular game, we try our best to provide those assets.

Q — Telegram user @AMMELEE: How can You convince and assure me this project is safe and profitable?

A — Renz from BreederDAO: I’m not going to try and shill you our Token because that’s not how we roll.

But what I believe is that BreederDAO is the first of its kind in the space to touch on the supply side and we act as the bridge between the games and the guilds. In a sense, we are your proxy to blockchain gaming (P2E, P&E) especially to those who want to get a foothold in the gaming space but unsure how or where to enter.

We firmly believe that eventually, the value that we create will speak for itself and that the people will realize that. The tools that we are building will be nothing like the market has ever seen or used before and we will constantly iterate on our product so we will continue to provide more value to the community. So long-term holders can expect that we will continue to deliver regardless of the price of the token.

We want individuals who really wanna be part of the DAO because they believe in our vision of onboarding the next billion players of the universe.

A — Renz from BreederDAO: Addressing the SAFE part. We are partnered with Certik and Hacken right now but are currently in talks with Diligence from Consensys to integrate automated testing, and are always entertaining more auditors because we believe that blockchain security is an ongoing process.

We’ve seen so many dark forest, MEV white hat rescues and we like to keep up to date always with hacks and exploits, it’s kind of a guilty pleasure of our team over at the solidity department. As we know, even multiple auditors can miss out on what turns out to be massive security holes, hence we choose to spare no expense when it comes to audits not just for the smart contracts but for the dapps and user interfaces that host these smart contracts.

Q — Telegram user Nico:The economics of Play-to-Earn games can be very uncontrollable and I understand that you are working on the supply side in order to balance demand. So, how do you see the outlook for the economics of the upcoming Play-to-Earn games? Will the games really become sustainable?

A — Jeth from BreederDAO: Sustainability is a glaring issue for play-to-earn right now, and is top of mind of everyone in the space. We at BreederDAO believe that this generation of blockchain games are simply the first iteration of game economies. Some aspects of these economies may be considered unsustainable, but the beauty in this space is that it is new and unexplored territory.

As more thinkers and builders enter the industry and develop games, we will see more & more unique and never-before-tried economic designs. It will only be a matter of time before the space matures enough and sustainability will be reached.

As builders ourselves, we realize that it is our duty and responsibility to steer the direction of blockchain gaming towards a more sustainable future. Having experienced and participated in several game economies, we are always happy to have conversations with game developers where we share our insights from what we’ve seen.

I’m happy to say that game developers are very much open to hearing about what works and what doesn’t. It’s in everyone’s best interest to work together to find more sustainable solutions as we are all in this industry together. We’ve talked to some amazing game developers, the best & brightest minds. I firmly believe that together we will get to the point where sustainability is no longer an issue.

A — Jeth from BreederDAO: Sustainability is a glaring issue for play-to-earn right now, and is top of mind of everyone in the space. We at BreederDAO believe that this generation of blockchain games are simply the first iteration of game economies. Some aspects of these economies may be considered unsustainable, but the beauty in this space is that it is new and unexplored territory.

As more thinkers and builders enter the industry and develop games, we will see more & more unique and never-before-tried economic designs. It will only be a matter of time before the space matures enough and sustainability will be reached.

As builders ourselves, we realize that it is our duty and responsibility to steer the direction of blockchain gaming towards a more sustainable future. Having experienced and participated in several game economies, we are always happy to have conversations with game developers where we share our insights from what we’ve seen. I’m happy to say that game developers are very much open to hearing about what works and what doesn’t.

It’s in everyone’s best interest to work together to find more sustainable solutions as we are all in this industry together. We’ve talked to some amazing game developers, the best & brightest minds. I firmly believe that together we will get to the point where sustainability is no longer an issue.

Token

Q — Ayeley from GAINS: And what role will the BREED token play in the BreederDAO ecosystem?

A — Renz from BreederDAO: So we made sure to structure our token utility around the three main holders or users that we expect: 3Gs —

1) Games,

2) Guilds, and

3) General Public. For games, we’ll have so-called production lines (similar to Tokemak Reactors) that will allow holders to vote on which games we should market-make for or provide liquidity to. For guilds, we’ll have some sort of initial breeder offerings that will enable holders (primarily guilds) to get first dibs on initial batches especially for hot games with limited initial production capacity.

For the general public, apart from share of yield, we’ll give them access to our tools (e.g. mass breeding) and the amount stake is directly correlated to the number of assets they can produce with our tools.

Funding

Q — Ayeley from GAINS: Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?

A — Renz from BreederDAO: We’ve raised a total of $12.75M so far. Majority (60%) of the fund will act as working capital to run and operate our farms. 20% will go towards early game investments. Remaining will go to hiring the best talent. We’re not doing any private fundraising at the moment but we’re doing our Public Launch from April 26 to 29 via Copperlaunch!! We’re really excited to distribute our tokens to the community so they can participate in the BreederDAO ecosystem!

A — Jeth from BreederDAO: We are planning to do our public sale on Copper this April 26. We are planning to sell out approximately 45,000,000 BREED tokens. This will be the chance for our stakeholders (games, guilds and general public) to get into the DAO and help shape the future of BreederDAO.

This will be an LBP style auction. More info here:

Q — Telegram user CRYPTOHERO : BreederDao looks like it will provide a very important benefit to the development of Metaverse and Web3 spaces, but I was wondering how you will generate income in return for this benefit and how your token will be used in this process. Can you tell us about your revenue model and how you will increase the demand for your token? Thank you.

A — Jeth from BreederDAO: We’re actually already profitable from the start. To date, we have produced 120k+ assets, generated over $20m in revenue and have realized $2m in profits. We plan to accrue this value to stakeholders through the various token utilities that the $BREED token has. Our whitepaper outlines several of these utilities.

I think the most relevant utility to your question is BreederDAO Spoils -

As a revenue generating DAO, it is intended that proposals will be submitted periodically to vote on the amount of capital held by BreederDAO that may be allocated to a pool reserved for providing staking rewards. If such a proposal is approved, the allocated capital will be used to purchase $BREED from the market and contribute back to the staking pool.

Holders of $BREED that have staked their tokens for a stipulated minimum period of time may be eligible to receive $BREED from this staking pool as a reward for their active participation in the BreederDAO ecosystem. The staking rewards may be distributed over a period of time (for example, linearly over up to 12 months).

Competitive Advantage

Q — Twitter user Vision @ClaudVision: In terms of breeding, how does BreederDAO distinguish itself? What is the role of BreederDAO in the entire Play-to-Earn space? What are the advantages of guilds becoming BreederDAO partners? What is the target market that BreederDAO seeks to serve?

A — Renz from BreederDAO: A. Breeding is not as simple as people think where you combine two assets to generate a new one. If you look at the total process line, there’s actually — identifying the proper assets that you want to create, procuring the resources required to produce the asset, optimizing the traits or combination of traits to achieve the particular asset, the actual mass breeding, pricing the asset to maximize margins.

For each specific part of the process, we actually have a dedicated analytics or tech that enables us to optimize and obtain the best value. But, that’s just for one production line. But as we all know, BreederDAO operates across different games, employing various strategies. So on top of all of these, we are developing an AI-powered hedge engine leveraging off of machine learning and various algorithms that allows us to look into all of these different games and different strategies we can employ, in order to maximize returns for the factory.

B. For the longest time since Axie Infinity skyrocketed, blockchain gaming has only been limited to games and guilds. BreederDAO is the first of its kind in the space to touch on the supply side and we act as the bridge between the game and the guild side of things. We are your proxy to blockchain gaming (P2E, P&E) especially to those who want to get a foothold in the gaming space but unsure how or where to enter.

C. Aside from straight up supplying partner guilds with assets,. we also share with them insights — what’s next and upcoming, do some consulting or recommendations — as to what builds work and which traits are superior and even share some deal flows — allowing even the smallest guilds to participate early in drops.

D. Target market is primarily the guilds since we really wanna support their growth initiatives of onboarding more individuals to blockchain. Although we also target the retail market via the individual in-game marketplaces.

Business Development

Q — Ayeley from GAINS: How far along are you with your roadmap and what should we expect in the next weeks and months?

A — Renz from BreederDAO: The most immediate milestone is to do the Public Launch to distribute the tokens to the market and allow the community to participate in the governance of the DAO as well as take advantage of the numerous utilities that we have for the token. Just to reiterate, we are planning to do our public sale on Copper this April 26 to April 29.

Following that we’re going to continue building the products that we promised including but not limited to analytics dashboards, mass breeding tools, governance platforms, breeder chutes (initial breeder offerings). We’re also still continuing our efforts in building our extensive network of games and guilds in becoming one of the pillars of the play-and-earn space. You can take a peek at our full roadmap here

Renz and Jeth, thanks for coming into our community, and taking the time to answer our questions. Do you have any final words for us? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS

Also don’t forget to follow us on our socials!!!!

Twitter | Discord |Telegram |Telegram — Announcements — Renz from BreederDAO

Thanks so much for having us. We had a blast! — Jeth from BreederDAO

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