LOKA Economy Report 2022
A new game economy powered by LOKA
Backdrop
With the launch of League of Kingdoms Arena(LOKA) in January 2022, the League of Kingdoms has set out to expand its web3 open economy with a powerful value loop, which effectively captures and returns values to the meritorious community contributors.
Since the foundation of the LOKA community vault and value loop, much of the value generated across the game platform has been endowed to the foundation’s wallet or so-called “the LOKA Vault”.
In this blog, we want to shed some light on the token economy and its progress so far.
OVERVIEW
As per the whitepaper, the LOKA treasury will be powered by the League of Kingdoms game franchise and fueled by the value created across the rapidly growing game franchise.
Since its launch in January 2021, the LOKA vault has been capturing and accruing substantial values across the game and its non-fungible asset trade.
Below are the current vault holdings status as of 14th June 2022.
The on-chain capital reserve that is locked in the vault will not enter into circulation, because the foundation has officially pledged to not vote to sell the native tokens. Thus, until it becomes fully community-driven through DAO transition by around 2024, the existing reserve plus any future inflow of capital will be locked. Also, it is highly unlikely that the future DAO consisting only of LOKA holders would elect to inject LOKA liquidity into the market.
The LOKA community token holders will potentially have the right to participate in governance decision-making for the vault that is being fueled with the values produced across the game that they have spent much time enjoying and helped to grow.
The existing pipelines that supply the vault are as follows:
- On-chain LOKA purchase revenue
- Binance Pay revenue
- NFT/LAND sales revenue
- Marketplace fee capture
THE VALUE LOOP
We will elaborate on each of the value capture categories in terms of what they are and how they add value to the community vault.
On-chain Crypto purchase revenue ($LOKA, $ETH)
LOKA: In-game packages are sold at a discounted price in fiat denomination if paid with $LOKA. The discount rate is periodically adjusted based on the exchange rate of LOKA/USDT pair with a target rate of around 20%.
ETH: In-game package purchases using Ethereum will also be captured and deposited into the vault.
Binance Pay Revenue
After integration into Binance Pay in April 2022, users are offered an option to directly use their holdings in the Binance spot wallet to purchase packages in League of Kingdoms.
Since the processing happens off-chain in the Binance system, the speed is lightning fast and the cost is significantly lower.
For Binance Pay purchases, we are pricing the packages in LOKA, therefore the LOKA purchase discount rate applies.
NFT/LAND sales revenue
Since the launch of the LOKA foundation, all proceeds from the League of Kingdoms NFTs sold by the project (ie. LAND, DRAGO) will be captured by the vault.
There have been four sales occasions during the time period and all of the proceeds entered or will enter the vault as long as the funds arrive from the vendors.
- Land Main sale 2
- Crypto.com skin NFT (outstanding receivable)
- Drago genesis sale
- Binance Drago genesis IGO (outstanding receivable)
- All the future sales proceed of NFTs
Marketplace fee capture
League of Kingdoms NFTs is available in multiple marketplaces supporting Ethereum and/or Polygon blockchain networks including Opensea.
The project team shall use commercially reasonable efforts to set a royalty fee capture rate of around 3~5% on most available NFT marketplaces, and these fee revenues will be captured & accrued in the vault.
WHAT TO EXPECT IN THE FUTURE
Drago breeding fees paid in $LOKA:
Drago breeding requires both LOKA and DST. The DST portion will be instantly burnt while LOKA will be funneled into the LOKA vault.
$LOKA staking on Drago (upgrading)
LOKA may be staked into Drago to boost Drago’s mining efficiency.
$LOKA productivity rewards
LOKA holders may demonstrate their trust in the project by locking up some of their LOKA tokens in the LOKA staking pool to get additional tokens and/or potentially other rewards.
This incentive will help stabilize/bolster the value of LOKA and therefore allow the token incentives can more effectively support the creators, contributors, and ecosystem participants within the ecosystem.
Treasury Land emission
As of June 2022, more than 80% of the total existing LOK LAND NFTs are retained in the foundation treasury. The treasury lands will receive their portion of LOKA rewards until they are sold, from the LAND reward pool once the LOKA reward stream kicks off in 2H 2022. The allocations will be accrued in the vault for future usage.
DEV TEAM OPEX
As briefly stated in the whitepaper, the platform will first accrue all the on-chain values and then pay out a portion of it to support the core development activities, including but not limited to the server maintenance, payroll, and other overheads.
Currently, up to 20% of the retained incomes in the vault may be used to fund their basic operations in developing and maintaining the game franchise. (The fees have never been paid out & will be executed this month for the first time)
This rate or any other decisions around the development team’s role may potentially be adjusted by the community-driven DAO in the future.
NAVIGATING THE CRYPTO WINTER
On a side note, the LOKA team is very well aware of the tough macroeconomic uncertainty that engulfs everyone around the world and the fact that this may stir anxiety among those within the community.
Though different in its magnitude each time, the team has already experienced multiple “crypto winters” until now. We also wish that the situation was much, much better than it is right now. Nevertheless such macro trend is not something we, as humble humans, can weather. Regardless of the dire newsflow and nosediving markets, we will carry on building on top of what we have already built with you, an audience we could not have better wished for.
We will remain unbroken by the atrocities that lie before us, and stay razor-focused on the fundamentals, utilities, and the goals that we have built upon as we laid our first step into the Web3 ecosystem. We will build new features, polish existing products, and revisit the suite of infrastructures we have worked so hard to provide to you the community and the world.We have clarity on our vision, strong roadmap, and therefore will be unyielding to the hurdles that lie ahead.
We are all here to witness the future of gaming, and therefore have all envisioned of the world without roadblocks. This is yet another stress test on the faith we have on our product and values we stand for.We will be unyielding, as long as you have a belief in what we are trying to build. We will pull through the winter, no matter how long it takes. We will pass through the tunnel, no matter how long it is.
See you all on “the other side” we all dreamt of.
About League of Kingdoms
League of kingdoms is a massively multiplayer (MMO) strategy game that is centered around building kingdoms and governing the world. Here the player can build a powerful kingdom and army, forge alliances, compete against others, and trade digital assets across the blockchain.
The LANDs are NFTs transparently and verifiably stored on the blockchain network, so players can own and trade freely. Gamers can not only own a parcel of Land, but various resources therein, and the future growth of the game platform.
🎮 League of Kingdoms Linktree
About League of Kingdoms Arena (LOKA)
League of Kingdoms Arena (LOKA) is League of Kingdoms’ native governance token and will be the cornerstone for the game project’s expansion into metaverses where communities of gamers can own and thrive.
The LOKA will be utilized as the currency inside the League of Kingdoms game franchise for all in-game store purchases, such as purchasing packages, skins, and goods. Additionally, the LOKA token will act as an NFT booster to create, upgrade, and acquire special NFT assets, including but not limited to Drago and Skin NFTs. The token will be also used to propose and vote on on-chain governance proposals to determine future features, policies, content, and/or parameters of the game. Last but not least LOKA tokens can also be earned by playing the in-game competition and/or achieving special tasks — for example after each Continent vs. Continent (CvC) battle, winners will be rewarded with LOKA tokens (and potentially rarer NFT item rewards) depending on the performance during the battle.
🌐Website |🦎 CoinGecko |📈CoinMarketCap | 📜Whitepaper
