Arcade Colony White Paper

Arcade Colony Overview

Arcade Colony is a web-based platform where mainstream web2 games can deploy web3 features. Newly created games as well as previously released games can now add tokens, digital collectibles, trading, renting, earning, and governance to their games. Thus, Arcade Colony hosts a series of published games similar to the Epic Gamestore, Apple App Store, Google Playstore, or Steam, but unlike web2 publishers Arcade Colony augments new and existing games into Web3 games.

Developers that list games on Arcade Colony take advantage of one of the largest web3 player bases in the world because the company behind Arcade Colony, Invennium Corp, is a subsidiary of Splinterlands, which is one of the largest web3 games with billions of games played and billions of on-chain transactions.

As a starting point game publishers can list their games on Arcade Colony and simply get marketing exposure to the ecosystem. A deeper integration for games on Arcade Colony allows publishers to sell their products in shop pages and bring external game NFTs into the Arcade Colony marketplace. A more complete integration allows publishers to integrate their game into Arcade Colony to utilize our unique reward system. These rewards can be in the form of tokens and digital collectibles that are held in a player’s Arcade Colony blockchain account. These rewards can be associated with the entire Arcade Colony ecosystem or just to one particular game on it. With this technology web2 games that integrate can incorporate earnable, rentable, and tradable tokens and rewards into their game as well as governance to oversee the game economy.

Arcade Colony doesn't seek to render Web2 obsolete, but rather to link Web2 and Web3 together in mutually beneficial partnership. Web2 and free to play methods of play are fantastic funnels to onboard new users into games. Arcade Colony allows publishers to augment Web2 games to introduce buying, selling, trading, renting, and earning, which ultimately help the game and community monetize their activity. For the first time, a game that’s already been launched into Web2 and had a successful run can have a revival as a Web3 game where the existing player base is able to buy, sell, trade, and earn various aspects of the game. Publishers can also choose to make their games Web3 optional, allowing old school players to continue playing the game they love in Web2 as they always have, while players looking for a Web3 experience can participate on an economic level previously inaccessible. By seamlessly integrating Web2 and Web3, Arcade Colony empowers publishers and players alike to craft their optimized gaming experience.

While numerous ecosystems discuss creating games around asset ownership, this focus often remains limited to the mere addition of NFTs or cryptocurrency to an otherwise unchanged experience. The full Arcade Colony technology stack, on the other hand, empowers publishers to achieve a much more profound integration into Web3, including marketplaces, historical data archive, and increased decentralization.

By joining the Arcade Colony family, you will benefit from our experienced team's product to ensure a successful gaming experience for our players. We’re one of the first web3 gaming companies in existence and we’ve scaled into the BILLIONS. We will work with you on the implementation of DAOs, governance tokens, and an independent validator network on a layer 2, all of which contribute to a decentralized gaming experience where the players and owners are the ultimate arbiters!

The core components of Arcade Colony are a(n):

1. directory of games for product discovery
2. player driven marketplace
3. publisher managed shop
4. account management screen to view assets and tokens across games
5. full transaction history that can be sorted by year
6. payment system that allows direct payment to publisher
7. authentication system that allows users from different platforms to validate users
8. collection of bridging services to allow desired assets to interoperate
9. smart contract platform that allows minting, issuing, transferring, and renting of fungible and non-fungible tokens
10. functioning Decentralized Autonomous Organization based on COLONY

Game Publisher Overview

Publishers have several levels of engagement they can choose with Arcade Colony. Some of the highlight features of each are listed below:

*Inquire for pricing on each level of engagement. All levels build upon one another.

Directory Listing:

• Link and graphic on Arcade Colony for game you are currently hosting
• ArcadeColony.yourgame.com

Marketplace Listing

• List traditional Web2 or Web3 assets in the Arcade Colony shop
• Users can buy, sell, and rent assets in the Arcade Colony P2P Marketplace
• Fiat currencies and COLONY will be accepted as forms of payment

Reward Partner

• Distribute COLONY tokens in your ecosystem
• COLONY bonuses based on engagement

Colony Partner

• Build your game directly on Arcade Colony platform
• Distribute COLONY tokens within the Arcade Colony platform
• Distribute NFTs through the Arcade Colony platform
• Integrate the Arcade Colony payment system

Invennium Partner

• Create a whitepaper for your game to use COLONY token
• Build a sustainable, scalable economy for your game
• Rebuild an existing web3 games economy and assets
• Set up an independent domain for your site to operate on

TOKEN Overview

COLONY Token
The Arcade Colony Governance Token, known as COLONY, will serve as the staking, reward, and governance token within the Arcade Colony Governance (ACG) ecosystem. All games that are listed on the Arcade Colony directory will need to accept COLONY tokens as a form of payment.

COLONY Utility
The COLONY token will have several primary uses within the Arcade Colony ecosystem:

• Distribution as rewards in games
• Earning staking rewards
• Maximizing game rewards
• Reducing network fees
• Upgrading various player owned aspects of the game
• Participating in platform governance
• Minting new SCRIPT tokens (designed to stay worth approximately $1) through burning of COLONY – more about SCRIPT in the following section

SCRIPT Token
The SCRIPT token will be pegged to product in Arcade Colony and be acquired by burning COLONY tokens for a set amount of SCRIPT tokens based on market conditions. 1 SCRIPT token will be accepted as $1 USD of product in the Arcade Colony ecosystem.

SCRIPT Utility
The SCRIPT token will have several primary uses within the AC ecosystem:

• Buy and sell assets from in-game shops
• Buy, sell, and rent NFTs on the Arcade Colony Marketplace
• Use cases will be built into each game

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DISTRIBUTION OF COLONY TOKENS

Maximum Supply: 21,000,000,000 COLONY

COLONY tokens will be issued/unlocked in a predetermined schedule that is designed to last at least 20 years from the date the token is first released.
Please note that this is subject to change as we continue to finalize the design.

Decentralized Autonomous Organization (DAO)

The DAO allows developers, players, and other stakeholders to shape the Arcade Colony ecosystem. The DAO will be allocated 500M tokens upon creation and then have a 20 year release period to support ongoing growth, marketing, and future opportunities.

Airdrop and Fork

Arcade Colony is being built by the Splinterlands and Genesis League teams. To recognize the original players, a fork and airdrop will be conducted. A snapshot will be taken on February 26th at noon eastern, and tokens will be distributed based on balances at that time.

Fork

The fork will reward accounts which stake GLX on the GLS platform with a 1:1 match with liquid COLONY tokens. The fork will reward accounts who hold GLUSD a 1:1 match with liquid SCRIPT. Accounts must stake a minimum of 10,000 GLX to be eligible to receive COLONY. Accounts must hold 100 GLUSD to be eligible to receive SCRIPT.

Further, accounts holding GLX and GLUSD in liquidity pools on tribaldex will be eligible to receive liquid COLONY and liquid SCRIPT. Accounts which hold a minimum of 10,000 GLX in a liquidity pool will receive twice as many COLONY as they hold in a liquidity pool. Accounts which hold a minimum of 100 GLUSD in a liquidity pool will receive twice as many SCRIPT as they hold in a pool. (There is an exception for the GLX:GLUSD pool where accounts holding a minimum of 10,000 GLX and a minimum of 100 GLUSD will receive a 1:1 amount of COLONY/SCRIPT for every GLX/GLUSD they hold in the GLX:GLUSD liquidity pool).

Examples: If you stake 25,000 GLX on GLS you’ll receive 25,000 COLONY on Arcade Colony.

If you hold 500 GLUSD on GLS you’ll receive 500 SCRIPT on Arcade Colony.

If you hold 10,000 GLX with matching Hive in the GLX:Hive pool then you’ll receive 20,000 COLONY on Arcade Colony.

If you hold 20,000 GLX and 200 GLUSD in the GLX:GLUSD pool then you’ll receive 20,000 COLONY and 200 SCRIPT on Arcade Colony.

Airdrop

There is a total pool of 1 billion COLONY tokens for both the fork and the airdrop. Once the fork is complete (currently estimated at 200M tokens) the remaining tokens (1 billion minus the amount needed for the initial balances) will be airdropped. The airdrop is not a single event, but consists of a series daily airdrop of tokens for five years. These tokens will be awarded to players who stake SPS and GLX.

The airdrop will last five years for players who have SPS or GLX staked in those respective ecosystems.

One change for this airdrop is players will need to have at least 5000 SPS staked in Splinterlands and/or 10,000 GLX in Genesis League Sports to receive either the COLONY airdrop or initial distribution. Further, GLX in the process of unstaking will not be counted for the initial distribution and GLX and SPS in the process of unstaking will not be counted towards the ongoing airdrop.

Additionally, this airdrop will not happen at a consistent rate. This is an exponential airdrop. This airdrop releases an increasing amount of tokens each year. Details TBD.

50% of the daily airdrop will be awarded to SPS stakers and 50% will be awarded to GLX stakers.

Any accounts which intentionally manipulate the price oracle from GLX → GLUSD will be placed on a black list and become ineligible for initial token distribution and ongoing token airdrops.

Liquidity Provider Rewards

Allowing players to get COLONY through exchanges is an important function for users to engage in the many games that will come to Arcade Colony. Initially, liquidity pools will be established enabling players to be able to swap their SCRIPT, GLX, SPS, Binance Coin, Ether, and HIVE tokens for COLONY. Other liquidity pools may be established in time. Rewards will go to accounts which stake those pairs in an established liquidity pool.

Play to Earn Rewards

Play to Earn rewards will be the most dynamic reward pools in Arcade Colony. The amount and release schedule of COLONY tokens available to each game's players will depend on the size of the project, its partnership with Arcade Colony, and its market share. Any tokens remaining at the end of 20 years will be returned to the DAO.

The first game in this ecosystem will be Moonkarts. Moonkarts is a racing game that will utilize NFTs, provide rewards, and be a live action racing game.The Moonkarts game will receive 50M tokens per year for 5 years.

Additional reward pools for additional games will be voted on by the DAO.

Validator Rewards

The underlying financial network of Arcade Colony will be operated by validator owners who run validator code on private servers. Any account can operate a validator. Accounts operating a validator that have purchased a license from the Arcade Colony shop are able to earn rewards for their validation. Validator license owner-operators will receive rewards based on the number of active validators that they run. These validators and the licenses will not be available on day one of launch, but will be added shortly afterwards. More details on validators for the arcade colony system will be released after the system is up and running.

Moon Domes

At release, all games will receive a dedicated community Moon Dome. Community Moon Domes are a virtual stadium that will host virtual battles, races, or other battles depending on each individual game. Over time, the community will have an opportunity to purchase private Moon Domes that can host other games. Private Moon Domes (as opposed to community Moon Domes) will earn tokens for all games played in their Moon Dome.

SHOP, MARKETPLACE, and BURN FEES

Arcade Colony will operate multiple shop pages within its storefront catalog that publishers can use to sell their goods and services. To qualify, a game must be registered with the directory, accept Arcade Colony tokens for value, and list the price of anything they sell in both a set amount of USD/Credits and SCRIPT tokens.

Shop Revenue Split

Publishers that stake certain thresholds of LICENSES will reduce their revenue share to Invennium from product sales. By staking LICENSES, it allows players, other publishers, and Arcade Colony to have faith in the overall system. It incentivizes everyone to be good stewards of our ecosystem. Additional staking requirements to receive lower revenue share rates may be introduced over time.

Marketplace

A peer to peer marketplace will allow players to buy, sell, and rent their assets to one another. These transactions will be subjected to up to 6% fees to fund the project and ensure continued success with half being paid out and the other half sent to the DAO or burned. The breakdown of the fee is listed below.

• 1% sent to Arcade Colony DAO
• 1% to Invennium
• 2% to the sales platform utilized for a transaction
• 2% burn

Burn Fees

Each month, games in the Arcade Colony platform are expected to have a set amount of SCRIPT tokens burned through utility. If a game does not burn their expected amount then they will need to send the remaining SCRIPT to the DAO to be burned. For example, if a game is supposed to burn 10,000 SCRIPT per month and through in-game actions there are only 9,000 SCRIPT burned, the publisher will need to send 1,000 SCRIPT to the burn account. A set amount of SCRIPT to be burned incentivizes games to fully integrate into the Arcade Colony system. Each game will negotiate a monthly burn rate as they enter the ecosystem.

ALPHA (MORE TO COME)

In the future, we will roll out additional features to the Arcade Colony system. Some of these will reduce fees for publishers, increase player rewards, and create battle arenas for games to occur in. However, those details are still in the early phases and we want to ensure a polished product that sees continued success over time. For that reason, we are starting small with some games and will build upon that. So if you are a developer, publisher, or player make sure to get in on Arcade Colony from the ground level!