KuCoin AMA With Arcade (ARC) — The GameFi Powerhouse Redefining Gaming Rewards via Mission Pools & NFTs

2024/04/18 10:05:59

Dear KuCoin Users,

Time: April 17, 2024, 12:00 PM - 12:11 PM (UTC)

KuCoin hosted an AMA (Ask-Me-Anything) session featuring the Co-Founder of Arcade, Kevin Oakeson, and CEO, Josh Poole in the KuCoin Exchange Group.

Official Website: https://www.arcade2earn.io/

Whitepaper: Arcade’s Whitepaper

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Q&A from KuCoin to Arcade

Q: What inspired the creation of Arcade?

Kevin: Arcade was created out of self-preservation, we saw the generational opportunity that Blockchain and gaming was going to create, and realized we needed to build something that would make it easier for us to stay connected to all the gaming opportunities, as it was going to be impossible to navigate it all as a single person.

We started out creating a game guild to focus on big production games like Star Atlas and Illuvium, realizing our previous business experience would help us establish the right presence in each game. But we quickly found out that there was a bigger need that we could solve.

We noticed that there were many other people that would need a platform to help them keep track of all the Web3 gaming opportunities. So, we thought, what could we build that would enable people to be involved in their favorite games, but maybe not have to play them all directly? We started designing an ecosystem that brought together game developers, skilled gamers, casual gamers, investors and spectators. Arcade was born!

Arcade allows everyone in the gaming ecosystem to do what they do best, and make all those parts work together, rather than against each other. Investors can purchase high value gaming NFTS, skilled gamers can operate them, game developers get exposure to more than just direct gamers, and spectators can enjoy the action and economy. It's the central hub for all of Web3 gaming!

Q: Could you explain how mission pools operate?

JP: Mission Pools are derived from the in-game activities taking place in Web3 games. You can think of them like a traditional staking pool, except with Mission Pools you are earning rewards from actual in-game activities taking place within Web3. The earnings from this in-game activity are then swapped into $ARC and distributed as rewards to participants.

Let’s walk through an example, two Mission Pools are put online for the game Star Atlas. First, you would review the two opportunities available and decide which one you think will generate the most rewards. Or, you can also always split your tokens and contribute to both. Mission Pools have a maximum cap of tokens per pool, so it’s first come first served!

Arcade then partners with gamers (Mission Pool Operators) to operate the NFTs within those games to generate rewards. The rewards in this case would be generated in the $ATLAS token on the Solana network. After the Mission completes, we take those $ATLAS rewards, swap them into $ARC, and then distribute those rewards to Mission Pool Contributors (the token holders who deposited into the pool). It’s that simple - the key to remember here is that $ARC rewards that are produced by the Mission Pools are backed by the in-game earnings taking place within these games… NOT just emissions diluting the circulating token supply.

Q: Which types of games are particularly effective within mission pools?

Kevin: What’s awesome is that potentially any game, even Web2 games, we will get into that later, can potentially be utilized on the platform. As Web3 gaming grows and more games come to market, we can analyze them and determine which game types are best suited, and which ones the community wants exposure to through the mission pools.

The games, and more specifically, the game characteristics that work best right now, are ones with premium NFTs that the average gamer would not be able to afford, or operate, or that are just hard to get because of scarcity. Let's take a few examples, and while talking about these, think about how many other games, now, and in the future, could fit this model. Star Atlas - the ships we own, and that our partner network owns, are expensive. It would cost millions of dollars to put together the same fleet that is being utilized to create these mission pools. The average gamer, unless Elon, isn't going to have the capital to own that fleet. On the flip side, an investor that owns a fleet that size, or even part of that size, probably doesn't have the time or skill to operate it to the max potential. So, we bring together the investor, which is sometimes Arcade, that owns the NFTs, and we match those with skilled operators. Any game that utilizes premium, infrastructure type NFTs, is a really good fit.

Another game, Big Time, has these same opportunities. We are partnered with a large investment group that owns over 3,000 Spaces. Our network is operating those Spaces, collecting the CHGs, dismantling, and managing the $BT that is generated. There is no way the average gamer could own or manage that kind of portfolio, and the owner has no time or skill to operate them. So really, any game where we can find this type of opportunity, is perfect for the platform, games with land, large premium NFTs, or game loops that required very skilled operators, all fit with what we are building, and that is just the tip of the iceberg.

Q: What led to the adoption of a two-token system?


We have a multichain vision for Arcade, and the best way to lay the foundation for that vision was to create a strong liquidity hub on a proven blockchain, Ethereum, but with a more gas-efficient chain, Avalanche, as the dApp interactions. We understand that users will be going in and out of Mission Pools often, and we want that experience to be affordable and efficient. This two-token system presents the best of both worlds, allowing for the main liquidity token ($ARC) on Ethereum mainnet to set a strong foundation, and then the $xARC token (AVAX) to offer a starting point for a multichain dApp experience.

Additionally, the tokenomic model we’ve designed benefits from the two-token system as well. With the $ARC token as the main liquidity token, and the token listed on KuCoin, it makes the $xARC token a sink for $ARC. What is actually happening when you swap from $ARC to $xARC to use the dApp is you are burning those $ARC tokens and minting $xARC at a 1:1 ratio. So long as you are holding $xARC and participating in Mission Pools, those initial $ARC tokens are out of the market thus reducing the circulating supply that can be sent to an exchange.

Lastly, we are able to pull certain levers within our platform economy to benefit token holders as well. By restricting access to Mission Pools to only $xARC, we are able to better predict how many tokens will be added to certain pools. This allows for us to raise or lower the contribution ceiling. A lower token ceiling means more rewards per user but the Mission Pools fill up faster, and a higher token ceiling means less rewards per user but the Mission Pools fill up slower.

Q: What criteria do you consider when seeking partnerships within the gaming sector?

Kevin: There are two separate methodologies here, that differentiate between each other depending on who owns the gaming NFTs.

There are multiple things that must be considered when we partner with a game in which Arcade will own the NFTs. We have a research division, led by our chief investment officer, Kazi, that thoroughly reviews each game in which we want to own gaming NFTs. We look at the tokenomics, the NFT collection, the game itself (has to be fun if it’s going to last), the community, the traction, and many other factors. If we are using our treasury to buy NFTs, we want to make sure that the game is here to stay.

If the gaming NFTs are going to be owned by a third party, there is less due diligence spent on the investment aspect, and more spent on how the game operates. In both scenarios, we spend a lot of time exploring the game loops, but when Arcade isn’t investing in the NFTs, there is less risk to Arcade if the game doesn’t meet the sustainability requirements that we look for when purchasing the items ourselves.

In each of these scenarios, there are several things we look for in gaming partners.The team is really important. We spend a lot of time on calls with the game developers to understand the roadmap, the quality of the team, experience, and vision. With Web3 gaming so new, like any other project, the team is so important to helping us understand and determine if the game is here to stay. The game must be cool, fun, and engaging. Now that might mean something different in an MMO, FPS, or casual game, but it must hit the right buttons for its genre.

What's really cool about the platform though, is that we don't need an official partnership with a game to have it on the platform. This is a really distinct feature, as we can onboard any game we want, permissionless. There is no API call to the game, or technical integrations, so this makes onboarding really easy. This is why we can scale as fast as we want, when we want, adding games we see as a fit! So, when people ask, which new games are you onboarding, it's more like, which games do you want us to onboard?

Q: Who are Mission Pool Operators, and what steps are involved in becoming one?


Mission Pool Operators are the professional gamers, guilds, eSports teams, content creators, or just everyday gamers who excel at a particular game. Arcade looks for the best of the best and partners with those gamers to operate NFTs for our Mission Pools.

It’s extra important that Mission Pool Operators be skilled, because part of the value proposition for our platform is that token holders are able to get optimized exposure to Web3 games, not just any exposure. We aim for the rewards generated by our Mission Pools to be above and beyond the average earning for an activity.

One of the main benefits to being a Mission Pool Operator is that you, as a gamer, are able to play the games you love at the absolute highest-level, without having to buy the NFTs to do so! Arcade, or our network of NFT Curators (whales, hedge funds, investment daos, etc!) own the NFTs, so all you have to do is bring your time, expertise and drive to succeed. These gamers can use Arcade as a place to prove themselves as a gamer, build a reputation, and earn a percentage of all Mission Pool rewards!

We are always looking for new Mission Pool Operators. If you are interested in becoming a Mission Pool Operator, we encourage you to start by getting involved in our community. Join our Discord, join our Telegram group, get to know the other people in the community. You will also have more opportunities as an operator if you understand the platform, so consider participating as a Mission Pool Contributor (token holder) to learn how it all works!

Q: Can you provide insights into any forthcoming products outlined in the roadmap?

JP: We have a lot of exciting things coming up. The first thing I'd like to note is that the Mission Pool platform is but one of many products we have going through research and development.

While it is an important starting point and provides vast utility for our token, our vision is much bigger.

I am particularly excited for our XP system, which is coming soon on our dApp. This XP system will allow for users to earn profile-tied points that can be redeemed for any number of prizes. You will earn XP for day-to-day activities like joining Mission Pools, checking-in, and much more. This XP can then be redeemed for tons of different prizes, ranging from tokens to NFTs, and even physical items like gaming consoles.

If you think about it, the experience we are trying to create is similar to what we all love about an IRL Arcade. You go in, play games, and earn tickets, you can then redeem those tickets for prizes. With our Web3 Arcade, we're building similar experiences that we as humans love, but on the blockchain.

Beyond the XP system, we have lots of other exciting things in development, here's a rapid-fire list of things you can look forward to:

- NFT Management Solutions

- Trustless Lending of NFTs

- Esports Arcade (Tournaments, competitions, PvP!)

- Arcade Genesis NFT Collection

- Mobile App & much more!

Free-Ask from the KuCoin Community to Arcade

Q: In the current volatile market, where investors are hesitant, what are the compelling reasons to invest in your tokens? Furthermore, what are the incentives for token holders to hold onto them?

JP: The markets are definitely volatile right now. Our philosophy is to keep our head down and continue to build super useful products for our community, and let the token price do what it does. We believe building quality products and expanding on those products will do more good for the token than anything else.

With that said, people considering buying our token now should do so if they believe in our vision. We are well-funded and working hard, so we aren't going anywhere. If you are bullish on #GameFi, you are bullish on Arcade!

The incentive for holding is simple, token holders are the only ones who can earn from our Mission Pools. In order to earn from the Mission Pools and grow your $ARC bag, you have to have $ARC to start with!

Q: Is your platform suitable for Crypto beginners? Or does it only appeal to professional users?

JP: Definitely built to be user-friendly. Part of why we built Arcade is to make it easier for people to get exposure to GameFi earnings without having to jump through the traditional hoops or juggle a dozen different wallets across 10 different blockchains.

With Arcade, you can get exposure to the ENTIRE GameFi industry - every blockchain, every game, every NFT - in one platform. Doesn't get much easier than that!

Q: Who is your ideal consumer for your product and did you take into account the community feedback and requests in the development process to generate new ideas? Failing to understand the target audience and clients often leads to project failures.

Kevin: Great question - We built the platform because of the personal need of people like ourselves, those who understand there is a huge potential for GameFi, but don't know exactly how to get into it, and stay current. We continue to research our target market, which is easy, because nearly every person we talk to, has a different use of the platform. Large investors want an easy way to spread money across GameFi without buying and managing all the different NFTs. People with a small stack to start, can slowly grow with GameFi using mission pools for exposure at any level. Designing the delivering the platform with the target audience at mind is the key to making it useful for all consumers.

Q: What are the unique challenges faced by Arcade in terms of regulatory compliance and how is the team navigating the evolving landscape of blockchain-based gaming?

JP: We are committed to remaining compliant and adhering to the regulatory framework. The challenge here is that the framework is often loosely defined, or not defined at all. Fortunately for us, one of Arcade's Co-Founders is a practicing attorney in the United States, so you can rest assured that we take every action necessary to remain in the good graces of regulatory authorities.

This is actually really bullish news for outsiders, because one of the leading reasons a Crypto project may fail in the coming years is due to regulatory tightening. We are positioning ourselves for long-term growth and sustainability that you can trust.

Q: As a project, it is crucial to attract non-crypto users for mainstream adoption. Can you share your strategies to entice non-crypto users towards your platform? Also, are there any upcoming partnerships in the pipeline that will bring in non-crypto users and facilitate real-world use cases?

Kevin: We have a couple of strategies here:
1. There are a lot of crypto users that will want to use our platform. While non-crypto is important, crypto is getting popular enough that even if just a small percentage of crypto users utilize the platform, we will be tremendously successful.

2. We are building for non-crypto users too. While a person right now needs to understand how to use MetaMask, that is about all that is needed to get started. Our users don' need to buy NFTs, manage them, operate them, they can see how this all works via the Mission Pool.

3. When the eSports pools come online, we will draw in all the communities of those games to take a look at how they can be involved in that game's ecosystem, without being a high paid gamer. This will show people the value of Web3 in gaming, by letting them be a part of their favorite Web2 game as well.

Q: How can I stay updated on the latest project information about #ARCToken? Are there any social media accounts I can follow for updates?

JP: We encourage everyone interested in our project to join our Discord community or our Telegram group.

You can also follow us on X.

This is the best way to stay up to date and benefit from new releases quickly.

Q: Hello, I would like to know if your project is exclusively for elite investors or if it is open to everyone, including those with small funds. Can you please clarify?

JP: We have built in "anti-whale" measures into our Mission Pools to discourage users from taking up all of the space in Missions. We seek to democratize the way people get exposure to the best opportunities in GameFi, so we'll continue to build on this and make it easier for smaller investors to get exposure too.

This is also the reason why we chose Avalanche for our dapp-layer. We wanted the fees to be low enough that users can participate in Mission Pools with even small initial starting amounts, and can grow their bag from there just by participating!

Q: How does Arcade address common challenges of Web3 games, such as the barrier to entry for new players, lack of transparency, and economic sustainability?

JP: This is the whole purpose of the platform, to reduce these barriers, but letting people experience the results of the gaming economy, and learn about what it takes to be successful in that game, through the Mission Pool. We know that even crypto natives find it hard to scale across many games at the same time, which is why we built the platform. And we know that if crypto natives will find it tough to stay up with all the trends, how will Web2 folks not get lost in the shuffle, and that is why we need to exist. To make it scalable for people to be in Web3 gaming, and have time to enjoy playing the games they want to play for entertainment, not just grinding for rewards, even though grinding for rewards can be a lot of fun!!!

KuCoin Post AMA Activity — Arcade

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Arcade AMA - ARC Giveaway Section

KuCoin and Arcade have prepared a total of $2,000 in ARC to give away to AMA participants.

1. Pre-AMA activity: $800 in ARC

2. Free-ask section: $50 in ARC

3. Flash mini-game: $400 in ARC

4. Post-AMA quiz: $750 in ARC

Sign up for a KuCoin account if you haven’t done so yet, and ensure you complete your KYC verification to be eligible for the rewards.

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