1.1. Market review
In 2016, the sale of computer games and in-game content generated revenue of almost $100 billion. This is a huge industry with an increase of 8% per year, which will retain its significance even 20 years from now.
While we’re painstakingly monitoring this industry, we can’t help but notice oppressive stiffness and plain static with the way things are currently standing. Unfortunately, major game developers concentrate entirely on minimizing their risks. They prefer to penetrate the market with products that have been tested with time and are favored by the mass-market, and that’s why they are constantly creating hollow & soulless copies of the games – repeating the same pattern of game mechanics year after year. In order to achieve success by gaining the player’s attention, the developer spends up to 56% of their revenues on PR, marketing and advertising.
However, indie-developers and even mid-size game developers that are involved in creating unique and innovative products are not able to effectively function in this environment. Unequivocally, they are filled with enthusiasm that is needed to develop a product that will win the hearts of the consumers, but yet they lack the capability to allocate the needed monetary budget to attain the same level of results through the same marketing and advertisement conduits.
Series grow ever-longer; original titles are on the decline.
Games with new at their core are disappearing.
This state of affairs deeply saddens us.
John Riccitielloat, CEO of EA, CEO of Unity
We are poised to materialize our aspiration through this ICO with the intention to create a transparent and entirely decentralized platform for various gaming projects using the power of blockchain technology and smart-contracts on Ethereum. Our main goal is to create an ecosystem, where all of our users – both players and game developers – would receive more benefits utilizing our platform’s capabilities as opposed to staying self-contained.
1.2. Statement of the problem, description of the idea
Currently, more than 95% of all players are deprived of the opportunity to convert their gaming achievements into real money or use them when switching to another game.
Sony has taken a small step towards this by launching the Sony Rewards program on PlayStation Network in the US. Thanks to this program, players can exchange their achievements for money; however, one can only use this money to buy games in the PS Store. Other big companies do not show any initiative at all to solve this problem.
Only few players have learned to make money off their gaming achievements, selling resources via in-game messages, forums and social networks. The disadvantage of this approach is a complete anonymity and impossibility of positive identification of agents of the transaction, which leads to deception in more than half of the transactions.
To solve this problem, we intend to implement the blockchain technology, which allows recording all transactions, making them transparent, public and irreversible. This will protect the members of the gaming community from all sorts of fraud.
We consider the interests of two groups – on the one hand, players, on the other hand, game developers. In each of these groups, they are completely different, but we can converge them together.
Whenever you see a gaming table be sure to know fortune is not there.
Rather she is always in the company of industry.
Oliver Goldsmith, writer
It is no secret that players often play different game projects simultaneously or wander from one game to another. All of today’s modern games are based on simplistic, boring and repetitive actions to evolve the game character, taking many months or even years. When you switch to a different game, you lose all of your achievements, ranks and titles and you are forced to start off from scratch.
On the CryptoHIT platform moving to another project within the system the player will be able to use tokens accumulated in one game to buy starter packets in another. In addition, participants will be given the opportunity to make money off the sale of resources and characters on internal exchanges, bet on other players and their game characters.
For the convenience of mutual settlements among the participants of the game platform, we have developed the Galactic Credit Coins (GAC) token based on the ERC-20 standard, which will be used by players to purchase in-game characters, items and package offers. This kind of a token can be purchased at Pre-ICO and ICO, and after their completion it will be traded on major crypto-exchanges.
As a result, each investor gets the opportunity not only to sell GAC tokens profitably after the crypto currency has been listed on the exchanges or to keep a long position for strategic purposes, but also to start using a number of investment and earning opportunities almost immediately in our first games.
When registering on the CryptoHIT platform, the player receives a personal profile with multiple functions: messaging with other community members or guilds, demonstrating gaming achievements to other players, accessing the virtual goods exchange. You will be given the opportunity to use voice tools for organizing raids or planning strategies, stream for cyber-sports events, create reviews (receiving in-game tokens as a reward from developers or as donations from other players), quickly and easily convert GAC tokens into Ethereum crypto currency and vice versa by means of the platform.
All of the above-mentioned elements of interaction will motivate the consumer to stay and try other games in the system, rather than go to external projects. This will allow all the participating developers to receive millions of free users with zero marketing costs. As they stay within the platform, they are all in the same network statistics, therefore we can give the developers an opportunity to tailor the system of discounts, rewards and bonuses for each user from the very beginning of the game, based on their depersonalized activity, involvement and total purchases.
Blockchain technology not only makes peer-to-peer interaction completely transparent for players, but also with the help of easy-to-use monitoring system with AI elements it will allow us to battle fraud and cheating (hacking game processes with the aim of increasing virtual values and faking payments), which will lead to retention of gains and keep out toxic players negatively affecting the mood of the community.
Currently, the commission fees of intermediaries (such as Steam, Google Play, Apple Store, etc.) account for up to 30% of sales. Tax liabilities vary depending on the country, but on average they deprive developers of another 25-30%. Having gained GAC crypto currency from the sale of game content the developer can exchange it for fiat money on any exchange and choose within which jurisdiction he should convert it into cash and legalize it. There is no need to purchase any licenses, connect a special merchant account for receiving payments, there are practically no transaction costs. As a result, when using the CryptoHIT platform the cost saving for developers will be up to 60%, which will allow them to invest more in quality content for users and to grow faster.
By purchasing and selling tokens within our platform developers will be able to carry out instant transactions with a very small commission fee, encapsulate complex functions and data based on a unified API, which will significantly expand their financial capacities and simplify the technological processes.
In order to further interest first developers who will catalyze further exponential growth, we will provide them not only with a functioning platform, but also with an active ecosystem with existing consumers. The key idea is the gradual development, scaling up and growing business operations. We plan to develop and launch three game projects which were specifically designed based on calculations and estimates of current trends, market research and players votes. The speed of further development (number of games being developed in parallel and launched and their marketing) will depend on the implementation of our goals on ICO.
Having gathered the primary few million players in our own games, we will be able to direct them to our partners’ projects with cyclic (not list-oriented) in-platform advertising, on a gratuitous basis. This should resonate in the community and facilitate the rapid recognition and popularization of the platform. Currently, the total number of game developers in the world is more than 3 million people and there is no platform that could provide a similar spectrum of benefits and advantages.
The more new developers get involved, the more popular our platform will become and the more content will be implemented, which will create a huge deficit and demand for GAC crypto currency, as the generation of content for each new game comes with the release of tokens. Accordingly, it is possible to predict with high reliability the significant growth of the exchange rate and the return of investments for our investors. Even with the cautiously pessimistic 0,5% of total market share, the mathematical expectation of the crypto currency growth is more than 10,000%.
2.1. New generation decentralized financial game platform
CryptoHIT is a decentralized financial gaming platform, the priority direction of which will be integrating new generation games created based on blockchain technology. The platform will feature games of all genres and magnitude, including AAA-class games.
The platform will be presented with the following versions:
- Desktop (Windows/MacOS/Linux)
- Mobile apps (iOS/Android).
The priority mechanism of mutual settlements on the platform will be Galactic Credit Coins (GAC) tokens created based on the Ethereum blockchain ERC-20 standard.
2.2. Basic structure of the platform
CryptoHIT platform will include the following basic features:
1. General system of authorization for players and developers. You can log into your profile via a single interface that supports standard login and password authorization, as well as authorization through social networks and MetaMask (via Ethereum wallet).
2. The profile of developers and players. When registering, the participant will need to choose whether (s)he is registering as a developer or as a player. Depending on this choice, a corresponding interface of the profile will be available to him/her. For both developers and players their profiles are composed of visible and hidden parts. In the visible part, participants can publish varying information that affects social status, rating, popularity and etc. The hidden part will display information on financial transactions, various types of reports, the opportunity to manage their games, traffic and audience for developers, as well as other information that is not designed for the public.
3. Flexible acceptance of payments for developers. Priority will be given to the acceptance of payments with GACs and other cryptocurrencies. But we do not strive to abandon acceptance of fiat money, due to the fact that they are still preferred by the majority. Regardless of the method of money allotment into the system, it will be automatically converted into GACs and displayed on the balance of the user according to the current exchange rate.
4. Currency auction, through which users can exchange GAC tokens for Ethereum cryptocurrency and vice versa. This functionality will be implemented via smart contracts on the Ethereum blockchain, which will make it transparent and understandable for everyone. The exchange will be made automatically and will take a few minutes. The currency auction will also include the possibility of exchanging GAC for in-game currency – Utility Noninflatable Tickets (UNIT), which will be used in some games, and vice versa.
5. Virtual goods exchange will allow players and developers to trade game resources, for which mutual settlements will be made in a single currency. The player can implement accumulated game resources and achievements in one game through the exchange of virtual goods, get tokens for them and purchase resources or start packets of another game. In addition, tokens can be exchanged for any other crypto currency and can easily be withdrawn to fiat money. The virtual goods exchange will be implemented on the smart contracts of the blockchain in order to be understandable and transparent for all participants.
6. Analytical system will allow developers to provide reliable and transparent information regarding their audience, through which it is possible to identify weaknesses and resolve them. The process of integration of this system in the game will be simple and convenient for the developer; it will suffice to use special API functions at various gaming events. Based on this data, the analytical system will make the necessary calculations and display data in a convenient and understandable form with reports and graphs, as well as further forecasts. The analytical system will allow players to track the sources of their income and the effectiveness of each of them. As for all participants, the analytical system will allow them to track detailed statistics on the number of referrals involved and the income generated from them.
7. Social platform for communication and interaction between players and developers will serve as an instrument for establishing social binds between all the participants, as well as finding the necessary information. Players will be able to communicate with each other, find friends, share their gaming achievements and much more.
8. Quests platform is the place where each developer can form his own marketing tasks for his games, players can perform them and get rewarded for doing that. The quests platform can display tasks of various topics, i.e. creating game content, writing articles, conducting LPs and streams, making video reviews and other ways of demonstrating creative skills. The tasks can be completed both alone and in groups, where several participants are required to participate, and the profit will be distributed evenly among them. On the platform, B2B offers for cooperation can also be published allowing developers to find mutually beneficial conditions for joint activities. These can be tasks related to the exchange of traffic, banners on the site, general programs of attracting new players, creation of joint contests and so on.
The platform does not limit its potential with this.
9. Arbitration platform for resolving disputes will be implemented on the basis of a transparent voting system via smart contracts on the blockchain. Each participant can use this system if he has not resolved a dispute with another participant. The arbitration system helps attracting remote arbitrators. Participants in the dispute lay out the necessary materials for the arbitrators, which will help them come to a conclusion. Each arbitrator forms his point of view and votes through a smart contract for one or another party in the dispute, which, in the arbitrator’s opinion, is right. The winner of the dispute is the one who gains the greatest number of votes of the arbitrators. A commission fee is collected from the parties in the dispute; it is paid to the arbitrators for the consideration of the disputable situation. Any participant in the platform can apply for gaining an arbitrator status.
10. System of bets and drawings allows players to bet on various game events of other participants of the system and to earn money. Developers can conduct their own drawings to attract new players to their games. The system will ensure the formation of a prize fund and holding of periodic lotteries among all the participants of the platform.
2.3. Economy of CryptoHIT platform
The GAC tokens will be used as the main currency for mutual settlements on the CryptoHIT platform. Together with GAC tokens, some games will use the UNITs in-game currency, which can be exchanged for GACs and vice versa at any time by means of the platform.
Creating a deficit on GAC tokens
We are issuing a limited number of GAC tokens, the maximum limit of which will not exceed 50,000,000 tokens. The limit will be adjusted downwards based on the results of the ICO.
For the constant increase of the value of GACs we will create a special system for their burning, which is based on the following principles:
- At least 20% of GAC tokens will be burned from the platform’s generated income due to commission fees charged when transactions are conducted between participants on the exchange of game artifacts and the system of bets and drawings.
- At least 20% of GAC tokens will be burned from the income received from the sale of starting game resources for the games that will be launched by the CryptoHIT team.
These principles are designed to gradually create a deficit of GAC tokens on the market and thereby increase their value in the future.
Principles of income distribution
For the additional motivation of the players, a “Promotion Foundation” (fund of rewards) will be created, which will be formed by means of:
- Reserve Fund (see section 4.3)
- 30% of platform income received from advertising deductions and commission fees from payments of its participants.
Funds from the “Promotion Foundation” will be allocated to players for various gaming achievements and for attracting referrals.
Multilevel rewards program
Platform participants can attract new developers and players and receive constant disbursements from their payments. The new member becomes a referral if he has not been previously registered on the platform. Your profile will generate detailed statistics on the involved referrals and expected income from their activities.
There is a 5-level referral program provided in the platform, through which the player or developer you have previously attracted (1st level) attracts a new player or developer (2nd level), so you receive incomes from the involved participants of both 1st and 2nd levels, as well as from new participants of subsequent levels up to and including the 5th level. The provision of long-term benefits is financed with “Promotion Foundation” fund.
Developers receive income from the involved players, as well as attracted referrals, regardless of the game in which they make a payment. Thus, by transferring the existing game to our platform, the developer will not only receive income from his users in his project, but also in any other project on the platform.
Our team has a combined experience in more than 180 game projects. For 15 years we have been observing the development of the industry from the inside, we are familiar with factors leading to success and the way the players think and behave.
3.1. “GoldMiners” game
The first game from the CryptoHIT team, which will be launched on the basis of Ethereum blockchain smart contracts.
The game “GoldMiners” is an economic project which is launched to support our Galactic Credits (GAC) token before its listing on the cryptocurrency exchange. The game mechanics of this game are designed in such a way that each player can win GAC tokens from other players. How does this happen?
Each participant of the game who wants to win GAC tokens can try to “bury” his treasure (hide it from other players) or try to find the treasures of other players. The game interface is presented in the form of a map with the marks of places where the treasures of other players can be buried, as well as information on the number of buried coins. After moving to the location of the buried treasure, a playing field with 9 segments (3×3 cells) is displayed to the player, with a treasure hidden in one of the cells.
A player who wants to hide a treasure selects any desired cell on the playing field and puts the amount of GAC tokens he wants to hide in it. If another player, trying to find the first participant’s treasure, could not guess the cell where the latter was “buried” at 3 attempts, he pays to the first participant the amount equivalent to the amount of the buried treasure. A player who wants to find a treasure selects a location on the map where he would like to begin his search for the buried treasure. On each such location there is an indicator on how many GAC tokens are hidden in the given locality.
If there are, e.g. 100 GAC tokens hidden in the cell, for each attempt 33.3(3) GAC tokens (100/3) are collected from the player. If the player finds the treasure at 3 attempts, then he receives this treasure and the tokens held for guessing attempts are returned. If a player didn’t find a treasure at 3 attempts, then the tokens held for those attempts are not returned. The player can make more than three attempts if the owner of the treasure has provided such an opportunity for an increased amount of payment for additional attempts. The cost of each attempt, number of additional attempts and other information on the conditions that are determined by the owners of the treasure are displayed to the searcher in each selected territory.
The game mechanics of this game are not limited to the basic representation that we described here. We will develop the functionality of this game and continue releasing updates for it.
3.2. “SmartWar” game
The project is an economic game on the Ethereum blockchain basis, which is based on the principles of competitions and sports betting. Every investor can exchange GAC tokens for tokens of game characters (warriors), which are implemented using a smart contract according to the ERC-721 standard.
Each participant can develop the skills of his character in one of the following ways:
- Training battles give little experience, but do not have negative consequences.
- Fighting in the arena gives a lot of experience but can lead to a mutilation – decrease of characteristics in case of loss and a long recovery process.
- “Deathmatch” gives a great experience but have a 5% chance of a defeated warrior death. The characteristics of the soldiers are designed so that when calculating the results of the competition their various skills could be taken into account:
When a warrior wins in the arena, the owner of the warrior and the players betting on this warrior receive a reward in GAC tokens.
After the game is launched, the sale of starting game characters will be carried out through the auction system by the contract owners (the CryptoHIT team).
For our part, we guarantee that at least 20% of the GAC tokens collected from sale of game characters will be burned after the sale is over. We will apply same strategic principles to the profit distribution for all future games implemented on smart contracts.
Since the game is developed on the basis of Ethereum blockchain, all the game processes will be as transparent as possible for the players, except for algorithms for calculating the results of competitions and lotteries, due to the fact that insufficient randomization capabilities of blockchain enables to make an estimated guess. Thus, the code of our game will be revealed by 99% on github and anyone can at any time check it for compliance with the principles of fair play (honesty and integrity).
Characteristics of game characters’ tokens:
- The game token ERC721 standard is the main element of the game.
- Total limit of tokens in the game is 80,000.
- The initial game content of tokens sold by contract owners is 8,000 (10%).
- The initial content will be distributed through a gaming auction, and, in the future, through a virtual goods exchange.
- The maximum limit of tokens that can be donated to players within the framework of promo offer at the time of the release of the game is 1,120 (1.4%).
- Tokens (characters) distributed by the contract owners as the initial game content and within the framework of promo offer will have minor advantages over the tokens that will be released later, alternatively (by multiplication). This advantage under certain conditions will have an impact on the calculation of the results of competitions, in case of equal experience of the contestants.
- Once the token limit is reached, the multiplication process will be suspended automatically.
- Tokens can be bought and sold through an auction, transferred to other participants as a gift or multiplied by the means of other tokens.
All “SmartWar” players have the following opportunities:
- Train their warriors and send them to the competition, and if they win, get a reward in the form of GAC tokens.
- View current competitions and place bets (in GAC tokens) on the victory of one of the characters in the selected competition (analogous to sports betting).
- GAC tokens that are received for the achievements in the games can be spent on in-game purchases or sold on a cryptocurrency exchange, or in the future, after launching the decentralized platform, acquire the game content of other games connected to it.
Besides that, you can sell your character at auctions or multiply it by meeting several special conditions.
To prevent depreciation of characters (tokens) in the game, their number is limited (see: conclusions made on the analysis of the failure of the project “CryptoKitties”).
The number of characters that can be placed by owners of the game through the auction or distributed for the purpose of promo offer is also limited.
News from last year’s newspapers:
At the end of November 2017, a blockchain project named CryptoKitties was launched on the Ethereum platform.
During the first week crypto enthusiasts spent more than 3 million dollars. The most expensive kitty costed $ 117,000, an average cat – $13, the cheapest – about $0,47.
Currently, the most expensive kitties cost 100 000 ETH, or $93,4 million at today’s prices. The project has already seized 15% of the ethereum network.
As we can clearly see now the project failed because the creators of CryptoKitties did not limit the issue of cryptokitten tokens, as a result, there were so many cryptokittens that their value became diffused and now they are worth nothing.
We will not repeat their mistakes.
The planned time for completion and release of the game is 3 months. At this time, the game is 60% ready. We estimate the need for funding of game development and marketing at $500,000.
3.3. “War band” game
The next game is planned as a mobile application.
According to SurveyMonkey Intelligence research, the most popular games are strategies, role-playing and adventure. Together, they constitute 30% of the total revenue of the mobile gaming market.
Developing an application for smartphones is estimated from $350,000 up to $500,000, while applications from the top 10 list in the App Store and Google Play receive a cashflow from 20 to 45 million dollars per month (unlike PC games that are sold once). So due to what free (under freemium model) games generate revenue hundredfold of the revenue generated by common video games? A short answer is gambling.
Corporations use special psychological tricks, so that you cannot purchase unique items directly, but can only buy a chest or a box that gives a microscopic chance of acquiring a coveted object enabling you to visually and functionally distinguish a game character (and its owner) among thousands of others. Buying chests one by one, hoping for luck, the player loses the evaluation of money and does not monitor his expenses, which turns into a significant income for the game owners.
Besides that, to evolve and level-up the character(s) you need a constant and monotonous repetition of routine actions, and you can avoid this by buying in-game virtual items that facilitate these actions. At the same time, more than 87% of players always remain free2play, not investing money in the game, and scornfully calling players with big wallets pay2win. For all the viciousness of this system, the competition of free2play and pay2win players motivates the former to invest more time and effort into the game, which engenders the spirit of competition and keeps both parties in the game.
Great popularity is enjoyed by games based on famous movie franchises. We have developed several prototypes of games, but we do not wish to present them here and now due to the fact that we have to obtain the right to use the trademark preliminarily.
The planned time for development and release of the game is 6-8 months. The planned cost of development and promotion is approximately 3 million dollars.
3.4. “The Scent of Freedom” game
Cosmic free roam RPG where you can develop your base, undertake quests, combat with artificial intelligence or with other players. In the beginning of the game to accelerate development a player can buy or invest available tokens and purchase goods on the in-game exchange. At the peak of progression, on the contrary, (s)he will be able to sell them and exchange for the cryptocurrency, receiving profit from his investments.
To limit inflation and depreciation of resources, the transfer of goods between players will be of limited extent and have essential timeframes. Thus, the battles between players will no longer be of formal nature for obtaining some virtual wealth but will be of purely utilitarian, economically motivated interest.
The planned time of development and release of the game is 1 year. The planned cost of development and promotion is approximately 4 million dollars.
4.1. Pre-ICO structure
The pre-ICO stage is carried out for the initial collection of funds, specifically crowd-funding for the implementation of the project itself.
The project creators will also have an opportunity to assess to what extent the project is interesting to the community and investors, will be able to make changes and finalize some aspects of the project prior to the start of the fundraising.
4.2. Pre-ICO goals and tasks
The main task of pre-ICO is to raise funds for the wide advertising of ICO, the initial legal arrangements of the project and preliminary steps described in the roadmap.
Preliminary estimate of the cost of the projects implementing is about $25 million.
In case of successful collection of money for pre-ICO, we will start large-scale advertising of ICO.
4.3. ICO goals and tasks
For the preparatory period for the ICO we envisioned 30 days after the completion of the pre-ICO.
An approximate plan for the distribution of investments received after the completion of the ICO will depend on the amount of funds collected:
4.4. Distribution of tokens
In total, 50,000,000 GAC tokens will be issued. All unsold tokens will be burned by the smart contract after the completion of the ICO.
Token rate: 1GAC = 0.0025 ETH
At the pre-ICO & ICO stages a bonus program is envisioned.
Tokens distribution chart:
The first stage of issuing tokens will be implemented within 1 week after the completion of the Pre-ICO stage.
At the ICO stage the tokens will be automatically credited by a smart contract, immediately after the transaction is carried out.
Limitations for the project’s founders to dispose of GAC tokens
We developed the following model of unlocking the tokens for the team:
- 75% of the GAC will be frozen until the completion of the ICO.
- 50% of the GAC will be frozen within 2 months after completion of the ICO.
- 25% of the GAC will be frozen within 4 months after completion of the ICO.
- 0% will be frozen within 6 months after the completion of the ICO.
This model motivates our team to ensure that the cost of GAC tokens is constantly increasing, and the founders cannot use them untimely. We are sure that our efforts and forthcoming games will help us to achieve the goal of our project faster. Despite the fact that after 6 months upon the completion of the ICO the founders will technically be able to dispose of 100% of their tokens and optionally sell them, this is not part of our plans.
We set ambitious goals, with true desire to fulfil ourselves and our potential.
Contacts and more information:
More info about us and our project on our website and social networks:
credit: cryptohit wp