Crypto-Kingdom is the first MMO RPG to have an ingame cryptocurrency. We use XMR as the accounting unit, and the game has already absorbed 35,000 XMR (10,500 USD) (0.5% of XMR supply) of user balances in the system. It is now going online with a custom gaming software, with the intention of gaining much more players and visibility and use for XMR and crypto in general.
Crypto Kingdom Gold (CKG) is a novel concept, it is an ingame luxury resource that simultaneously acts as the share of the whole game, and is entitled to dividends from the profits. After the initial emission period that has funded the development of the game so far, the emission will be based on the amount of time actually spent playing the game (Proof-of-Play), which is designed to disperse the ownership to the players slowly over time. Keeping the emission tied to measurable economic activity also serves to keep the value stable as the inflation is automatically lower during periods of low activity.
During its 4-month history, CKG has been actively traded in the ingame exchange and now is moving to a leading Crypto exchange, hence this ANN.Type: Centralized token
Governance: Rules can be changed by the majority of the owners (similar to a share of a company)
Algorithm: PoP (Proof-of-Play)
Max Coins: 1,000,000 (Initial), unlimited (PoP)
- * Launched: 2014-10-10
- Game started: 2014-10-18
- Ingame Exchange: 2014-10-27
- Dividends started: 2014-12-21
- Initial emission period ends: 2015-3-4
- Major Crypto Exchange: 2015-imminent
- Online version playable: 2015-March
- PoP emission starts: when online version is released
The history of CKG emission, price and marketcap in the ingame exchangehttps://i.imgur.com/NakZtBT.pngEmission schedule:2014-10-10 to 2015-3-4 Initial emission period
1,000,000 CKG is premined according to the rulebook, initially 10,000 CKG/day, later 5,000 CKG/day (reward halving occurred in 2014-12-9), to HM_The_King character account. HM_The_King, a character played by "rpietila" in BCT, has a rule-bound duty to sell/distribute half of it during the Ancient Era and keep the rest as the King's gold balance. The methods of initial distribution have been giveaways, bonuses, bounties, auctions and direct sales. Currently (2014-2-24), 461,208 CKG belong to others than the King.
The initial distribution method was chosen to achieve the following objectives, which were achieved during the initial distribution period soon about to end:
1. To fund the development (the King has paid the development of the online game from his pocket, and the proceeds from the gold sales have helped a lot).
2. Make it possible to have an ingame exchange from the early on ("King's coinshop" has been operating since 2014-10-27, always providing flat rates for both buying and selling CKG at a commission of 5-6%, see graphic above).
Approx 2015-3-15 onwards Perpetual emission periodOnce the
Version 4: Online goes live and playable (estimated in March, 2015), new gold will be generated to all players in relation to the time spent playing the game (Proof-of-Play, PoP). The emission speed is tied to how much the game is played, it is not a fixed amount per time elapsed, as with most coins. The formula is:
Daily emission = 0.025 * total_hours_played / ( (XMR/CKG) * (USD/XMR) )The perpetual emission will only start with the release of the online version. It is able to accurately keep track of the hours played and also enforce a captcha authentication prior to any gold is credited to the characters, ensuring that only actual human people playing the game receive the gold. An example of how much the emission would be, can be given with 2 scenarios:
A) No growth. 50 people play on average 0.5 hours per day and gold and XMR price stay where they are in 2015-2-24:
Daily emission = 0.025 * ( 50 * 0.5 ) / ( 0.3 * 0.4 ) = 5.2 CKG/day (annual inflation of 365 * 5.2 / 1,000,000 = 0.19%)B) The game achieves success. 10,000 people play on average 0.25 hours per day, with the success causing the CKG price to rise 10-fold:
Daily emission = 0.025 * ( 10,000 * 0.25 ) / ( 3 * 0.4 ) = 2,083 CKG/day (annual inflation of 365 * 2,083 / 1,000,000 = 76.0%)Gold becomes more valuable when there is more activity in the game (explained below). The parameters of the PoP distribution have been chosen such that in the event of a major success, the time spent in playing the game becomes very large, but also the gold price rises because the rising dividends encourage demand. This curtails the inflation.
In the event of success, the early buyers profit of both of the rising dividends and the rising gold price, even though the dilution causes them to lose the absolute majority of gold existing. (This is a deliberate design decision, to keep the game ownership and power distributed to the players, and more players means more distribution is required.) In the event that success has not yet happened, there is nearly no inflation hence no dilution and no price pressure.
Governance in CKCKG is not a crypto asset, it is a centralized resource token, representing a right to vote and a claim to the dividends of the Town, the central corporation character in the game, a role that is in most similar games held by the company that is administering the game.
Crypto Kingdom has no game company behind it, the highest authority to decide the rules of the game belongs to the Town Council, which is elected ingame by the gold holders, via representative majority vote.
Finances in CKCrypto Kingdom has a realistic economic engine simulating the economy as it happens in the outside world. Players contract workers (NPC characters) to achieve output, and to do this efficiently, they need tools, machinery, buildings, land and other capital goods. Capital goods must be purchased, built or claimed, and this typically is an upfront investment. The workers must be paid daily.
The money invested goes to distribution pools which provide the returns to the businesses. As an output of the economic activities, the players gain money, science and culture points, resources such as building stone, and increase in levels giving them a more challenging and rewarding game with new possibilities.
At the close of the Ancient Era (2014-2-24), the daily turnover ("GDP") of the game is about 500 XMR (180 USD). In addition is the investments to land and buildings: the total value of buildings constructed during the Ancient Era is about 50,000 XMR (18,000 USD) and the value of land in the game currently is about 100,000 XMR (36,000 USD).
Dividends on CKGThe town receives a "tax" on GDP, which is currently 10%. In addition, it receives a larger cut on buildings (about 30%), new land (about 50%) and promotional items (up to 100%). Town is therefore making money, and this money, which in the standard case would go towards the game company costs and profits, in the case of Crypto Kingdom, is returned to the Town owners (CKG holders) as weekly dividends.
CKG has been paying dividends since 2014-12-21. The weekly dividend is based on the town surplus that week and has ranged from 0.23%-1.50%, making the average annualized gain (APR) = 54%. This has happened over the period of 9 weeks which has seen almost no increase in the number of players or activity. With an increase in either, the Town profits proportionately.
During this time, the Town has also accumulated and set aside a buffer fund of 16,000 XMR (6,000 USD) to be used for further technical development. The initial development of the game version to be launched now, is already fully paid.
PeopleCrypto Kingdom is designed by Risto Pietilä (rpietila). The general project manager "CEO" is Riccardo Spagni (fluffypony). Other prominent game characters who are also financially involved, include NewLiberty, Karl Hungus, DjJacket, David Latapie, saddambitcoin and smooth. The full list of characters, and in fact all the other history and economic information of the game so far, is public and can be found from the following link.
ResourcesThe game thread OP has links to all the resources.
