CGU’s white paper details the business case, tokenomics and supporters for the project, which is set to leverage the rapid growth of the play-to-earn space.
As online activity of all kinds increased over the course of the pandemic, more people than ever before are spending time playing games, either alone or – more commonly – in groups. This acceleration in adoption means that gaming is now a $300 billion global industry. However, companies and shareholders capture the majority of that value, rather than gamers themselves.
That dynamic is now starting to change with the rise of play-to-earn titles: games built on the blockchain and leveraging new economic models that actually pay players with tokens of value as they engage with them and develop their characters. Axie Infinity, currently the most popular play-to-earn game, was recently valued at $30 billion, and generates $1.5 billion in annualised revenues for players.
But these new opportunities are not evenly distributed across the world. Axies, the NFT creatures required to play Axie Infinity, are expensive, for a start. Moreover, those in low-income countries who would benefit most from the chance to earn by playing don’t always have the skills or familiarity with blockchain required to get started. That’s where Crypto Gaming United (CGU) comes in.
CGU was launched to drive the growth of the play-to-earn sector through education and providing access to blockchain gaming assets. The project brings together two distinct groups: those in wealthy countries who own valuable NFTs but have comparatively little time, and those in lower-income countries who have time to play but who lack the assets and knowledge of blockchain technology required to make the most of these opportunities.
By bringing the two groups together, CGU enables NFT owners to earn on their otherwise dormant assets, and players to generate meaningful income by gaining access to these crucial in-game items. Holders lend players their NFTs in return for a proportion of daily income, and the organisation also provides mentoring and training to help gamers maximise their income and help educate newcomers.
Trials of this model have proven highly successful to date; as of the end of September 2021, CGU had onboarded 1,000 players, with 30,000 Discord members across three countries. A growing number of user stories attest to the difference CGU has made, enabling unemployed young people in Russia and the Philippines to earn an income.
With its core proposition validated, CGU now has ambitious plans for expansion, with a target for 10,000 players by the end of the year, and 30,000 players by the end of March 2022.
Expansion will be funded by a series of private and public sales, with the ultimate aim of creating a DAO to manage all digital tokens, build the collective wealth of members, and onboard new gamers and asset holders. 75% of funds raised will be used to build a treasury of digital assets, which will ultimately be controlled by a global CGU DAO. The remaining 25% will be used to bootstrap the ecosystem and prepare the community for decentralised management of the project.
The project is powered by the CGU token, which has a total supply of 1 billion. CGU can be earned in the course of conducting various activities for the DAO, staked, spent, and used to vote on key decisions. The CGU white paper details the allocation of CGU tokens, and how the CGU economy will be structured to bring maximum benefit to different stakeholders.
The CGU public token sale will take place later on October 18. Stay tuned for further updates.
Find out more by reading the CGU white paper.