Drago Economy Report #1
The bird’s eye view
Table of Contents:
- DRAGO ECONOMY: DRAGO to DST
- DST(DRAGON SOUL TOKEN), THE GAMING UTILITY TOKEN
- DUAL TOKEN AGAIN?
- TOKENOMICS, ENGINEERED FOR STABILITY
- PIECING TOGETHER: 3 KEY INSTRUMENTS
DRAGO ECONOMY: DRAGO to DST
While play-to-earn blockchain games have come and gone, few have stood the test of time. Launching on July 2020, League of Kingdoms is one such game that has persevered, boasting a thriving community and expanding NFT economies. Our approach to blockchain games is rooted in a deep-seated belief that gaming is primarily about entertainment, reinforced by our developers’ and designers’ experience building billion-dollar game studios from scratch and designing the most-played games in the world, recognized by the Guinness World Records.
Drawing from our own expertise and experience of weathering and witnessing the crypto cycle for years, our team has combined their expertise to create the Drago economy with the new utility token, called Dragon Soul Token (DST).
Before the deep-dive, we cannot go without revisiting the Drago NFTs. Dragos are dragon-like creatures that dwell in the continents of the League of Kingdoms and have historically been tamed by royal courts. They make for great companions, guardians, and friends to mankind.
The Drago was first premiered in May of 2022 through a Genesis sale event. These NFTs are underpinned by a sophisticated economy designed to encourage community involvement both within and beyond the game.
In the realm of Drago, the power of your NFTs is not limited to their value on the market. With your Drago NFTs, you can command their unique abilities in battle, mines, and monster hunts, granting your troops newfound strength and productivity.
To deploy your Dragos alongside your troops, you must first house Dragos into your kingdom’s lairs. Each Drago boasts special abilities derived from their elemental ancestry, and these powers contribute to the might and effectiveness of your soldiers in battle and mines. When selecting troops for a march or rally, you can strategically and tactically choose which Dragos in your lair to bring along for the mission.
In the wake of the Drago Economy, new mines known as Dragon Soul Caverns will begin to appear throughout the lands owned by real users. The number of caverns available to each continent is governed by two factors: 1) number of Dragos in the continent 2) the amount of LOKA staked for that continent, much like the distribution of resource mines. However, the resources harvested from these mining nodes can only be tokenized into NFTs if you have the Dragos on your side.
Thus, the value of your Drago NFTs extends far beyond mere investment potential. With their power at your fingertips, you can shape the destiny of your kingdom and stake your claim in the world of the League of Kingdoms.
In the heart of the Dragon Soul Cavern lay a treasure called Dragon Soul Amber, guarded by the fearsome death soldiers. Many brave adventurers had tried to claim the Ambers for themselves, but none had succeeded. Only those who can tame Dragos can dare to conquer the archaic mine and cast magic spells to tokenize the resources that are harvested from the field.
As can be inferred from the above lore, DSA mines can only be mined by troops with a Drago, and when these troops with Drago return with harvested DSAs from the mine, the Landowner may potentially earn development points and other perks in the future (feature not functional yet), thereby more rewards in LOKA and Resources.
DSA miners now have the valuable Dragon Soul Ambers (DSA) in their inventory. These jewels can unlock a number of exciting utilities.
Firstly, the DSAs can be transformed into the Polygon-based token, the Dragon Soul Token (DST), through on-chain minting. With an initial exchange rate of 1:100 (100 DSA = 1 DST), there is a variable exchange rate applied which may change depending on the stability of the game economy.
Secondly, DSAs can be used to upgrade Drago Lairs within your kingdom, allowing you to host more Dragos. If you don’t upgrade, you’re limited to just four Dragos.
Thirdly, DSAs can be consumed to cast spells for Chimeric Fusions. These require Dragon Soul (DS) extracted by sacrificing another Drago and DSA. The outcome of the fusion will either result in an enhanced Drago or a failure. In the case of a failure, DSAs are returned in lieu to compensate for the sacrifice of the Dragon/DS.
DRAGON SOUL TOKEN(DST), THE GAMING UTILITY TOKEN
Dragon Soul Token (DST) is a token to power the League of Kingdom’s Drago economy.
This powerful utility token leverages the interoperability and composability of blockchain technology to unlock a range of functionalities.
Our goal is to maximize the use of DSAs primarily in-game, for critical utilities such as Chimeric Fusion (Drago Fusion to upgrade Drago) and Lair upgrades, with any excess DSAs, then minted into DSTs on the blockchain. As we continue to enhance the game, we will introduce new utilities to further augment the use cases of DSAs.
We expect the value of DSTs to remain stable and reasonable. While we cannot guarantee price stability, we are committed to proactively stepping in to enforce measures that maintain a balanced value.
DUAL TOKEN AGAIN?
The Play-to-Earn dual token model, pioneered by Axie Infinity, was widely considered the standard for Web3 games in 2021. However, as the game experienced a rise and sudden fall, the model lost its luster and was forgotten by many.
Despite some criticisms, we firmly believe that the dual token model holds significant value. The growth engine token and the governance token work together to drive growth and capture value from that growth.
The model played a crucial role in driving the impressive growth of the Axie community, which grew from less than 100k users to almost 5 million in less than two quarters. Millions of users from South East Asia and South America were attracted to the game in pursuit of the utility token SLP. Indeed, this model has effectively proven to be an unprecedented user acquisition powerhouse, which can never be discounted.
We believe that implementing the SLP-like token, which allows avid gamers to convert their proof of play or engagement, can serve as not only a first-comer deal but also an effective retainer.
Gaming utility tokens, while not providing windfall gains or jackpot returns, have a crucial place in games. They enable avid gamers to capitalize on their skills, efforts, and time. Moreover, the game community is incentivized to invite new players to share in the joy of this new paradigm of the gaming economy and competitive e-sports.
The Drago economy is deeply plugged into the League of Kingdoms’s core game, with Dragos having the power to influence your game. But there’s more to it than that. By interacting with Dragos, you can earn DSTs and level up your kingdom, train more troops, get better treasure, and even earn Drago EXPs to tame your Dragos.
These experiences provide ample motivation to delve deeper into the game world, whether it’s by exploring advanced content like CvC or acquiring one of the other six NFT collections offered by the LOK game. Additionally, you can take part in official or unofficial community activities to connect with other gamers. By doing so, you can compete at a higher level and potentially earn greater rewards in LOKA or DST based on your accomplishments.
TOKENOMICS, ENGINEERED FOR STABILITY
Sink, Sank, Sunk
It is quintessential to have an effective symbiotic mechanism between faucets that supply fresh new tokens and sinks that burn or lock tokens that have been put to use. Unlike in DeFi projects, it is relatively easier in a game to create new content that requires tokens to be generated or consumed, as the game itself provides non-monetary value such as entertainment, competition, social experiences, and status benefits.
We have judiciously designed the Faucet-Sink mechanism to ensure that the game’s economy functions properly by piecing together the non-monetary values that the game can offer, without throwing a wrench into existing players’ experiences or messing up the in-game balances. The real star of the show is Drago’s own power, which can influence the game’s outcome, and the Drago taming experiences through EXP earning, and/or enchantment opportunities like Chimeric Fusion.
When it comes to faucets, DSAs can only be generated through in-game engagements such as mining the Drago Soul Caverns (DSC) or successfully clearing certain daily missions. The game-play-based earnings are gated by the Drago ownership and certain level thresholds to put the excessive proliferation of bots or scripts in check.
The inaugural Drago economy boasts two types of sinks.
- The Chimeric Fusion is a true gem in the economy, a mechanic that requires you to make a sacrifice of a Drago to upgrade another. If successful, the upgraded Drago’s enhanced capabilities will significantly bolster your competitiveness across the game’s loop, resulting in more fun, achievements, and rewards. This ingenious system also contributes to the scarcity of Dragos by effectively removing one from the market.
- Another content that you can use your DSAs towards is Lair Upgrade. This feature allows you to increase your battle and mining capacity by increasing Drago hosting capacities for your kingdom. For instance, a typical high-achieving kingdom usually has 7–8 marching queues, but your kingdom initially can only house 4 Dragos until the lair is upgraded, leaving half of the queues empty without Dragos. This mechanism not only encourages users to acquire more Dragos but also nudges them to use DSAs to raise their lairs’ holding capacity.
To facilitate the conversion of ingame DSA to DST, we have a reserve pool that can be replenished through new issuance or by transferring tokens consumed for breeding. This mechanism allows us to maintain control over the total supply of DST.
However with these mechanics in place, we view good game economy as a marathon rather than a sprint. Like any real-world economy, it requires continuous attention, moderation, and refinement to function properly.
Economy in good hands
Users are motivated to acquire, breed and upgrade Dragos, because they can use them in the game content to be able to acquire exclusive game assets like DSA, mint resources into NFTs, get advantages in the battles, unlock special social functions like Emojis, just to name a few.
In the world of Drago, one of the powers of the DSTs lies in their ability to be traded across the blockchain, giving them exposure to the ever-changing whims of the market. Currently, the new utility token is listed and traded on DEXs by the community, paired with other top cryptocurrencies such as MATIC, USDT, and more to potentially be added.
While the DST may float against other paired cryptocurrencies, as the lifeblood of the Drago game economy, it is crucial that the value of DSTs remains stable and secure. To achieve this, the token’s conversion funnel from and into the game will be proactively monitored and controlled through variable conversion rate enforcement that may sometime decouple directionally. This conversion mechanism will be proactively adjusted based on the current state of the economy inside and out, allowing for the ingame economy to be safeguarded against serious and sudden drops or spikes in values due to exogenous forces.
The system serves as a bulwark against any serious economic malaises and extreme price volatility, not only ensuring the longevity and sustainability of the Drago game economy but also protecting the investments of the Drago community.
PIECING ALL TOGETHER: 3 KEY INSTRUMENTS
1/ Asset Gated Contents:
To access some of the exclusive features of the League of Kingdoms platform, users must own Drago NFTs in their wallets and ingame lairs. These features include the ability to mine assets like DSA and to mint assets such as Resource NFTs.
For example, in order to mint resource stacks like gold and lumber into NFTs, users must possess Dragos on their game account. Furthermore, highly trained Dragos is more efficient at minting these resources, enabling them to do so at a faster rate. Given the millions of transactions that the resource collection is driving on the blockchain, the resource NFTs have an underlying demand. Thus, only Drago holders will be able to access the market, creating strong demand to acquire and level up Dragos.
2/ Proactive Conversion Control:
To ensure a healthy economic balance between our game’s economy and the external digital market, we are implementing a dynamic and proactive adjustment mechanism for the conversion between DSA and DST.
For instance, the current minting rate requires 100 DSA to be converted into 1 DST. However, this rate may be adjusted to 50 or 200, depending on the deflationary or inflationary pressures we may encounter.
By taking this flexible approach to the conversion rate, we aim to maintain a stable and sustainable economic environment within the game.
To ensure that any intervention is grounded in data and supported by solid rationale, we will develop and release a specialized analytics dashboard for Dragos, DSA, DST, and all relevant metrics, both on and off-chain. This will allow us and the community to make informed decisions and take actions based on actual performance data, rather than speculation.
3/ Gameplay Gated Rewards:
At the heart of our gaming experience lies the concept of gameplay-gated rewards. The recent CVC competition provided a compelling example of how highly skilled players can compete at a high level and reap the benefits of earning good rewards in the form of LOKA, our game’s core currency. This creates a positive incentive loop that encourages players to push themselves to excel even further.
Our commitment to enhancing the gaming experience does not stop there. With the release of the Drago economy, we aim to increase content and engagement, while maintaining the equity of our reward system. By marrying entertainment with a fair and just system of rewards, we seek to create a gaming experience that is both thrilling and fulfilling.
Read more about the Drago here
About League of Kingdoms
League of kingdoms is a massively multiplayer strategy game that is centered around building kingdoms and governing the world. Here the player can build a powerful kingdom and army, forge alliances, compete against others, and trade digital assets across the blockchain.
The LANDs are NFTs transparently and verifiably stored on the blockchain network, so players can own and trade freely. Gamers can not only own a parcel of Land, but various resources therein, and the future growth of the game company.
🎮 League of Kingdoms Linktree
About League of Kingdoms Arena (LOKA)
League of Kingdoms Arena (LOKA) is League of Kingdoms’ native governance token and will be the cornerstone for the game project’s expansion into metaverses where a community of gamers can own and thrive.
The LOKA will be utilized as the currency inside the League of Kingdoms game franchise for all in-game store purchases, such as purchasing packages, skins, and goods. Additionally, the LOKA token will act as an NFT booster to create, upgrade, and acquire special NFT assets, including but not limited to Drago and Skin NFTs. The token will be also used to propose and vote on on-chain governance proposals to determine future features, policies, content, and/or parameters of the game. Last but not least LOKA tokens can also be earned by playing the in-game competition and/or achieving special tasks — for example after each Continent vs. Continent (CvC) battle, winners will be rewarded with LOKA tokens (and potentially rarer NFT item rewards) depending on the performance during the battle.
🌐Website | 🦎CoinGecko | 📈CoinMarketCap | 📜Whitepaper
