BFIP-11 BattleFly DAO Treasury Investment in PlayFi Labs LTD.

Summary

BFIP-11 BattleFly DAO Treasury Investment in PlayFi Labs LTD is a proposal to invest 435 ETH, 650,000 USDC and 250,000 ARB in PlayFi Labs LTD for the development of their blockchain technology. In exchange, BattleFly DAO Treasury will enter into a SAFT agreement for a warrant for future tokens. The terms of the SAFT will align with other prospective PlayFi Labs investors, ensuring BattleFly DAO does not receive less preferential terms.

Background

PlayFi Labs LTD is building an EVM compatible blockchain that is designed to enable web3 features to be deployed into mass market games using a decentralized data network. BattleFly DAO currently holds a significant treasury, and estimated continuing development and marketing costs for the BattleFly games for the next 24 months is approximately 500,000 USDC. PlayFi Labs LTD has proposed an investment opportunity to BattleFly DAO that would enable the DAO to gain exposure to PlayFi Lab’s blockchain as founding investors.

Proposal

Transfer 435 ETH, 650,000 USDC and 250,000 ARB to PlayFi Labs LTD for the development of their blockchain technology. In exchange, BattleFly DAO Treasury will enter into a SAFT agreement for a warrant for future tokens. The tokens received by the Treasury will be distributed to DAO members (gFLY and NFT holders) based on a future vote.

Rationale

Reasons to Accept:

• Investing in PlayFi Labs Ltd gives the BattleFly DAO Treasury exposure to an innovative opportunity that has a quantifiably much larger addressable market than an individual game.
• It is the core team’s view that being part of an L2 chain, with a primary focus on gaming, AI and decentralized infrastructure could potentially generate higher ROI than simply holding funds in the Treasury;
• While there are risks associated with any new project, the core contributors of PlayFi Labs are well known to BattleFly DAO and the development of an L2 chain has the potential to generate significant yield for gFLY and NFT holders.
• The BattleFly DAO treasury will, if the proposal is accepted, continue to have a 24 month runway to continue development, marketing and maintenance operations on BattleFly DAO’s current game studio offerings, in addition to pending grant applications.

Reasons to Decline:

• There are inherent risks associated with investing in emerging technologies.

Indicative Poll

Accept: BattleFly DAO will exchange 435 ETH, 650,000 USDC and 250,000 ARB for a warrant for future tokens via a SAFT agreement. Decline: BattleFly DAO will keep 435 ETH, 650,000 USDC and 250,000 ARB.