[Treasury] - CGC to CGG conversion

AUTHOR: CG studios co-author IamTroll

SUMMARY

This conversion aims to uphold the promise of P2E through the RPG’s previous implementation. The eligibility requirement has been simplified to 800 CGC (earned) and a recent activity check. A 3-to-1 conversion ratio will be used. With an estimate of 2.5M eligible CGC total, this rate was chosen to avoid significant drain on the treasury while still rewarding users at a high conversion rate.

A 21 day “Last Chance” campaign will also be initiated to give ineligible users (below 800 CGC earned) a chance to gain enough CGC to become eligible.

Your “Earned” CGC is what allows eligibility. Your “Held” CGC is the actual amount eligible for conversion. Your earned CGC represents your total earned CGC ever. Your Held CGC represents your current balance. Held = Earned - Spent.

An additional eligibility layer will be utilized. The eligibility requirement will not be tedious nor discouraging. This will be a simple requirement of playing the RPG or NFT mining game within the Last Chance campaign 21 day period.

MOTIVATION

As we continue to seek and explore possible P2E models that can be applied to our gaming ecosystem we want to ensure the previous promise of P2E through CGC conversion is upheld. This has been a sore spot for both the team and users. The wait has caused many splits and heated discussions and at times has put the optics of the project in peril.

Though the time has been long, the promise to reward users was never in question. It was the how and when that has held up the initiation of this process. By bringing this to the DAO in an open and transparent way, we aim to give users, players and members the opportunity to agree and discuss this process so that internal gridlock can be minimized through community governance and agreement (or compromise).

Processes in this proposal are meant to strike a balance between rewarding users, adding value back into the project, highlighting the event to attract new users, and protecting the stability of CGG and our ecosystem.

SPECIFICATIONS

Current flow of the CGC to CGG conversion process:

Proposal passes >> Last Chance Campaign starts >> Campaign ends, results are aggregated and published >> CGC is removed from ecosystem >> Distribution begins with eligibility checks >> Airdrop to user occurs >> Eligible users have access to all CGG funds

If this proposal passes, then a 21 day “Last Chance” campaign will begin, allowing all players/users the ability to stack up and pad their CGC bags for the last time. This is meant as an opportunity for all players old and new to jump back into the RPG, have some fun, and earn the last claims to CGC. This will be used as a time to emphasize visibility and to raise the overall excitement.

The most accurate total for eligible CGC will not be known until all CGC earning has ceased. Upon final calculation, the total amount of eligible CGC and the 3-to-1 CGC-to-CGG amount will be published. A list of individual accounts will also be published. It will be curated in a manner as to not to expose users' emails and any other sensitive information.

One week will be provided to analyze results, calculate and publish the balance list and prep the distribution process. Once CGC earnings have ceased all references to CGC will be removed and replaced with CGG and in-game GEMs (utilized as a premium in-game currency).

After results are calculated and published, the distribution starts. In order to eligible, a user must have earned 800 CGC or more and must also participate in an extra “Eligibility Layer”. This eligibility layer has been simplified and will be a requirement of playing the RPG or NFT mining game within the 21 day Last Chance campaign. Upon confirmation of eligibility, users will receive their CGG airdrop.

If there are extreme circumstances, such as extended game server or site issues, then a database pull of balances before the issues started will be used.

Previously 3 months was the planned distribution period for claiming, but in order to simplify the process and lessen the work on devs/backend the CGG will be distributed as a 1 time airdrop after the Last Chance period (21 day) and 1 week prep for distribution have passed. A user will have access to their funds from the time of receiving the airdrop.

STATS

Current Stats (July Snapshot)
Total Eligible CGC (Held): 2.55M CGC
Lowest Eligible CGC (Held): 800 CGC
Highest Eligible CGC (Held): 99k CGC
Total Eligible Accounts: 900+

BENEFITS

• Users receive reward for their work, time and value added
• Promises kept and optics of the project improve
• Increased ecosystem activity through Eligibility layer.
• Current rate should minimize value loss of the token.
• Allows more focus on other matters going forward.

DOWNSIDES

• Current CGG value might not reflect true valuation of users' rewards.
• The treasury will take around a 10% hit in order to distribute CGC rewards.
• No vesting.

NOTES

• The exact amount of CGC can not be calculated until the end of the 21 day Last Chance campaign. At that point accounts would no longer be able to accrue and the balances will be used to calculate the final Eligible CGC amount. A list of accounts and balances will also be released at that time.

VOTING OUTCOMES

This is the Final proposal vote for the CGC to CGG conversion.

1. Voting “Proceed” will initiate the proposed CGC to CGG conversion.
2. Voting “Reject” will reject the proposed CGC to CGG conversion.
3. Voting “Abstain” will voice indifference or objection to both outcomes (not for or against). Voting abstain will add to the quorum and is considered participation.

PREVIOUS DISCUSSIONS

The Great CGC Conversion Terms and Conditions for converting CGC to CGG