Update Prizes and Bonuses

Background

Though we have growing DAU and Revenues, a well-funded Treasury, and will imminently ship Bag City and new 2D games (e.g. Slots, Crash), $BAG is down ~50% from launch to ~$0.0025. Our various prizes (detailed below) are a significant $BAG outlay that’s hard to justify at these levels. However, we think these prizes/programs are valuable and want to continue them.

For Tier 0 - 10, our Cashback and Referral Programs range from 10 - 30% each. These are the first and second largest variable expenses counted against Revenue.

Proposal

Move the Metaverse Volume Leaderboards and the bag.win Rake Leaderboard from $BAG to USDB, but do not change the USD amounts or frequency of prizes.

Update Casino Competition token prizes from $BAG to USDB, but maintain status quo leaving exact amounts and frequency up to the team’s discretion.

Halve SNG Badge Leaderboard Prizes from $10K $BAG to $5K $BAG.

Update Referral Bonus Rewards from 10 - 30% to 5 - 15%, but leave Cashback unchanged.

Rationale

Total reduction in monthly $BAG emission to the 4 prize types is ($28,500 + 2.86m) $BAG.

Rake and Volume Leaderboards: These moves to USDB make sense given the current price of $BAG. For the Rake Leaderboard in particular, player liquidity on bag.win is entirely in USDB. These changes shift $23,500/mon $BAG emission to USDB. The USDB will count against casino profits, but the same was true for $BAG. There is also an opportunity in Blast Season 2 to move some or all of this to Gold.

Casino Competitions: USDB makes sense given the current price of $BAG. We reduce $BAG emissions by ~ [3 comps] x [4.33 weeks] x [220K $BAG] = 2.86m $BAG/mon.

SNG Badge Leaderboard Prizes: The $10,000 per month in on-chain $BAG was meant to bootstrap player liquidity for the platform. Today, we have ~100 DAU as well as ~200 users per week claiming Tickets from their premium wearables. Particularly given the price of $BAG – and given the maturity of the platform – it is reasonable to decrease these to $5K. Additionally, in the future, we expect to be able to combine player liquidity with casino SNGs (e.g. USDB buy-in) and Ticket buy-in.