Future of Incentives/Premium Wearables

Background

The proposal submitted by GR (that was discussed in detail in the governance channel) has passed. Here is the link if you need to read up on the changes proposed: https://vote.bag.win/#/proposal/0x7df1eb789abd9e9f20d4a182289a28202dfbc9503400e9b26a392b179219e400

We’ve been in very long discussions with folks who have voiced their opinions to explore alternative solutions (including GR) to address the misalignment of incentives identified in the proposal, and with our product and engineering team to evaluate the development lift. The future of premium wearable rewards has been one of the most difficult decisions we’ve had to consider since founding the project in 2019. While we want to improve long-term incentive alignment, we do not want to derail our existing ambitious and exciting Bag.win product roadmap given the current opportunities in the market.

There are a few key pieces with regards to our “endgame” state that I think we should review before debating the path to get there.

• We had already planned to integrate SNGs into Bag.win
  • Add buy-in and prize in Casino USD balance
  • Share player liquidity between the two (Arcade and Bag.win)
• We have and will continue to move away from Decentraland (and subsequently Polygon) as we launch our own 3D world Bag City and become a bigger player in the Blast ecosystem (with more Blast Gold rewards for gameplay and holding BAG)

In order to align the community long-term and invest development time into valuable features that drive maximum appeal and growth, we need a new simplified rewards system based primarily around gameplay

Proposal

With this endgame in mind, we saw 3 tenable scenarios to get there:

Option 1 - End Premium Wearable Program Immediately, Launch New Rewards System around Gameplay

• Fully terminate the Premium Wearable Program immediately.
• Take a snapshot of all current Premium Wearable holders October 1 to add a 6-month boost upon launching a new rewards system around gameplay and BAG Tiers.
• Redesign a rewards system around playing in Bag City and boosted by holding BAG to replace premium wearables rewards on March 1, 2025.

Option 2 - Gradual Reduction of Premium Wearable Rewards, Launch New Rewards System around Gameplay

• Keep Bonus USD as a wearables reward option.
• Reduce all Premium Wearable rewards by 25% starting October 1, by another 25% December 1, and end all premium wearable rewards March 1, 2025 upon launch of a new player rewards program.
• Remove tedious updates to Pot Bonus and Tickets outlined in the original proposal.
• Reduce baseline Pot Bonus rewards by 30%.
• Take a snapshot of all current Premium Wearable holders March 1 to add a 6-month boost upon launching a new rewards system around gameplay and BAG Tiers.
• Redesign a rewards system around playing in Bag City and boosted by holding BAG to replace premium wearables rewards on March 1, 2025.

Option 3 - Reduce Bonus USD Rewards Option, Drive SNG Player Liquidity for launch of Bag.win SNGs, Transition Polygon Decentraland NFTs to New Native Assets

• Remove tedious updates to Pot Bonus and Tickets outlined in the original proposal
• Reduce baseline Pot Bonus rewards by 30%.
• Reduce Bonus USD rewards for premium wearables by 75%.
• Reduce Ticket Rewards and Pot Bonus Rewards by 30% to incentivize player liquidity, particularly with the upcoming Bag.win SNGs launch.
• Give the team the ability to maintain or reduce rewards after evaluating the data from the Bag.win SNG rollout to ensure we are not spending more per month that we did before the changes.
• Transition Polygon Decentraland NFTs to new native assets on a chain of team’s choosing (Target Q1 2025).