Nov 11 Leaderboards Prizes Updates

Background

Across a series of governance proposals over the last few months, we have reduced casino spending by tens of thousands of dollars and are using our Gold allocation more efficiently. A few examples include the updates to wearable rewards, combining leaderboard prizes, pausing casino competitions, and pausing Gold for $BAG holders.

As a result, we are now producing consistent profits. For example, T30 casino profits are 53.0K EUR… that’s 26.5K EUR in wBTC purchases extending our runway and 26.5K EUR in $BAG purchases.

Today, variable costs like cashback and referral bonus are relatively small at 4.4K EUR T30 combined, but we do still have ~$18,200/mon (16.7K EUR) in fixed leaderboard expenses:

— Rake Leaderboard: ~$4,500/mon ($150/day) — SNG Badge Leaderboard: ~$5,000/mon $BAG ($165/day) — Combined Volume Leaderboard: ~$8,700/mon ($2k/week)

Additional notes:

— The Combined Volume Leaderboard has a 5,000 Gold/week component. — We also continue to pay out predominantly tickets to wearable holders.

Proposal

(1) Remove the Gold component of the Volume Leaderboard after Nov 11th send. To prevent any confusion here, this means that the week of Nov 4 - Nov 10 will still receive $2,000 and 5,000 Gold.

(2) Stop paying out $5,000/mon in $BAG to the SNG Badge Leaderboard on Nov 11th.

Rationale

We are focused on improving profitability while also being willing to spend in areas that directly improve onboarding or incentivize casino gameplay. Casino profits are being driven by 3rd party games on bag.win and we do plan to ramp up spend there in the coming weeks across (1) Platinum Affiliates and (2) New promotions that reward people who bring in new depositing players.

On each point specifically:

(1) Saves ~22,000 Gold/mon. The rationale here is the same as with the passed proposal to save the 10% of our allocation that was allocated to $BAG holders. Summarizing: “We have seen our Gold allocation decline month-to-month (229K (Aug) --> 214K (Sep) --> 185K (Oct))... We should be more judicious about allocating Gold to incentivize gameplay and onboarding.”

(2) In addition to Pot Bonus and Bonus USD/USDB rewards to wearable holders, we reward ~24K Tickets/mon. This additional $5,000/mon $BAG expense is not driving casino onboarding, deposits, or volume. Moreover, the $BAG that’s paid out on Blast creates sell-pressure. Lastly, those entering SNGs with cash are climbing the Rake Leaderboard and can still earn leaderboard rewards there.