BAG Rebrand, Token Migration, and Ecosystem Upgrade

Background

Decentral Games’ offering and ecosystem has evolved considerably over the years:

• 4 years ago – We started the Decentral Games project.
• 3 years ago – We launched our first games, the $DG token, and the DG DAO.
• 2.5 years ago – We launched ICE Poker and the $ICE token.
• 2 years ago – We introduced a 1:1000 $DG token split and $xDG (staked $DG).
• 6 months ago – We launched the beta of our Malta-compliant metaverse casino.

As a result of this continuous development, our product suite has become overly complex — especially for newcomers. This proposal seeks to simplify our ecosystem and drive 24/7 player liquidity in our metaverse casino, mobile SNG arcade, and upcoming mobile casino.

Our objectives:

1. Simplify our product offering and CTA to join our ecosystem.
2. Double down on products with sustainable business models.
3. Improve Premium Wearables’ (previously: All Access Wearables) utility.

Proposal

Simplify Our Ecosystem

Deploy $BAG, a new ERC20 token that assumes the positive utility $DG, $xDG, and $ICE have today, but does not assume $ICE’s inflationary rewards nor the cumbersome user experience of staking/unstaking with $xDG. $BAG is capped at 8B supply and becomes our governance token. Holders of $xDG, $DG, and $ICE can convert to $BAG.

Enable $BAG claiming at the following rates:

• 1 $DG → 8 $BAG (conversion supported on Ethereum and Polygon)
• 3 $ICE → 2 $BAG (conversion supported on Polygon)
• $xDG can be unstaked in order to convert $xDG → $DG → $BAG. (conversion supported on Ethereum and Polygon)

Rebrand All Access Wearables to Premium Wearables and Shine to Tickets.

Update our existing game modes as follows:

Casino:

• Add Deposit and Withdrawal on Ethereum mainnet and Polygon POS for $BAG.
• Update Casino Gameplay to support $BAG; discontinue $ICE.
• Update loyalty tiers for referrals & cashback to be based on $BAG.

SNGs:

• Migrate SNGs from $ICE-based to USDT-based.
• Enable USDT → Tickets at a ratio of:
  • 9 Tickets -- 2.5 USDT (~0.278 USDT/ticket)
  • 20 Tickets -- 5 USDT (0.25 USDT/ticket)
  • 105 Tickets -- 25 USDT (~0.238 USDT/ticket)
• Enable BADGES → USDT in Arcade at a rate of ~ 1 BADGE / 1.1 USDT
• Payout SNG leaderboard rewards with $BAG.

DAO:

• $BAG is the governance token and corresponds to votes.
• $BAG holdings correspond to Loyalty rewards boosts (cashback and ref links)

Withdraw and convert $DG and $ICE LPs on Ethereum and Polygon and migrate over to $BAG with the equivalent total value with a single ETH-$BAG LP on each chain. Work with centralized exchanges to replace $DG and $ICE listings with $BAG.

Double Down

Sunset Challenge Mode, Delegation, Upgrades, Activations and the earning of Banked ICE (but honor existing Banked ICE conversions, which will be convertible to Tickets).

Improve Wearable Utility

Enable Premium Wearable holders to stack unlimited items and earn weekly Tickets or Bonus USDT. Cease halving rewards.

Initiate new wearable rewards as follows:

• Premium wearable holders may choose to receive tickets or Bonus USDT at the following rates for each wearable:
  • If Tickets are chosen: 3 x (1 + [Bonus %]) Tickets per week
  • If Bonus USDT is chosen: 3 x (1 + [Bonus %]) Bonus USDT per week
• Additionally, for Crown, Scepter, and Royal Attire holders, these NFTs will earn like Premium Wearables themselves with Bonus % of 150%, 75%, and 50%, respectively.
• Tickets are rounded to the nearest whole number, but fractional Bonus USDT can be claimed (e.g. 21.5 Bonus USDT).
• Premium wearables holders must claim and play each week to receive Tickets/Bonus USDT the following week.
  • Tickets play requirement: player must complete one SNG the previous week.
  • Bonus USDT play requirement: player must have bet in the previous week.
• It’s important to note that this would be a starting point. As we add more games, drive revenue across our products, and see the data, we can make adjustments to the rewards as needed.

Rationale

Simplify Our Ecosystem

Today, our ecosystem is too confusing for new players to understand all the assets in our ecosystem and figure out how to start playing. Moreover, our community is currently divided – in terms of their objectives – across our different assets rather than united together as one. With superior economics, a single $BAG token unites our community.

Because $BAG inherits all the positive utility of our current 3 tokens (use $BAG to play games, buy assets, boost loyalty rewards, and participate in governance), the CTA to join our community and ecosystem is simple: accumulate $BAG.

We believe the $BAG ticker has great marketing potential as it’s distinct, catchy, and easy to remember. It also serves as a first strong step to establish our brand as separate (and not limited by) Decentraland.

Finally, rebranding All Access wearables as Premium wearables and Shine as Tickets better prepares our product to welcome new players as the names are better descriptors of what utility they provide.

Double Down

For sustainable and effective growth we need to focus on products that:

1. Deliver a fun gaming experience
2. Stand out from other products in the market
3. Generate revenue for the DAO treasury

Based on those values, the most promising products that will benefit our community are:

• Malta-licensed Metaverse Casino: The only Metaverse casino on the market and soon to be in our own native Metaverse.
• Arcade app (SNGs): Non-gambling, globally accessible, and playable on any mobile or desktop browser.
• Mobile casino app: Mobile app soon to be launched with cash poker soon, and then slots, roulette, and blackjack.

Unfortunately, Challenge Mode works against the best interest of our community. As much as we’ve poured our hearts into building, supporting, and optimizing it over the last couple of years, it doesn’t make sense for our community to continue subsidizing this game mode and harming our ecosystem. This is a tough decision, but it’s necessary for our community’s growth and we’re confident this will allow our ecosystem to flourish for the future. That being said, premium wearable rewards can be restructured to be a net positive for the ecosystem.

Improve Wearable Utility

Wearable owners are much better equipped to both max out earnings from all their wearables and earn more rewards overall compared to our prior setup due to checking in infinite wearables, playing once per week, and no longer splitting their rewards with delegates.

These new incentives drive more engagement and provide valuable 24/7 player liquidity across our entire product suite, specifically in games where this player liquidity is valuable. Games start quicker, players enjoy a much better social gaming experience, and growth efforts are more effective at retaining players.