Efficiency/Profitability Proposal -- Poker Leaderboard

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 combining casino leaderboard prizes, eliminating the SNG leaderboard prizes, pausing casino competitions, and pausing Gold for $BAG holders. As a result, across Q4, we generated consistent and increasing casino revenues. Revenue generates wBTC purchases 1:1 which extends our runway along with $BAG purchases. Still, we still have ~$13,200/mon in fixed leaderboard expenses:

Poker Leaderboard — ~$4,500/mon ($150/day) Combined Casino Volume Leaderboard — ~$8,700/mon ($2,000/week)

Proposal

Pause $4,500/mon in USDT to the Poker Leaderboard after Jan 19th.

Rationale

We are focused on improving profitability while also being willing to spend in areas that directly improve onboarding or incentivize casino gameplay. Two such recent examples are the ongoing spend on new user / referral bonuses as well as the ongoing promotion with GAMEE. These have helped us to register tens of thousands of new users and have brought in thousands of new players.

On the other hand, poker player liquidity and revenues have stagnated. Recently, we have been paying out $1,050 per week in leaderboard prizes against $500 - $1,000 per week in rake generated. The expense does not make sense even before considering the fact that we continue to pay out 1 Blast Gold per $0.20 in rake generated.

We will continue to incentivize poker player liquidity primarily with Gold but also with rakeback and referral bonuses.