XIP #11 - XBG presale - go/no-go

Based on the discussions held in the Discord #governance channel and the latest community town hall meeting, we have initiated a vote on the "XBG presale go/no-go" to determine whether XBorg will conduct a presale.

This proposal specifically addresses the question of whether to proceed with a presale and does not delve into the details of specific terms, such as valuation, vesting/lockup periods, sale mechanisms, timelines, and incentives.

Below, you will find the primary reasons for considering a presale, as well as the rationale for separating the vote on the presale event from the subsequent vote on specific terms.

Suggested Timeline

First Proposal: XBG Presale Go/No-Go Proposal

• Voting Dates: January 30th and January 31st
• Presale Announcement Date: February 1st
• Term Discussions: February 1st to February 13th

Second Proposal: XBG Presale Terms Proposal

• Proposal Date: February 14th

XBG presale

At our core, our vision is to drive the next generation of gaming through player identities. We are firm in our belief that as the world increasingly transitions online, your online activities should contribute to generating value. The extended vision stems from our belief that as the world becomes more productive, people will have more time, but generating value will also become more challenging.

XBorg serves as the protocol powering player identities and constructs utilities on top of it. The XBG token is positioned at the heart of XBorg, allowing players who contribute to the protocol to derive value from it.

This undertaking comes with a significant cost and demands additional resources. In the preceding year, we had considered delving into a private fundraising campaign. Although the venture capitalists showed strong interest, their condition involved acquiring shares in our company. Granting equity contradicts our gaming vision, as it implies that the benefits won't reach the players but rather be in the hands of venture capitalists. How can we pioneer the next gaming era if it ends up being controlled by a select few? How many projects have actually allowed their members to vote on KOL fundraising rounds and presales? We have this freedom today because the current equity holders (SwissBorg and XBorg team only) are aligned with XBorg’s value being circulated to token holders.

We propose reallocating the token amount intended for VCs back to the community through a presale. In this context, we articulate the reasons why we believe conducting a presale is a strategic move that adds value to the XBorg ecosystem and contributes to a successful XBG launch.

1. Community Alignment & Growth

Our approach is to put governance's power in the hands of the community first, and VCs second. Ultimately, we believe the value of the XBG token will stem from trust in our ecosystem and the community’s faith in us.

The fundamental value of XBorg is rooted in its adoption by players, esports teams, and ultimately, the revenues and profits generated. However, it's important to acknowledge that fundamental value isn’t the norm today.

1.1 Why grow the community?

In Web3, the success of a project is largely determined by the community's deep engagement with it, whether it’s Ethereum, Solana, Jupiter, SwissBorg, or XBorg. These ecosystems thrive because they are supported by strong communities. While technology is largely replicable, what distinguishes Project A from Project B is not the technology or its traction, but the strength of the community.

Similarly, crypto exchanges operate on a business model where the size of the community correlates with the trading volume of a token. The larger our community, the more attractive XBorg is for exchanges. Although discussions with certain exchanges have been positive, some have expressed concerns about our current growth rate. A successful presale that generates significant interest and awareness could help address these concerns.

1.2 How do we turn the presale into a growth event?

We believe that the presale can be leveraged as a vehicle for growth. We believe that people will have an incentive to contribute to XBorg’s growth and, thus be more active, if financially involved. While we could have run a large airdrop campaign, this approach often attracts bots and creates only a temporary illusion of growth, which tends to dissipate in the mid-term.

Considering that we have partnered with some of the top Web3 gaming creators and communities (Ivan on Tech, Raiden, Yellow Panther, Sam Steffanina, and many more yet to be announced), we aim to reach an audience of over 100,000 directly through the free mint (Chestplate NFT) and the XCode distribution, significantly boosting our visibility beyond the pre-sale - by refunneling potential investors to the XBorg ecosystem beyond the pre-sale

2. Increase financial health, ensure long-term sustainability and liquidity

XBorg, as a startup, is navigating the typical dilemma of balancing growth with profitability. Currently, our momentum in the esports sector is stronger than ever, and considering the momentum we have, we believe now is not the time to scale back growth, particularly as a crypto startup.

Despite XBorg's monthly revenue generation through esports team partnerships, we are not yet profitable. However, our financial position remains robust, providing us with approximately a two-year runway.

To extend our financial runway while scaling the team and operations, we are considering several strategies:

• Raising additional capital.
• Leveraging XBG from our treasury.
• Potentially scaling down growth to focus on achieving profitability.

Launching the token introduces the need for sufficient liquidity in secondary markets, which can impact our runway. Generally, higher liquidity is preferable, and a portion of the presale funds would be allocated for this purpose. Additionally, our marketing efforts post-token launch are expected to increase our operational costs.

XBG presale terms

The community has expressed substantial interest in the presale, albeit with significant disagreement surrounding its terms. These terms encompass crucial aspects such as valuation, vesting/lock-up, sale mechanism, timeline, and target demographics.

To bridge these differing viewpoints, we suggest conducting workshops to discuss various structural possibilities, enabling Prometheus holders to vote on the path forward. While reaching complete consensus may be challenging, we believe it is imperative for XBorg to strive for alignment among all stakeholders, including Prometheus holders, pre-seed investors, the core team, SwissBorg, market makers, and exchanges.

In light of this, we plan to introduce a second proposal in two weeks, offering diverse options related to the presale terms. This proposal will incorporate feedback from the core team's discussions with current investors, partners, advisors, market makers, and exchanges, allowing us to transparently determine the options most beneficial for XBorg's future.

About The Workshops

These sessions are designed to educate participants about the various options, facilitating an informed decision-making process. The workshops are scheduled as follows:

• Thursday 1st of February at 8pm CET,
• Tuesday 6th of February at 8pm CET,
• Thursday 8th of February at 8pm CET.