Over 2.8 billion people actively play video games, generating approx. $200 billion in global revenue. With the influx of blockchain games and Metaverse, this number is about to spike multifold and BreederDAO is here to fulfil the demand by providing NFT assets. It’s a thoughtful concept that can hold ground in the long run. We’re beginning to see the shift in the gaming ecosystem and it is about time we review BreederDAO, unfolding its potential –
Table of Contents
What is BreederDAO?
BreederDAO is the first third-party NFT asset manufacturer for top blockchain games built on popular gaming models like play-to-earn, pay-to-win and more. Its goal is to become a digital asset factory supplying to other platforms in need of quality assets to match the demand of the evolving NFT Projects, Metaverse and gaming guilds.
It will build in house tools and technology for the members, providing game statistics of tokens, data-driven analytics and products like asset searcher tool (identifying quality game assets with high ROI).
BreederDAO will improve the supply of in-game assets
BreederDAO is specialized in the following processes –
Breeding is the process of crossing (mating) two in-game assets to produce a new asset matching the traits (genetics) of the two breeds. Axie-Infinity and DarleyGo are two games utilizing breeding to build their gameplay. Checkout AXIE INFINITY breeding traits –
Crafting is focused on generating assets based on combining a set of skills, and materials like special in-game gemstones, rare NFTs etc. Crafting will be the part of the upcoming metaverses like Solice Crypto Metaverse etc
Breeding & Crafting help players produce new in-game assets or NFTs
Why we need BreederDAO?
BreederDAO is a fairly new concept. Only blockchain gamers or people involved in blockchain technology can understand the gap it is trying to fill. To put things in perspective, allow me to through some numbers at you.
It is estimated, by this time next year, over 3 billion users will actively play video games, generating over $200 billion in revenue. Among the various gaming modes i.e console, online etc, the play-to-earn user base is growing at a rate of 15.85% MoM (month-on-month).
The key driver behind the play-to-earn games is the rewarding system in the form of tokens. The players receive the tokens in order to mint in-game assets i.e NFTs that help them advance to the next level.
More users playing the game creates more demand for NFTs. It won’t be easy for the popular gaming platforms to keep up with the surging demand and for the players to identify the right NFT they need to breed or craft in order to win against the competition.
To solve the issues, we have BreederDAO. Not only it will supply in-game assets but also help identify the best performing NFTs that reaps higher ROI.
BreederDAO is a product built for the future
BreederDAO – AXIE INFINITY Use Case:
AXIE INFINITY is the most popular and successful play-to-earn blockchain game. Built on dual token economy i.e Smooth Love Potion ($SLP) & Axie Infinity Shard ($AXS), it works on the concept of breeding Axies (in-game NFTs) to win the game and earn $SLP tokens.
Breeding is a way of creating new Axies by taking two Axies (parents) and both $SLP & $AXS tokens. There are 9 classes of Axies and the most desirable are the ones with a higher win rate. For a newbie, it is difficult to pinpoint the best performing Axies from the mediocre ones, it’s more of a random guess that will cost money and time.
This is where BreederDAO comes into the picture. According to its analysis, there’s one class of Axie that dominates the fight and have a higher win rate and there’s another with the lowest win rate.
Reptile Axies have the highest win rate at 50.58% & Dawn Axies have the lowest win rate at 47.19%
Moreover, the in-demand Axies are priced at a much higher value than other Axies, making them out of the reach for many players. This is the gap BreederDAO aims to fill. It will provide the supply of in-demand Axies to the next generation of blockchain gamers and with helping them make the right decision by utilising data-driven analytics.
BreederDAO keeps an updated library of active and upcoming blockchain games. The library analyses the best time to breed and craft for each game, maximizing the ROI of the participants.
There’s a dedicated team of researchers specifically allocated to updating the knowledge library and monitoring the analytics.
This is the unique feature of this project. BreederDAO has created tools that will allow it to breed and craft assets at scale. In order to breed and craft at a large scale, players will need to develop their own tools. The optimization engine has many components and the same is made available for the team only (for now).
AI-Powered Hedge Engine:
Just like a good investment manager who identifies the best stocks with high earning potential, Hedge engine analyses games and strategies with higher ROI. Based on the outcome, it will allocate the resources to realize higher returns.
What is $BREED Token?
BREED is the native ERC20 token of BreederDAO. The token has multiple utilities to ensure that the ecosystem is functioning smoothly, capturing value for the token holders. It is used for –
- Resource Allocation
- Access to Machinery
BREED token holders will play a pivotal role in the governance of DAO. The team will initially bootstrap DAO’s breeding and crafting strategies. It has a vision to build a decentralized system where the members will be able to create their own breeding and crafting strategies that can be put to vote by submitting a proposal.
BreederDAO production lines will be one of the many elements to be integrated in the DAO. The production lines are configured and governed by DAO contributors and token holders. Based upon the voting outcome, resource will be allocated to the production lines which will produce the selected asset.
Staking is an integral part of BreederDAO. If an individual or guild wants guaranteed access to the first batch of manufactured assets from new production lines, they have to stake a portion of their $BREED tokens under BreederDAO Chute program.
Active participants who stake their tokens on the system are also entitled to receive $BREED tokens as staking rewards.
Access to Machinery:
Members holding specific amount of $BREED tokens are eligible to access tools and technology of BreederDAO ecosystem. Tools like asset searcher, game statistics of tokens and analytics are some of the features that are reserved for the token holders.
The major chunk i.e 55% of the total token supply is allocated to ecosystem development and DAO treasury. 20% of the supply is distributed to investors and the remaining breakup can be observed from the image shared below –
The token vesting schedule is observed from the table shared below –
The total supply of tokens is capped at 1 billion
BreederDAO Marketing Strategy:
Gaming guilds are the primary source of in-game assets and NFTs. Each guild keeps an inventory of in-game assets that they loan to the players under the guild scholarship model. The player keeps 70% of the earnings and the remaining sum goes to the guild, which uses the funds to purchase more in-game items for the new players.
BreederDAO has signed agreements with prominent guilds to provide game assets supporting in-house breeding programs.
Play-to-Earn Supply Chain:
BreederDAO has formed relationships directly with the game developers to streamline its production. The following image shows the list of games integrated into the BreederDAO system (the list keeps on growing) –
BreederDAO Team Members:
BreederDAO team members have a handsome exposure in blockchain technology. From DeFi protocols to NFT collection, every team member is associated with the industry. Infact Renz Chong, the CEO of BreederDAO brings over 5 years of experience in the field of blockchain, DeFi and NFT portfolio management. Details of other team members can be read from the Whitepaper.
As claimed by BreederDAO, its technology cuts down the time taken to generate new assets by minimum of 50%. The increased efficiency helps BreederDAO asset production surge by 10%-20% month on month which is good enough to match both the players and guild requirements.
No Scaling Constraints:
The best part of BreederDAO’s ecosystem, it has no volume constraint for producing any digital asset. It can provide high-volume assets, tailored to specifications for guilds, players and metaverse combined.
Strong Advisory Board:
BreederDAO advisory board consists of ace investors and founders. From Do Kwon (Founder of Terra (LUNA)) to Ryan Wyatt (Global Head of Gaming, YouTube). It has a list to top members taking care of the project’s development.
Breeder DAO Drawbacks:
Ahead of Time:
This can be either a big plus or a huge negative. The project is actually launched ahead of its time. We’re in the early stages of blockchain adoption where play-to-earn is a new concept for the gaming industry. It may take sometime for players or guilds to realise the potential of this project which may delay its plans for faster adoption.
BreederDAO is highly dependent on players and the gaming guilds. It will have to put in extra efforts to bring mass adoption. Users will only interact with the platform if they have prior exposure to the blockchain games or metaverse. Moreover, these platforms should be enticing enough to attract and retain users.
For BreederDAO to be successful, both blockchain gaming and Metaverse has to be successful
Breed Token Price:
Please check the latest price of Breed token –
Should you invest in BreederDAO?
BreederDAO turned out to be one of those projects that makes me want to jump out of my seat. The concept is unique and fits in perfectly with the blockchain projects i.e GameFi and metaverse. It is here to help match the demand for play-to-earn games by supplying the assets to players and gaming guilds.
The ability to provide high volume and tailored assets makes it a desirable project to partner with. It has already raised over $12 million from investors and is well funded.
Although everything seems to go to the moon, it does have some shortcomings which can be observed after studying its business model. The project is highly dependent on the performance of other projects i.e blockchain gaming projects like GALA Games and metaverse projects like Pavia metaverse etc.
This may seem to be a minor issue since there’re already 1300 blockchain gaming projects, but the same isn’t regulated yet.
Top projects like AXIE INFINITY are already under the radar of government regulators, any unfavourable outcome may thwart the growth of the complete project and hence slow down the growth of BreederDAO. This outcome may look scary but it won’t stop the industry from adapting to a new business model i.e play-to-earn.
As a rule of thumb, if you believe in blockchain gaming and have faith in digital assets i.e NFTs then BreederDAO is the top project you can bet your money on, else you can give it a pass. I strongly suggest you do your own due diligence because DYOR is the key to successful investing.
This completes my review of BreederDAO. In the next post, I will talk about Solice Metaverse LAND Sale and top 5 projects on Solana blockchain. If you’re a fan of blockchain technology then do share this post on your social handles and educate everyone around you. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
An MBA in Marketing. Paras have a decade long experience in the corporate world. He is done with office politics and corporate life, therefore decided to move on and jumped on building Katoch Tubes. He is a crypto fanatic and has the vision to bring cryptocurrency knowledge to every household in the simplest form possible using the power of internet. His area of expertise includes online marketplace, cryptocurrency and content strategy. Reach out to him on Twitter & YouTube.