Game Economy

To maintain sustainability and stability of the game, we employ the Free-to-Play model that has been used for over a decade by traditional games. A part of our revenue will be redirected back to players as direct and indirect rewards.

Revenue will be used to give rewards to players

We apply a two-token model for Kaby Arena, with $KABY as the investing token and $KGT (Kaby Gaming Token) being our gaming token, responsible for all in-game activities. With this model, combining with the treasure box mechanism we have introduced in the previous post, we expect stability and sustainability of Kaby Arena economy as shown in the result of our experiment.

The use case of $KGT and $KABY

$KGT for all in-game activities

$KGT will take over the role of $KABY as a gaming token. $KGT will have the following use cases:

• Reward Token: all token reward will be in the form of $KGT, which include but not limited to PvP top rank reward and tournament rewards.

• In-game currency: $KGT will be the main currency in-game, it can be used to buy items from our stores, trade on Peer-to-peer market, buy ticket for participating tournaments, etc.

The role of $KABY

1. Investing Token: $KABY will be shielded from the selling pressure and is the token for investors who believe in the growth potential of Kaby Arena.

2. NFT related transactions: $KABY will continue its role as the currency for purchasing NFT from our Marketplace. NFT heroes’ stars upgrading and Hero fusion will also require $KABY. *Note: Stars upgrading can also be done through in-game collection of Star Shards. Upgrading with $KABY will save the time and effort for the investors.

3. Governance Token: holder of $KABY can make bigger impact on the game via voting of important game decisions.

4. Revenue sharing: Marketplace fee will be adjusted to 5% after the official game release and this revenue will be partly shared to Kaby Holders.

Kaby Arena Revenue

$KABY Revenue

Our revenue consists of $KABY tokens that players spend. They include, but not limited to:

• NFT sales

• NFT renting

• Market fee

• Heroes upgrade

• Heroes fusion

$KGT Revenue

• In-game Store revenue

• Deposit/ Withdrawal fee of on/off-chain $KGT

• Entry fee for ticketed tournaments

• Bypassing time-gated content

Play-to-Earn rewards

Kaby Arena maintain two reward streams for players.

1. Direct reward of $KGT for top players

Being a professional gamer is a tough job mentally and financially. Kaby Arena wants to support competitive players with a stable source of income.

Top players will receive $KGT as the reward based on their rank on the PvP leaderboard. The leaderboard will reset after a period of time and players will compete to get to the top next time.

Furthermore, if a player is confident in their team composition and their skill, they can bet $KGT tokens against other players in PvP games and earn from winning.

Other than the main tournament with free entry, Kaby Arena will host ticketed tournaments where participants pay an entrance fee, this fee will be pooled together as tournament prize.

2. Indirect reward through treasure box for all players

For all non competitive players, if you cannot reach the top or you are just a casual player who prefers a complete daily quest, you can still earn through our reward of treasure boxes. By opening the boxes, in addition to consumables, you have the chance to obtain valuable items such as tickets for summoning NFT heroes or equipment gems. You can also trade unopened boxes on our market to other players for $KGT.

The value of a box is often determined by the chance to get valuable assets and the market price of such assets.

Note: All numbers below are purely for the purpose of demonstration, the actual value may vary.

For example, let’s consider the content of the following box:

• Book of Experience: 10 books ( Consumable: use to increase your experience)

• Star shard: 10% (Consumable: collect enough shards to get a free ticket to increase the stars of you hero)

• Skill book: 10% (Consumable: collect enough to be able to upgrade your skills — Note: you must upgrade the hero’s stars first to unlock new skill level)

• Talent book: 2% (Consumable: collect enough to be able to upgrade your talent — Note: talents are unlocked at 5-star)

• PvE energy potion: 40% (Consumable: refill your energy bar for PvE battles)

• Hero ticket: 0.5% (to summon a NFT hero)

• Gem box ticket: 0.5% (to exchange for a NFT gem box)

Therefore, the expected value for such a box would be tied to the market value of the content such as the shards, skill books, talent books, the market price of a hero and the market price of a gem box.

*Note: As we have disclosed during Exodus sale, in the first 2 months of the game, there will be NO NFT hero summoning so the tickets can be saved for later.

In the future, to make it easier for players, we will display this calculation as a detail on each box.