Written by IK Nwoke
When moon? When lambo? With the recent bull run, there’s been a resurgence of these memes. Why? When your DApp issues a token whose value is rising on a steep upwards trajectory! The token under the spotlight is the BG token. BG is the premier token from the Big Game decentralised gambling platform. It has well over 21 thousand holders and a circulating supply of 437 million. It’s maximum supply was originally 1,000,000,000 tokens. BG was first listed on the Newdex exchange back in October 2018. It began trading at the meagre price of 0.000760 EOS. It has since risen by 1337.5%. The highest price the token ever reached was 0.010925 EOS in October this year. This remarkable rise of the BG token can be viewed on their candlestick chart. A monthly analysis of the BG token price displays plenty of bullish green marubozu. Clearly token prices are being pushed higher by the buyers. However, the Big Game team worked diligently to achieve this rise in token price. This article aims to explain how this was done.
Token Are Worthless
Yes, those were the very words printed by Big Game in their white paper. Fortunately, they managed to prove their own words wrong! From the outset, Big Game stuck to a plan that would ultimately increase the value of their token. There are some obvious factors that can lessen a token’s value. These are the lack of liquidity, low consumer loyalty, and “pumping and dumping” of tokens by whales. To avoid these unpleasant scenarios Big Game chose to release their DApp first. The first games on offer were Dice, Lotto and Poker War. Next, Big Game then followed through with their token distribution plan.
The BG Token Distribution Plan
The BG asset had an initial maximum supply 1,000,000,000 tokens. The distribution plan was to slice this huge cake of crypto-coins into generous portions. 70% would go towards game mining. The phrase “betting is mining” literally meant that players are rewarded BG tokens for every EOS that they wagered. The total amount of BG tokens that can be mined number up to 700 million. This mining operation will increase in difficulty with a halvening of the issuance rate every 35 million tokens. The remainder of this crypto-cake will be divided into equal slices of 10%.
Third party developers would be offered a slice of these tokens as onboarding incentive.This would be paid gradually over time. Currently all games are developed in-house, by the Big Game development team. The games that are developed are selected according to market study and trends. However Big Game has invited external development teams to introduce more games to the Big Game platform. 100 million tokens, roughly 10% of Big Games token supply has been set aside to fund third party development. For every 1 BG gained in game mining, the developers’ incentives fund will be feathered with an extra 0.1228 BG token. The upper limit is 100 million.
The BG token distribution plan also involved a token sale. This was launched in the early days of platform operations. 10% of BG tokens, which amounted to 100 million tokens, were put up for sale. The price of a BG token was 0.0009 EOS. In only three days all tokens were sold out! The proceeds from this sale went towards staking CPU and NET, buying RAM, and the initialisation of the prize pool. The BG tokens acquired from the sale could then be used to share the dividend of the platform’s profits, and can be traded freely on the exchanges.
There also included a percentage of tokens set aside for operating costs, bug bounties, and activities prizes.
Players that earned the BG token and those with adequate game participation, could also earn dividends from the platform. 50% of the income earned by Big Game is distributed to all token holders. These profits are paid as dividends every hour. In order to claim your dividend you must first stake your BG token. However tokens are not locked into the dividend.bg contract for excessive periods of time. Unstaking only takes 30 minutes. Being a token holder also makes the owner eligible to vote for new games.
All of this means that playing games on the Big Game platform is not only enjoyable, but very profitable also. Players are also shareholders and Big Game profits are shared amongst all users instantly. What a brilliant way to create a community and to inspire player retention. By doing this Big Game are able to avoid low customer loyalty. Big Game has also committed itself to responding to player’s issues in less than 1 minute.
Getting The Token Out There
Part of a token’s value is derived from the size of it’s community. The Big Game team began a campaign to get their tokens listed on exchanges, thereby increasing the number of BG holders. On October 24th 2018, BG was launched on the Newdex decentralised exchange. By March the following year, the BG token was ranked amongst one of the top five tokens used in all transactions on the DEX. In December 2018, 200000 BG was airdropped to WhaleEx users. The next place to list the BG token was the Chaince platform. BG can now be found on the Hoo trading exchange and on Dexeos. Each new listing increased the number of token holders and tackled the issue of liquidity. Whilst the tokens began circulating in ever increasing volume and larger circles, the Big Game platform was attracting an increase of daily users. According to https://ratingdapp.net/dapps/eos/1564/Big.Game each of the engagement metrics showed positive increases.
This increase in player adoption is in part due to the attractive games that they have on offer. Exciting new features such as multi table poker and multiplayer banker were released. Big Game also held many token prize giveaways, and they gained user confidence from the outset, by open-sourcing their dice fairness code. The platform also grew to support payments in other tokens, including stablecoins.
In May 2018 Big Game started repurchasing BG from Newdex and WhaleEx. This was for token burning. Token burning is the practice of permanently removing existing tokens from circulation. This is done for deflationary purposes. It also helps to boost the value of each token by a reduction in existing supply, and increases incentives for on-going support. In Big Game’s case, this also helped to increase the dividend percentage for all of their token holders, and also helped to stabilize the token price. Big Games buyback account goes by the name buyer.bg. Since 2018/11/16 Big Game have held 11 buybacks and have burnt 23,000,000.0000 BG. The date for each buyback is announced on the Big Game twitter channel. https://twitter.com/eosbiggame. At the start of this report it was mentioned that the maximum supply of tokens would be 1 billion. After these token burns the maximum supply will be 977,000,000.0000 tokens.
Using Technical Analysis To Compare Different Tokens On The Mainnet
There are a growing number of DApps on the EOS mainnet, each with their own bespoke token. We are witnessing the gradual expansion of the token economy. Different communities are able to tokenize and exchange their unique values. However the alarming majority of these tokens have plummeted in their paired value to EOS. A glance at numerous candlestick charts reveals a downwards trend. Even some of the markets that are associated with tokens belonging to well-known gambling Dapps are experiencing bearish conditions. However, the BG token is on an upwards trend. This is due to the Big Game’s deliberate management of their token. Should the present conditions continue, the BG token is a profitable token to include in one’s portfolio.
Due to the recent CPU congestion, many dapps and accounts are often finding themselves frozen from the network. Fortunately with the release of eosio v1.8 contract owners can now pay for CPU on behalf of their users. Big Game swiftly implemented these improvements, and become one of the first DApps to cover the CPU cost for all users. So indulge yourself. Let your inner gamer loose. You can play games on Big Game without a single care for resources; Big Games’ got your back. There is also no need to deposit funds on the platform. The new “ZERO CPU” era has begun!
IK Nwoke is a software developer currently developing smart contracts. He also writes about the latest news within the EOS ecosystem.
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