Arena Match Gold
A Deflationary Esports Utility Token
Table of Contents
FOR INFORMATIONAL PURPOSES ONLY
This document may contain forward-looking statements, subject to risks and uncertainties that could cause actual results to differ materially. Nothing in this paper constitutes an offer or solicitation to sell shares or securities in Arena Match, Inc. or any related company.
Arena Match: Skill-based Gaming (esports)
The current Arena Match model provides users the ability to purchase credits for skill-betting through our payment gateway partner, but with any traditional banking systems there are fees, delays and limitations that a blockchain solution would eliminate. Upgrading our payment system to support a decentralized Ethereum-based utility token AMG will dramatically increase usage while eliminating traditional fees, delays and limitations.
The creation of Arena Match Gold integrates seamlessly with our esports app that will be legal in the majority of the United States and over 80% of the world. We will still offer fiat deposits where available for traditional users. But we aim for AMGold to become a standard token for the esports and gaming ecosystem, an ecosystem backed by Arena Match.
There is a huge and growing audience of people who like to play and watch esports. Statista reports that there will be over 380 million esports enthusiasts and viewers by the end of 2019, 165 million of which “frequently” engage in esports in one manner or another. Our audience represents a segment of this secondary group:
- People who themselves engage in competitive gaming (these are the players who, for instance, make serious efforts to progress in ranked matches).
- People that like the thrill and opportunity of monetary-stakes play (according to Statista, that’s at least 25% of the population, though certain Gallup polls have the figure well above 60%).
- People that are eligible to play in skill-based beting games (18+ years old, 41 US states and roughly 80% of all countries around the world).
User Acquisition Profile: Our average customer is likely in their 20’s or early 30’s. They consider themselves to be pretty good at their favorite game and play regularly, perhaps a couple hours a day. They have some disposable income – they buy in-game cosmetics and DLC – they enjoy enhancing a game’s experience. They like the idea of quickly hopping in a game, playing a quick match against somebody else, and potentially doubling their money. They’re used to ranking systems and likely play in ranked matches, which means they expect to play other people of similar skill (so they know they have a real shot of winning any game they play).
esports – A New Frontier
The esports market is relatively new – not many people are doing it, and no one is doing it well. Without a clear industry leader, there’s been no blueprint, which means each company has been pioneering their own way with mixed results. We’ve had the luxury of seeing their efforts, and believe we can radically improve upon their models by simplifying them and broadening their audience.
The wealth opportunity for seriously engaging in esports is currently confined mostly to large, pro-player only tournaments, or to locally hosted scheduled events. The people who want to bet cash have very few options, and in many cases, if they’re not a pro, either they are only able to bet on the outcome of a pro-matchup (similar to sports betting – its a passive experience) or to travel and qualify at a physical tournament location.
Most of the esports platforms that offer instant matchmaking options have small player bases, which means it can be very difficult to find other challengers. Players often have to wait in queue for unforgivable lengths of time hoping another player will show up. Delayed instant gratification quickly leads to frustration, and the possible abandonment of the platform, which further compounds the player liquidity problem. This presents a challenge for esports platforms, as the cost to acquire enough concurrent players to sustain instant matchmaking can be excessively prohibitive.
Our goal is to build a successful esports platform that has multiple player modes, satisfying a variety of user interests, while at the same time avoiding the pitfalls faced by our competitors, such as day 1 player base liquidity issues.
On the player experience side, we want to allow users to experience esports in a way that’s most attractive to them – whether its through familiar ranked play, via challenge completion, or head-to-head match ups. This helps to ensure that new users can find a mode that their comfortable with, and that existing users have other modes they can experiment with or graduate to.
From a strategic level, we believe that head-to-head instant matchmaking games and battle royale modes will ultimately prove to be the most compelling modes from the audience’s perspective, but we want to make sure that players have things to do when the player base is limited (for instance, during off hours), and modes to try out while they familiarize themselves with the platform. To that end, we want to offer a selection of “solo” experiences, like skill challenges and reoccurring highscore tournaments.
Our platform will have multiple paths to generate revenue based on each of our game modes.
Skill Challenges: In this mode, players make a bet against Arena Match based on their ability to succeed against a number of specific predefined challenges (like getting first place in their next game of solo Fortnite, or achieving a certain number of kills in a game of PUBG). The platform keeps those entry fees if the player fails, and pays them out (based on predefined odds) if they succeed. The challenges will be set up to be difficult enough that succeeding is rare, but rewarding enough that players have a compelling reason to play. Arena Match will dynamically adjust the payout rates on a per-player basis based on that player’s skill history to ensure that challenges remain persistently difficult while keeping the payouts appropriately fair and compelling.
Highscore Tournaments: Players can compete in regularly scheduled (hourly/daily/weekly) leader board tournaments for specific games with the goal of achieving a high score payout. Before each tournament begins, the prize pool is set and the number of paid out positions is determined (these numbers will fluctuate based on historic metrics, anticipated entrants/entry fees, and the platform’s overall success). Once the tournament begins, players will be able to enter at-will, paying an entry fee which grants them an opportunity to play a match whose score will be recorded on the leader board. Until the tournament ends, players may make multiple entries into the tournament (paying a separate entry fee each time) to attempt to post a better score (using their best score to establish their rank). The entry fees for each additional attempt progressively become less expensive, creating a compelling reason for players to re-up multiple times. At the tournament’s conclusion, players with qualifying high scores will be paid out according to the best rank they’ve achieved. The tournaments will be structured in a way where the total entry fees collected will exceed the total in prize pool payouts, creating a positive revenue stream for Arena Match.
Head-to-Head: Arena Match will facilitate instant matchmaking, where individuals or teams pay a predetermined entry fee to queue up and face off against challengers to compete for that match’s prize pool. The platform will keep a moderate 10% of the collected fees for hosting the match, which leaves a compelling prize pool for the winner(s) to compete over. At launch, the entry fees for these matches will range from $1-$20 worth of AMG per participant. These numbers will be fine tuned over time to maximize audience liquidity and to accommodate players’ interest.
Battle Royale Free-For-All: Players will be able to pay entry fees to enter pre-scheduled Battle Royale matches, where they will compete for that match’s top positions. The players who score the best ranks will be paid out from that match’s prize pool, minus a 10% hosting fee kept by Arena Match. Battle Royale games pit 60-100 players against each other in a free-for-all setting, with matches last 30 minutes to an hour. This allows Arena Match to collect a small share of an incredible number of entry fees all at once for hosting a relatively short, self-contained game, which makes the Battle Royale mode a lucrative model.
Additional Revenue Source – Playwire Ads: Through our partnership with Overwolf we will have access to the Playwire adnetwork. Short forgivable advertisements will play before and after matchmaking without disrupting gameplay (during load and match conclusion screens). These ads will generate a small but consistent revenue stream for the business. Playwire ads are actually how most Overwolf apps generate the entirety of their revenue, but in our case they will only be secondary source.
Game Lineup Roadmap
Currently in Beta
Coming this Summer
Coming this Fall
Our marketing and user acquisition strategy will focus on users interested in esports, specifically targeting the user-base of the Battle Royale games presently offered on our platform.
Overwolf Cross Promotion:
Overwolf featured app promotion to its over 10 million active users during our product launch.
Social Media Promotion:
We are targeting these users through filtered social media advertisements, focusing on Twitch, Twitter, Instagram and Facebook.
We have created partnerships with a number of Twitch streamers who will promote and use our platform while streaming to raise awareness with their own audience base.
As the production build launches we plan to offer a number of daily and weekly events that users can participate in, free of charge, to win cash.
We are building the Arena Match eSports app in the Overwolf ecosystem. Overwolf has an active user-base of over 15 million players focused on esports gaming, and they’ve offered to highlight our game as one of their major offerings. Overwolf’s partners include Intel, Wargaming.net, HiRez, Crytek, Twitch, Zam Network, TeamSpeak, Cloud9 and more.
We’ve partnered with Gameye for on-demand API and server management. This will allow for affordable on-demand matchmaking and easy scalability as the our user-base grows. We've already integrated with CS:GO and have had great success.
Enjin Coin is a cryptocurrency created to give developers access to Enjin's blockchain toolkit, which they can use to mint powerful ERC-1155 token items (like our skill challenge perks and AMGold) that represent tangible and intangible assets. ERC-1155 tokens are arguably the most advanced digital assets that have ever been created.
Enjin Backed Perk Items and AMGold
To enhance the skill challenge experience and give players more ways to improve their odds, we’ve adopted Enjin’s blockchain SDK to mint game specific perk items that will give players certain advantages while playing.
Enjin Perks for PlayerUnknown’s Battlegrounds:
Arena Match is launching skill challenges with PUBG as our first game and we’ve selected the following perks to enhance our players’ experience! Perks allow players to reduce the difficulty of a challenge, increase the payout and even give them a second chance if using the First Aid. Each perk slot can only contain one unique item.
The helmet perk reduces the kill requirement by 1. For example if a skill challenge requires 5 kills to win - using the helmet perk would change the requirement to 4 kills.
The backpack perk creates a total of three open perk slots instead of the standard two perk slots you start with when playing Skill Challenges.
The armor perk reduces the rank placement requirement by 1 (excluding first place challenges). For example if a skill challenge requires you reach the top 5 to win - using the armor perk would change the requirement to reaching the top 6 to win.
FRYING PAN (PUBG)
The frying pan perk gives players a .25% increase on their payout odds. For example a 2x payout would become 2.25x when using this perk.
FIRST AID (PUBG)
The First Aid perk gives players a second chance at completing their skill challenge if they happen to unfortunately die within the first 2 minutes of gameplay. Gameplay starts when the plane starts flying.
Arena Match Gold ("AMGold")
Arena Match Gold will be used as our primary currency for perk purchases and esports skill-based betting on popular PC games. AMG will serve as a ERC-20 Ethereum network utility token creating a decentralized, community-driven virtual economy. Every quarter, we will destroy AMGold based on a % of transaction volume on our esports app which will continue to reduce the circulating supply overtime indefinitely and drive its rarity.
Arena Match Early Adopters Founder Badge
Early adopters of Arena Match will receive an exclusive limited edition collectible founders badge.
Enjin Coin is a cryptocurrency created to give developers access to Enjin’s blockchain toolkit, which they can use to mint powerful ERC-1155 token items (like our skill challenge perks) that represent tangible and intangible assets. ERC-1155 tokens are arguably the most advanced digital assets that have ever been created.
Every perk item we create is backed by ENJ for a few important reasons:
Deflationary ESPORTS Token
AMGold will serve as deflationary esports cryptocurrency token used for skill-based betting on popular PC games. We’ve also adopted Enjin’s SDK for ERC-1155 Skill Perk items that will enhance the user experience while providing true ownership on the blockchain. We are currently working to launch our esports beta app with a skill challenge mode as early as July 2019 featuring PUBG (PlayerUnknown’s Battlegrounds) as our first game. We’ve selected a deflationary token model to try to solve the the Token Velocity Problem that most token projects have.
The Token Velocity Problem
Despite over $7.8 billion in blockchain capital being contributed to token projects in the first half of 2018 alone, over 1000 projects failed. While there are many reasons for project failure and decline, the Token Velocity Problem is the key driver. Token Velocity is the speed at which tokens circulate their native platforms and ecosystems. If this velocity is too high and speculation is held constant, assets will struggle to conserve long-term stability.
The Deflationary Solution
- Each time that AMG is transferred, 0.5% is destroyed by being sent to 0x0000000000000000000000000000000000000000.
- AMG stabilizes at the 16th decimal place and stops burning, ensuring that AMG won’t completely run out of supply but will instead increase in rarity.
- Only 100,000,000 AMG or less will go into circulation.
AMG uses 18 decimals instead 0 like the social experiment BOMB. When 1 or any amount of AMG is transferred, it burns the appropriate 0.5% on each transaction unlike BOMB token that burns 1 token on any transfer under 100. For example 1 BOMB sent would destroy that transfer completely to 0. The beauty of AMG is that stabilizes after the 16th decimal place and stops burning which this means AMG won’t self-destruct completely like BOMB.
AMG 0.5% Transfer Burn Examples:
- Send 1000 AMG -0.5% Transfer Burn = 995 sent and 5 burned.
- Transfers after 16th decimal place (0.00000000000000009) won’t burn.
Understanding Inflation and Deflation
Inflation occurs when the prices of goods and services rise, while deflation occurs when those prices decrease. Essentially inflation devalues your currency while deflation increases your currency’s purchasing power.
Will the AMG supply run-out someday?
No, transfers beyond 0.00000000000000009 stop being burned, and this ensures that we will never run out of AMG. Beyond the 16th decimal, AMG stabilizes and stops burning transfers.
AMG 0.5% TRANSFER BURN
Each time AMG is transferred 0.5% is burned reducing the circulating supply automatically based on volume. AMG stabilizes at the 16th decimal place and stops burning, ensuring that AMG won’t completely run out of supply but will instead increase in rarity.
ProBit IEO Details
Token information and details:
- Token: AMGold (“Arena Match Gold”)
- Symbol: AMG
- Protocol: ERC-20 Ethereum Network
- Decimals: 18
- Total Supply: 100,000,000 (See current supply)
- Burn Rate: 0.5% on each transfer
- ProBit Soft-cap: 1 million AMG – $100k
- ProBit IEO Date: 8/20/2019 – 8/30/2019
- ProBit Hard-cap: 18 million AMG – $1.8m
- Minimum Contribution: $10 USD
- Max Contribution: $100,000
- IEO Rate: 1 AMG = $0.10
Skill-Based Competition is Not Gambling
Skill-based gaming has a well-established legal, social and commercial history. From classic board games to major sports tournaments, games of skill have long offered participants a chance to compete based on one’s ability. The Arena Match esports App allows gamers to compete in popular video games with monetary stakes.
Is Skill-based Competition Gambling?
No, monetary tournaments in games of skill are not considered gambling because the generally accepted definition of gambling involves three specific things: (1) the award of a prize, (2) paid-in consideration (meaning entrants pay to compete) and (3) an outcome determined on the basis of chance. Without all three of these elements, a competition that rewards real prizes is not gambling. In the case of Arena Match, outcomes are not determined by chance, but are rather achieved through a player’s skill or ability, making these competition legal most everywhere.
Where does Arena Match offer real prize competitions?
In the U.S., the legality of skill-based competitions is determined at a state level and Arena Match has taken extensive measures to ensure that its products are in full compliance with all the applicable laws. Arena Match has the opportunity to legally operate in roughly 80% of the world and 41 US states – the exceptions being Arizona, Arkansas, Connecticut, Delaware, Florida, Louisiana, Maryland, Montana, South Carolina, South Dakota, and Tennessee.
The Predominance Test
The predominance test is the most commonly used indicator of whether a game is skill-based or chance-based. Under this test, one must envision a continuum with pure skill on one end and pure chance on the other. On the continuum, games such as chess would be almost at the pure skill end, while traditional slot machines would be at the pure chance end. Between these ends of the spectrum lie many activities and dimensions containing both elements of skill and chance. A game is classified as a game of skill if the game falls predominantly closer to the skill end of the continuum.
The Material Element Test
The material element test is the second most commonly used test in the U.S. and is relied upon by 8 states to evaluate whether a game is skill or chance based. The test asks the question of whether chance plays a material role in determining a game’s outcome. As an example, in games like Minesweeper, a great deal of skill is generally exercised by players, but there are moments when players are forced to guess at random, with the results of that guess determining the winner and loser of the game. Skill predominates but chance plays the material role in determining the game’s outcome.
Arena Match Compliance
Arena Match provides a forum for safe, friendly, and competitive entertainment with monetary stakes tied to the competition of players at all skill levels. Arena Match operates in full compliance with U.S. Federal and State laws, verifying the residency of anyone seeking to open an account and using IP address as well as other location-based services to determine a player’s eligibility for real prize competition. All users must be at least 18 years old and their geo location settings must be enabled to ensure Arena Match eligibility.
Arena Match Roadmap
- Concept Designs and Market Research
- Partnership proposed to Overwolf
- ArenaMatch Company Formation
- $100,000 Developer Partnership Grant received from Overwolf and Intel
- Full-time Design and Development of Skill Challenge esports App
- Merchant Partnership Secured
- KYC/AML Partnership Secured
- Arena Match Gold token designed and whitepaper creation
- Enjin Announcement
- Beta MVP Launch of Skill Challenge esports App with Overwolf.
- IEO Announcement
- IEO Starts on ProBit
- Head to Head (synchronous mode) for CS:GO released (Counter-Strike: Global Offensive)
- Highscore Tournaments are released for all games (asynchronous mode)
- Battle Royale FFA: this synchronous free for all mode allows solo users to battle it out with up to 100 other users for the top 10 paid positions of the prize pool comprised of the entry fees.
- Team vs Team (synchronous mode) for CS:GO released (CounterStrike: Global Offensive)
This document may contain forward-looking statements, subject to risks and uncertainties that could cause actual results to differ materially.
This document is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in Arena Match, Inc or any related or associated company. Any such offer or solicitation will be made only by means of a confidential offering memorandum and in accordance with terms of all applicable securities and other laws.
This document does not constitute a prospectus of any sort, neither do we intend to represent the sale of this token as being an Initial Public Offering or Share/Equity offering. This token sale does not involve the exchange of crypto currencies for any form of Ordinary Shares in Arena Match, Inc neither does the Arena Match Gold token purchaser receive any form of dividend.
The Arena Match Gold token sale is closed to and not intended for U.S. citizens or permanent residents of the United States, and people with a primary residence or domicile in the United States, including Puerto Rico, the U.S. Virgin Islands, and any other territories of the United States.