At the Coin Bureau, we are crypto junkies, just like many of you in our community and the broader crypto space. We love NFTs, metaverses, altcoin gems, Play-to-Earn games, gaming guild projects, layer 1’s, layer 2’s, you name it!
If it’s a good crypto project, we are all over it.
Once in a while, we happen to stumble upon an exciting project with fantastic use cases that we cannot wait to do a write-up on and bring to our community’s attention, which is the purpose of the article that brought you here today.
I am sure that I don’t need to tell you about how massive the NFT and metaverse blockchain gaming space is, nor the multi-trillion-dollar opportunity just waiting to reach its full potential as technology catches up, and crypto adoption continues its rocket ship upwards trajectory, so I am going to cut straight to it and get into this review.
If you are thinking, “wait a minute…multi-trillion-dollar opportunity? Surely you must have drank too many glasses of crypto Kool-Aid!” You can read more about why major firms such as Morgan Stanley believe this industry has trillions worth of potential in my Metaverse: 101 article and the true scope of just how vast this industry is and where it could all be going in the Future of Blockchain Gaming article.
Guy also has a great video on why Crypto Gaming Guilds might be The Next Best GameFi Play.
If you are all caught up to speed on the background, then without further ado, I bring to you BreederDAO.
Disclaimer: The Coin Bureau has participated in BreederDAO’s strategic fundraising round.
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Introducing BreederDAO
BreederDAO aims to become the primary NFT asset factory of blockchain games and the Metaverse. The project provides high-volume asset production that can be tailored to specifications for some of the largest guilds in the Metaverse. Think of BreederDAO as a factory that can manufacture high-quality digital assets on demand.
Graphic via BreederDAO
This will allow guilds and game developers in the Metaverse to supercharge their Play-to-Earn economies in ways that are not possible.
All asset generation tools are developed in-house and derived from game mastery experience and data-driven analytics and modelling that we will go over later on.
The vision of BreederDAO, as stated in the Whitepaper, is to become the go-to asset manufacturer by providing a solution to the supply-side constraint in the Play-to-Earn economy. BreederDAO aims to outfit 5,000 guilds and over 10 million players with in-game assets optimized to maximize value within the next few years.
Blockchain gaming has woken millions of gamers up to how revolutionary this concept is. Once gamers get a taste of actually owning their in-game assets that have real-world value, can earn actual income, and as utility with things like DeFi gaming integrations and NFT collateralized loans become more common, the interest in traditional games loses its lustre.
Sorry Mario, but no matter how many bricks you smash, those coins don’t mean much outside of your virtual world where you somehow manage to consistently lose the princess. And unless you are one of the top 1% of players in the world competing at the pro level, all those hours you clock on Call of Duty aren’t going to translate into buying a house.
Gaming is no Longer “Time Spent Wasted” Image via businessnews.com
Blockchain games- 1
Traditional games- 0
In-game asset ownership and making money aren’t the only reasons players choose NFT games over their non-blockchain counterparts. According to a 2021 survey from the Blockchain Gaming Alliance, here are the primary ways in which gamers feel Blockchain technology can benefit the gaming industry:
Image via BGA Member Survey & Report
The formation of gaming guilds has also provided opportunities to many people in developing nations, allowing everyone to get involved and capitalize on Play-to-Earn gaming. For many, blockchain games like Axie Infinity have become more than just a game; it has become a life raft and a way to make a living.
The gaming guild industry has become so massive that there has been a significant increase in venture funding supporting these projects. These guilds are looking to projects like BreederDAO to optimize their asset acquisition, making it easier for them to onboard the next billion players to the Metaverse.
Image via BreederDAO
How it Works
BreederDAO optimizes the NFT production process to make it faster so that guilds can scale quickly and focus on what’s important to them: onboarding players, managing scholarship programs, and raiding dungeons and conquering virtual lands. In addition, with the demand for Play-to-Earn scholarships on the rise, BreederDAO ensures that lack of access to NFTs will not be a hurdle.
Guilds can specify the desired traits they want in their NFTs through a range of on-chain and off-chain techniques to maximize value creation. This is essentially creating a system where customizable NFTs can be made to order. BreederDAO also deploys advanced analytical techniques that analyze in-game mechanics, giving players unique insights into how they may want to consider structuring their NFTs.
The Gaming Guild Industry is Scaling…Fast, Guilds will need NFT Solutions That can Keep Pace. Image via Yield Guild Games’ Medium
Similar to how McDonald’s revolutionized how we order fast food at those self-help kiosks where customers can add 9 extra patties and no bun (who would do that?) BreederDAO offers the same customizable and convenient experiences for NFTs without the calories.
BreederDAO also empowers the economy through governance and staking, with additional plans of eventually giving the community access to all the tools so that individuals and guilds can efficiently mass-produce in-game assets on their own.
There are already over 100,000 NFTs supported, 300+ partner guilds and over 20 games supported by BreederDAO. Here is a look at some of the game assets in production:
Image via BreederDAO
BreederDAO specializes in both breeding and crafting NFTs. Breeding is the process of crossing two in-game assets to produce a third asset that contains the traits of the two initial assets, and crafting, which is focused on the generation of assets by combining skills, materials, or other assets into a brand new asset.
One of the services that BreederDAO provides, which is most interesting, in my opinion, is that they allocate significant resources, both human and AI, to the research and analysis of metaverse and blockchain gaming ecosystems and the NFTs within those ecosystems. This is done to carefully calculate and analyze the most effective combination of traits when crafting and breeding NFTs to ensure that gamers are getting the best bang for their buck in their NFT acquisitions and gives gamers insight into the stats and trends that are useful when selecting NFTs. Again, we will cover this more in the tech section below.
The Tech Under the Hood
A project of this magnitude with the ability to span across the gaming, metaverse, and NFT ecosystems will have some serious horsepower in the engine and unicorn dust in the…computer stuff.
Cars I can understand, video games I can play, computers I can type on, but the inner workings of a computer is all black magic to me. So here is what I was able to put together from the team’s whitepaper on the working tech for this project.
Game Knowledge and Library
BreederDAO keeps an updated library of active and up-and-coming games in the blockchain gaming space. The library helps identify the best time to enter in and out of breeding and crafting for each game. Key profitability indicators are formulated and carefully monitored, and an automated dashboard helps the team monitor this data in real-time.
Image via BreederDAO Whitepaper
The team also maintains in-house financial models to assess the profitability of each investment strategy. Knowledge of game mechanics and in-game metas is essential in determining the accuracy of the projections, which is why BreederDAO has a dedicated team of game researchers that continuously update the BreederDAO library.
Breeding & Crafting Optimization Engine
BreederDAO has created proprietary tools that will allow it to execute breeding and crafting at scale. This is an ever-evolving task that the team understands, and they will continue to create these tools as the needs and demands of the community grow and evolve with the ecosystems.
Here is a look at the various aspects of the BreederDAO technology stack:
Image via BreederDAO Whitepaper
Marketplace Analytics- The platform will include on-demand access to live data with full visualisation and processing for both micro and macro insight for various marketplaces and in-game assets. The platform will host full ETL coverage on all relevant data types, from granular level analysis to aggregated statistics for downstream capabilities.
Graphic via BreederDAO
Live Financial Analytics-BreederDAO uses a feed of live market data to determine profitability across a host of different breeding strategies, then presents the probable outcomes and risk assessment of the breeding strategy.
Graphic via BreederDAO
Tokenomics and In-Game Data Lake- The engine connects on-chain and off-chain data to identify game and token statistics correlations. Automated alerts and anomaly detection capabilities can be triggered for material and demand forecasting. Other types of forecasting done are:
- Trend Forecasting for tokenomics data- net mint vs burn, staking, etc.
- Detailed quantitative assessment of price movements for game tokens
- Tracking key material concentration and monitoring of top holders
- Macro and Micro-market analytic metric trends
- Intra-game activity tracking
- Cross-game and cross-genre comparison metrics
Trait Optimization Engine- This engine uses data analytics built on top of each game’s mechanics. Targeted priorities are developed first by dedicated game analysts, then passed onto the machine learning tech stack for faster training and the creation of production-grade models.
Facilitated Asset Propagation- Specialized toolsets are in play with an overarching ethos for maximizing NFT assets under management (AUM) growth speeds across micro-markets. This can range from assistive for internal operations and external stakeholders to completely automated information solutions. This information is specifically engineered to the unique application interface of each game by a dedicated BreederDAO engineering subteam.
Asset Pricing Model- Automated pricing model using both off-chain and on-chain game inputs for optimizing profitability metrics for different types of assets. BreederDAO uses both present and historical data to identify the supply and demand of each asset class for assessing price movements.
Graphic via BreederDAO
AI-Powered Hedge Engine- The tools for each game get fed into an AI-powered engine that determines which games and strategies to allocate resources to maximize ROI. The engine then acts as a resource allocation strategy, deploying capital into specific asset generating initiatives. Each cycle then gets evaluated, scored and re-inputted for the next iteration of the engine.
This part gets a bit technical, and I started daydreaming about Terminator and the rise of the machines as I often do when reading about Artificial Intelligence, so instead of me trying to regurgitate the mathematics in this section and explain it, this screenshot was taken from the Whitepaper if you want to try and decipher this yourself:
Image via BreederDAO Whitepaper
Breeding Methodologies
BreederDAO has created the table below that outlines the key aspects of the breeding process and the varying methodologies in which individuals, guilds, and production teams like BreederDAO approach each aspect:
Image via BreederDAO Whitepaper
What Makes BreederDAO Revolutionary?
BreederDAO has already established itself as the leading NFT provider in the space. Likely because there was little competition, as not many people had the foresight to create such a great concept. When I first started looking into BreederDAO, I had never even considered this business model nor heard of anyone else doing anything like it.
Whether it is Play-and-Earn, Play-to-Earn, Play-to-Win, Play-for-Fun, Pay-to-Earn, Pay-to-Win, whatever! If there is gaming and playing involved, NFT assets will be the core requirement for any blockchain-based game. BreederDAO is well-positioned to supply the in-game assets needed to meet the growing demand of these gaming economies.
Blockchain gaming and gaming guilds are experiencing accelerated rates of growth. There are already some gaming guilds with tens of thousands of members looking to dominate in their niches. These guilds can leverage BreederDAO to produce NFTs at scale for their members. This significantly reduces the time it takes for guilds to generate their own NFTs and assets by a minimum of 50%, allowing for maximization of production and overcoming a massive limitation barrier.
Using Google Trends, we can see the uptick in search volume for NFT, Blockchain and Crypto-Games.
Image via Google Trends
The BreederDAO whitepaper used stats from DappRadar to show that Play-to-Earn users grew at an average rate of 15.85% month-on-month from Q4 2021 to Q1 2022, highlighting that demand for Play-to-Earn gaming NFTs is experiencing a significant increase. BreederDAO will remain game and guild agnostic, providing ubiquitous asset liquidity for the entire market so that supply can meet demand, offering a synergistic relationship between demand-side player liquidity provided by gaming guilds and the supply-side asset liquidity provided by BreederDAO.
Image via DappRadar
In Q4 of 2021 alone, the six most prominent gaming tokens that gamers sold to breeders were SLP, AXS, VIS, PGX, TUS, and CRA, seeing a total traded volume of a whopping $81 billion, showing there is a massive demand for these functions.
For highly competitive guilds focused on strategy, BreederDAO will become a paramount tool for combining assets to breed highly desirable traits to give guilds a competitive advantage. The BreederDAO data and analytics team can respond and adjust to changing game mechanics to determine the most effective structure of traits and update asset generating programs to meet the evolving needs of gamers.
Graphic via BreederDAO
In short, guilds focus on gaming, recruiting, and fulfilling their roles as demand-side player liquidity providers for new games. The need to create and craft their own NFTs is often a slow, cumbersome barrier that prevents the efficient use of time that can be utilized for core functions. Using BreederDAO is like having a guild wizard hiding off in a cave, crafting and breeding the best, customizable, and most useful NFTs for the guild to use on their adventures. Leave the boring stuff to BreederDAO; there are loot boxes to plunder!
Just for a recap on why breeding NFTs is so essential, the more powerful your NFT is in terms of skill level or strategic advantages, the more you can defeat opponents or reach higher in-game levels and the more you can win/earn, which is driving massive demand to upgrade and modify NFTs.
If You Build it, They Will Come
It’s all about use and adoption, isn’t it? Though Bitcoin is considered one of the greatest technological achievements of all time, it wouldn’t be worth a lick of salt if only one person used it.
BreederDAO has already formalized relationships with 10 major guilds in the Play-to-Earn industry, including Yield Guild Games. BreederDAO data scientists work with executives, gaming leads, and Esports teams to design extensive trait propagation plans tailored to fit their strategic approach. These services provide guilds with a seriously competitive advantage, which may launch the Esports industry to the next level of professionalism and create elite team franchises and long-lasting team dynasties. Here is a look at some of the gaming guilds already working with BreederDAO:
Image via BreederDAO Whitepaper
BreederDAO can also be used by small organizations and “lone-wolf,” individuals who prefer to do things solo, so don’t let the guild list intimidate you.
The BreederDAO team has also formed relationships with game developers directly to streamline production and ensure that asset production is maintained to scale with player growth. This frees up game developers to utilize their time to create awesome games, graphics, and in-depth storylines. Here are some of the games already integrated into the BreederDAO system, with more games lining up.
Image via BreederDAO Whitepaper
Tokenomics and Governance
The $BREED token will be the backbone of the BreederDAO ecosystem. $BREED is an Ethereum based (ERC20) token that will function as the multi-utility and governance token for the platform.
There will be a total token supply of 1,000,000,000, and the token allocation is broken down as follows:
Image via BreederDAO Whitepaper
For governance, $BREED holders will be able to take an active role in the future decision making of the platform. Governance will be of the utmost importance within the BreederDAO ecosystem as many of the core functions will need DAO oversight. These core functions include:
- Production Lines- Each production line will be configured where DAO contributors will need to vote on what resources should be allocated to producing which assets. $BREED token holders will cast their votes by staking the game-specific asset in the BreederDAO production line. A portion of the BreederDAO ecosystem fund will be allocated to reward active participation by the DAO community.
- Chutes- If a particular individual or guild wants to guarantee access to one of the first batches of manufactured assets, they may choose to stake a portion of their $BREED tokens in the BreederDAO Chute program. BreederDAO has access to genesis assets for highly anticipated games that are about to launch, and the first generation of assets produced will be allocated to the stakers.
- Spoils- BreederDAO will be a revenue-generating DAO. Proposals will be able to be submitted where the DAO can vote on the amount of capital held by BreederDAO that may be allocated to a pool reserved for providing staking rewards.
- Machinery- BreederDAO will eventually make the tools and technology built by them available to its members. In the future, members of the DAO will gain access to mass production tools and the products created by the team. This eventually leads to DAO members becoming NFT factories themselves, just like the BreederDAO team. So, BreederDAO will become a factory that can also make other factories that can do the same thing, available for purchase by DAO members, which will rapidly expand the platform.
The only thing that concerns me slightly about the tokenomics is that the team and investors have quite a large percentage of the tokens allocated to them, sitting at 16% and 20.5%, respectively, with only 4.5% open for the public sale. This means there will likely be quite a bit of sell pressure for people who pick the token up in the public sale. Early investors will probably look to take profits as the tokens increase in value, which could stifle upwards potential. Though this may not be of too much concern as there is a healthy-looking vesting schedule that reduces the amount of sell-side pressure that can hit the market all at once.
Image via BreederDAO Whitepaper
With that being said, one of the reasons that investors are bullish on the project isn’t just due to the platform’s unique and useful use cases but also the demand for the $BREED token is very multi-dimensional. The team has developed very comprehensive and multi-faceted demand drivers to incentivize users to hold the $BREED token. If this project takes off, the multiple demand drivers for the token have been interwoven into the core functions of the platform, meaning the demand for this token could be enormous.
How to Get the BreederDAO token
The BreederDAO public sale token launch will be held on April 26th 2022. The tokens will be sold as a Token Launch Auction (TLA) on Alchemist’s Copper Platform. Here are the details:
- Start Date: April 26th, 2022, 2 pm UTC
- End Date: April 29th, 2022, 2 pm UTC
- Total Duration: 72 hours
- Blockchain: Ethereum
- Minimum Purchase Amount: None
- Tokens Accepted: USDC, DAI, ETH, WETH
- Token Pool Allocation: 75,000,000 BREED: 4,687,500 USDC
- Starting Weight: BREED 96%: USDC 4%
- Final Weight: BREED 50%: USDC 50%
- Starting Rate: 1.50 USDC for 1 BREED
You can find instructions on how to get involved in the BreederDAO Public Sale on the BreederDAO medium page.
Team
One of the first things I like to see in any project worthy of attention is that they have a public team with experience in both Blockchain and traditional industries; BreederDAO checks those boxes for me.
The project is Philippines based, and the team has experience ranging from data science and machine learning, Blockchain and NFTs to traditional financial markets and local and enterprise-sized businesses.
BreederDAO Team
Renz Chong- CEO
Chong is a former consultant and brings over 5 years of experience in growth strategy, data science, and machine learning to the company. In addition, Chong has experience working in DeFi and Portfolio management.
Jeth Ang- COO
Jeth Ang has extensive entrepreneurial experience and knows what it takes to make a business go from zero to breakneck. Ang is responsible for founding 6 companies that experienced positive cash flow and has over 8 years of experience working in the crypto and financial markets industries. Ang also has experience as an NFT collector and is a P2E guild leader. Talk about having “boots on the ground” experience.
Nico Odulio-CTO
Nico Odulio is the tech expert behind the platform, well versed in blockchain, full-stack, smart contract applications, and has multi-chain experience working with Binance Smart Chain, EOS and Ethereum.
You can find out more about the Executive team and the rest of the team members by visiting their team page or Whitepaper.
Backers and Partners
Like most promising projects surrounded by excitement, BreederDAO has some high profile and impressive firms backing it. Personally, there are always three names that I look for when conducting my analysis and deciding if a project is worth my hard-earned pennies.
Those names are Andreessen Horowitz, Animoca Brands and, of course, institutions like Grayscale. BreederDAO has gained the attention of Andreessen Horowitz. I would not be surprised to see Animoca Brands get involved in this one as well, as they are massive players in the Metaverse space. However, that is just my speculation on Animoca.
On the roster for institutional partners, we have Andreesen Horowitz, Delphi Digital, Yield Guild Games, and Infinity Ventures Crypto, to name a few.
Image via BreederDAO
Now, financial backers are great; a well-funded project has a much higher chance of success, but it isn’t all about the money, is it? For example, Elon Musk could give me a billion dollars and tell me to build a spaceship, and I would have no idea where to start.
This is where high profile, experienced, and expert advisors come in, and BreederDAO has some heavy hitters in its corner.
Do Kwon- Terra Founder and CEO
Do Kwon– Founder and CEO of Terra Labs
First up with an impressive record of 4-0, with his founding of Terra Labs, the massively successful creation and expansion of the Terra token and UST stablecoin, and leveraging the crowd favourite Bitcoin and the new up and comer Avalanche to stabilize the ecosystem, BreederDAO enjoys the expertise of none other than the master, Do Kwon himself.
Gabby Dizon-Founder of YGG
Gabby Dizon– Founder of Yield Guild Games
Next up to bat is Gabby Dizon, Founder of Yield Guild Games. I am sure you guys know that Guy from Coin Bureau is also bullish on YGG, and I gotta give it to Dizon… When I first heard about gaming guilds for P2E games, I didn’t really get it. I thought it was a neat idea but did not envision how massive that industry or opportunity would be, but Dizon certainly saw it. Yield Guild Games pioneered the guild scholarship system and transformed gaming into a way of life. Dizon is also the CEO of Altitude Games and chairman of Alto.io, so he is well-positioned and “in the know.”
Piers Kicks-Delphi Ventures
Piers Kicks– Founding Partner for Delphi Ventures
Piers Kicks is also on the advisory board. Other than having an awesome name, Kicks spearheads the crypto arm of BITKRAFT, which is one of the largest gaming funds in the world. Kicks is also a founding partner at Delphi Ventures, a massively successful venture capitalist firm who are not in the business of losing money and making bad investments, so I’m sure Mr. Kicks knows a thing or two about good projects worthy of investment.
Ryan Wyatt- CEO Polygon Studios
Ryan Wyatt– CEO of Polygon Studios
Polygon… Hmmm, I think I’ve heard that name somewhere before. Ah, right, only Ethereum’s widely popular and massively adopted scaling solution. Ryan Wyatt is last up to bat for the BreederDAO advisory team but certainly isn’t the least. Wyatt is the CEO of Polygon Studios and former Global Head of Gaming at Google and YouTube. He is also a New York Times best-selling author and was named on the Forbes 30 under 30 list.
Wyatt must have a trophy case the size of a gymnasium as he was also named by Hollywood Reporter as one of the top 35 under 35 rising executives, Fortunes 40 under 40 list, and has been recognized for his work by Business Insider as one of the “Top Stars Leading Google’s Entertainment Empire” and “The 33 Insiders who Wield the most Power at YouTube.” Wow, I want this guy on my team. The advisory team is basically an all-star line-up.
Roadmap
The project launched in Q1 of 2022. Since then, the team has built smart asset creation tools for some of the top Play-to-Earn games and formed partnerships with over 300 guilds and some big institutional partners, which we covered earlier. It’s been a pretty successful quarter for the team; here is what we can expect from them for the rest of the year and beyond:
Image via BreederDAO
- Q2 2022- Token and Staking protocol launch. 30 game integrations and 100 partner guilds. DAO governance goes live. Gaming Dashboard rolled out.
- Q3 2022- Rollout of first phase of AI-powered asset production. Planning and development of infrastructure for OTC sales channels.
- Q4 2022- Fully automated AI factory. Beta-testing of OTC sales app. 50 game integrations and 1,000 partner guilds.
- 2023- Guild plug-in to virtual factory capacity. OTC sales channels live. OTC sales app complete rollout. P2E asset-focused marketplace alpha.
- 2024- DeFi vault integration. Multichain P2E Marketplace. Participation in over 100 gaming economies.
Be sure to keep an eye on the project’s Twitter page for important announcements, milestones, and roadmap updates.
Closing Thoughts
This project really stood out as they had what I feel was incredible foresight in coming up with a project to provide solutions to blockchain gaming guilds and in-game NFTs, two industries that are still in very early stages of their infancy. Talk about being first to market and achieving the first-mover advantage.
As soon as I made it through the whitepaper and already understood where the metaverse, blockchain gaming, and NFT industries were headed, I instantly saw how a project like this could have massive potential.
In my previous articles, I wrote about how I believe that gaming, NFTs and blockchain technology are three enormous industries on their own, and metaverse/blockchain gaming is like the crossroads where these three mountainous industries meet. As a result, NFT services are likely to be in high demand. As I started learning more about the project, I started comparing BreederDAO to being sort of like the Amazon, Alibaba and Ikea of NFTs all rolled into one with a research and analytics firm attached for good measure.
NFTs will be the foundation for nearly every metaverse and blockchain game, and massive metaverse games will be primarily utilised by large gaming guilds who will need access to high numbers of NFTs. Right now, it is not easy to mass-create NFTs, it is a slow, expensive, and cumbersome process, and game developers may not be able to keep up with the demand of massive growth of new users. New gamers also have the burden of needing to select, breed, and mint NFTs without the analytical insight needed to make informed strategic decisions when starting a new gaming venture, which are areas where I feel that BreederDAO will become very useful. There is nothing worse than starting a game and going all-in buying NFTs only to realise days later that you chose the wrong one or wrong attributes.
The platform itself has a fantastic use case. There are multiple uses for the $BREED utility token, helping to ensure the long-term capital appreciation potential for the token. This, combined with the all-star advisory team and VC partnerships, is enough to draw my attention to the project. I will certainly be following this project closely in the coming months.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
