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Reports

Thetan Arena Report

Overview
Market Design
Mechanism Design
Token Design
Conclusion

Overview

Thetan Arena is an upcoming esports game with MOBA and Battle Royale game modes. Participants choose from a variety of heroes, skills, and weapons to help them win in the arena. Players can participate for free and earn, but using premium heroes comes with additional benefits and earning potential. This is a blockchain adaptation of Hero’s Strike, an existing game by the same studio with over 10 million downloads. The THG token is on both BSC and Kardia Chain, but the game and THC token will be on BSC.

3 Key Highlights

 
  1. Ability to earn with no investment
  2. Investors will be able to lease items to players
  3. Two currencies, both of which can be earned for free

Rating (To be discussed in the future.)

AAA AA A style

 

Value-add

Why is ecosystem valuable?

Thetan Arena allows anyone the chance to earn by playing without the need for investment. The free characters have earning potential and the easy partnerships with investors will allow skilled players to make money from their effort no matter their financial status.

Objectives

Objective 1: Attractive and entertaining gameplay as a priority

Objective 2: Players should feel connected, like a miniature society

Objective 3: Investors have a transparent and convenient connection with players

Systematic Risks & Constraints
  • Regulatory risks around gambling classification for lootbox mechanic and stream gambling mechanic
Potential Solution
  • Having THC not be directly purchasable from the game helps, but making it not a cryptocurrency to eliminate secondary market purchasing could mitigate the regulatory risk

Token High-Level Summary

Token Summary

THC is a native token of the BSC ecosystem.

THG is a native token of the BSC and Kardia ecosystems

 

Ecosystem

  • Binance Smart Chain: to host both tokens and the game asset NFTs
  • Kardia: to host THG
 
 

THC and THG in DeFi (Products)

  • Not yet

Market Design

Design of the environment in which the tokens and users exist in

Thickness of Market 

  • The choice to provide some free characters to allow earning with no investment opens up gameplay to a much larger audience

 

Reduce Congestion

  • Using Binance Smart Chain will allow for fast and low cost transactions to reduce congestion of on-chain transactions

 

Safety

N/A

 

Ease of Use

  • Free to play

Mechanism Design

Rules of the game that people have to follow

Governance

1. Decision Making

  • Stakers (which requires holding both THG and a Thetan Hero) will have a say in decision making (details TBA)

 

2. Implementation

  • The Thetan Arena team (founded under the name Wolffun in 2014) will be implementing changes

 

3. Resolution mechanisms

N/A

 

Market Structure

1. Bargaining Protocol/Pricing Model

Battle Pass
  • reward system with seasons lasting 3 months each
  • players get Season Points by participating in battles or quest rewards and progress through 60 tiers, resetting at the end of the season
  • reaching a tier gives rewards (heroes, skins, avatars, etc.), split by normal rewards and premium rewards depending on user having free vs premium hero
 
Free to Play
  • any player can start with a free hero and can unlock two additional free heroes
  • free heroes can still earn THC (but at a lower rate than premium), allowing them to buy a premium hero in the future with their earnings
  • free heroes cannot be traded, participate in special events, or evolve into a Thetan Hero (that evolution is needed for staking)
 
Play to Earn Methods
  • earn THC with a free or premium hero through gameplay and quests
  • Level up premium heroes and trade them on the market for THC
  • Play with premium heroes in events to earn THC and THG rewards
  • Invest in premium heroes and let other players use them through a rental/profit share agreement
  • Be a player renting/using an investor’s premium hero to earn THC and level up the hero
  • Stream the game and get rewards for the marketing efforts
Thetan Box
  • premium heroes a created through Thetan Boxes
  • players buy common, epic, legendary, or season boxes using THC
  • each type of box has different odds of dropping heroes with a given rarity or skin rarity

 

2. Community information 
Guilds

Guilds cost THC to form

  • guilds compete against each other for rewards
  • guild members can also earn rewards by completing guild quests

 

3. Idiosyncratic Risks

  • ability to earn with no investment could lead to significant botting
  • TCH has an uncapped supply and can be earned for free, so could see significant inflation
  • Depending on if the Thetan Box pricing remains fixed or increases as THC circulating supply rises and the effectiveness of THC sinks, either the supply of premium heroes may inflate heavily, or the price of the box may rise significantly and make it difficult for free users to afford

 

Incentives

1. Voting Protocol 

  • Voting details have not been released yet

 

2. Allocation mechanism

 

Fee Allocation

  • the treasury gets 4.25% of all marketplace transactions and the THG portion of the ecosystem fee
  • Stakers, who have THG and a Thetan Hero, govern the treasury and can choose to allocate revenue to themselves

THC Distribution Methods

  • Battle (amount depends on trophy class and hero rarity)
  • Quests- can exchange quest points for THC
  • Battle Pass
  • Ranking up
  • Guild war
  • Tournaments

 

THG Distribution Methods

  • special events
  • tournaments
  • Buy off the market

Token Design

Rules of the game that tokens have to follow

Token Policy
1. Monetary Policy
THG

Token Valuation (internal valuation)

Financial Incentives

1. Platform Activities 

THC Use-Cases

  • Buy Thetan Boxes
  • Upgrade heroes
  • Bet on matches
  • Creating guilds


THG Use-Cases

  • Revenue sharing with stakers
  • Governance through Thetan DAO (stakers)
  • Evolve heroes


2. Financial Returns

staking returns


Token Architecture

Useful for non ERC-20 tokens. And how financial products are structured.

Token structure

THC and THG will be BEP-20 tokens, but THG also has a KRC-20 version

Token distribution
THG

Conclusion

One of the largest roadblocks to launching quality NFT-based games is long development time, but Thetan Arena is showing a viable shortcut by cloning their already built game and adding in play-to-earn mechanics. This is allowing it to potentially be one of the earliest P2E games to launch with a target for Q4 2021.

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