Platform Revenue
Last updated
Was this helpful?
Last updated
Was this helpful?
Gaming Arcade prides itself on being a self-sustainable platform that caters to the needs of gamers across the globe. To ensure the smooth operation of the platform, Gaming Arcade generates revenue from a variety of sources. One of the primary sources of income is game commission, which is a percentage of the revenue generated from each game on the platform. Additionally, the platform earns NFT creator fees and NFT fees, which are a small percentage of the value of the NFTs traded on the platform. Gaming Arcade also generates revenue through SDK, where it charges a fee to integrate games onto the platform. With these diversified sources of income, Gaming Arcade aims to remain financially stable and self-sustainable while providing its users with a seamless gaming experience. By reinvesting these funds back into the platform, Gaming Arcade can continue to improve its services, expand its offerings, and create new and innovative gaming experiences for its users.
Our major source of revenue is generated from the games played on our platform(both the vs modes and tournaments), where a portion of the prize pool is set aside as commission. The exact revenue is calculated through a carefully devised formula, where 90% of the total prize pool is awarded to the winning player or to the top players of the tournament, and the remaining 10% is allocated as Commission for the platform. This commission is then adjusted for both referral rewards earned through our referral program (11.5%) and an allocation of 20% to the Tournament Treasury Pool, resulting in our final revenue calculation.
Let's illustrate this with an updated numerical example:
Imagine an impressive 150 million Matic games were played on the platform, resulting in a 10% commission of 15 million Matic.
Revenue = Commission - Referral Rewards - Tournament Treasury
Revenue = 15,000,000 - (11.5/100 x 15,000,000) - 20% x 15,000,000
Revenue = 15,000,000 - 1,725,000 - 3,000,000
Revenue = 10,275,000 Matic
Therefore, in this scenario the total revenue generated would be 10,275,000 Matic. This revised formula reflects our revenue calculation, taking into account commission, referral rewards, and the allocation to the Tournament Treasury Pool.
Gaming Arcade's platform revenue is primarily generated through commissions earned from games played on the platform and from tournament fees. The referral rewards and allocation to Tournament Treasury are deducted from this commission, after which the remaining amount is considered as the actual platform revenue. At Gaming Arcade, the platform revenue is shared among different stakeholders to ensure a fair and sustainable ecosystem. Once the platform revenue is derived, 50% of it is allocated to the Tokenized Equity Pool, which encourages users to hold onto their GADE Tokens and incentivizes long-term participation. The remaining 50% of the platform revenue is allocated as a developer commission, which is essential for the continuous growth and development of the platform. This revenue-sharing model ensures that all parties involved in the Gaming Arcade ecosystem are adequately compensated and encourages a collaborative and community-driven approach to gaming. By prioritizing fairness and sustainability, Gaming Arcade aims to create a platform that benefits all its users and stakeholders.
Using the same example provided earlier, let us examine the concept further. Out of the total revenue of 10,275,000 Matic generated, 50% or 51,37,500 Matic will be allocated to the users who becomes eligible by holding at least 35,000 GADE Tokens at all times in their wallet. While the remaining 50% or 51,37,500 will serve as Dev Commission for platform operations.
Gaming Arcade plans to charge a nominal NFT prize on all NFT trades made on its platform. This fee will help cover the cost of maintaining the platform and ensuring its smooth operation. In addition to this, Gaming Arcade will also charge a 10% creator fee on all NFTs created on the platform. This fee will help incentivize creators with an allocation of 25% to Developer Wallet, help reward Token holders with an allocation of 25% to Tokenized Equity Pool, and allocate to Tournament Treasury (50%) to fund tournaments and organize tournaments for an extended period of time. These fees are competitive within the market and will help ensure that the platform remains profitable while also providing a fair and sustainable revenue model for creators and users alike. By charging these fees, Gaming Arcade aims to establish itself as a leading platform for NFT trading and creation while also ensuring the long-term viability and success of the platform.
Furthermore, Gaming Arcade will charge a nominal fee to developers who wish to list their games on our platform. Our SDK is a one-time cost of $200, which will allow developers to access all the tools and features needed to create and launch their games. Additionally, we will operate on a profit-sharing model with developers, sharing 10% of game earnings. It's essential to note that game earnings are calculated by taking 10% of the commission and deducting Referral Rewards and Tournament Treasury allocation, after which the resulting amount is divided in half, with one half being allocated to game earnings or Developer Commission, while the other half goes towards the Tokenized Equity Pool. Out of the half designated for the Developer Commission, a significant 60% is earmarked for distribution among our valued game developers. Our goal is to create a platform that fosters an environment in which game developers can focus solely on developing games, without worrying about other aspects. By providing fair and sustainable pricing, we hope to become a top platform for game developers while also ensuring our long-term success.
