@Mitch (Gaming SubDAO subcommittee member)
@Amos (Gaming SubDAO subcommittee member)
After carefully reviewing performance of the Axie eSports team, the associated costs, and weighing the benefits of retaining the team - We’d like to propose winding down Axie eSports operations at this time. This is not the easiest decision to make being that Web3 eSports has been a major part of Perion’s legacy, however we will outline our reasoning behind the proposal below.
Since Perion’s decision to wind back large scale scholar operations, we have maintained a pool of 6 Perion sponsored players who have participated in the Axie Infinity eSports sector, alongside an excellent coach, Samuel Chan, who was onboarded inline with GFM-001. While this has helped Perion maintain a legacy is a small subsection of the Web3 gaming market, we have reached a point where both our player and coach contracts are up for a renewal, giving us an opportunity to both reflect on the past and review our H2 '23 eSports projections, ultimately casting a vote we believe will be very important in defining our future focus as a DAO.
While Web3 eSports and the lending / revenue share model was foundational in the early days of Web3 gaming, this does not remain the case today. We see a need to re-evaluate and reset according to the costs to the DAO, and largely, the changes in overall focus for Perion as a product led organisation.
Being that we are moving ahead with a product focus, particularly the XP and ZBET (see this for the latest information), the eSports team has come to feel like a remnant of a bygone era that we have retained, more for purposes of sentiment and legacy, as opposed to being a real driver of value and growth for the DAO.
We are proposing that the Gaming SubDAO remain, as we are certain there will be scope for a return to the gaming sector, as the space continues to mature and evolve–We see this as a “bye for now, but not forever” moment.
Attached are the financials for the last 6 months, they highlight the lack of clear opportunity within the Axie eSports sector. To further add context we believe that both XP and ZBET represent monumental opportunities for the DAO, and in saying that we wish to see Perion’s focus aligned to delivery of these platforms.
If we weigh current performance against tournament forecasts for the next Axie eSports season, the deficiencies of even a best case-scenario for the eSports team become clear. This combined with the opportunity cost of removing focus from our platforms, seem to leave only one very clear path forward.
To add further colour regarding forecasts - If we assume a best case scenario where Axie offers $1,500,000 in prize pools and Perion walks away having won 20% of the tournaments, as well as taking leaderboard prizes–After player-splits, factoring assets costs and contributor stipends, Perion would generate a $40,000 return. If we weigh this against the time taken away from what we believe is a billion dollar product roadmap opportunity for Perion, the decision becomes clear. As a compounding factor we must also consider that even in a best case scenario where players outperform we still have gaps in that:
- Player performance doesn’t solve for PERC demand drivers, a key initiative
- We aren’t bringing significant attention the DAO, aside from a small section of the Web3 gaming community
So, that’s it. To recap, we want to see Perion products succeed, drive PERC utility, further Perion’s mission, and grow our ecosystem. In order to maximise our chances of success, we need to strip away the old, and focus on opportunities that present us a best path forward.
- No further requirement to fund players
- 0.5 day of FE development time required for updating of website content
- 0.5 day of operations time to consolidate assets, update documentation etc
- Feedback period ends: 9th Aug ‘23 06:00 UTC
- Stage I vote: 9th Aug ‘23, 06:00 UTC
- Stage II vote: 12th Aug ‘23, 06:00 UTC
- Voting closes: 15th Aug ‘23, 06:00 UTC
If vote approved:
Within a fortnight of approval
- eSports team off-boarded
- All Perion information about the team will be updated
- For details on consensus mechanisms and voting see the Perion documentation ()
- Timeline assumes passing of all vote phases, of which there is no guarantee
None currently identified
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