Coin Hunt World: Proposal for Tokenization

By ToucanTeemonty | Coin Hunt World | 24 Sep 2021


Hi Hunters!

With all the big changes and rapid growth that Coin Hunt World has gone through the last couple months and are planning for the future, I thought I would explore tokenization in the game and hope to stimulate some discussion. This post is more geared towards experienced players, so if you're new I would recommend checking out my earlier posts here:

Just a quick note before I dive in - I've been having some issues with comments in Publish0X, so if you have any comments and you're not able to leave them here, please leave me a comment on the twitter post here:

https://twitter.com/ToucanTeemonty/status/1441539461641166848

Background

This idea to discuss tokenization in Coin Hunt World was sparked by a series of exchanges led by KookooPuffs on the Hunters Hangout Discord Channel (Sept 20, 2021) where he asked hunters whether there would be any interest in buying and selling blue keys with/for real money. Although Illusionweaver and KookooPuffs have already stated multiple times in the Discord Channel that they want hunters to earn the blue keys and they have no intention of CHW generating keys for sale directly to hunters, this was the first time (to my knowledge) where they mentioned the idea of allowing hunters to use real money to buy or sell keys and track the transactions on a blockchain - thereby essentially tokenizing the keys in CHW.   

Let me start off by saying - I don't think I'm going out on a limb by saying that the vast majority of hunters are likely drawn to CHW by the free crypto, and not by the blueprints (BP), cubies, resin, or other resources. Free crypto is a terrific (almost too good to be true) lure. I've never considered myself a collector so when I first started to collect BP's and resources, I told myself that I would sell them all ASAP to be able to accumulate as much crypto as possible because that was my end-game. However, the developers have wisely restricted how quickly a player is able to convert their keys into crypto and with the introduction of the auction house (AH), there was suddenly a market-dictated price (based in keys) for blueprints, cubies, and resources so hunters now had to make some difficult decisions on how they use their key stash.

Hunters get keys via referrals, buddy quests, auction house sales, and of course hunting. Over the past few months there have been fairly limited opportunities to convert higher tier keys (red, purple) into crypto. Additionally, if most active players were to sell every resource they owned in the auction house for more keys, I would bet that most would not have enough vaults in their surrounding area (specifically yellow and green) to use all the keys in their inventory. As a result hunters are left with a choice: do we let the keys sit there and accumulate until we're able to open higher tier vaults, or do we use them to buy items in the Auction House and hope that they appreciate over time? I went from a hunter who was expecting to convert all my resources into keys for more crypto, to someone spending almost all of my keys on rare resources in the AH a couple months later. Suddenly I've become a collector, and I wonder whether others find themselves in a similar situation. However the limitation I'm facing now is that I don't have enough keys to buy the rare or epic blueprints that I want to own, and I'm limited by how much I can hunt for more keys. If there were a way to use money outside of the game to buy more keys or resources, I might actually find myself inclined to use that option. This is especially true for events like the Elemental Invasion that just passed or the first ever Legendary BP that was listed in the AH. Furthermore, I'm hypothesizing that more and more hunters will begin to feel this way as the game evolves, adds new elements and the player-base grows. That's why I think we should be exploring the idea of tokenization now, even if many hunters aren't enticed by the idea today.    

With the intro out of the way, let's explore KookooPuffs' suggestion of tokenizing keys, and I also want explore the possibility of tokenizing resin instead. I do want to preface that these ideas are really raw and I haven't had a chance to discuss them with anyone yet, so please...be gentle :)  

 

Weighing the Benefits of Tokenization

I'll start each section with a high-level pros & cons tables (in no particular order), and then get into a bit of discussion around the main points. 

Tokenizing KEYS in CHW

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This list is not meant to be all-inclusive, but I think it does reflect how I feel - the pros definitely outweigh the cons. Furthermore, some of the cons can be mitigated with some carefully-considered controls put in place by the developers. The major benefit to me is clear - it allows hunters who may otherwise just be casual participants due to time or geographical constraints, become more involved in different aspects of the game.

When looking at the current construction of the game, it definitely makes more sense to tokenize keys because they are the sole requirement for AH purchases and vault unlocking.  My main concern with tokenizing keys is that I believe hunters will have a mental block when it comes to the price. For experienced hunters, they associate 1 blue key with $0.10, 1 green key with $1.00, etc. It's embed in our brains. When buying additional keys in the AH, I feel like the price will hover relatively close to $0.10/bk just because hunters associate the (max) crypto earned with the cost. As more features are added to the game the resources earned from the black prize boxes can provide significant additional value, particularly during events and my worry would be that the 'mental block' will keep the blue key price close to $0.10.

To contrast, if resin were tokenized, this mental block would be avoided because there's a degree of separation between resin cost and crypto earned. Tokenizing resin has its own hurdles to overcome, but I think it's worth discussing because resin is also an integral ingredient in the game despite the fact that it is not used as a currency for vaults or in the AH.

 

Tokenizing RESIN in CHW

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For resin to be tokenized, there may need to be significant changes on the game development side. I can't speak to that at all unfortunately because I have zero experience, so this idea may be dead in the water if it's overly cumbersome. However, I think resin is clearly one of the most critical resources in the game - it's part of every black prize box even during events when paint is not included, it's a core ingredient in every single cubie forging, and it's the sole ingredient required for building cubie dozers and cranes. It feels like it's the perfect resource to build a token around because it isn't tied directly to keys found or crypto earned. 

The main limitation in my opinion is that it can't be used directly to participate in two of the main features in the game: 1) unlocking vaults to earn crypto and 2) purchasing items in the AH. If this idea were to ever gain traction, I believe there would need to be a way for resin to be linked with at least one if not both of these features. With the current game infrastructure, a user who wants to participate in the auction house or open higher tier vaults would need to buy resin with money, sell resin on the auction house for keys (losing 10% + green key), and then use keys to participate. This is obviously cumbersome and costly for hunters. One simple suggestion would be to eliminate the 10% + green key fee (or reduce the fee) exclusively for resin sales to encourage more resin trades. Again, there may be a reason why this idea wouldn't work at all or it may be against CHW's ethos, but it sounded cool to me so I figured - may as well propose something new!   

 

Conclusion

I'm not going to make a case that one type of token (keys vs resin) is better than the other - I just wanted to start a discussion around the merits of tokenization in CHW, and hopefully this catches the eye of IllusionWeaver and KookooPuffs and we can keep generating more ideas on this front. Obviously there are many great high-level ideas generated in the Discord Chat, but I needed some other medium to fully communicate this idea.

Thanks for reading :)

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ToucanTeemonty
ToucanTeemonty

Learning about crypto and side hustles on the journey to financial independence. Sharing what I've learned in hopes it helps make the road a bit smoother for others.


Coin Hunt World
Coin Hunt World

Earn bitcoin, ethereum and other crypto while exploring cities and getting exercise. Give it a try, the community is great!

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