Drop Guild Whitepaper (v1.0)

2.1 Web3 Gaming NFT Market Trends

Web3 gaming NFTs have become central to Web3 games, granting players ownership of digital assets and fostering various innovative economic models. The application scenarios for gaming NFTs are diverse, the market size continues to expand, and their value capture and interoperability are expected to further increase in the future.

2.2 Otherside Metaverse and its Core NFTs (Otherdeed, Koda, Kodamara, etc.)

The Otherside project, led by Yuga Labs, has become an important entry point for our current strategic layout due to its IP background, world-building, and community construction. Core assets within its ecosystem, such as Koda NFTs, Otherdeed (virtual land) NFTs, and Kodamara NFTs, form the fundamental value base. These NFTs possess special abilities and rights for deep ecosystem participation, influencing game progression, and accessing unique experiences. Their complex interaction mechanisms offer vast space for value exploration and also place high demands on players' strategic capabilities.

2.3 Challenges Faced by Web3 Gaming NFT Users

Users commonly face the following when engaging with Web3 gaming NFTs:

• High Acquisition Cost: The market price of rare or high-value NFTs creates a barrier to entry.
• Information Asymmetry: Key information such as NFT attributes, skills, and economic models is complex and scattered, making systematic understanding difficult.
• Difficulty in Strategy Formulation: Developing optimal usage strategies requires extensive research and testing, making individual efforts inefficient.
• Lack of Community Collaboration: There is a shortage of efficient platforms for knowledge sharing, strategy discussion, and resource mutual aid.

Drop Guild aims to address these user pain points.

3.1 Guild Positioning: Professional Web3 Gaming NFT Empowerment Guild

Drop Guild is specifically designed for Otherside players, offering NFT rentals (Kodas, land, etc.), in-game asset management, player training, and revenue sharing, deeply integrating with Yuga Labs' metaverse ecosystem.

3.2 Vision and Mission

Vision: To become the most influential player organization in the Otherside metaverse, connecting players, creators, and investors to build a decentralized Drop ecosystem.

Core Mission:

• Popularize access to high-value Web3 gaming NFTs.
• Enhance the application efficiency and strategic level of Web3 gaming NFTs.
• Promote users' ability to derive value from the effective use of Web3 gaming NFTs.
• Build an active and supportive core community that radiates to the broader Web3 gaming field.

4.1 Service Tenet

To enhance members' efficiency in using various Web3 gaming NFTs, deepen their understanding of corresponding game ecosystems, and strengthen their value creation capabilities.

4.2 "Partner Program": Web3 Gaming NFT Rental and Value Sharing

4.2.1 Program Overview and Value

The "Partner Program," through a pure Web3 gaming NFT rental model, allows eligible community members to obtain usage rights for various high-value Web3 gaming NFTs for a specific period. Initially, the NFT asset pool will focus on core NFTs within high-potential ecosystems.

Core Value:

• Economic Accessibility: Lowering the initial economic barrier to using high-value Web3 gaming NFTs.
• Value Sharing: Quantifiable value created by users through rented NFTs is shared according to clear proportions.
• Practical Learning: Providing opportunities to operate NFTs, validate strategies, and accumulate experience in a real gaming environment.

4.2.2 Operational Flow

• Asset Pool Construction: Drop Guild DAO strategically acquires various high-value Web3 gaming NFTs, initially prioritizing core NFTs within high-potential ecosystems. All NFTs are solely for rental and not for sale.
• Partner Selection: Applications are opened periodically, with criteria including knowledge of the target game ecosystem, willingness to participate, and community behavior records.
• Matching and Agreement: Approved "Partners" will be matched with suitable Web3 gaming NFT usage rights and will sign a "Partner Program Agreement" clarifying all terms.

4.2.3 Roles and Responsibilities of Participants

• Partner (Scholar): Actively and compliantly uses rented Web3 gaming NFTs for value creation activities within the agreement's framework.
• Community Navigator (Manager): Assists in recruiting, training, and guiding partner groups, providing support.
• Drop Guild DAO (The DAO): Manages Web3 gaming NFT rental assets, formulates rules, manages the treasury, and executes revenue distribution.

4.2.4 Definition and Tracking of Value Generated from NFT Usage

• Distributable Value: Quantifiable and traceable digital asset value (such as game tokens, tradable NFT resources, etc.) directly generated by partners through the use of Web3 gaming NFTs during the rental period.
• Value Tracking and Assessment: Priority is given to on-chain data. For off-chain or hard-to-track value, clear declaration, verification, and assessment processes will be established. Value assessment will refer to fair market prices or independent evaluations.

4.2.5 Revenue Model and Distribution

NFT Rental Fees

• Mechanism: Players pay $APE or ETH to rent Otherside land or Koda NFTs, participate in the game, and earn rewards.
• Pricing: Dynamic pricing based on NFT rarity and market conditions (referencing OpenSea data). Example:
  • Common Land: 0.01 ETH/month.
  • Rare Koda: 0.05 ETH/month.
• Split: 70% of the rent is used for guild operations and NFT holder returns, and 30% is returned to players (in the form of $DROP tokens).
• Sustainability: Rental proportions are adjusted periodically through DAO voting to ensure fairness.

Game Revenue Sharing

• Mechanism: Rewards obtained by players in Otherside (such as $APE, rare resources) are distributed proportionally among players, the guild, and investors.
• Split Ratio (Example, adjustable by DAO):
  • Player: 60% (to incentivize participation).
  • Guild: 20% (for operations and NFT procurement).
  • Investor: 20% (to attract capital).
• Implementation: Smart contracts automate distribution, using Chainlink price feeds to obtain the market value of $APE.
• Sustainability: A revenue cap is set to prevent excessive commissions that could lead to player churn.

4.2.6 Pure Rental Commitment

All Web3 gaming NFTs included in the "Partner Program" are core assets held long-term by the guild to support rentals. This guild does not participate in any speculative buying or selling of Web3 gaming NFTs in the market and does not rely on selling NFTs as its primary means of profit.

4.3 Knowledge and Strategy Hub: Enhancing NFT Application Skills

Our "Knowledge and Strategy Hub" will start with high-potential ecosystems and gradually expand to the broader Web3 gaming NFT field.

4.3.1 Gameplay Guides

• Core Content: Produce high-quality original guides for key game ecosystems, covering core NFT attribute analysis, land strategies, combat tactics, and optimization solutions.
• Access: Official website or official knowledge base platform.
• Content Updates: Continuously revise, supplement, and optimize.

4.3.2 Prospect Videos (Ecosystem Analysis and Dynamic Videos)

• Core Content: Produce professional videos, including NFT character positioning and practical demonstrations in focused game ecosystems, interpretations of important updates, and sharing of guild dynamics and achievements.
• Publishing Platforms: YouTube, TikTok, etc.

4.3.3 In-Depth Articles

• Core Content: Publish articles on platforms like Mirror.xyz, Substack, etc., covering economic model analysis of key game ecosystems, community experience case studies, advanced technical skills, and Web3 gaming industry observations.

4.4 Community Ecosystem

• Core Platform: Discord as the core, supplemented by Telegram, etc. The community will initially focus on building around high-potential ecosystems.
• Regular Activities: Organize online AMAs, seminars, in-game challenges, etc., with initial themes focusing on key game ecosystems.
• Contribution Incentives: Establish a fair contribution assessment and incentive system.

6.1 DAO Governance Framework

The goal is to build a DAO that reflects members' wishes and community co-governance, focusing on the overall ecological development of the guild.

• Development Stages: Initial guidance by the core team, medium-term introduction of community consultation, and long-term achievement of mature DAO governance.
• Proposal Process (DIPs - Drop Guild Improvement Proposals): Establish a standardized proposal submission process.
• Voting and Decision-Making: Adopt secure and transparent voting tools.

6.2 Treasury Management

Treasury management will strictly adhere to the principles of transparency, prudence, and serving the overall interests of the community.

Main Funding Sources:

• The guild's share of revenue obtained through the "Partner Program," specifically including the portion from NFT rental services used for guild operations and asset returns, as well as the portion attributed to the guild from in-game revenue sharing according to the agreed proportion (e.g., 20%).
• Incentives and potential revenue from content platforms.
• Strategic cooperation sponsorships and service income.
• Voluntary community donations.

Financial Commitment: The DAO treasury does not rely on the sale of any Web3 gaming NFT assets as its primary income.

Core Uses of Treasury Funds:

• Maintenance and expansion of the Web3 gaming NFT rental asset pool.
• Operation and content creation for the "Knowledge and Strategy Hub."
• Development and maintenance of technology platforms and tools.
• Community operations and incentives.
• Core operational management costs.
• Risk reserve fund and strategic development fund.

Financial Transparency: Regular financial reports, publicly verifiable treasury addresses (partially applicable), community inquiries, and audits.