The Game7 treasury is managed by the Economic Committee, the inaugural sub-DAO designed to ensure safe, steady and efficient stewardship of our nation’s assets.

This structure is in line with the original Game7 proposal, as we are currently in Phase I of the evolution of our governance. (More information about Governance is described in detail in the Governance section of this document).

Role of the Economic Committee:

• Responsible for facilitating all DAO expenses, operational payments, and resource allocation.

• Manage all unallocated Community and Ecosystem $G7 tokens to ensure their distribution aligns with the network’s tokenomics.

• Composed of Game7 Core Contributors, with representatives from MantleDAO and Forte.

• Oversee assets held in a combination of multi sigs and with custodians to safeguard assets.

The committee facilitates the aspirations of the Game7 community and will make strategic commitments and contributions to infrastructure, research, and development, driving Game7’s prosperity. As we progress through Phase 2 and 3, the Economic Committee will gradually delegate these responsibilities to the broader community directly.

The Treasury plans to contain the following assets:

• Stablecoins: USDc and USDt

• Ethereum: ETH

• Gaming tokens: Portfolio of ecosystem game partner tokens

• Yield generating bonds: (Not directly held in the treasury)

• $G7 tokens

This approach allows us to make informed decisions, while laying the groundwork for the future community-driven governance of our treasury.

Staking is a crucial mechanism in Game7, intentionally designed to amplify citizens’ rewards and provide greater influence in governance decisions. If $G7 can be thought of as a unit of effort, staking can be seen as a Citizen utilizing past effort to align themselves with the future progress of Game7.

Central to our staking mechanism are Diamonds - a non-transferable currency that can only be obtained by staking $G7 or leveling up reputation. Diamonds serve as the exclusive key to unlocking rewards from the Citizen Pool, making them a critical tool. A more in-depth overview about Diamonds will be published in the following weeks.

The process of staking is:

• Stake: Citizens stake $G7 tokens.

• Collect: Through staking, citizens collect and accumulate Diamonds. The rate of Diamond emissions increases with longer stake durations and active gameplay, rewarding sustained engagement.

• Redeem: Diamonds can be redeemed for rewards from the Citizen Pool.

• Repeat: By unlocking Citizen Pool rewards, players will be able to accumulate $G7 tokens as well as tokens from affiliated games and networks.

The $G7 token, an ERC-20 token on Ethereum Mainnet, is the cornerstone of our digital nation’s economy, facilitating seamless and secure transactions across the network.

Consistent with our values, this token cannot be bought into existence. It must be obtained through active participation. $G7 can be thought of as a unit of effort that was contributed to the Game7 ecosystem.

The token serves as the primary medium of transaction within the Game7 ecosystem, enabling users to participate in a range of activities such as staking, liquidity provisioning, commerce, and governance.

The $G7 token is a three-pronged asset: it is the gateway to primary value capture, governance rights, and network utility.

$G7 reinforces ownership in the community and aligns an individual’s success with the success of Game7. It’s the clearest representation of a stake in our future.

Revolutionizing Community Distributions

The gaming industry is at a crossroads. With $14.3 billion spent annually on user acquisition, the benefits are reaped largely by a handful of large conglomerates, leaving smaller projects and genuine users underserved.

While Web3 gaming stands as a viable alternative that can keep value in the hands of players and creators, it currently faces a trifecta of challenges: attracting authentic users, maintaining sustained engagement, and identifying valuable contributors.

Traditional Web3 models, such as airdrops based on minimal account activity, have proven ineffective and prone to bot exploitation. This not only frustrates real users but leads to rapid token sell-offs, undermining the very communities these projects aim to build.

Many communities are desperately seeking a better way; some have attempted to resolve this issue by distributing only small portions of their community token allocation (often 40%). They continue to experiment in vain in an attempt to get tokens in the hands of real people. The result: billions in community-allocated tokens remain locked in project treasuries, stifling growth and innovation.

Enter LootDrop (Featured in the Game7 Portal) – a game-changing solution designed to unlock the full potential of community rewards through innovative engagement design. LootDrop empowers gaming projects to:

1. Identify and attract real, highly engaged users: By leveraging the Game7 community and reputation system, projects can tap into a large, and rapidly growing community of some of the most passionate Web3 gamers.

2. Foster sustained, meaningful community participation: Because reputation is core to everything we do at Game7, games can be much more confident that tokens are being distributed to real people, not bots.

3. Recognize and reward the most valuable contributors: LootDrop allows communities to leverage full stack solutions to design immersive campaigns, incentivizing and focusing on the metrics and goals they care about most.

Our partnership with MantleDAO showcases the power of this approach. Their LootDrop campaign allocated up to 2 million MNT tokens, and yielded impressive results:

This success story is just the beginning. Game7 is poised to scale the LootDrop model: dozens of promising projects in the pipeline, along with billions in potential community treasuries seeking a better solution.

The economy of scale is hard to understate: the more users and engagement Game7 actualizes, the more robust the Citizen reputation graph, and thus the more projects will have confidence to deploy some or all of their community tokens via Game7.

Game7 Nation is nearing the tipping point of becoming the primary method of distribution for any project focused on Web3 gaming.

Our unique approach not only benefits partnering projects but also allows the Game7 community to prosper:

• 20% fee on future LootDrop campaigns

• 80% of that fee is distributed to the community via G7 Boxes from the Citizen Pool

LootDrop represents a paradigm shift in how games acquire, engage, and reward reputable players.

Tokenomics

Token Allocation

Emission Schedule

As mentioned above, 80% of Game7 value generated will be deposited into the Citizen Pool and then distributed to Game7 Citizens.

The primary method for distributing rewards from the Citizens Pool will be through G7 Boxes which may contain a variety of assets, including $G7 tokens and rewards from ecosystem partners.

G7 Boxes are comprised of assets from the following sources:

• Tokens: $G7 tokens may be contained in many of the distributed G7 Boxes.

• Partnership Rewards: Successful results from strategic partnerships with gaming companies such as Everseed, Boomland, Epic League, Portal Fantasy, Age of Dinos, Crypto Unicorns, and Argus Labs, and more, may be contributed to G7 Boxes and LootDrops over time.

• LootDrops Reserves: 20% of LootDrops rewards will be reserved for G7 Boxes.

• IP: Core gaming IP developed by Game7. Game7 will retain 10%+ of tokens that will be contributed to LootDrops and G7 Boxes over time.

• Ecosystem Projects: Tokens associated with ecosystem products and projects such as Summon, HyperPlay, World Builder, and more will aim to be distributed via LootDrops and G7 Boxes.

• Network Value Generated: The network will facilitate numerous transactions across our suite of projects, products, and games, with $G7 acting as the gas token and primary DEX liquidity pair, 80% of which will be contributed to G7 Boxes.

• Gamers Merch: Exclusive gear, gaming assets, gaming events, and special offers from partners will be available via G7 Boxes.

At the heart of our digital nation lies an economy consistent with our core values: one that empowers players and developers, and will propel the next generation of games into existence. This economy is powered by the $G7 token, which facilitates transactions, governance, and value distribution throughout our ecosystem.

Unlike conventional systems where wealth is concentrated at the top, Game7 ensures that value is distributed in a way that is merit based - greater value is awarded to those citizens who contribute most.

Our innovation lies in the nation’s economic loop - that drives value back to players and developers, rather than value capture and hoarding, like many centralized organizations.

The value generated by economic activity within our nation is divided between two structures:

This structure ensures that the majority of value generated in Game7 Nation is distributed to our most engaged citizens. The portion allocated to the treasury will be deployed through governance, where each citizen’s voice is heard in proportion to their reputation and stake in the nation, ensuring a fair distribution of decision-making-power and network value. The portion allocated to the Citizen Pool can be accessed by staking as well as engaging throughout the Game7 ecosystem.

Economic Loop

The key to Game7's success lies in our integrated economic model, a thoughtful design that leverages our technology, player base, and treasury management to fuel continuous growth and value creation. This model creates a self-reinforcing cycle of prosperity that benefits all participants.

Here’s how the Game7 economic loop works:

1. Player Engagement: Initial pioneering Game7 Citizens contribute their time and skills to diverse game and quest offerings, creating a vibrant, active ecosystem.

2. Game and Content Expansion: The growing pool of skilled players attracts more developers and content creators, leading to an ever-expanding array of high-quality games and experiences.

3. Technology Adoption: As more games integrate into our ecosystem, they stake $G7 tokens and generate economic activity through our protocols. This drives token activity and creates value, strengthening our economy.

4. Economic Value Generation: The increased economic activity translates into value, which is efficiently collected in our Citizen Pool and Treasury, for strategic redistribution.

5. Value Circulation: We release this value to the community through citizen rewards. Players can amplify their rewards by staking $G7 and increasing their engagement, further aligning interests within our ecosystem.

6. Player Base Expansion: The combination of an expanding game library and equitable value distribution attracts more players to our platform, amplifying the cycle and driving further growth.

This self-reinforcing mechanism ensures that as our digital nation flourishes, all Citizens - from individual players to game developers - benefit from the increasing value and opportunities within the Game7 ecosystem. The synergy between engagement, value creation, and distribution forms a robust foundation for sustained growth.