Revenue Distribution
Revenue Distribution (“RevDis”) is an important aspect of the Fancy Games Studios economy as it serves as the primary method of rewarding our long-term stakers in the project. As we get closer to the full production launch of our first game, Fancy Birds, we have had multiple discussions with our advisors and game economists on this topic. The analyses from various scenarios and models have concluded that a 1-token economy with FNC being the backbone of the arcade game platform Fancy Games Studios is our best option for the project’s long-term success. For a single token to be maintained as both the governance and part of the play-and-earn economy over the long-term, revenue distribution, liquidity, and the usage of FNC are all vital components that need to be optimized for the economy to perform at its best.
Our goal is to make our ecosystem sustainable indefinitely, which will help the project to grow in a healthy manner over time and also allow players to be rewarded along the way. With that being said, our proposal for RevDis is based on what we believe to be in the best interests of all stakeholders and the DAO. However, it may be possible that we modify this in the future as we wish to be dynamic and able to evolve with the industry rather than be locked into a potentially outdated model. Please note that any changes made to RevDis will first seek input from the community and require approval from the DAO before being applied.

RevDis Breakdown

Fancy Games will be implementing a 100% revenue distribution plan for the community participating in our staking platform (“stakers”). A staker is anyone or any entity that is staking FNC in the single pool (FNC only) or liquidity pool (FNC/ETH). We believe that stakers represent long-term believers in the project, and RevDis will help incentivize and reward them for supporting the Fancy Games ecosystem. To maintain a sustainable play-and-earn economy with a single token over the long term, there needs to be both a reliable supply of FNC tokens for players in-game and also a healthy price of the FNC token.
There will be a vault contract which will be deployed after the official game launch (TBD, target April 18th). The vault contract will receive 100% of all revenue that is received by the platform in FNC, ETH, USDC, or any other tokens received. Fancy Birds, for example, is currently generating revenue from FNC used for breeding, FNC from tournament tickets, and ETH from the 5% trading fees from our OpenSea NFT collection sets. Future revenue streams for the Fancy Birds game include but are not limited to: Marketplace purchases for Skins and other in-game items, rake fees for special tournaments, exclusive drops, future NFT sales, in-game purchases like loot boxes, advertising revenue, and more.
Any revenue that is received in a token other than FNC (such as ETH, USDC, etc.) will be used to purchase FNC tokens on the open market. 100% of these tokens will be distributed to stakers in the model outlined above. This mechanism should help support the price of the FNC token in the long term and will apply consistent buy pressure on the FNC token price. As the ecosystem of games grows, there may be larger open market purchases. With the token increasing in price, the total value of earnings will increase for players in-game as well as the total value of a staker’s position. We believe having a healthy FNC token price is in the best interest of all stakeholders and the project.

How will RevDis be distributed?

RevDis will be distributed based on the proportional weighted FNC value of a staker’s position, regardless of whether they are in the FNC only pool or FNC/ETH pool.
Example Scenario:
There is 50million total weighted FNC staking in the Revenue Distribution Vault Contract.
  • Person A stakes 250k FNC in the single FNC pool with no lock at 1x weight and 250k FNC in the FNC/ETH LP pool at 1x weight, they would receive 1% of the total RevDis distribution (as 500k is 1% of 50m).
  • Person B stakes 250k FNC in the FNC pool with a 1-year lock at 2x weight, and 250k FNC in the FNC/ETH LP pool with a 1-year lock at 2x weight, they would have a total weight of 500k * 2x = 1million. They would receive 2% (double) of the total Revenue Distribution.
Weighting is based on the amount of time a staked position is locked when initially staked, which increases linearly and has a maximum of 2x weighting for a 1-year lock.
  • Staked position with no lock receives 1x weighting
  • Staked position with 6-month lock receives 1.5x weighting
  • Staked position with 12-month lock receives 2x weighting
All claimed FNC staking rewards are eligible for RevDis and weighted at 2x as they are automatically locked for 1 year (adding an incentive for players to claim FNC as rewards vs sFNC).
Revenue Distribution rewards will be unlocked when claimed.
Additionally, all of the tokens designated for the treasury (currently ~13.86% of the total supply or ~138.66 million FNC tokens) will be *staked (see note below) and eligible for RevDis at 1x weighting. 100% of the RevDis distributions will go back to the treasury to fund the continual operations and growth of the Fancy DAO and Fancy ecosystem, including but not limited to creating more games, hiring and scaling our development teams, marketing, operations, fund raising, play and earn, and other ecosystem benefits.
*Note: although the treasury is “staked” and eligible to receive revenue distributions, it does not receive any of the staking yield rewards (i.e. the APR % bonus).
Fancy Games has completed its beta for its 2nd game and has plans for two more games by the end of the calendar year, with our goal being to launch a game every 3 months. 100% of all revenue generated from all future games, the Fancy Games Land sale, or any other revenue generating events will be directed to the Revenue Distribution Vault to be distributed to stakers.
The exact time and date of FNC Revenue Distribution vault purchases will not be announced to avoid speculation and front-running but will happen roughly bi-weekly (TBD).