Last week, the FunFair team conducted an AMA surrounding the most recent quarterly update, as well as all things FunFair. Looking both back and forward, towards a successful future.
The team introduction:
Tom: Hi all, we’re going to kick off in a moment, and thank you for all the queries submitted from Telegram, Reddit and Discord, I believe we have collated them all for answering today.
However, we are going to try something a bit different this quarterly update. We had noted that in the past while we wanted to make sure all the queries were answered, this tended to result in the FunFair team answering everything at once. And didn’t allow for any natural discussion, which is ultimately what we want to offer here.
As such, we are going to answer questions in sections today, for example, we have collated all the queries relating to the leadership changes and post the answers there and allow people to digest and perhaps dig a bit further if they like, or it may provide a new line of queries.
If we are comfortable there is nothing else we can move on to the wallet etc.
Q1: Has the switch in leadership created any challenges/delays? How have the founders’ daily roles changed since the leadership change?
Can you provide a summary of the personnel changes made recently? We know Jeremy is now CEO and Stefan is no longer with the company – any other personnel changes?
Jeremy: There have been no other personnel changes, nor has the switch created any challenges or delays. The primary difference is that the L2 research projects that I’ve been working on have moved into the core team, under Oli’s management, whilst I’ve picked up the day-to-day management of the company as a whole.
Q2: What is the current value prop for the FUN token now that network usage is pretty much at a standstill? What should give token holders optimism for the future?
Jeremy: We have looked across the business and how it is structured so that all areas benefit from our strengths in blockchain, gaming and developing technology. This quarter the work that we are doing on L2 will feed into all 3 areas, scaling the platform, improving the wallet and opening the door to multiplayer games for FUN users.
Topic: Layer 2 Solutions.
Q3: Might be good to give a list of L2 systems being considered & Can you name the specific developments in the blockchain space under investigation to solve the gas issue.
Oliver: We have done preliminary research into a lot of the emerging layer 2 solutions. We have decided to concentrate our efforts on xDai, Optimism and Matic for the time being. This means adding support to the wallet for each of these and building something that runs on each. These may get released as part of the platform, or as standalone dapps, or they may not get released at all depending on how they work out.
These are not being looked at solely as ways to mitigate gas fees, but also as opportunities to add platform features we have been unable to support up to now (e.g. multiplayer, bankroll staking), though building those features is not the immediate focus of this work.
Q4: Multiplayer as in existing games or for new games like poker?
Fred & Jeremy: New games, new concepts- things we’ve not been able to do before.
Q5: In the last AMA, you mentioned that you were exploring decentralisation of the platform. Are you still considering it? Is there any legal risk for a decentralised gambling platform if it would be governed by the DAO?
Tom: As we are working in a brand new/cutting edge space, there is no legal precedence for a lot of these new structures. Inherently this means there is a large amount of risk with a DAO and/or a decentralised gaming platform. This takes time to identify what level of risk the company is willing to accept, let alone navigate the space with lawyers.
Q6: What’s the status of publishing the API and having a developer program?
Oliver: This is not currently a focus due to the scalability issues we are facing on the Ethereum network.
Q7: How does scaling the platform work?
Oliver: Assuming you’re asking about layer 2, all these solutions have much higher throughput and lower fees than Ethereum. It’s possible we may just run fate channels on them directly, but more likely we’ll do something different.
Q8: Has the team given up for now on making the current B2B FF model work due to Ethereum gas charges, etc? What is the main focus for the next 6 months?
Tom: We have not abandoned the B2B model, however with the current cost of operating on the Ethereum network the platform is a hard sell. The Q4 update talks about the focus for the platform, which is continuing work on L2 solutions as well as continuing to improve the marketing tools, user interface and any points of friction. Thus allowing the casino to scale once the ethereum network/technology allows it.
Q9: What’s the current feedback from the white label brands? (CryptoCasino, KingTiger).
Tom: Both brands continue to push the casinos even with the difficulties we have seen with the Gas prices, and are understanding of the technical issues. King Tiger carries on with the no deposit bonus to get users into the casino and Crypto Casino has spent a lot of time creating unique content for the site. They, like us, are interested in the L2 solutions and had great feedback on the upcoming game this quarter.
Q10: What feedback are you getting from the whales? What do they want to see as additional features? What makes them play or not play? Since whales are what makes/breaks any casino, seems like their direction should be primary.
Tom: We have engaged with the whales on many aspects of the casino, from UI features (we have received feedback from them on the wallet roll out for example), through to just reaching out and asking how they are getting on. In fact one of my last interactions with a whale he demanded a flight to vegas unless he wouldn’t play any more! Our operations team also have been reaching out and providing spot bonuses to identify if that improves whale behaviour (the jury is still out on that one). However, Fred and I are working on a better system for this per my marketing points. The VIP program is going to have a bit of an overhaul and I will be able to share with you the planning around that shortly.
Q11: Any progress on being able to switch between games within the same FateChannel session (as a means to reduce gas costs)?
Tom: This isn’t something we’re looking at for the moment. Layer 2 investigations have priority.
Q12: Any expected country additions in the next quarter?
Tom: This is something we continue to monitor, countries are continuing to change their laws and regulations and we have to be up to date with these. But we also need to be very careful, as noted in the Q4 update – lots of low-value players came from countries like India and Malaysia which ended up costing us money with the gas costs. So we will add countries as and when they make sense to do so. From a legal and player value perspective
So just going to move onto Marketing – so, unfortunately, you probably will have to hear more from me guys!
Q13: Will JoeJoe Adams and Raph win huge on their next stream?
Tom: I am hoping that the viewing community wins big on the next stream! 🙂
Q14: Although focus from the Japan localized site has been shifted to the .com, are there any stats that can be shared from the user base in Japan?
Tom: The move over to the new KYC provider Shufti was a great success whereby anyone using a drivers licence, national ID or Passport number was getting through. So much so, we moved this to default for other Asian countries.
The average amount wagered was 28,570 $FUN per player, or about $100 USD.
62.5% of users that signed up then went on to play (there was a no deposit bonus for Japanese players)
32.14% of players that signed up deposited their own funds.
Q15: I see the MoonRacer is for instant win games only, why exclude table games?
Tom: In my analysis of previous MoonRacers, the top players play table games only. Which isn’t a problem as we want users to enjoy the games they preferred. However, this puts players who prefer slots at a disadvantage, as the RTP is much higher than those that play table games. So the winners of MoonRacer tended to be players that risked less than those that played our wider range of games. We tried to negate this with cyber ray days in the past, but it never had any effect of balancing out the winners. As such we wanted to try a competition without table games.
Q16: Any numbers to share from the current progressives? Marketing has been taking these pretty seriously. The graphics shared on social are pretty solid. Follow up on winners has been consistent. Have these been profitable? Have they led to an increase in casino gambling?
Tom: I have been monitoring this daily since September in terms of players and sessions. Below you can see the session number and trend. Two actions have happened below. Number one we introduced the progressive pot. Number two we introduced a reduction in the amount of FUN a user needed to take into a session (back at 1,000 now). You can see from the stats below we have seen an average daily increase across the board. Both have had positive effects, although with the session limits being reduced we saw the average bet drop. The progressive pot has been built in a way to be profitable or at least break even for the casino.
Q17: What features from competing crypto casinos do you guys admire? (Please Namedrop) and which would you like to implement your own versions of?
Tom: This is a tough one, as in the Ethereum space I honestly think we are the most professional looking casino that truly is decentralised. And the numbers generally support us in the Ethereum world. That said;
WINk casino: from a purely technical standpoint I like how they have managed to weave traditional decentralised online gaming into their platform with a very convoluted wallet system and made a success of this process – while still being a crypto casino (somehow??). I have been following them closely and noted they seemed to have changed tack recently. They had huge growth from countries like India coming through but seemed to have backed away from this market as that geo is no longer even in their top 3. However, we will not be tying in non-decentralised wallets into our platform.
Loot Crates: While not a casino, I do like the nature of this experience. Users come back to the casino/app/game, perform an action and receive some reward. It’s a great retention tool. We have seen that we have no problem in getting users to sign up on the site with free $FUN, although this, unfortunately, led to abuse by certain individuals. But a more gamified version could make sense – I have seen a few casinos implement versions of this. However this wouldn’t be a simple solution, but I like the idea of it.
Live Games: A bit of a trend has been the increase in live casino games, especially in covid times. Obviously, this comes with huge overheads comparatively, but it’s a nice take on making gaming more interactive.
Multiplayer: We know Gen X and Y love skill and community gaming. I, like all of us, would like to see multiplayer gaming on the platform. But we need a technical solution for that. Thankfully we will have multiplayer games pre-built when ready thanks to the work the games team are doing at the moment.
Topic: Games Queries.
Q18: Were the games easily modified to work with an RGS? Is there some kind of generic adapter/abstraction layer that allows future games to work with both the FF platform as well as RGS?
Lloyd: Yes. All Funfair games use our own Game API layer which abstracts any communication with our platform. This makes it relatively straightforward to replace this layer to enable us to integrate with other platforms with only minimal changes to the games. Additionally, we also need to convert our game smart contracts which contain the rules and logic into conventional RGS backend modules.
Q19: Any further progress on multiplayer games?
Lloyd: We are developing multiplayer games for the RGS, more news on the first of these when our games website launches next week. We will bring these games back to the platform as and when it’s possible for us to do this, as we know at the moment the platform does not support multiplayer games.
Q20: Why does it feel like everything fun does in slow motion? How are priorities chosen by fun? The gas issues have been around for months, yet games have still been being released when they can’t really be played and the user base is near none existent. What sort of risk-reward/profit analysis is done to see if the team developing these games are worth it currently?
Lloyd: Per your comment regarding gas, we have slowed down the release of games to balance resource/cost. Where at the beginning of the year it was one game every 6 weeks, this has moved to once per quarter while the team works on single and multiple players RGS games mentioned in the update.
Topic: Wallet Queries.
Q21: Is the wallet being open-sourced?
Q22: With wallet and games being licensed out, how does this translate back to the token?
Lloyd: An opportunity to generate some revenue and extend our runway is positive for the token. More directly, work on multiplayer games for traditional RGS will leave us in a good place to bring these back to the platform when they can be supported. It will also put in a solid revenue-generating position with operators for future sales of the platform. Further, the FunFair wallet extends our supplier relationships and access to potentially more users within the ecosystem + enables us to test L2 as well. Once you have a FunFair wallet you can be onboarded to the Casinos much easier.
Q23: Now that funstats.xyz has been ‘retired’ (at least for now), what is the FF team doing to provide ongoing stats about network usage?
Oliver: We have just done a bit of work that will be live tomorrow with the upcoming MoonRacer which will showcase real-time leaderboard stats. While not as in-depth as Funstats will give users a feeling of activity on the site. In addition to this, we believe the value from Funstats was that it was a truly independent 3rd party site pulling this data. As such we have approached other 3rd parties to see if there is something they would like to build/host while allowing us to focus on the core strategy of FunFair. If anyone wants to get involved please let us know.
Topic: Decentralized Finance (DeFi).
Q24: Can we have a general idea of what the defi pivots will look like? Are staking and governance very likely to be implemented?
Tom: No decision has been made on this, we’ve done significant work understanding what a DAO might look like, but as it stands we don’t have any short-term reason to take this further. There is no mechanism for FUN to generate passive income, which makes doing something meaningful around staking difficult. This doesn’t mean we are ignoring the space, but per Jeremy’s covering note, we are continuing to investigate. We are also continuing to look at opportunities around ETH 2.0 staking.
Oliver: As you know we can’t currently support bankroll staking, so we can’t use that mechanic in a defi protocol.
That is one of the features we’re thinking about as part of our work on layer 2, though it won’t be the focus of our initial work as the aim there is to build and ship something small and self-contained so we can learn about each solution in some detail.
Hopefully, that makes sense!
Q25: There are many players in the DeFi space – what does the FF team see as their unique ability to generate value within the DeFi space?
Tom: This has been part of our investigation, we have spoken with many players and experts in the space. We know the FunFair brand is a trusted entity and with our gaming background, we would hope to bring something unique and (excuse the pun) fun to the space. But this has to be done in a way that can be sustainable for the long term success of FunFair.
Q26: Since blockspace is a finite and scarce resource, will gambling on a mainstream blockchain ever be able to compete with all the more pure DeFi use cases that are competing for that limited resource?
Tom: This depends entirely on the capacity of the chain, at the moment it’s clear that transactions are expensive enough that low-value transactions don’t make a lot of sense, but that’s likely to change at some point.
Q27: So each L2 solution might accomplish a different feature set depending on their strengths?
And doing this will let us learn about these things from real experience.
also gives us wallet support for each one.
I spent the last few days setting up some xdai nodes, this is the kind of stuff we need to be doing to get comfortable operating on these things.
Topic: Finance & Legal.
Q28: It seems like more projects are burning their tokens without being labelled a security. A notable burn was the recent XLM burn which was nearly 5 billion dollars. Has a burn been investigated further with lawyers?
Tom: Yes, this has been investigated and continues to be discussed with legal teams in respective markets.
Q29: How much FUN does FF still hold?
Tom: 4.5B FUN Tokens. Nearly all of this is held as cold storage.
We’re going to leave it there for the evening/day. As it looks like there are no more, so we’re going to shut down the channel so we can get back to our L2 solutions!
Cheers guys – as usual, we’ll be around in the normal channels if anyone has any more questions.
Thanks for all the awesome questions! Have fun!