AIP-380: Swamp Gaming: Let’s pave the road to onboard millions of gamers

Swamp Gaming: Let’s pave the road to onboard millions of gamers:

PROPOSAL CATEGORY: Brand Decision

TEAM DESCRIPTION:

Michael “TFG” Padilla - CEO: As a holder of several Bored Ape NFTs, member of the Yuga Labs Gaming Council, and the Founder of multiple globally recognized gaming brands, my true passions lie in web3 and gaming. In the gaming industry, I have led Kungarna, a world renown gaming entertainment and esports company, since its establishment in 2016. During this period, I have spearheaded its growth from a startup into a flourishing team of over 90 individuals, consistently generating seven figures in annual revenue while maintaining profitability.

In addition to my role at Kungarna, I have a wealth of experience as a content creator, spanning over a decade. My gaming brand, “The Fortnite Guy,” has garnered more than 1.3 million followers and accumulated over 250 million YouTube views. Over the years, I’ve had the privilege of overseeing teams of over 50 creators within the Kungarna ecosystem, where I have been responsible for shaping content strategy and driving growth.

Beyond my accomplishments in the gaming industry, I am also a passionate advocate and active participant in the world of Web3 and blockchain technology. With nearly three years of dedicated involvement, I hold positions in several major projects, including Azuki, Pudgy Penguins, DeGods, Nouns, and of course every possible Yuga asset, reflecting my deep commitment to our community. It is my sincere aspiration to lead the way in seamlessly integrating my dual passions of Web3 and gaming.

With my extensive background in both the gaming and Web3 worlds, I aim to utilize my experience, skillset, and network to foster the growth of the Swamp Gaming culture. My strategy involves spearheading innovative ApeCoin initiatives and activations that transcend our message throughout the entire gaming community, attracting creators and traditional gamers to become part of our ecosystem.

Moe Zahria - COO: With 11 years of experience in the gaming and esports industry, I’ve served as the Chief Operating Officer at KNG, demonstrating exceptional versatility and adaptability akin to a “Swiss Army Knife.” My expertise encompasses strategic business analysis, marketing, stakeholder engagement, and, notably, community management, all of which have played a crucial role in engaging ApeCoins diverse audience.

Throughout my career, I’ve successfully managed large communities, adeptly handling the complexities of both Web2 and Web3 environments. In the Web3 ecosystem, I’ve been instrumental in spearheading business development and operations, leading teams with a focus on agile methodologies and lean principles. This approach has not only helped us achieve immediate goals but has also laid the foundation for scalable infrastructures, fostering a high-performance environment where creativity and productivity thrive.

Tony Rojas - Management: I’m Tony, a passionate gamer and manager known for my vibrant personality and my journey in gaming, streaming, and content creation. Along the way, I’ve had the honor of being featured on gaming shows and managing content creators. I’ve also had the privilege of collaborating with prestigious organizations like FaZe Clan.

With my knack for networking and my background in the gaming world, I’ve successfully converted millions of views and activated thousands of campaigns. Lately, I’ve been diving into the world of Web3, and I’m truly excited about the potential it offers to the gaming industry. As an accomplished gaming manager, I’ve led numerous campaigns and engaged with thousands of gamers. One of my proudest achievements is my role in the development and management of FaZe Sway during his rise in the gaming scene. Now, I’m eager to delve deeper into Web3 and work closely with the executive team at Kungarna to bring gamers into the ApeCoinDAO ecosystem.

ABSTRACT:

We are requesting $492,000 to establish Swamp Gaming as a premiere gaming entertainment brand. In return, the ApeCoin DAO will receive a 5% stake in our company, along with a 20% share of the revenue. This will be accomplished by transforming Kungarna into a mass proliferation and onboarding vehicle for the ApeCoin DAO ecosystem. With a commitment to self sustainability we will be utilizing tried and true methods for revenue generation which have been successful for Kungarna over the last 7 years. We look forward to the opportunity of onboarding the next million ApeCoin fans.

BENEFIT TO APECOIN ECOSYSTEM:

We firmly believe that we can contribute to bringing unparalleled coverage, viewership, and attention to the ApeCoin ecosystem, with the goal of onboarding creators and gamers.

In 2023 our creators and gamers boasted a collective following of more than 32.2 million fans, garnering an impressive 2.7 billion views. As we venture into 2024, we have assembled a strong roster and are planning a huge expansion!

The rebranding of Kungarna into Swamp Gaming is set to propel our community to the forefront of the gaming industry, instantly establishing us as one of the largest gaming brands on a global scale. Our combined reach will encompass millions of followers and generate billions of views across our rebranded social media platforms, marking a significant milestone in ApeCoin DAO’s journey to metaverse and gaming.

Here’s more in depth details on how our proposal benefits the ApeCoin DAO.

1: ApeCoin Revenue Share & Equity

As a sustainable company, we are committed to ensuring that the ApeCoin DAO receives its fair share of the benefits from our collaboration. Throughout 2024, we will allocate 20% of our revenue under the Swamp Gaming banner to be returned to the DAO. The DAO can then use this revenue as it deems fit to support its various initiatives. We will also allocate 5% equity to the ApeCoin DAO as ownership in the Swamp Gaming company.

2: Establish Swamp & ApeCoin Creator Identity

Our gamers are committed to fully embodying the Swamp identity and representing the brand across all social media platforms. Our projections indicate that Swamp Gaming will achieve a remarkable 5 billion impressions in 2024. This achievement will position Swamp Gaming as one of the most prominent and widely recognized brands not only within the gaming industry but of all industries.

3: Gamers Join Swamp Gaming

We have executed contracts for a 2024 roster comprising gamers and creators who collectively command an impressive following of over 26 million fans and generated 192 million views in January 2024. Upon approval of this proposal, these individuals will wholeheartedly embrace the Swamp and ApeCoin creator identity for the entire 2024 year. It’s crucial to note that this allocation represents just a portion of the budget. We have allocated ample amounts to accommodate substantial future growth, with plans to expand this roster to at least twice its current size.

A full breakdown of our rosters social media’s and viewership can be found here.

4: Introducing ApeCoin Gaming Influencers

Allow me to introduce the ApeCoin Swamp Influencer Program—a visionary initiative aimed at welcoming some of the world’s most prominent figures into the ApeCoin community. Leveraging Kungarna’s extensive reach and our established connections with influencers, both past and future collaborators, we will focus on onboarding these individuals as ApeCoin holders. They will serve as the vanguards of our efforts to introduce traditional web2 users to our community.

5: FaZe Sway Joins ApeCoin

Upon approval of our proposal, FaZe Sway will join ApeCoin as a holder. Together with the Swamp Gaming team, our collaborative efforts will be dedicated to identifying opportunities for cross-promotion, thereby propagating the Swamp and ApeCoin throughout the gaming world. Our primary areas of focus will encompass gaming events, charity opportunities, and the potential for public goods contributions. With an astounding following of 10 million gamers, FaZe Sway is set to become not only one of the most renowned ApeCoin holders but also one of the famous advocates for Web3 globally. Also ApeChain gamer? :eyes:

6: Launch Swamp Gaming House

Our company owns a dedicated gaming content house in Texas, where our prominent creators will reside full-time in 2024, producing daily content that reaches hundreds of millions of gamers. We are prepared to execute a complete rebrand of the house, transitioning it from Kungarna and its sponsors to a fully immersive Swamp Gaming and ApeCoin house. To get a feel for a Kungarna gaming house check this video!

Our company’s TikTok page, “KNG House”, when active, shares daily content from our gaming house and has a following of 660,000, generating millions of likes and nearly a billion views. As part of our rebranding efforts, our TikTok will be transitioning to “Swamp House.” Additionally, the Swamp House serves as a workspace for our operations team and business partners. We have even flown out fans of our organization for various exciting opportunities. It would be our pleasure to extend these opportunities to the broader ApeCoin community.

7: Host Swamp Gaming & ApeCoin Events

We have hosted some of the most monumental third-party gaming events ever. Our gaming events company Box Fighting Championship has achieved hundreds of thousands of live concurrent viewers and accumulated millions of post-event views. For a taste of our amazing events, watch this recap of our BFC Valorant tournament.

Because of our partnership with BFC, ApeCoin will be branded all over our events, which have consistently been promoted by the world’s most renowned gamers, such as Clix, FaZe Sway, Tenz, Mongraal, ImperialHal, and many other gaming icons.

KEY TERMS:

esports: is a subset of the gaming industry where individuals dedicate themselves to a full-time profession as gaming athletes. They invest extensive daily hours, usually ranging from 8 to 10, in rigorous practice to excel in competitive gaming tournaments. The level of publicity for these tournaments varies depending on the game’s popularity and the scale of the event.

In the world of esports business, income opportunities are often quite limited. Revenue generation can revolve around sharing prize earnings with gaming athletes, which tends to be an unreliable source of revenue. Most tournament prizes are top-heavy, with only one team emerging as the winner, and the split typically ranges from 5% to 20%. Another avenue is player buyouts, which can be lucrative but primarily applies to top-tier esports players in highly prominent gaming titles. In such cases, teams are willing to pay a fee to acquire a player by breaking their existing contract, a practice more commonly observed in traditional sports than in esports.

In esports, significant publicity and marketing opportunities often stem from branding associations with major events like the DOTA International, the League of Legends World Championship, and the Fortnite World Championship. These events typically draw millions of viewers, offering esports companies the chance to secure brand sponsorships that can be featured prominently on gaming jerseys, social media banners, and bios. However, these sponsorships can be elusive to secure because these events don’t occur frequently, and there’s always the risk that your esports team may not qualify or perform as expected. Certainly, there are some other revenue streams, but none match the profitability of the broader gaming entertainment avenues.

For these reasons, a simple online search reveals that esports is often referred to as a financial drain, marked by an unreliable business model, which has led to what some are calling the esports winter.

Gaming Entertainment: Our company places a significant emphasis on partnering with prominent Streamers, YouTubers, TikTokers, and social media influencers, leveraging their reach to create revenue opportunities while nurturing a thriving gaming community. This approach enables us to generate revenue through various channels, including brand deals, ad revenue, corporate sponsorships, gaming events, community activations, and the esports methods.

While gaming entertainment and content creation remains our core focus, we also engage in esports titles that do not require athletes to commit 8-10 hours of daily practice. This is particularly evident in the Battle Royale genre, exemplified by games like Fortnite. In these games, practice sessions are embraced as content creation opportunities, with professional athletes streaming their practice and tournament matches, alongside producing various forms of video content uploaded to their social media platforms multiple times each week. This unique blend of esports and content profitability aligns with gaming entertainment strategies.

PLATFORMS & TECHNOLOGIES:

Our proposal involves leveraging various Web3 platforms and technologies, which may encompass ApeChain products, ApeCoin products, Yuga products, ApeCoin metaverse and gaming platforms, blockchain technology, and other relevant Web3 solutions.

STEPS TO IMPLEMENT & TIMELINE:

1: ApeCoin Revenue Share & Equity

2: Establish Swamp & ApeCoin Creator Identity

3: Gamers Join Swamp Gaming

4: Introducing ApeCoin Gaming Influencers

5: FaZe Sway Joins ApeCoin

6: Launch Swamp Gaming House

7: Host Swamp Gaming & ApeCoin Events

All these benefits to the ApeCoin DAO and steps will be implemented in Q1 2024

The gaming content industry is massive!

In 2020, a staggering 1.2 billion gamers consumed gaming content, and by 2024, projections estimate that the industry will soar to 3.32 billion online gamers.

We can leverage Kungarna’s existing gaming empire to guide gamers towards the ApeCoin family. This initiative aligns seamlessly with the metaverse WG esports division, and working together can mutually boost growth and success in our respective industries.

This represents an enormous market, and the demographic alignment with web3 strongly suggests that a partnership between ApeCoin and Kungarna would be highly advantageous.

Our historical success

Established in 2016 by Michael “TFG” Padilla, KNG has achieved remarkable success collaborating with some of the most prominent streamers, YouTubers, and content creators worldwide. The Kungarna ecosystem achieved a staggering one billion views in 2022, a testament to its viral content and captivating creators.

Kungarna is renowned not only for its massive following but also for its robust business strategy, consistently generating seven-figure annual revenue and meeting profitability goals. This remarkable combination of a strong online presence and sound financial performance has firmly established Kungarna as one of the premier gaming empires on a global scale.

We are profitable!

Throughout 2022, Kungarna’s ecosystem generated an impressive average of 157,966,699 monthly views and maintained an average of 179,866 monthly live viewers during their streams. Our talented streamers and creators collectively amassed a dedicated following of 36 million fans.

This achievement was accomplished while efficiently managing costs, with an investment of $586,800 in our creators, resulting in a profitable return. Our content management program has proven highly effective in scaling our creators while reaping the rewards of their continued growth.

2022 Revenue Breakdown

In 2022, Kungarna did seven figures in revenue, successfully generating a return on our investments. This presents a distinctive opportunity for the ApeCoin DAO to collaborate with a self-sustaining enterprise. Our focus can be directed towards initiatives that enhance the expansion of the ApeCoin DAO and its community. Our commitment to making a substantial impact on the ApeCoin ecosystem is unwavering, and this proposal represents the initial stride towards establishing a highly mutually beneficial partnership.

Below is a revenue breakdown highlighting the diverse sources that contributed to our earnings in 2022.

Goals for Swamp Gaming in 2024

ApeCoin Community Collaborations

  • Utilize our Swamp Gaming brand and audience to promote ApeCoin DAO gaming and metaverse endeavors
  • Collaborate with local youth charities and FaZe Sway giving away gaming gear
  • Establish a collaboration with ApeChain to initiate innovative gaming initiatives
  • Organize quarterly gaming events in collaboration with Aaron Haber on utilizing his metaverse world
  • Align with Mocaverse and Animoca to explore collabrative gaming opportunities
  • Launch weekly Swamp Gaming x ApeCoin Twitter spaces
  • Explore any and all community collaborative opportunities
  • Explore Made By Apes opportunities for Swamp Gaming

Swamp Physicals

  • Bring the Swamp to life by providing every gamer with their own custom Swamp varsity jacket with NFC and Web3 tech
  • Provide creators with Swamp Gaming and ApeCoin branded merchandise
  • Launch two merchandise drops featuring NFC technology for web3 education and onboarding, in collaboration with our clothing partner, streetwear icon Stevie Williams .
  • Onboard Stevie Williams to join the ApeCoin DAO as a holder and collaborate with him on the launch of his first proposal

Brand Awareness

  • Achieve 500 million views of creator-generated content within the Swamp Gaming ecosystem
  • Feature Swamp Gaming in 500 creator-generated videos
  • Create 200+ Swamp House videos
  • Establish a ApeCoin DAO x Swamp Gaming Discord server and onboard 5,000 members
  • Organize monthly events aimed at guiding these Discord members through the process of onboarding into the ApeCoin community
  • Onboard our creators as ApeCoin holders
  • Recruit additional gamers, expanding our network to over 35 million fans within the Swamp Gaming ecosystem

Gaming Events

  • Host 10+ live Swamp Gaming events
  • Gain 3,000 paid tournament users
  • Partner Swamp Gaming events with top-tier gaming brands

OVERALL COST:

Editors & Designers: $30,000
Swamp House: $99,000
Operational Costs: $113,000
Gaming events: $40,000
Creators & Gamers: $110,000
Swamp Gaming Ownership: $100,000
Total:$492,000

2 Likes

Welcome to the community!

And what an entrance. Bold. Nice video, acquiring a profitable enterprise in a relevant industry clearly has merits related to ApeCoins vision/mission, and potentially to it’s long term treasury sustenance planning.

The 8Delegate within 8DAO will likely wait for gaming experts within the community to weigh in before deciding our position.

8 Likes

Thank you for your response. We are happy to hear that you liked our video and recognize the value in acquiring an established, profitable entity. We look forward to hearing more from 8DAO!

1 Like

Are you asking the DAO to buy your company? Can you share financial metrics that help us understand your $12.6MM USD valuation?

2 Likes

Check slide 6 in his deck, attached above in the AIP

That’s the high level summary in the deck slide, but I think what you’re getting at is (and plz correct me if I’m wrong) is a validation of the numbers for accuracy and transparency using generally accepted accounting practices, is that right?

2 ways to approach it I suppose, perhaps a light audit of sorts by a CPA with their stamp on it, either pre vote (paid for by the authors), or if post vote then with a caveat of sorts like ‘if this AIP passes and the numbers found to be inaccurate by more than 10% then a re-submittion to voting is required to ensure the community is voting on the right financials’ sort of thing. Obv I’m not a lawyer, but along those lines I mean

Just thinking out loud here, curious about other peoples thoughts

Thanks, I missed that slide somehow. It looks like you’re valuing the company at 10x revenue or 40x earnings? Can you point to any comps that help rationalize this valuation?

Generally, I like the idea of the DAO investing the treasury and have been socializing the launch of a VC arm. Whether this gets funded by a VC arm or directly by the DAO, IMO, it should be a minority investment. I would not want to see the DAO completely buying out a company (or even taking a majority stake).

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fyi I have nothing to do with this AIP nor the team whatsoever, my first time learning about them was this week while reading the AIP, and 8Delegate from 8DAO has not decided whether or not it’s supporting it yet or not, so your question I think is directed at @TFG

I just read your question and happened to have just seen their slide 6 figures from the deck so thought to share with you, just helping a fellow community member out is all :slight_smile:

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Hey Jeff, thank you for joining this conversation!

To address your initial question – we haven’t valued the company at $12.6 million. We are actually seeking an acquisition for $2.5 million. The additional funding is intended to support the company’s operations for a minimum of 5 years, with at least $1.8 million allocated.

Regarding your second question about making a minor investment vs acquisition, we are going the acquisition route because it offers us the opportunity to completely rebrand the company under the ApeCoin DAO and Yuga-friendly IP - Swamp Gaming.

In my opinion, this approach allows us to effectively reshape the narrative over the next several years. If we were to continue operating under the Kungarna brand with only a “powered by” ApeCoin DAO association, it could limit our scalability and hinder our ability to achieve our ultimate goals.

Let me know if you have any other questions!

1 Like

Would it be more appropriate to say $2.5MM acquisition + $10.1MM grant? AFAIK, the DAO does not want to directly operate businesses so this would be funding that goes from the DAO to some entity (even if it’s one that we have to create for that purpose).

On the latter point, the DAO can license its name without regard for what stake it owns (e.g. 40% share owned by the DAO or an affiliated entity and you continue to operate it with 60% ownership).

In the physical realm you’ll typically see VCs/PEs who make minority investments to ensure that the founders retain responsibility and motivation (“skin in the game”) to continue operating the company OR a company who does a full acquisition but already has the infrastructure to operate that business or who plans to fold it into an existing business. The DAO has none of that.

3 Likes

Yes, that’s essentially the gist of it. We’re seeking a $2.5 million acquisition, along with an additional $10 million to sustain operations for a minimum of five years.

We’re not pursuing a mere licensing agreement for the ApeCoin DAO name for our team. It’s crucial for us to initiate this journey with a more approachable and gamer-friendly identity, which is why we propose branding as “Swamp Gaming.” At present, many gamers are hesitant about anything related to blockchain technology. However, we’re quite receptive to the idea of selling equity to the DAO rather than opting for a complete acquisition.

The concept of acquisition surfaced following recent developments within the DAO, indicating their exploration of avenues for generating revenue and equity opportunities. Notably, there’s a strong appetite among prominent ApeCoin holders and active members for initiatives that bring both revenue and equity into play.

We’re certainly open to exploring an equity sale, rather than a full-scale acquisition. Regardless of the chosen path, it’s essential to emphasize our deep commitment to this endeavor. Our seven-year-old company’s reputation is on the line in the gaming industry, and we’re also substantial holders of Yuga assets, including several Bored Apes. Our overarching mission is to unite our two passions and mend the negative narrative currently associated with web3.

I find your suggestion of retaining majority equity while pursuing a minor sale to the DAO appealing. Thank you once more for your valuable input, and I anticipate your increased involvement with our proposal as we move forward!

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Hi @TFG,

The community feedback period for your proposal would be ending in less than 24 hours.

  • If you’re content with the feedback received, your next steps are to finalize your proposal using the AIP Draft Template.

  • A moderator will reach out to finalize the AIP Draft. Upon receipt of the final Draft, we will review and provide instructions on the next steps.

  • Are you ready to proceed to the next phase or do you wish to extend community discussion for another 7 days?

We look forward to hearing from you.

-@Facilitators

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Hi Lost,

We would like to extend community discussion for another 7 days.

2 Likes

This topic was automatically closed after 7 days. New replies are no longer allowed.

Hi ApeCoin DAO Community,

@TFG has requested to extend the community discussion period for this AIP idea. We encourage the community to continue to engage in thoughtful discussions through constructive criticism, honest feedback, and helpful suggestions.

Follow this Topic as further updates will be posted here in the comments.

-@Facilitators

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This topic was automatically closed after 6 days. New replies are no longer allowed.

Hi ApeCoin DAO Community,

@TFG has requested to extend the community discussion period for this AIP idea. This topic will automatically close a further 7 days from now. We encourage the community to continue to engage in thoughtful discussions through constructive criticism, honest feedback, and helpful suggestions.

Follow this Topic as further updates will be posted here in the comments.

-@Facilitators

1 Like

This topic was automatically closed after 6 days. New replies are no longer allowed.

Hi @TFG,

Thank you for your ideas [and the ApeCoin DAO community for the insightful discussions].

A moderator will reach out to the author to finalize the AIP Draft using the appropriate template.

  • Once the AIP Draft is confirmed by the author and meets all DAO-approved guidelines, it will receive an AIP ID number and move forward for Draft Analysis Review.
  • @TFG please see your messages for the next steps.

Follow this Topic as further updates will be posted here in the comments. In accordance with DAO-approved guidelines, if the author does not respond within 30 days, the proposal will be automatically transferred to the Withdrawn category, and the author can re-submit the idea.

-@Facilitators

1 Like