ApeCoin DAO acquires gaming empire

AIP Ideas
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PROPOSAL NAME: ApeCoin DAO acquires gaming empire

Swamp Gaming Proposal Video Presentation: https://www.youtube.com/watch?v=SwA4YZ7tWio

TEAM DESCRIPTION:
Meet Kungarna.pdf (3.3 MB)
This PDF fully breaks down our company, milestones, revenue breakdown, assets, and more.

Abstract: An initiative for the ApeCoin DAO, aiming to boost recognition and positivity for the Yuga Labs gaming ecosystem within the gaming and esports industry, while expanding its IP and bringing value back to the DAO.

This AIP is spearheaded by accomplished gaming leaders and die hard Yuga holders, this is a multi-year plan and an acquisition of a championship esports team and gaming content empire, already profitable generating seven-figure revenue yearly.

Motivation: Yuga Labs has committed significant investment and resources to the gaming and esports industry, developing projects such as; The Otherside, DookeyDash, The Forge, and Legends of the Mara. To ensure Yuga’s sustained success, it’s vital that our community makes full use of the ApeCoin DAO, an initiative set up by our leaders at YugaLabs, to reinforce their endeavors.

Rationale: It’s clear that the average gamer holds disdain for NFTs, blockchain, and Web3, largely due to scammers plaguing the Web3 space, creating distrust. Regardless of our personal views on gamers’ apprehensions about Web3, it’s fair to acknowledge their reasons for skepticism.

This AIP is designed to acquire an already established gaming entity in an effort to transform the perception of Yuga and reestablish it on a foundation of trust. Our plan is to place gamers and their communities at the forefront, slowly integrating the Yuga Labs gaming ecosystem into our outreach and promotional endeavors. We approach this path knowing it’s a marathon, not a sprint.
All funds will be transparently used and reviewed by the elected ADP (ApeCoin DAO Protectors). All company assets will be transferred to a new ADP controlled entity.

Steps to implement
1.Initiate a process to educate both parties about the limitations and capabilities of the ApeCoin DAO owning this entity and how revenue can be utilized or contributed back to the DAO.
2. Legally execute all necessary steps and ensure funding is secured in a multi sign wallet between our team.
3. Form a reliable and highly regarded ADP team
4. Execute a carefully crafted rebranding strategy for Kungarna that seamlessly resonates with the existing community while also generating viral buzz within the industry.
5. A rigorous 6-month organizational and recruitment effort, characterized by meticulous planning and selection, centered around hiring individuals who are not only forward-thinking but also capable of at least breaking even. This includes candidates for management roles, content creators, and professional gamers who share our vision and are willing to contribute to our mission.
6. Develop and launch monthly programs designed to nurture trust within our gaming community and gain recognition for Yuga Labs’ gaming ventures
7. Conduct an annual review with the ADP to assess what is effective and what isn’t, make decisions based on data, and implement findings

Timeline
Our team is prepared to execute this acquisition as soon as the AIP is approved.

Milestones
Team of 50+ highly engaged creators and professional gamers
100 million monthly impressions
Break profit in first 2 years
Esports championships

OVERALL COST:
Ask- 9,000,000 ApeCoin
20% acquisition cost
80% operational cost spread across 5 years evenly sent at the beginning of each year

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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.

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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!

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

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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

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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!

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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.

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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.

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

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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.

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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

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