What is Ookeenga? I Market Design, Mechanism Design and Token Design Explained
Economics Design
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Introduction
Ookeenga is a real-time strategy, card collection, tower defense game. It is a two-token economy with a governance and utility token model. The governance token is the in-game currency in the economy.
High Level Token Summary
The game has a two-token economy with $OKG as the governance token and $KAB as their in-game token.
There is a fixed supply of $OKG capped at 500,000,000 while $KAB is an uncapped inflationary token.
The main uses of the $OKG token are for trading NFTs, breeding new heroes, enhancing items, staking through protocols and governance voting.
The main use cases for $KAB are to convert it into $OKG, breeding, crafting, enhancing items, and chest opening.
Market Design
Thickness of Market
Currently selling 1500 initial Genesis Cocoons
Reduce Congestion
Built on the BNB Chain to leverage its fast transaction speeds and lower gas fees
Competitors
The main competitor of Ookeenga is Clash Royale, a Web2 game which the protocol seemed to draw inspiration from. The main difference would be that players can earn income from Ookeenga.
Player Archetypes
Killers: There is a PvP feature that would cater to the killer archetype. These are the players that are competitive and want to advance through the leaderboards or compete in tournaments.
Achievers: The PvE game mode can cater to the Achievers as there will be a progressive story mode that connects to the lore of the game.
Miners: Miners are present in the game because gameplay will give a $KAB reward. This incentivizes this archetype in grinding until the energy limit in order to extract as much $KAB as possible.
Creators: Crafting is also a main component of the game as heroes will hold weapons in battle. Therefore creators can be in the form of crafters looking to supply weapons for killers or achievers to progress.
Investors: There is a land gameplay that is planned to be released in the future. As this gameplay will have a resource generating mechanic, it might be coveted asset that will appreciate in value. Investors can also be breeders looking to supply new heroes to new players for a profit.
Mechanism Design
Gameplay
The objective of the game is to defeat your opponent by taking out the central most tower. A player will use cards on its deck that corresponds to the number of troops they would summon to attack the tower. Each tower has a hero guarding it and has a unique set of spells that would help defend themselves from attackers. A mana bar at the bottom limits the amount of moves a player can make, making this a real-time strategy game. There is a 3-minute time limit where a winner is decided based on the total health points of all three towers if the central tower isn’t destroyed prior to the expiration of the time.
Bargaining Protocol
There are four main points of variability that can affect how each NFT is priced in the market. These are Races, Classes, Body Parts, and Rarity. Each race has different characteristics and ultimately determines the number of troops a user can deploy. Classes determine the role of the hero - tank, mage, range, air, and melee - during battle. Body parts give off bonuses to the characteristics of the hero that depend on the rarity of the body part. Rarities range from common, rare, epic, and legend, where the higher the rarity, the more effective the body part is.
Token Design
Drivers:
The main supply drivers for the $OKG token will be through tournaments, marketplace trading, staking rewards, and other in-game events. $OKG demand will be driven by the demand for skins, breeding, cocoons, and DAO activities.
$KAB supply will be derived from the PvE, PvP, and Quest rewards system as well as from events, tournaments, and land gameplay. $KAB demand will be driven by the demand to open chests, design land, breeding, social activities and crafting.
Allocation Mechanism
Majority (30%) of the $OKG allocation is set aside for the Play-To-Earn pool
20% goes to a team allocation, 15% to public and private sales, while another 15% is set to marketing and partnership activities.
12% is reserved for future use, 5% for liquidity market making, and 3% goes to advisors of the game.
Risks
Systematic Risk
A risk that Ookeenga will have to face is being directly compared to its off chain counterpart. Clash Royale is an established game in the Web2 space that Ookeenga will have to compete with as its core game loop revolves around a similar game style. But Ookeenga is a new market player while Clash Royale is already established.
Though Clash Royale and Ookeenga share the same core game loop, Ookenga has the ability to diversify as it is a metaverse while Clash Royale is a single game. Ookeenga can find a way to differentiate themselves from Clash Royale by adding a new game mechanic that Clash Royale doesn’t have. That could be in the form of land gameplay once it is out.
Idiosyncratic Risk:
One of the main risks of a two token economy is having its utility token, or the main token being “farmed” in the game, to be hyperinflationary, especially during times of high user growth. Though the team seems to embrace this concept by mentioning that $KAB is indeed an inflationary token, since this is the main rewards token from playing the game, this also might be a cause of player churn from the protocol especially if they deem the opportunity cost to play this game low enough that they would rather play a different P2E game with a higher yield or even opt to just spend their time elsewhere instead.
A way to mitigate this while still embracing the inflationary aspect of the $KAB token is to gear towards a Play And Earn mentality. Make sure that the game is engaging enough that the earning aspect is just an add on to the entire experience. Another way is to establish more token sinks for $KAB to make sure that the token is also being burned. This could be in the form of repairing weapons crafted, or converting it to consumables that give you more energy or bonuses to heroes.
One of the main use cases for the $KAB token is to be converted into $OKG so users can purchase NFTs from the marketplace. This creates a heavy value extraction pressure that could overinflate the $KAB token, making it less valuable compared to $OKG. This in turn reduces the earning potential of users who are looking to purchase NFTs using $KAB. This also creates a need for a liquidity pair if the swapping is done through secondary markets or exchanges.
Have the option to buy back the $KAB tokens for burning or just to take them out of circulation. This can be done at the point where $KAB is exchanged to $OKG so that the team can just release the governance token instead of providing liquidity for the pair. This allows the protocol to somewhat control the prices of $KAB to a point where users can still swap it for $OKG for purchase on the marketplace.
Conclusion
Ookeenga is a real-time strategy, card collection, tower defense game. The game has a two-token economy with $OKG as the governance token and $KAB as their in-game token. The main uses of the $OKG token are for trading NFTs, breeding new heroes, enhancing items, staking through protocols and governance voting. The main use cases for $KAB are to convert it into $OKG, breeding, crafting, enhancing items, and chest opening.