Nyan Heroes is soon the third to be launched AAA play-and-earn crypto game. Unlike BigTime, its tokenomics is kind of clear with upcoming IDO in a month. Considering the high return and liquidity of GameFi’s public sales history, I think it is a good opportunity and $NYN could be the first token in 3A crypto game sector and enjoy an additional valuation premium.
Investment Thesis Summary
The gameplay is similar to Fornite, which is familiar to players and needs less education. Demo is out and the team is really good at operation and marketing.
Compared with Stepn’s tokenomics, Nyan changed the in-game token $CNTP to a stablecoin, pegged to $0.01. That is, only $NYN can be pumped, which benefits investors rather than players.
~20% of $NYN will be free at TGE, while Stepn only released 10% at the beginning.
IDO is set on a mango-style auction but capped price, starting at $0.1 per token, same as prior private sale. Target exit is ~$1.7 per token from weighted peer valuation.
Gameplay
Nyan Heroes playmode is very similar to Fornite, the most popular game in the world with over 400 million registered users. The gameplay is mature and familiar so that guilds and players can start quickly without much education.
It has several different PVE & PVP modes:
Battle Royale: individual or 3 players team, $NYN/$CNTP/Collectables for mint activities
Open World Adventure: individual,$NYN/$CNTP/Level UP/Collectables for mint activities
Guilds Special Events
Co-op Raids
8 Hero Roles (Guardians) creating multiple interesting compositions:
Warrior/Defender/Assassin/Sniper/Medic/Scout/Mechanic/Soldier(Non-NFT, free)
Two base Guardians can be merged via expenditure of $NYN/$CTNP to an improved Guardian
Tokenomics
Nyan applies a dual token system. Unlike Stepn’s design, it stabilizes the in-game token $CNTP and pegs to $0.01 backed by its USDC reserve. That is, make $NYN the only volatile/tradable token and thus the market could focus on one token. It is a good market sign.
If the incentive is attractive for players at first, then the flywheel begins to work as described below, where
$NYN will be pumped and more $CNTP will be issued for higher incentives
.There are two concerns and I would not suggest holding the token too long:
it seems to use $NYN as the collateral for $CNTP in the future. Ponzi cannot last forever and that will end in a death spiral.
~20% unlocked $NYN at TGE will fluctuate the price, while Stepn only released 10% at the beginning.
Here below are some key facts:
$NYN: (governance & staking)
Revenue Sharing via market fees
Additional collateral for $CNTP
$CNTP: (in-game)
In-game level up/trade/mint activities
Pegged to $0.01, initially backed by USDC reserve
The flywheel is:
$10M USDC reserve (from NFT sales & Raised, reduce cost) + market fees if any
—> issue $CNTP for rewards ($10M with 1b tokens)
—> if incentives more users and merge activities, then creates market fees and $NYN demand
—> $NYN will be pumped and more $CNTP will be issued for higher incentives…
Currently, 89% Genesis Nyans out of 11,111 have been staked:
staking for $CNTP before game release (150,000,000 $CNTP)
NFT airdrop
airdrop of $NYN (0.5% of total supply)
Initially, 20.725% of tokens have no clear/strict lockup, while Stepn only got 10%.
People & History
Nyan Heroes team has expanded to 50 members with experience in building a global community and designing a high-quality 3A game.
Source:
https://nyanheroes.com/about
https://docs.google.com/document/d/1XioXFXvI5fnZOSnRiKHl__0iuAxhr2AcyTSMm_HWXOM/edit