In an overwhelming show of support, the DAO of the community-backed play-to-earn gaming platform Decentral Games passed a proposal in favor of a robust token repurchase program.
The Success Of ICE Poker
Decentral Games (DG), home ICE Poker, has emerged at the forefront of the play-to-earn movement. After launching the ICE Poker game in October, the platform has seen a feverish explosion in user count and recently exited December with over 100K monthly active users.
ICE Poker, a game whereby players acquire rewards by playing Texas Hold’em whilst holding wearable NFTs has been an overnight success. These NFTs, known as ICE Poker NFTs, have been publicly issued by the Decentral Games DAO Treasury, generating millions in revenue with each limited release. Decentral Games’ latest NFT drop for example sold out in just three minutes and generated $2.1M for the DG DAO Treasury in the process.
The Token Repurchase Proposal
The undying demand for ICE Poker has fueled bullish optimism amongst holders of $DG token, the native governance protocol of Decentral Games. However, with just a $180M market cap valuation at the time of writing, $DG believers foresee a long runway of growth ahead, especially when compared to other projects boasting $1B+ market caps with less-proven play-to-earn tokenomics, or, in many cases, without a game being live.
With this in mind, it’s perhaps no surprise $DG holders have voted over 97% in favor of funding a token buyback program. The program is set to be funded via sales proceeds from 2 ICE Poker NFT releases, the first of which sold out in record time on January 13th. The proposal additionally calls for fortifying the DAO’s ICE & DG LP positions, plus establishing stable coin reserves.
$DG’s Bullish Thesis
The rationale for the repurchase program is simple: given the platform’s growing cash-flows and exploding user base, DG’s monthly recurring revenue when compared with its circulating market cap suggests it is strongly undervalued.
“Based on the expectation that we will generate > $5M in revenue this month (that’s > $60M annualized, even assuming no growth) and $DG has a circulating market cap of ~$110M, we believe the token is significantly undervalued,” the proposal issued on January 8th reads. “Buying back some of the token today for future use (e.g. distributions to xDG holders) is a good use of funds at this time.”
Given the expected earnings of the DAO, Decentral Games’ $DG Token boasts a price-to-earnings ratio of just 2.1 at the time of writing. For broader context, the average P/E ratio of S&P 500 stocks today, which includes several legacy gaming and entertainment brands is 26.5. Given $DG’s earning potential and its positioning on the cutting edge of metaverse entertainment, widely recognized to be the world’s next technological frontier, it’s no wonder the community is optimistic about the long-term potential of the platform.
The Buyback Begins
Decentral Games founder Miles Anthony shared that the organization is wasting no time in executing on the program. The founder shared in a tweet that Decentral Games is buying tokens from the market at a 100K clip (present price per $DG token is $0.49 USD), leaving a long runway in the coming weeks ahead to continue purchasing back tokens with an allocation of over $1M in USD from the prior mint and ~$2M USD from the next mint.
the ICE Joker sold out in 3 min, adding $2.1M to the @DecentralGames treasury
following our last gov proposal, funds were allocated to:
– buy 100k $DG
– add 800k to MATIC-DG LP
– add 90k to ICE-USDC LP
– convert 400k to $DAIleaves ~$1.2M to buy more $DG over the coming weeks
— MILΞS 🦇🔊 (@0xMiles) January 13, 2022
With new ICE Poker NFTs set to drop in the weeks ahead, DG’s self-funded buyback program is well within their means. Given the financial comps to similar play-to-earn projects and exponential cash flow growth, the platform’s future is theirs alone to control. While play-to-earn has been co-opted as a buzzword amongst numerous projects in the rapidly-evolving world of cryptocurrency, Decentral Games’ ICE Poker product is already live, and thriving – a clear signal the platform is deserving of a premium valuation relative to similarly positioned metaverse entertainment brands.
About Decentral Games
Decentral Games builds free, play-to-earn games in the metaverse that give players economic freedom through aligned incentives, self-custody and delegation of yield-bearing metaverse assets. Currently live, Decentral Games’ play-to-earn metaverse poker game (ICE Poker) generates revenue for the DG Treasury through NFT mints, secondary sale royalties, activations, and upgrades.
DG is a governance token that governs the Decentral Games treasury, which accrues value from the ICE Poker ecosystem. Staked DG (xDG) allocates votes on DG Treasury allocation and economic policy to grow and strengthen the DG ecosystem. ICE is the free play play-to-earn token and in-game currency utilized in the DG ecosystem to incentivize metaverse poker player liquidity.
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