Core Economic Model
Core Economic Engine:
TallyUP's core economic model is
powered by a unique and innovative engine that distributes small fractions of ad revenue to players. while consistently generating more revenue than is paid out to players. All aspects of this economic engine are heavily and continuously optimized and a US patent has been granted on key elements.
Once players are staked, the value in their accounts is passed back and forth amongst one another via competitive gameplay. This creates significant ongoing activity and player engagement that can be monetized without the need for additional re-staking of players.
This underlying economic engine is what enables TallyUP's tournament economy to generate net positive revenue beyond what is given away to players. Net positive revenue is directed back into the TallyUP economy to further grow the tournament economy.
Every cent that is injected into the economy will circulate and generate revenue for the platform. The more money and activity circulating within TallyUP's economy, the larger the revenue grows and in turn the larger the tournaments and prizes get for players. This, in turn, attracts more players into the tournament.
In time, TallyUP's monetization capabilities will be enhanced as new revenue streams are added and existing revenues are improved. This includes forms of in-app purchase, hosted tournament platform and protocol fees, lead generation for crypto exchanges, in-app swap fees, real money gaming, programmatic advertising optimizations. direct ad sales and proprietary formats, new shopping and commerce experiences and more. All of which will enable the tournament to grow further.
System level overview and components
TallyUP - the application and broader "system" that operates the game and in-game economy. The role of TallyUP is to operate and enhance the game economy's revenues and game experience for its players over time.
UP DAO - is the decentralized organization that governs the tournament economy, it manages the treasury / prize reserves and is governed by its community through $UP Tokens. Its mission is to grow the tournament economy, and find ways to give away the maximum amount of value to its players and society at large.
The treasury may hold the following: - Community Reserve of $UP Tokens - Protocol owned liquidity of $UP Tokens - Third party sponsor / tournament host prizes - Yield bearing reserves such as cUSDC or wstETH
Players - generate and contribute to the economy by way of their activity in the system, but also redeem prizes by "cashing out" of the system. They may also become governance participants with $UP that they have won or bought.
As TallyUP generates more revenue than its players redeem for a given time period, the surplus revenue is used to buy $UP, which are deposited into the UP DAO Treasury and held for future Tournament Prize Reserves.
On the contrary, when there is a deficit in redemption by players in a given time period - for example, a user wins a large tournament or a big player cashes out from a tournament - prize payouts may be withdrawn from the reserves to meet liquidity needs.
The Tournament economy remains solvent as long as value of assets held by the treasury reserve is larger than the value of liabilities (or monies / value staked in the system to players). So long as this holds true, and TallyUP's innovative engine maintains lower outflows than inflows, the Tournament Protocol can sustainably pay out prizes and continue to function. The treasury value thus can also be seen as a verifiable onchain pool of all of the prizes that can be won by participants over the life of its economy. Redistributing this growing pool of value via the tournament is the express aim of the system.
UP DAO holds several yield bearing assets in the tournament economy as well, such as LP positions and compound bearing or liquid staked derivatives of ETH which further enhances its solvency over time.
While there are other participants in the tournament economy such as Tournament Platform users and hosts, the three components - players, TallyUP (app / game economy), and UP DAO are the three main components that make up the larger tournament economy.
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