# ACXYN


**Introduction**

The gaming industry has long had huge markets where users can trade virtual items, weapons, armor, etc. Some markets allow you to receive virtual currencies that cost nothing, and somewhere players earn real money (for example, the Steam marketplace).

It turns out that most gamers are already familiar with digital currencies and platforms, but many virtual currencies in games have no value outside the gaming industry. For example, if a player buys currency in the game and some things for it, then often he cannot withdraw these things back to fiat.The solution to this problem is GameFi.

GameFi is a combination of games and finance, which will allow gamers to combine business with pleasure: play and make money on it. And the blockchain will give this construction reliability, decentralization and transparency. We can also monetize the Intellectual property of these games through the tokenization of that IP.

The GameFi industry offers developers the opportunity to create new meta-universes and game worlds filled with creatures, events, objects and, most importantly, with their own in-game economy that attracts many players. Users can make money from in-game activities while enjoying the process. Blockchain game genres range from action to strategy. Gaming applications are also useful because they introduce newcomers to cryptocurrencies and decentralized finance in a simple, unobtrusive manner.

Almost all blockchain-based games are accompanied by a corresponding in-game currency, marketplace, and token economy. Unlike traditional gaming, there is no centralized authority in control. Instead, GameFi projects are usually managed and governed by the community, with players even able to participate in decision-making.

**While the mechanics and economics of individual GameFi projects may differ, there are a few commonalities:**

* Blockchain Technology: GameFi projects run on a blockchain’s distributed ledger. This keeps track of player ownership while ensuring that all transactions are transparent

* Play-to-Earn Business Model: In contrast to traditional gaming, where users play to win, GameFi projects adopt a P2E model. These games incentivize players to play and progress within the game by offering rewards that have measurable value outside of the game. These usually come in the form of in-game cryptocurrencies or NFTs

* Asset Ownership: In traditional gaming, in-game purchases are non-transferable investments locked within a single game. With P2E, players own their in-game tokenized assets. In most examples, they can exchange them for cryptocurrencies and, ultimately, fiat. Assets can range from a suit of armour to a plot of virtual land, which are tokenised on the blockchain

* DeFi Solutions: Many GameFi projects may also include decentralized finance (DeFi) elements, such as yield farming, liquidity mining, and staking. These provide additional avenues for players to increase their token assets

But there is a problem.. A big problem with games in general.

**60% of all web3 games fail** before ever getting a chance to succeed. This is due in part for 4 key reasons.

1. The most important thing is the lack of funding: Indie developers often have limited resources and funding which can lead to lower-quality graphics and gameplay, making the game less appealing to players.

2. Poor Marketing: Many indie games lack the marketing and promotion budget that larger studios have, making it difficult for them to reach their target audience and generate interest in their games.

3. Competition: With the increasing popularity of gaming, the market is becoming more saturated with indie games, making it more difficult for new titles to stand out and gain traction.

4. In-game economy dependence: It was very apparent through the initial rush to build and deploy web3 games that developers felt pressured to have a token economy before actually having a game that people wanted to play. Therefore not being able to sustain themselves when the markets turned and their token losing over 90% of its value.

Acxyn can change and satisfy all of these needs by leveraging blockchain and allowing players and devs to own assets, their Intellectual property and solve the royalties problem facing our industry with NFTs and quantify returns. Acxyn will also establish Community Creation Assistance or (CCA). By creating community driven games that can sustain themselves so devs can concentrate on their game and let Acxyn do the rest. This will allow the game itself to shine and gain traction. Acxyn is pushing forward the web3 game space with a full plug and play suite of SDK tools and data analytics for each and every team. Acxyn will be there every step of the way on their journey with its Incubator program.

**Vision**

To become the economic catalyst for all games scaling into Web3 - providing critical access to Web3 and creating a globally recognized valuation framework to properly value games.

**Mission**

To positively impact the gaming development community with a innovation-driven mindset around game economics and commercial opportunities - supporting game devs with the tools to adopt and benefit from Web3 seamlessly, and providing them with the valuable insights that will improve their product and their valuation.

What are we creating for defi in web3 gaming?

1. An optimized vault interface for developers who want to integrate it. 

2. Giving shares as an exchange for deposit where shares serve represent fractional ownership of the vault's underlying token 

3. A consistent standard for developers to work with in developing yield-bearing contracts 

4. Battle-tested security for vault tokens 

## The benefit for Web3 based games on Acxyn

Acxyn is economic infrastructure for studios and developrs so they can scale the web3 game economy. It will provide substantiated decentralized financial instruments and a SaaS model for developer tooling. Community driven systems with data collection, anaylics, rewards, tokenized Intellectual Property valuation and the GGV score (Gross Game Value) for the benefit of those that build with Acxyn.

Acxyn will be the first of its kind with not just a platform for game development but a full suite of defi products. This will allow the developers and studios the most advantageous opportunity to succeed. Anyone looking to develop games won't have to worry about the problems they face as a whole because Acxyn will take care of that for them. Through this method the developers won't have to be pressured into trying to create an in-game economy to support their development but can build a game players want to play. The value of that game is what coincides to the tokenization outside of the game itself and within the Acyxn Financial Model.(AFM)

We will be able to greatly reduce that 60% fail rate and open the floodgates to anyone looking to build in web3. The Acxyn Incubator will be a major part of the contribution in their success.

Acxyn will be launching on Binance chain which holds the most liquidity and provides the most active users. This will only compound the returns and efforts of any and all who want to build with Acxyn.

With these in place Acxyn will exemplify the highest levels game standard creation for all of Web3 and allow investors and large instituion to feel more comfortable in supporting this ever growing space.

## The GGV (Gross Game Value)


The GGV is a scoring system for game developers that will allow them to gain rewards through the Acxyn token $ACX. By creating games with Acxyn they will have the oppportunity to succeed where so many fail. Why? Because by participating in the Acxyn ecosystem they will be able to leverage web3 for monetizing their game and more importantly being able to fund themselves while building it.

The GGV works like a credit score for their game and community. They can recieve a higher amount of rewards in $ACX by striving for and holding a higher GGV score. The Proof of Fun algorithm allows them to think of the GGV as mining rewards in Acxyn.

They earn this score by utilizing Acxyn tools and platform and building games players want to play. They are community driven games where their users can participate in game. That can be in goverance or exchanging of in-game assets. The purchasing of NFTs or staking of IP tokens(Intellectual Property tokens) from the games they choose to play that will benefit the game dev teams and their communities they create.

The game devs also have the opportunity where they can be validating the Acxyn network and participating in Acxyn governance with their rewards and earning towards fee reduction and/or those rewards going to tooling and other incentives from the Acxyn platform.

How? By being block validators and aggregators of the Acxyn Network and earning $ACX tokens. That is why the GGV Score is crucial for their development. It allows them to gain further access to everything availble on the platform and to earn enough they can fund themselves in building their game.

If you would like to learn more about the technical inner workings of the **GGV score and caculation look**[here](https://hackmd.io/t1Hqcs2BRTmPBH5jaLobdA?both).

## Proof of Fun mining with Acxyn


***Empowering developers to build thriving games, Acxyn’s Proof-of-Fun algorithm offers a new path to success.***

Acxyn is building out critical economic infrastructure for video game developers by introducing the industry's first decentralised Proof-of-Fun algorithm. This innovative mechanic is designed to help developers monetize their games and earn rewards in return for contributing data or other value to a decentralized valuation process.


At Acxyn, we believe that the future of gaming includes experimental mechanisms like Play-to-Earn, which can be successful and sustainable if built on top of independent, yield-bearing liquidity layers. However, Web3 games often face challenges in managing their in-game economies, particularly during the early stages of their lifecycle when rapid user growth can lead to imbalances in supply and demand for in-game assets. This is further complicated by the difficulty of tokenizing a majority of game assets while maintaining control of the economy.


To address these challenges, we are creating the ultimate metagame - an economic game that all video game developers can build on top of and benefit from. Our solution offers developers alternative yield-bearing strategies and allows them to focus on the key value driver of video games: creating fun and engaging experiences that attract and retain players. By leveraging our technology to streamline tokenization, development, and value accrual, the most successful developers will be able to create sustainable and highly competitive games.


Through the ***Proof-of-Fun*** algorithm, developers can participate in Acxyns ecosystem by contributing game data, such as player engagement and in-app purchases, to the valuation framework. In return, they receive a transparent valuation score that distributes rewards in Acxyn tokens for their participation. These tokens can be used for the Acxyn Financial Model (AFM) or traded on cryptocurrency exchanges, providing developers with unique game monetisation opportunities.
In addition our tokens can be used as:

1. Liquidity incentives.
1. Player Bribes.
1. To provide a liquidity denominator for in-game currencies.
1. To participate in Acxyn governance.
1. Pay for Acxyn fees and tools.
2. Drive community involvement creating a closed loop economy.

The algorithm is based on a decentralized valuation framework that captures data critical to valuing a video game. This framework uses data from a range of sources, including developers, players, and other stakeholders, along with mathematical and statistical techniques, to calculate the value of a game. By using a decentralized approach, Acxyn aims to provide a transparent, objective, and fair method for evaluating video games and rewarding developers for their efforts.

This algorithm is a pioneering approach that could potentially revolutionize the way video game developers monetize their games and earn rewards. It allows developers to earn additional rewards for their development efforts while providing them with new game monetisation possibilities. All of this without the pressures of having to build an independent token economy within their own game.

In addition to providing a valuable monetization and reward mechanism for developers, the Acxyn token and ***Proof-of-Fun*** algorithm can also help players and investors make better choices in Web3. By providing a transparent and decentralized valuation framework, Acxyn can give players and investors a clearer understanding of the value of different games and the factors that contribute to that value. This can help them make more informed decisions about games to play or invest in.

Overall, the Acxyn token($ACX) and ***Proof-of-Fun*** algorithm can significantly impact the web3 gaming industry, and could potentially shape the way that games are monetized and valued in the future. By providing a transparent and decentralized valuation framework, Acxyn can help developers, players, and investors to succeed and drive the growth and success of the industry.

## Acxyn Intellectual Property Valuation and Decentralized Rights


To be able to value an IP asset, the asset should meet the following conditions:

1. It must be separately identifiable (subject to specific identification and with a recognizable description)

2. There should be tangible evidence of the existence of the asset (e.g. a contract, a license, a registration document, record in financial statements, etc.)

3. It should have been created at an identifiable point in time.

4. It should be capable of being legally enforced and transferred.

5. Its income stream should be separately identifiable and isolated from those of other business assets.

6. It should be able to be sold independently of other business assets.

7. It should be subject to destruction or termination at an identifiable point in time.

### Valuation method
The principal method for valuing IP assets inside of Acxyn are:
**Income method**
The income method is the most commonly used method for IP valuation. It values the IP asset on the basis of the amount of economic income that it is expected to generate, adjusted to its present day value. This method is easiest to use for IP assets with positive cash flows, for those whose cash flows can be estimated with some degree of reliability for future periods, and where a proxy for risk can be used to obtain discount rates.

Having everything on-chain will be incredibly efficient and transparent for the valuation of new game companies working with Acxyn. We will adopt this method for new entries. It could include their initial raise as well.

Following this method we will predict the future income by utilizing the SiRE algorithm. A proven source using limited market data with robust computation and Silverman's rule of thumb for Kernel Density Estimation.

Cross reference those findings with others within Acxyn and counterparts in Web2 for existing game revenue.
Apply the GGV discount factor with the Capital Asset Pricing Model (CAPM), which takes into account the market trend for determining the rate of discounting.

This is how we come to Net Price Value (NPV)

Acxyn will be the gateway for Game Developers to protect their property and value while being able to accrue said value and monetize it by allowing the licensing of that property to be sold or borrowed against for their own benefit.

The Acxyn Trust will allow each team to create a ERC-4626 Vault and mint an ERC-1155 token representing their IP value. The development of intellectual property assets is crucial to the innovation, competitiveness and sustained growth of an entity.

These assets may also be leveraged as another source of revenue, strengthening overall profits and diversifying risk. Often, intangible assets are developed as a part of a company's overall productivity and growth.

For example, as a company grows and increases its presence in the market, it gains a reputation with consumers. This reputation is most often tied to a brand name which which serves to identify its products to consumers – in fewer words, a trademark. While some intangible assets contribute to the main economic benefit of the company, as is the case when a trademark keeps customers coming back to the same product sold by a specific business, additional means of revenue may be generated through supplementary monetization means.

For example, ancillary intangible assets often become by-products of the main business. Rather than being pushed to the sideline, these ancillary intangible assets may nevertheless be leveraged to generate revenue. In other instances, main intangible assets may be monetized to generate multiple streams of revenue rather than the traditional single stream revenue.

Accordingly, the task of managing and introducing intangible or intellectual property assets into revenue streams requires an overarching strategy, specifically tailored to the business practices of game development and game economies.

This is where Acxyn can help the most.

**Intellectual Assets: Valuation and Capitalization**

The income approach (method) is how Acxyn will substantiate the valutation and keep with the ethos of decentralization and transparency by keeping everything on chain.

The income method in its broad sense is considered to be the principal method of establishing the value of IP rights. The comparative sales method (the market method) and the cost approach may be used to supplement the income method.

The income method has many variants, which are often referred to as separate methods. Principal variants of the income method:

• Method D1 - Royalty relief;

• Method D2 - Discounting/capitalization of
advantages in income;

• Method D3 - Discounting/capitalization of
cost savings.

Each of the three main variants can be applied in two modified forms, designated by the letters
(a) and (b).

Modification (a) is based on the capitalization of the average profit or cash flow,
while modification (b) is based on the discounting of expected cash flows or expected profits.

In each case either profit (before or after tax) or cash flow may be selected as the indicator of profitability.

The modifications of all three basic variants of the income method which have the best underpinnings in theory, and at the same time are the most complex, are based on cash flow discounting, while the simplest modifications are based on direct capitalization of profit. Selection of a method is defined as a compromise between a desire for a high-quality result and a judicious desire for simplicity in the valuation procedure.

**Cash flow discounting**

In order to establish the market value of IP rights, method D1 is most convenient, used either in modification (a) with capitalization of profit (before tax) or in modification (b) with discounting of expected profit (also before tax). This method is most suited for valuing patents and licenses for sale. The basis used for the calculation is the assumed license payments in the form of royalties - regular payments calculated as a percentage of the earnings received as a result of the realization of production under license. The size of the royalties is determined in the light of previous experience, using a special table of standard industrial royalties or some other relatively simple method.

The calculation method may be broken down into the following seven stages:

1. A forecast is prepared of the volume of sales from which the payment of royalties is expected. The forecast is prepared in physical and value terms and broken down by year or shorter Interval.

2. The royalty rate is determined. If experience in the sale of licenses of a similar type is lacking, the data is taken from the tables of standard royalty rates.

3. The economic life of the patent or license is determined. It may be significantly shorter than the legal life, if the invention becomes obsolete before the validity of the patent expires.

4. Expected payments in the form of royalties are calculated. As a rule, royalties are deducted from the volume of sales in value terms for the periods into which the entire economic life of the patent or license is broken down. But royalties calculated on the basis of the number of units of manufactured products are also used.

5. From the expected payments in the form of royalties are deducted all costs associated with maintaining the patent in force etc. (if they are of the same order of magnitude as the expected royalties).

6. The discounted flows of the profit obtained from payments in the form of royalties are calculated. The discounting coefficients are determined on the basis of the sphere of application of the invention and of industrial and individual risks.

7. The discounted value of the profit flows for the entire period is determined. For this discounting operation the profit flows are added together.

The flow of profit in the current year is recorded with coefficient 1. It is considered to consist of those resources which are received or must be paid immediately. For each subsequent year the discounting coefficient is obtained by multiplying the coefficient for the preceding year by the value

1/(1+r)=100/(100+discount rate)

where r is the discount rate expressed in decimals (it is equal to the discount rate in per cent divided by 100). The sum obtained is known as the present value (designated PV10). It may be
expressed by the formula:

$$PV\ =CF_{0}+\frac{1}{\left(1=r\right)}\cdot CF_{1}+\left[\frac{1}{\left(1+r\right)}\right]^{2}\cdot CF_{2}+...+\left[\frac{1}{\left(1+r\right)}\right]^{T}\cdot CF_{T}$$

Where PV is the discounted value of the final sequence of the flows CF0, CF1, CF2, … CFT, the index 0 corresponds to the current year, the index T to the last year of use of the asset being valued. The advantages of method D1(b) are:

(1) the ability to use it both in valuing IPR (IP rights) which are already being used and in valuing IP rights whose use is only proposed;

(2) the ability to use standard industrial royalty rates.

Method D1(a), as a rule, produces a valuation which is simpler to use.

This is how Acxyn will configure the IP value of each team and its assets for NFT licensing through the platform. They will have the capability to monetize this and tokenize and distribute outside the platform in the traditioinal sense of branding and marketing.

## How the protocol functions


**Beginning with the Acxyn Platform** game developers are allowed a tiered system of subscription based SDK tools for Plug, Play, and Profit. Depending on their success in developing a game players want to play, they can attain a GGV score. (Gross Game Value ) This functions like a game earned credit score. It will facilitate token distribution of $ACX Rewards from the protocol and offer them more incentives and potentially more tooling and data analytics.

The game developers can offer bribes to players with $ACX Rewards they have collected to support their game and grow their own community before offering their own token economies distinct to their game. This can be done through $DACX (Data ACX). These are like SATS to BTC, they make up bits of data that is monetized and sold through Acxyn Platform. The data bits help game devs support themselves and earn.

More from the GGV score from the Acxyn Platform opens up Acxyn Defi. This allows the teams with high GGV scores more financial instruments including: Intellectual Property Collateralization and Licensing, Market Making, Data Oracle and Monetization, A NFT Automated Market Maker and a index IP tokens and other assets including Bonds( in the form of Asian style warrants). In the future Acxyn Swap will provide Options and Perpuatual Futures contracts.

The Platform will then be able to offer Off Chain Buy Back and Burn through the Market Making which will help support token price and offer them more incentive for Bonds and their IP token to be valued on the Acxyn Index. The Data Oracle from the monetization of the data they share and offer to better their GGV score can provide sticky liquidity to the On-Chain Treasury benefiting the overall protocol and community of Acxyn. The fee’s the teams can collect from the AMM market and minting of NFT’s. Last but not least, the IP Collateralization and Licensing which will potentially allow the game developers to borrow against and hedge their own positions inside of Acxyn Defi Platform.

## What is Acxyn Financial Model? (AFM)

ACX Finance is a suite of structured products that have been designed for Intellectual Property peg derivatives, that will allow market participants the ability to robustly hedge or speculate on the risk of a particular pegged asset (or basket of pegged assets), deviating from their ‘fair implied market value’ or changes in the valuation of their Intellectual property through Acxyns valuation scoring methodolgy.

The protocol brings three main products to the table:

**Acxyn Trust**:
This flagship Acxyn structured product leverages a variant of the ERC-4626 standard for the creation of fully-collateralized insurance vaults. The vault tokens are ERC-1155, representing a share of ownership by the depositor. Users can use these vaults to hedge, speculate and underwrite the volatility risk associated with various pegged assets and the associated IP. Token holders are rewarded from trading fees derived from this marketplace.

**Acxyn Index**:
Providing on-chain derivatives for web3 game economies, Acxyn Index is a Collateralized Debt Obligation (CDO) powered lending market for pegged assets with MEV-proof liquidations for the lending against IP. Which will include a liquidity token in $XYN to be rewarded to all $ACX holders. Lending will be done with the first of its kind Steady Coin in $SXYN (Steady $XYN). This acts like a stable coin but it is pegged to the IP value of the index and not the Dollar. The GGV will be the mechanism that decides lending and borrowing rates. $XYN functions more like the original SAI to MakerDAO by being the pooled Ether that represents the IP value of every participant in the Index. The IP is the Single-Collateral.

**Acxyn Swap**:
Providing a secondary market for the trading of tokenized IP and $XYN, Acxyn Swap is an on-chain RFQ(Request For Quote) orderbook. What is an RFQ?

* An electronic notification sent to all Acxyn Index participants that expresses interest in a specific strategy or instrument. The sender can request a specific size on the RFQ but is not obligated to show any preference as a buyer or seller.

* An RFQ is automatically disseminated to the marketplace when a user creates a request for a specific instrument type. This can be a multi-legged spread or a single instrument type. The RFQ alerts interested participants to submit bids and offers on the specified instrument. A user can also submit an RFQ on an existing instrument where there is no market.

* Responding markets are active and tradable. You can hit, lift, post a bid or offer or continue to monitor the market.

Users can trade Acxyn platform tokens amongst themselves, both unlocking ample liquidity and repricing of semi-fungible tokens(ERC-1155) in a volitile market.

Acxyn Trust will be doployed in phase 1 on of the Acxyn platform. The index and swap will follow in additional phases.

The native token is $ACX with a genesis pre-mint of 1,000,000 tokens. This is to be made availble to game devs through the incubator and the the Acxyn Treasury with a 5 year lockup. Acxyn will mint 30,000,000 $XYN tokens for the private and public rounds of fundraising.

## Token Distribution

Acxyn will have a private sale for $ACX of 1,000,000 tokens for the Incubator and Treasury. ACX is the governance token of Acxyn and each holder of the token will have an opportunity in the governance of the protocol using Conviction Voting. The sale of $ACX will not be availble to the public later for funding.

A private and public round for $XYN will be for 30,000,000 tokens. The pie chart below represents the distribution of $XYN.


This is locked and vesting for $XYN.


## Final Conclusions

Acxyn is not just a suite of products, game analytics, developer tools or decentralized finance mechanisms but the solution to what game economies need to be successful in web3.

We will be the hub and future of game production in web3. We will do this by putting the developers first. We cater to what they want and listen to what they need. We will make sure through rigorous support of each and everyone of them that their games have everything they need to thrive in the ecosystem. Not just Acxyn's but the industry itself. Without having the pressures of in-game economies to support them they can concentrate on what is most important. Building a game players want to play. That will create a brand that they can monetize and own through the dectralization of their Intellectual Property.

We know this is the future of gaming. We want to make sure we are carrying the flag for the ethos that is community driven projects.

No game left behind.

We are Acxyn come build with us.