Future of Games in Blockchain Era Ilia Polessky Ambassador FREED

Online games in 2017 Ref: NEWZOO’S 2017 REPORT: INSIGHTS INTO THE $108.9 BILLION GLOBAL GAMES MARKET, Bitsify.net, www.steemit.com 2.3 Bn gamers in the world $109 Bn revenue 90% gamers never pay $0.25 Bn (4,4%) collected by ICO 02

Key driver: mobile games Ref: App Annie 2017 Retrospective - www.appannie.com $86 Bn money spent +105% last 2 years 1,5 months time spent +30% last 2 years 175 Bn downloads +60% last 2 years 03

Key driver: mobile games Ref: App Annie 2017 Retrospective - www.appannie.com Money spent ...while others: Music +70% Movies +195% PC/Console games +70% +105% last 2 years Growing: China +270% USA +75% Japan +60% S. Korea +80% UK +25% Downloads TOP 5: China +125% India +20% USA -5% Russia (OAR) +30% Brasilia +30% +60% last 2 years 04

App using: Ref: App Annie 2017 Retrospective - www.appannie.com 3 hours/day games up to 30% of time 2 hours Europe (minimum) 4 hours Asia (maximum) 05

In-game items Ref: WAX/OpSkins, DMarket $3…50 billions (or more) 06

In-game purchases: examples Ref: http://livegm.ru/409-samye-dorogie-skiny-v-cs-go-top-10-chast-2.html http://ubiznes.ru/samye-dorogie-veshhi-v-mire/top-5-samyx-dorogix-veshhej-v-dote-2.html https://successstory.com/spendit/most-expensive-virtual-items-in-video-games $2,500,000 Calipso Planet $38,000 War Dog $43,575 AWP Dragon Lore 07 Entropia Universe DOTA CS GO

Blockchain: key changes for games no intermediary marketplaces engines publishers storages paywalls etc. 08

Key changes: from o -chain to blockchain Transactions and economy Cross-platform development 20k games selected by Steam 2,2 bln copies Average price $15 High commission rates Up to 1 month cash-out delay Only approved transactions High Commissions No instant transactions As a result: "black market" of game items Platform limitation: the game is developing only for one platform, for example SpacesVR-Oculus Games selected by gamers Second-hand games (25%) Average price $1.99 Commission fee: 5% Instant cash-out Mining Sale on public sites Selling out of games Transparent terms No limitations - the game is creating for several platforms and can be integrated by using an open API New Marketplaces Steam Existing marketplaces Robot Cache Upcoming marketplaces 09

Blockchain: what else? Decentralized storages No cheats and special programs New mechanisms for consensus of the game community Unhackable decentralized games Cross-games assets and characters Cross-games alliances Gross-games balancers End-to-end characters Combining virtual and real things in VR games IoT in games 01 02 03 10

Blockchain: key changes for gamers money from games fundrising for games in uence on the development transparent pricing sharing of user’s devices 11

How the gamer can in uence on the development of the game Games appear on alternative markets, which are created by using the blockchain tech The subscription fee is distributed among publishers of games based on the TSG rating (Time Spent In Game / In-game-playtime) and directly a ects the development of "playable" projects. New monetization models allow the gamer to get access for an adequate fee to the large number o f games that can be sold as a second-hand 12 01 02 03

Tokenization: lifebuoy for developers? Decentralization of audit and decision-making Open API Cryptocurrencies 13

GD's hierarchy of needs 14 Legend Community Promotion Monetization Development

Dark side of tokenization Tokenization allows a completely new person instantly get high-pumped game’ character, or the achievement which takes months and month of playing. LTV changes Game balance Community impact 15

Most games can live perfectly without any Blockchain-based tech… …but they can’t live without the right monetization model 16

ICO market: games and gaming software 17 8 Circuit Studios - failed A game development ecosystem GameFlip – pre-sale Decentralized ecosystem GameMachine – ICO Blockchain-based Open Ecosystem for a Game Industry IZX – ICO A Blockchain-based Games Platform with elements of augmented or virtual reality HashRush – failed Marketplace + Blockchain Beyond The Void – $0.1, failed Prospectors – $0.3 Mainasset – ICO Skara – ICO Ether Legends – pre-sale Lordmancer 2 – $1 Decentraland – $26 mln A blockchain-based virtual reality world Reality Clash – $2.5 Augmented reality combat game Playkey – $10.5 Dmarket – $19 Exchange platform Chimaera – pre – sale Iqeon – $0.9 AstorGame – pre – sale eSport & Online Gambling platform NITRO – $2.7 A gaming cryptocurrency SRG – $3.1 Loyalty program Enjin Coin – $23 A gaming cryptocurrency Back to Earth – $0.9 ViMarket – pre – ICO GameX – ICO A gaming cryptocurrency Worldwide Asset eXchange (WAX) – $68.4 A decentralized platform operating a fully functioning virtual asset marketplace DEVELOPMENT AND SERVICES GAMES PLATFORMS CRYPTOCURRENCES AND INFRASTRUCTURE

Gaming ICOs have a lower percentage of failure* 18

Focus №1: virtual assets REAL PROPERTY RIGHTS MARKETPLACES CRYPTOCURRENCIES Assets in games get real property rights and become freely convertible. You can sell them to anyone, because the Blockchain-based tech can track all ownership changes. There are new marketplaces and payments systems for the sale and exchange of virtual property. We get a fundamentally di erent level of con dence, security and transparency for in-game exchange, sales and the economy because now it is powered by Blockchain tech. 19

Focus №2: games FUNDS/MONEY ENGINES AND TECHS OPEN APIs VR is the development driver not only for “o chain” games, but also for blockchain based games. The decision about what to create and how to distribute rule by the players. Direct investments and crowd nding now supported by owning the real money. Technologies give new opportunities for development. Instead of renting expensive cloud services, some of the development can be done with the help of private decentralized networks. 20

Say "hello" to the new type of games CryptoKitties Decentralized game Up to 18% of the tra c of Ethereum netw. * $ 3.2 billion turnover of the system Up to $ 0.6 mln for one cat 21

Focus №3: new opportunities E-SPORTS NEW WAYS OF MONETIZATION GAMBLING INTEGRATION Indie developers get independence from major intermediaries and get fundamentally other levels of (low) costs. Monetization of games can be fully realized through alternative mechanics (no in-apps, no adv), which provides tremendous creative possibilities. The world of online games closely integrates with the neighboring fast-growing market - the gambling market. The potential volume of the segment is hundreds of millions. 22

FREED: supercomputer by idle gamers' PCs Gamer HPC Customers Game Developers 23

FREED: new model of monetization Money for the game devs Gamers provide FREED their devices for computing. FREED unites the gamers' computers into a high performance entity. HPC customers pay FREED for computing. Game publishers are rewarded by FREED for utilizing gamers’ devices. The gamers receive valuable in-game rewards from the game publishers. Free games for gamers 24

Marsenary: integration of FREED 25

Marsenary: integration of FREED 26

Thank you! Ilia Polessky Ambassador FREED ilyapoles@gmail.com freedcoin.io