What Is FairGame?
FairGame is an online game platform powered by the Ethereum blockchain. The first game developed on the platform was FairCity. FairCity is a decentralized multiplayer online sandbox based on blockchain and utilizing the play-to-earn model. FairCity players can create their own city by acquiring lands and other assets which they then can trade for crypto as NFTs. FairCity players are rewarded FAIR tokens, the game’s native currency, for completing quests and tasks. Simply put, FAIR tokens replace experience points, so the more one plays, the more they earn.
FairGame’s subsidiary, X studio, is taking part in the creation of the first sandbox game for Oculus, Metaverse X. Players can create virtual land, buildings, and various items which can be sold and traded on the game’s marketplace as NFTs. FAIR tokens are used as in-game currency used for virtual auctions. The gameplay is a blend of Roblox and Minecraft in the sense that players have full creative freedom.
What Is FairGame – In a Nutshell
- A blockchain-based decentralized gaming platform used to run several titles including Metaverse X and FairCity.
- The in-game currency of FairGame’s titles, awarded instead of experience points and used for trading assets among players.
- Metaverse X governance tool handing the authority down to the community instead of developers.
How Does FairGame Work?
You now know what FairGame is, but how does FairGame work? To give you the gist of the gaming platform and its native token’s concept, we must shine some light on the buyback and burn mechanism, Ethereum consensus protocol, and dApps.
Buyback-and-Burn
FAIR token utilizes the auto buyback-and-burn feature controlled by smart contracts. The token burning occurs using the Proof-of-Burn consensus mechanism. Once tokens enter the burn wallet which is available to no one, they are gone forever. Buyback refers to the corporation buying its crypto assets.
In the case of FAIR, the buyback and burn mechanism maintains the token value by limiting its supply. Out of all platform’s crypto profits, 80% are directed into the buyback and burn pool consisting of Binance Coin (BNB). Smart contracts constantly monitor FAIR price and when it falls below the 72-hour average, they swap funds in the pool for FAIR tokens.
Consensus Mechanism
FAIR is powered by the Ethereum blockchain and utilizes the Proof-of-Work consensus protocol for validating transactions. This is energy intensive process.
Ethereum plans on upgrading to the Proof-of-Stake consensus mechanism that won’t require computational efforts. Instead, users can put a halt on their digital assets, using them as collateral for the right to validate transactions. When this shift happens, the FAIR token will also utilize the Proof-of-Stake protocol.
dApps Functionality
Blockchain games like Metaverse X and FairCity are leading the dApps industry, eliminating the need for authority control. The backend is controlled by the blockchain network’s users instead of a single organization, so no one can moderate user-generated content. The primary advantages of dApps include user privacy protection and full freedom of expression.
Where Is FairGame Used?
To better comprehend what is FairGame, let’s dive into its utility in Metaverse X and outside it. Below are the primary uses of the FAIR token:
Trading at the NFT Market
Metaverse X NFT market is based on the BSC blockchain. Users can buy and sell virtual assets with FAIR tokens. Each transaction has a 5% trading fee, of which 20% is instantly burned to maintain the token’s value and 80% is put into the FAIR mining pool. Metaverse X NFTs utilize both ERC721 and ERC1155 standards. To resolve interoperability issues and enable NFTs to move between blockchains and games within the meta-universe, Metaverse provides a bridging function.
Metaverse Social
Metaverse X players can share their generated content, walkthroughs, short clips, and token predictions on Metaverse Social. Authors of posts getting the most engagement will be rewarded with FAIR tokens to support the community’s growth and foster quality content. Additionally, users can earn FAIR tokens by interacting with the platform, whether creating an account or communicating with other users.
Governance
In addition to being Metaverse X’s in-game currency, FAIR tokens are used for participation in decentralized voting for aspects like game development and optimization.
Mining
Because FAIR uses the Proof-of-Work protocol, it can be mined. Since the token’s supply is limited, miners can only receive a percentage of transaction fees as rewards.
Exchange for Fiat Currencies
Like most cryptocurrencies, FAIR can be withdrawn to make real-world money which can then be used for ordinary purchases. However, it cannot be sold for fiat currencies like USD directly but must first be traded for USDT.
FairGame Founders/History
FairGame’s CEO is Goh Geok Nee, a senior blockchain architecture specialist with experience in technical management and planning in top international enterprises and financial exchanges. The company’s CWO, Chow Hon Yew, is an expert in the capital market with experience within in investment and banking industries. He has spent years working in DMA, asset management, risk management, and trading system operations. FairGame was launched in 2018.
FairGame’s subsidiary X Studio responsible for the development of Metaverse X was created in 2020 by Vietnamese game producer Nguyen Hoang.
FairGame Tokenomics
FAIR is a deflationary token, meaning its supply is limited and excess is constantly destroyed using the buyback and burn mechanism. FAIR price largely depends on gaming activities – the more users play, the more tokens they earn. When the FAIR price falls below the 72-hour average, Ethereum smart contract swaps some tokens for BNB from the buyback and burn pool. This allows controlling the token’s value by reducing its circulating supply.
The total FAIR circulation of 1.2B tokens was released in 2018. No more tokens will be generated in the future. At the moment of writing the article, the estimated circulating supply is roughly 701M FAIR. According to publicly available data, 50% of tokens were distributed among investors, 20% were given to the development and operations team and locked for two years to keep the interests of all parties aligned, and 20% were allocated to the FairGame platform development foundation, and 10% to platform rewards.
How Is FairGame Created/Mined?
No new FAIR tokens can be created because the token has a maximum supply of 1.2B which was released upon the launch, and no new tokens will be generated. However, more tokens can later enter the circulating supply from buyback pools if the developers deem it necessary.
Because FAIR utilizes the Proof-of-Work mechanism, it can be mined, but it cannot be staked. One can mine FAIR using central processing units (CPUs), general processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs).
Miners validate FAIR transactions from unconfirmed data blocks by checking the hash. Then, the block is added to the blockchain. Miners earn a portion of FAIR sourced from the transaction fee for validating it.
FairGame Competition and How It Fares
To determine which tokens are FAIR’s primary competitors, we should outline what FairGame is. It’s Metaverse X in-game currency. Consequently, it competes with other decentralized sandbox game tokens like Decentraland (MANA), The Sandbox (SAND), and Axie Infinity (SLP and AXS).
Decentraland is a 3D browser platform game where users can buy land and create buildings and other digital assets which they can sell as NFTs for MANA. The game was launched in 2020 and has since acquired over 8,000 daily users. The developer company partners with Kosmos Ventures, Genesis One Capital, Metaverse Group, and other large names in the industry. MANA has a max supply of roughly 2.2B tokens and a circulating supply of $1.8B tokens at the moment of writing the article.
The Sandbox is an Ethereum-based virtual universe where players can build property and create avatars and items. Digital assets in the game are NFTs which can be sold and purchased in the native marketplace. The title has about 1,180 daily users. The SAND coin has a maximum supply of 3.0B tokens and a circulating supply of roughly 1.4B tokens.
Axie Infinity features slightly different gameplay — users breed fictional characters Axies and participate in battles to earn SLP, similar to Pokemon Go. Each Axie is an NFT. AXS is the game’s governing currency. SLP has a self-burning mechanism and unlimited inflationary supply, whereas AXS has a hard cap of 270M tokens.
FairGame Partnerships and Investors
Little is known about FairGame’s initial funding rounds. In august 2021, FairGame announced its subsidiary X Studio raised roughly $1.5M in funding from Lion Group, LinkVC, IMG Fund, Chain Games, MXC Labs, CryptoAngel, and other institutional investors.
In May 2021, FairGame reached a strategic partnership with ChainSwap. ChainSwap is a cross-chain asset bridge allowing Metaverse X players to sell and buy digital assets for ERC721 and ERC1155 tokens powered by Ethereum and BSC chains.
Notable FairGame partners include dApps Market, Shimauma dApps, CryptoBit Games, Coindoo, BlockOnomi, BlockchainGamer, Huobi, and OKX.
FairGame Strengths, Weaknesses, Opportunities, and Threats
Strengths
One of the FAIR coin’s primary strengths is its deflationary supply regulated by a hard cap and buyback and burn mechanism. In this model, the value is expected to rise if the demand remains consistent. Another point that makes FAIR stand out is that Metaverse X is one of the first blockchain-based virtual reality games for Oculus.
Weaknesses
Metaverse X’s image suffers from a lack of transparency regarding the company, its investors, and its roadmap. The difficulty to find information creates ambiguity in attempts to predict the project’s future and FAIR value swings and evaluate its legitimacy, which might prevent some users from onboarding the platform. Another pitfall is that FAIR cannot be purchased for fiat currency or traded for other cryptocurrencies apart from USDT. FairGame’s first creation, FairCity, currently has about 23 active users monthly.
Opportunities
FairGame platform provides users an opportunity to shape their virtual reality by creating digital assets and participating in decentralized voting. Because the market of blockchain games for virtual reality headsets like Oculus is still relatively new and uncrowded, FairGame has a head-start and can secure good partnerships before others do.
Threats
The primary threat of any decentralized blockchain game currently is ambiguity regarding governance and ethics. Because dApps aren’t controlled by a sole authority, they cannot be properly moderated, and the environment is at risk of becoming filled with inappropriate content. The question of who is responsible remains up for discussion. Another problem FairGame is facing is decreasing interest in the release because of a lack of news and updates. The company’s online presence hasn’t been strong recently, although the game was supposed to be launched back in 2021.
FairGame Roadmap
According to the FairGame whitepaper, the company plans on starting transaction fee buyback for destroyed tokens in the second quarter of 2022. Additionally, FairGame will launch an in-game NFT mystery box extraction campaign to increase interest in the title. Submitting the game’s mobile version to AppStore and Google Play Store should help expand the player base.
FairGame Updates, News, and Highlights
In July 2021, FairGame announced on its Twitter account that it will join Binance Chain’s Valuable Builder ll Program intended to drive innovation in the BSC ecosystem. The project provides winners with increased interest from investors and the public along with a $10,000 grant.
In November 2021, FairGame announced the beginning of a new game’s development on its Medium account. The title known as PrimalX has the same concept as other games built on the platform – it’s a decentralized virtual world adventure revolving around NFTs which can be sold and purchased for native tokens PMX and PMG.
Later that month, the company revealed its $1M investment in DGG Guild, which will take part in the first Crypto Sega games batch launch. The investment will be used for DGG Guild’s market promotion and community construction.
Benefits and Pitfalls of DeFi Gaming and How FairGame Addresses Concerns
The short answer to what is FairGame is — a decentralized blockchain play-to-earn game, so learning about the advantages and pitfalls of DeFi games might provide you with a deeper insight into the project’s future.
The best thing about FairGame and blockchain games, in general, is the lack of an authority’s control, eliminating censorship and giving players voting rights. Community-led games aren’t dependent on the decisions of a single entity but on an entire user network. Plus, DeFi games give players an opportunity to earn real money from selling NFTs. In the global sense, DeFi games promote blockchain technology adoption and boost the need for crypto ecosystem developers.
However, the decentralized model comes with caveats. Users within a large community might have different incentives and manipulate the FAIR token’s value to meet their objectives. There’s also an increased risk of the gaming environment becoming filled with inappropriate content. Lastly, the cryptocurrency market is extremely volatile, especially when it comes to in-game currencies that are usually inflationary. FairGame tried to resolve the issue by limiting FAIR supply and creating buyback and burn pools.
Unfortunately, many DeFi game projects lose ground soon after launch because they fail to retain user interest. The reason could be the slow technology adoption rate in recent years, although 2022 has shown an improvement — the number of active blockchain games has increased by roughly 92% from a year ago. Still, marketing strategy and innovation are crucial for new DeFi projects. The obscure position of the company and lack of advertising effort or updates from FairGame’s end don’t encourage potential players to join the game.
Where To Buy FairGame?
You can trade FAIR for USDT via OKX exchange, but you cannot purchase it with fiat currencies at the moment. First, you need to buy USDT with fiat money. OKX supports numerous payment methods including Visa, Mastercard, ApplePay, and bank transfers for your convenience. Then, you can exchange your USDT for FAIR at the current market price.
How To Store FairGame?
You can store your FAIR tokens right in the game’s wallet, whether you’re playing FairCity or Metaverse X. The wallet can be used to buy and sell your digital assets in the game but not trade FAIR for other currencies.
Alternatively, you can store FAIR in OKX Wallet which supports all Ethereum-based coins. OKX employs strict security protocols and further practices like two-factor authentication. Our hot-wallet architecture is the safest way to store crypto assets apart from cold wallets (offline crypto storage). We use semi-offline multi-signature mechanisms to verify deposits and withdrawals. You can also store FAIR in other compatible web wallets.
OKX Wallet currently doesn’t allow withdrawing FAIR directly. However, you can trade it for USDT at any moment to withdraw real-life money via OKX mobile app.
FAQ
Can You Stake FAIR?
FAIR token utilizes the Proof-of-Work mechanism, so it cannot be staked. However, users can mine it and receive a portion of transaction fees as rewards. Ethereum blockchain is planning on migrating to the Proof-of-Stake mechanism in the future, so there’s a chance the token will be possible to stake after this happens.
What Is FAIR’s Maximum Supply?
The FAIR token has a hard cap of 1.2B tokens, released in 2018. FairGame will not create any more FAIR tokens. Half of the initial token supply was allocated to investors, 20% to the development and operations team, another 20% to the FairGame platform development foundation, and the remaining 10% to game rewards.
Will the FAIR Token Be Used in FairGame’s Future Projects?
The FAIR token is currently used in two FairGame projects, FairCity and Metaverse X. Later company’s projects utilize different in-game currencies. Although it is possible that FAIR will appear in future FairGame projects, the company has made no announcements regarding its plans for the coin.
What Makes FAIR Unique?
Metaverse X is one of the first blockchain-based decentralized sandbox games for virtual reality headset Oculus owned by Meta.
Is FAIR Deflationary?
FAIR is deflationary because it has a hard cap of 1.2B tokens. Inflationary coins have an unlimited supply that constantly increases in circulation. Plus, FAIR has a buyback and burning mechanism that helps FairGame control the circulating supply to manipulate the coin’s value by maintaining the demand (at least in theory).
Can You Buy the FAIR Token With Fiat Currencies?
Currently, you can’t buy the FAIR token with fiat currencies like USD via crypto exchanges. You first need to buy USDT for fiat currency and then trade it for FAIR. You can do this with OKX.
How Do I Earn the FAIR Token in the Game?
To earn FAIR in Metaverse X, you can complete quests and tasks, battle in Arena Mode, interact with other users, and post content on Metaverse Social. Alternatively, you can create digital assets like buildings, avatars, and clothing items and sell them to other players for FAIR.
Can You Withdraw Money for FAIR via OKX?
Although there’s a way of turning FAIR into fiat currency, you cannot directly withdraw USD for FAIR. You first need to trade FAIR for USDT via OKX exchange. Then, you can withdraw the value of your USDT in USD from your wallet in the mobile app.
