Business Model

Revenue on the platform primarily comes from the sale of of c redits used for in-game features and assets. Credits can be obtained in $1 refill packages or bundled in larger units known as Lootboxes. There are two types of Lootboxes:

Game Lootboxes, which can be purchased through in-app purchases in the native game app, and Affiliate Lootboxes, which can be acquired by depositing either XRP (Ripple) or USDC on the web-based affiliate app. Revenue is classified into two main types:

• Gross Revenue (GR)

• Net Revenue (NR)

Gross Revenue (GR) represents the total amount an end user spends on the platform. For example, a $1 purchase by a user translates to $1 Gross Revenue. Net Revenue (NR) is calculated by subtracting direct expenses from the Gross Revenue, resulting in Net Revenue.

Direct expenses are divided into two main categories:

• App Store Fees

• Game Prizes

App Store Fees are incurred, averaging 25% of the Gross Revenue. Game Prizes, set at 25% of the Gross Revenue, are allocated to cash game prizes, excluding any revenue from the sale of Affiliate Lootboxes. As a result, a Net Revenue margin of 50% is achieved:

This breakdown clarifies the revenue generation and calculation model, providing a transparent framework for comprehending the platform's financial dynamics.

The platform's Net Revenue is efficiently distributed among five distinct parties, with each transaction being allocated in real time as follows:

Net Revenue payouts are executed according to the source of Revenue, ensuring a transparent and efficient distribution:

• Net Revenue generated from transactions outside the app stores is distributed in cash in real-time, allowing immediate financial recognition.

• Net Revenue originating from transactions within the app stores is distributed in tokens in real-time, offering a tangible asset for platform engagement.

• Tokens received as a bonus can be traded through the token trading pool, accessible post-listing, providing a liquid avenue for realizing bonuses.