Business Case

The Blockchain Games industry has expanded very rapidly over the last few years. The success of Crypto Kitties (launched November, 2017) initiated a wave of interest in NFT-based gaming with one the most recent success stories being Axie Infinity.

Dapper Labs, creator of Crypto Kitties was recently valued at US$7.5B based on a $250MM raise. Sky Mavis, who develops and operates Axie Infinity is valued at over US$3B based on a recent $150MM raise.

Market Tracking site Loup Funds estimates the NFT Games Marketplace to be at around US$4.3B. Conversely Newzoo estimates the overall Games Market at around US$175B in 2021 growing towards US$204B in 2024.

While the Traditional Games Market is much bigger than the NFT Games Marketplace, the CAGR for NFT Games is estimated as high as 25-30%. At least 3-4x the CAGR for the mature Traditional Games Market. The Traditional Games Market - Handhelds, Console and PC Games - is also dominated by several very large Game Publishing companies and the rate of change and innovation has slowed with the maturation of that business over the last several decades.

TAP, through our DOE dVerse Platform and Entertainment Products, plans to take advantage of the size of the Free-To-Play Games Market, but bring the dynamism of the much newer NFT-based Play-To-Earn Market. To do this we will embrace the Production Values and Game Design Ethic from F2P games, but merge in the ability of the Community to participate financially in the success of our Products and their Content. This is our new genre Free-To-Earn (F2E).

TAP's Greenlight Process as instantiated in the dVerse Greenlight Committee will be heavily based on Player and Product Data Analytics. The committee will be encouraged to primarily take into account Analytics from Market Research and high-resolution Data Analytics generated from the Operation of our Products - both during Development and Live Operation. This type of analytics-based decision making has been shown to be significantly more effective than traditional Entertainment Industry "individual opinion based" decision making.

TAP will create Value in several different models:

• Appreciation of our cryptocurrency MUSE.

• Appreciation in the value of our Collectible NFTs.

• Revenue from In-Game Object Sales.

• Revenue from Transaction Processing Fees on Player-To-Player NFT sales.