🎮 Kanna Gaming League Revival
Complete Tokenomics & Structure Breakdown
System Overview
Key Objectives
- Sustainability: Fund the league through automated protocol fees (3-5% on trades/mints) rather than manual admin work
- Automation: Use Discord bots to handle scheduling, scoring, payouts, and wallet linking
- Monetization: Create a "money vehicle" for owners, players, and fans without direct gambling
- Skill-Based: Rewards tied to analysis, performance, and participation—not pure chance
- Decentralization: Independent team economies via liquidity pools create market-driven "odds"
Three-Token Ecosystem
Fixed forever. For KannaKrew ecosystem (merch, events, culture)
Same policy, cumulative with burns. For league activities
New policies per season. Independent team economies
Separation Philosophy
| Entity | Focus | Token | Connection |
|---|---|---|---|
| KannaKrew (KK) | Cannabis culture, merch, events, content | KK Token | Swappable via KK/KGL LP |
| KGL | Esports league, tournaments, predictions | KGL Token | Independent but linked |
| OG Skunks | Inner circle NFT (134 minted) | N/A - Provides perks | Bridges both ecosystems |
Glossary of Terms
Blockchain & Cryptocurrency Basics
🔗 Blockchain
A digital ledger (like a shared database) that records all transactions publicly and permanently. Think of it like a spreadsheet that everyone can see but no one can fake or delete entries from. Cardano is the specific blockchain we're using.
💰 Token
A digital asset (like digital coins or points) that lives on a blockchain. You can own them, trade them, and use them for specific purposes. In our system: KK Token, KGL Token, and Team Tokens are all different types of tokens with different uses.
💎 NFT (Non-Fungible Token)
A unique digital item that can't be replaced 1-to-1 (unlike regular tokens where 1 = 1). Think of it like a collectible trading card. The OG Skunks are NFTs—each one is unique. Unlike tokens where having 100 KGL is the same as any other 100 KGL, each Skunks NFT has its own ID.
🔑 Wallet
A digital app (like Nami or Eternl) that holds your tokens and NFTs. It's like a digital bank account but you fully control it—no bank in the middle. You connect your wallet to Discord to prove you own tokens and receive rewards. Wallets are free to set up.
⛓️ Cardano (ADA)
The blockchain platform we're using. ADA is also the name of Cardano's native cryptocurrency (like how Ethereum has ETH). We chose Cardano because transaction fees are super cheap (~$0.15) compared to other blockchains.
📜 Smart Contract
A program that runs automatically on the blockchain. Think of it like a vending machine: you put money in (input), it automatically gives you a snack (output)—no human needed. Our system uses smart contracts to automatically distribute rewards when a team wins.
🆔 Policy ID
A unique identifier (like a serial number) for a token on Cardano. It's set when the token is created and can't be changed. KK and KGL tokens have one policy ID each (stay the same forever), while Team Tokens get new policy IDs each season (like a new edition).
💸 Gas Fee / Transaction Fee
A small cost (in ADA) to perform actions on the blockchain—like sending tokens, minting new ones, or trading. On Cardano it's very cheap: ~$0.15-0.20 per action. This fee goes to the network (not us) to keep the blockchain running.
Trading & Liquidity
💧 Liquidity Pool (LP)
A "pot" that holds two types of tokens so people can trade between them instantly. Instead of finding someone who wants to trade with you directly, you trade with the pool. For example, a Team Token/KGL LP holds both Team Tokens and KGL Tokens—you put KGL in, you get Team Tokens out. The pool automatically adjusts prices based on supply and demand.
Why it matters: Each team has its own LP, so trading activity creates independent "market odds" for each team based on demand.
🔄 DEX (Decentralized Exchange)
A website/app where you trade tokens directly from your wallet—no middleman like a bank or broker. We use Minswap (a DEX on Cardano). You connect your wallet, pick what tokens to swap, and it happens instantly via smart contracts. Think of it like a 24/7 automated currency exchange booth.
🔀 Swap
Trading one token for another on a DEX. Example: You "swap" 100 KGL Tokens for 500 Team Tokens. The DEX uses liquidity pools to make this instant.
💦 Adding Liquidity
Putting your tokens into a liquidity pool so others can trade. In return, you earn a small fee (~0.4%) every time someone trades in that pool. It's like providing cash to a currency exchange booth and getting a cut of their fees. Team owners can add liquidity to their team's LP to earn passive income.
📊 Slippage
The difference between the price you expect when starting a trade vs. the actual price you get. Happens when pool liquidity is low or your trade is big. Example: You try to buy Team Tokens expecting to pay 0.1 KGL each, but by the time the trade completes, they cost 0.12 KGL each—that 0.02 difference is slippage. More liquidity = less slippage.
🤖 AMM (Automated Market Maker)
The math formula that liquidity pools use to automatically set prices. You don't need to understand the math—just know that it adjusts prices up when people buy (demand increases) and down when people sell (supply increases). This is how Team Token prices move like "odds" based on hype.
Token Economics
📈 Tokenomics
Short for "token economics"—the rules about how tokens are created, distributed, and used. It covers questions like: How many tokens exist? Who gets them? What can you do with them? Our tokenomics are detailed in the "Token Structure" tab.
🎁 Airdrop
Free tokens sent directly to your wallet—like getting a surprise gift. In our system, airdrops happen automatically when your team wins (you receive KGL Tokens) or when you're a Skunks holder (you get initial KK/KGL allocations). No work required on your end—just link your wallet to Discord.
🔥 Burn
Permanently destroying tokens by sending them to an unusable address—they're gone forever. This reduces total supply, which can increase scarcity/value. We burn ~20% of old KGL Tokens annually to control inflation, and old Team Tokens get burned between seasons.
🪙 Minting
Creating new tokens. When we "mint" Team Tokens, we're generating 10,000 fresh tokens for that specific team/season. Team owners pay a small mint fee (~$10-20) that funds the treasury. It's like printing new money—but controlled by smart contracts with set rules.
🏦 Treasury
A shared wallet that holds funds used for rewards, operations, and future development. It's funded by protocol fees (small cuts from trading), mint fees, and merch sales. The treasury address is public on the blockchain—anyone can verify the balance and see where funds go. Think of it like a community piggy bank.
💼 Protocol Fee
A tiny percentage (0.05-0.1%) taken from trades in liquidity pools that goes to the treasury. Example: If you trade $100 worth of tokens, $0.05-0.10 goes to the treasury to fund rewards. This is automatic—you barely notice it—and it's how the system sustains itself without relying on donations or ads.
💵 Proportional Rewards
Rewards distributed based on how much you own. Example: If you hold 10% of a team's tokens and that team wins (triggering a 1,000 KGL reward), you get 10% of that = 100 KGL. The more you hold, the more you earn—but everyone who holds gets something.
Governance & Community
🏛️ DAO (Decentralized Autonomous Organization)
A group that makes decisions by voting—no single boss. OG Skunks holders can vote on things like: "Should we burn extra tokens?" or "How should we split treasury funds?" You vote by staking your NFT/tokens. More holdings = more voting power. It's like a digital democracy for the league.
📝 Multi-Sig (Multi-Signature)
A security feature for the treasury wallet requiring multiple people to approve withdrawals. Example: We use "2-of-3" multi-sig—meaning 2 out of 3 trusted people (e.g., both commissioners) must approve before funds can be spent. This prevents any single person from running off with the money.
⚡ Staking
Locking up your tokens temporarily to participate in something (like voting or earning rewards). You still own them—they're just "frozen" for a period. Example: To vote on MVP awards, you might stake 5 KGL Tokens (they're locked during voting, then returned to you after).
Rewards & Competition
📊 Fantasy Predictions
A skill-based contest where you predict match outcomes or player performance (like fantasy sports). You pay a small entry fee in KGL Tokens, make your picks, and if you're accurate, you win a share of the prize pool. It's not gambling because success depends on your analysis/knowledge—not pure chance.
🎯 Backing a Team
Buying and holding a team's tokens to support them (like being a shareholder or fan). If that team wins matches, you receive proportional rewards from the treasury. You can also profit by trading: buy tokens when the team is cheap/underrated, sell if they become popular and prices rise.
📉 Vig (Vigorish)
Gambling term for the "house cut"—the fee a bookie keeps from bets. We mimic this feel via protocol fees (the treasury's "cut" from trading), but it's not gambling because rewards are tied to skill-based participation (analysis, performance), not locked wagers. It's how traditional betting sites make money, adapted for DeFi.
🎮 Free Agency Pool
The list of available players who aren't on a team yet. Team owners recruit from this pool to build their rosters—it's free to join as a player, and owners can tip you tokens to incentivize signing. Like free agency in pro sports but for our league.
Technical Implementation
🤖 Discord Bot
An automated program that runs in our Discord server to handle commands. You type things like /balance to check your tokens or /claim to receive rewards. The bot connects to the blockchain to verify your wallet and execute transactions—no manual work from admins.
🌐 On-Chain vs. Off-Chain
On-Chain: Data/actions recorded permanently on the blockchain (public, can't be faked). Example: Token transfers, airdrops.
Off-Chain: Data stored elsewhere (like a database or Google Sheets) for speed/cost reasons. Example: Fantasy predictions tracked in a spreadsheet, with winners paid on-chain later. We start off-chain for MVP to save costs, then move on-chain as we scale.
🔐 Wallet Linking
Connecting your Cardano wallet to your Discord account so the bot knows your tokens belong to you. You use the /link command, sign a message in your wallet (proves ownership without revealing passwords), and the bot associates your wallet address with your Discord username. One-time setup.
🕵️ Oracle
A trusted source that feeds real-world data to smart contracts. Example: After a match, an oracle (could be a bot or admin multi-sig) tells the blockchain "Team A won"—triggering automatic reward airdrops. Oracles bridge off-chain events (game results) to on-chain actions (payouts).
Season & Lifecycle
🗓️ Season
A fixed time period (e.g., 4-6 weeks) with a set of teams competing in scheduled matches, ending in playoffs. Each season has its own Team Tokens (new mints) and reward pools. After a season ends, tokens get burned/swapped, and we start fresh with new policies for the next season.
🔁 Policy Lifecycle
How tokens change over time:
KK/KGL Tokens: Same policy ID forever (one continuous token).
Team Tokens: New policy ID each season (Team A Season 1 ≠ Team A Season 2). Old tokens expire/burn between seasons. This resets economies and keeps hype fresh.
📦 MVP (Minimum Viable Product)
The simplest version of the system we can launch to test if it works. For KGL: 4 teams, basic bot commands, off-chain fantasy, manual match scheduling. We get feedback, fix bugs, then scale up. MVP lets us start quickly (~$80 budget, 4-6 weeks) without building everything at once.
Legal & Compliance
⚖️ Skill-Based vs. Gambling
Gambling: Requires 3 things—(1) paying to play, (2) chance (luck), (3) prize. Illegal without a license in most places.
Skill-Based: Replaces "chance" with "skill" (analysis, strategy, performance). Legal in most states (like DraftKings fantasy sports). Our system is designed as skill-based: Backing teams requires analyzing stats/form, not blind luck. But we're not lawyers—always consult one before launch.
📄 Howey Test (Securities)
A legal test to determine if something is a "security" (like a stock) requiring SEC registration. Involves: (1) investment of money, (2) in a common enterprise, (3) with expectation of profit, (4) from others' efforts. Tokens fail this if they're purely utility (used for access/participation, not passive investment). We emphasize: "Buy tokens to USE (predictions, backing, governance), not to get rich from our work."
🚫 Disclaimer
A legal statement saying "this isn't financial advice" or "tokens aren't investments." Protects the project from liability. We include: "KGL tokens are for entertainment/participation. No guaranteed returns. Could lose value. Consult your own lawyer/advisor." Required on all materials (website, Discord, docs).
Token Structure Deep Dive
🌿 KK Token (Kanna Coin)
Distribution Breakdown
| 20% - OG Skunks Airdrop | 200M tokens |
| 30% - Teams/Staff/Creators | 300M tokens |
| 20% - Treasury Reserves | 200M tokens |
| 20% - Liquidity Pools | 200M tokens |
| 10% - Community Earns | 100M tokens |
Uses
- Merch discounts at Blo Buyers Club
- Event tickets & access
- Tipping content creators
- DAO governance voting (stake to vote)
- Swappable to KGL Token for league activities
🎮 KGL Token
Seasonal Minting Explained
Each season mints 500M under the SAME policy ID. This means:
- Season 1: 500M total supply
- Season 2: +500M = 1B total supply
- Season 3: +500M = 1.5B total supply
- ~20% burned annually via DAO votes to control inflation
- No fragmentation—one KGL Token forever
Distribution Breakdown (Per Season)
| 15% - OG Skunks Airdrop | 75M tokens |
| 25% - Teams/Players/Staff | 125M tokens |
| 30% - Treasury for Rewards | 150M tokens |
| 20% - Liquidity Pools | 100M tokens |
| 10% - Free Predictions/Contests | 50M tokens |
Uses
- Enter paid fantasy predictions (10 KGL per entry)
- Tip players during streams
- Trade for Team Tokens in LPs
- Stake to vote on MVP awards
- Primary reward currency for backing winning teams
🏆 Team Tokens
How Policies Work Season-to-Season
Each team gets a unique policy ID every season:
- Team A Season 1: "TeamA_S1" policy (10K supply)
- Team A Season 2: "TeamA_S2" policy (new 10K supply)
- Old tokens burned or swapped for discounts on new season
- Creates fresh hype and independent economies per season
- No legacy bloat or mixing of supplies
Distribution Per Team
| 20% - Owner Free Allocation | 2,000 tokens |
| 40% - Public Mints/Sales | 4,000 tokens |
| 20% - Contest Airdrops | 2,000 tokens |
| 20% - Initial LP Seeding | 2,000 tokens |
Uses
- Back a team—hold to receive proportional rewards on wins
- Trade in team-specific LPs (prices = market "odds")
- Owners tip tokens to recruit/reward players
- Speculation: Buy low before wins, sell high after payouts
Money Flow & Treasury System
Treasury Funding Sources
How Protocol Fees Work
Step 1: LP Setup with Fee Structure
When creating liquidity pools (LPs) on Cardano DEX like Minswap, we program the smart contract with a fee split:
- Total swap fee: ~0.5-0.75% per trade
- LP provider cut: 90-95% of fee (incentivizes liquidity)
- Protocol fee: 5-10% of fee goes to treasury (e.g., 0.05% of trade)
Step 2: Fee Collection During Trades
When a fan swaps tokens (e.g., KGL → Team Token):
- Smart contract automatically deducts total fee from trade
- Example: 100 ADA trade with 0.5% fee = 0.5 ADA total fee
- 0.45 ADA goes to LP providers
- 0.05 ADA instantly transferred to treasury wallet
- LP stays balanced—prices adjust via supply/demand
More trading = more treasury growth
Step 3: Treasury Distribution
Treasury funds rewards automatically via smart contracts:
- Match wins: Fixed amount (e.g., 1,000 KGL) airdropped to Team Token holders
- Fantasy payouts: Fixed pot (e.g., 500 KGL) split by leaderboard
- Creator allocations: Monthly distributions (300-500 tokens)
- MVP awards: Community-voted bonuses (300 KGL)
Reward Payout Structure
| Event | Amount | Recipients | Source |
|---|---|---|---|
| Team Match Win | 1,000 KGL | Owner (200) + Holders (800 proportional) | Treasury |
| Fantasy Weekly | 500 KGL | Top leaderboard (split) | Treasury + 10 KGL entries |
| MVP Award | 300 KGL | Voted winner | Treasury |
| Player Win Bonus | 100 KGL | Each player on winning team | Owner tips (optional) |
| Creator Monthly | 300-500 tokens | Active content creators/mods | Treasury |
Why This Mimics "Vig" Without Gambling
- Ecosystem-wide: Fees from ALL activity (not specific bets) fund rewards
- Skill-based: Rewards go to skilled participants (analysis, performance)
- No direct losses: Users don't lose funds to "the house"—just market fluctuations
- Transparent: Public treasury = verifiable fair distribution
- Sustainable: More engagement → more volume → bigger treasury → better rewards
User Roles: Participation & Rewards
🎮 Players (Gamers in Matches)
- Join Discord for free (no wallet needed initially)
- Sign up for matches via Discord bot commands
- Play in tournaments (Call of Duty, Fortnite, etc.)
- No Team Token ownership required
- No direct payouts for match wins (simplifies system)
- Team owners can tip from their holdings (e.g., 100 Team Tokens for MVP performance)
- Tips claimable once player links wallet to Discord
- Optional: Create content for creator allocations
👀 Viewers/Fans/Backers
- Watch streams on Twitch/Discord for free
- Engage in chat, predictions, polls
- To BACK a team: Buy/hold Team Tokens via DEX swap (KGL or KK → Team Token)
- Trade Team Tokens in LPs pre-match based on confidence
- Enter paid fantasy predictions (10 KGL per entry)
- Proportional airdrops: If backed team wins, receive share of 800 KGL based on holdings
- Example: Hold 10% of Team Tokens = ~80 KGL per win
- Fantasy wins: Top prediction leaderboard splits 500 KGL pot weekly
- Free earns: Discord contests/polls for 50-100 KGL
- Trading profits: Buy low, sell high as prices fluctuate
🏆 Team Owners
- Pay ~$10-20 (in ADA) to mint team's tokens for the season
- Activates team entry into league
- Recruit players from free agency pool (via Discord)
- Manage roster and strategy
- Optionally add liquidity to team's LP (first mover advantage)
- 2,000 free Team Tokens (20% of supply)—use to recruit or hold
- Fixed 200 KGL bonus per match win
- Proportional share: 20% holdings = ~160 KGL from holder pool
- Total per win: ~360 KGL if holding all tokens
- Trading upside: Team Token prices rise on strong performance
🎨 Content Creators & Staff
- Free to create content (highlights, streams, analysis)
- Moderate Discord (mods/admins)
- Host Espot broadcasts (like SportsCenter for league)
- Submit content for community votes
- Monthly allocations: 300-500 KGL/KK Tokens based on activity
- Tips during streams: Viewers send tokens in real-time
- Community votes: Top highlights win bonus tokens
- MVP awards: Could win 300 KGL if featured prominently
🦨 OG Skunks Holders (Inner Circle)
- Already own Skunks NFT (no new purchase needed)
- Access premium Discord channels
- Vote in DAO on treasury splits, burns, rule changes
- Whitelist access to mint Team Tokens early
- KK Token airdrop: 20% of 1B supply = ~1.5M per holder (if 134 holders)
- KGL Token airdrop: 15% of 500M per season = ~560K per holder
- Bonuses: +20% multiplier on other role rewards
- Early access: Mint Team Tokens before public
- Governance: Vote on treasury usage
Example Earnings Scenarios
| User Type | Scenario | Earnings |
|---|---|---|
| Casual Fan | Backs winning team with 5% holdings, wins 2 fantasy weeks | ~40 KGL (backing) + 200 KGL (fantasy) = 240 KGL |
| Team Owner | Team wins 5 matches in season, holds all tokens | 5 × 360 KGL = 1,800 KGL (~$50-100 value at market) |
| Player | Owner tips 100 tokens per win × 5 wins | 500 Team Tokens (tradeable for KGL) |
| Content Creator | Active for 3 months + tips during streams | 1,200 KGL (allocations) + 300 KGL (tips) = 1,500 KGL |
| Skunks Holder | Just holds NFT through airdrops | 1.5M KK + 560K KGL (~$1,000+ value) |
Liquidity Pool System
What Are Liquidity Pools (LPs)?
Liquidity pools are smart contracts on DEXes (decentralized exchanges like Minswap on Cardano) that hold two tokens for trading. Users swap between them, and the pool's math auto-adjusts prices based on supply/demand. For KGL, each team gets its own LP (Team Token ↔ KGL Token) to create independent "odds" via market forces.
LP Setup Process
Step 1: Team Token Mint
- Owner pays ~$10-20 (in ADA) to activate team
- Smart contract mints 10,000 Team Tokens under new policy ID
- Owner receives: 2,000 tokens (20%) free
- Remaining 8,000 tokens allocated:
- 4,000 for public mints/sales
- 2,000 for contest airdrops
- 2,000 for initial LP seeding
Step 2: League Auto-Sets LP
- League smart contract automatically creates LP on Minswap
- Initial ratio: 2,000 Team Tokens : 200 KGL Tokens
- This sets starting price at ~0.1 KGL per Team Token (super cheap)
- Funded from treasury's KGL allocation (no owner cost)
- Result: LP is live, anyone can trade immediately
Step 3: Owner Can Add Liquidity (Optional)
- Owner can add more KGL + Team Tokens to deepen pool
- Advantage: First mover—set prices before hype
- Example: Add 500 KGL + 500 Team Tokens → pool becomes 2,500 Team : 700 KGL
- More liquidity = less price slippage, more stable trading
- Owner earns LP provider fees (~0.4% of trades) as passive income
How LPs Create "Odds" (The Magic)
Each team's LP is isolated—no shared pool. Prices adjust independently via automated market maker (AMM) math:
Scenario: Team A (strong team) vs. Team B (underdog)
- Pre-match hype: Fans analyze stats, bet on Team A winning
- Action: Fans buy Team A Tokens (swap KGL → Team A Token)
- LP response: Team A Token price rises (e.g., 0.1 → 0.3 KGL) as supply shrinks
- Team B LP: Less demand → price stays low or dips (0.1 → 0.08 KGL)
- Result: Market "odds" are now 3:1 for Team A (implied by price difference)
Post-match:
- Team A wins → 1,000 KGL airdropped to holders → price pumps further (winners sell for profit)
- Team B loses → no airdrop → holders might dump tokens (price crashes)
LP Benefits by Role
| Role | LP Interaction | Benefit |
|---|---|---|
| League | Auto-sets all LPs cheaply | Zero manual work, instant trading |
| Owner | Can add liquidity first | Control initial price, earn LP fees (0.4% trades) |
| Fans/Backers | Buy/sell Team Tokens | Speculation profits, proportional rewards on wins |
| Treasury | Collects protocol fees (0.05%) | Funds rewards from all LP trades |
| LP Providers | Add paired tokens to pools | Passive income from 90% of trade fees |
Season-to-Season LP Handling
End of Season
- Old Team Token LPs drained (holders withdraw or burn)
- New season: Fresh Team Token policies minted
- New LPs auto-created by league for all teams
- Owners can carry KGL from old season to seed new LPs
- Resets hype—everyone starts fresh
Example LP Economics
Hypothetical Season
Scales with engagement—more hype = more volume = bigger treasury
Technical Implementation
Blockchain: Cardano
Smart Contract Infrastructure
| Component | Technology | Purpose |
|---|---|---|
| Token Policies | Cardano Native Assets (Plutus) | KK/KGL/Team Token minting rules |
| Liquidity Pools | Minswap AMM | Automated token trading with fees |
| Treasury Wallet | Gnosis Safe (multi-sig) | Secure, transparent fund storage |
| Airdrop System | Plutus smart contracts | Auto-distribute rewards on wins |
| Discord Bot | Discord.py + Cardano API | Wallet linking, commands, claims |
| Fantasy System | Off-chain DB + on-chain payouts | Track predictions, pay winners |
Discord Bot Features
Core Commands
/link- Connect Cardano wallet to Discord (signs message for verification)/balance- Check KK/KGL/Team Token holdings/claim- Claim pending airdrops/rewards/tip @user 100 KGL- Send tokens to another user/predict Team-A 3-1- Submit fantasy prediction (paid entry)/leaderboard- View season standings and fantasy ranks/register-team "Demigods"- Owner initiates team mint
Automation Features
- Auto-schedule matches based on availability polls
- Track scores via manual input or game API integrations
- Trigger treasury airdrops on confirmed wins
- Send reminders for fantasy deadlines
- Update LP stats (prices, volume) in Discord channels
- Handle team registration and LP creation flows
Wallet Options for Users
| Wallet | Platform | Ease of Use | Features |
|---|---|---|---|
| Nami | Browser extension | Very Easy | Simple UI, fast setup, supports all Cardano tokens/NFTs |
| Eternl | Browser + Mobile | Easy | Advanced features, hardware wallet support |
| Yoroi | Browser + Mobile | Easy | Lightweight, official Cardano wallet |
Token Minting Process
KK & KGL Token Minting (One-Time Setup)
- Generate policy keys via Cardano CLI
- Create policy script (multi-sig for DAO control)
- Mint initial supply to treasury wallet
- Distribute according to tokenomics (airdrops, LPs, allocations)
- Register on DEXes (Minswap) for trading
- Cost: ~2-3 ADA per token (~$1.50-2 USD)
Team Token Minting (Per Team/Season)
- Owner triggers via Discord bot:
/register-team "TeamName" - Bot generates unique policy ID for team/season
- Owner pays mint fee (~$10-20 ADA, goes to treasury)
- Smart contract mints 10K tokens:
- 2K to owner's wallet
- 8K to treasury for distribution
- Bot auto-creates LP on Minswap (2K Team : 200 KGL initial ratio)
- Cost per team: ~1 ADA tx fee + owner's $10-20 entry
Security Measures
- Multi-sig treasury: Requires 2-of-3 signatures for withdrawals (co-commissioners + trusted admin)
- Audited contracts: Use open-source Plutus templates, verify on Cardanoscan
- Bot permissions: Read-only access to wallets (can't withdraw, only verify ownership)
- Rate limits: Prevent spam commands (e.g., max 5 predictions per user per week)
- Public transparency: Treasury address published on website/Discord for community oversight
Scalability Plan
Phase 1: MVP (Season 1)
- 4 teams, manual match scheduling
- Basic Discord bot (link, balance, claim)
- Off-chain fantasy tracking (Google Sheets + bot)
- Simple LPs on Minswap
Phase 2: Scale (Season 2-3)
- 8-10 teams, automated scheduling via bot polls
- On-chain fantasy payouts (smart contracts)
- MVP voting system integrated
- Enhanced LP analytics dashboard
Phase 3: Expansion (Season 4+)
- Multiple game titles (COD, Fortnite, Apex, etc.)
- Web dApp for non-Discord users
- Cross-chain bridges (expand to Ethereum/Solana if demand)
- DAO-governed feature additions
Cost Estimates & MVP Plan
Initial Setup Costs
| Item | Cost (USD) | Notes |
|---|---|---|
| KK Token Mint | $1.50 | One-time, 2 ADA transaction fee |
| KGL Token Mint | $1.50 | One-time, 2 ADA transaction fee |
| Team Token Mints (4 teams) | $2.80 | 1 ADA each (~$0.70 USD) |
| LP Creations (4 teams) | $0.60 | 0.2 ADA per LP setup |
| Initial LP Liquidity | $40 | ~$10 worth per team (from treasury) |
| Smart Contract Deployment | $5 | Airdrop/treasury contracts |
| Discord Bot (Basic Tier) | $0 | Free tier sufficient for MVP |
| Domain + Hosting (optional) | $15 | For public info page/treasury dashboard |
| Total MVP Cost | ~$66 | Assuming ADA @ $0.70, highly variable |
Ongoing Operational Costs
| Item | Cost (USD/month) | Notes |
|---|---|---|
| Discord Bot Premium (if needed) | $10-20 | Only if scaling beyond free tier |
| Transaction Fees (airdrops, mints) | $5-15 | Depends on activity volume |
| Domain/Hosting Renewal | $5 | Annual divided monthly |
| Total Monthly | $20-40 | Scales with growth |
MVP Launch Budget
Covers all setup + 1 month operations
Revenue Projections (Conservative)
Assumptions for Season 1
- 4 teams, 20-30 active participants
- Team owners pay $15 mint fee each = $60
- ~200 fantasy entries @ 10 KGL (~$5 value total)
- ~$500 total LP trading volume
- Protocol fees (0.05% of volume) = $0.25
- Total revenue: ~$65
Breakeven Analysis
- Initial costs: ~$80
- Season 1 revenue: ~$65
- Net after Season 1: -$15 (minimal loss)
- Season 2 (no setup costs, 6 teams, more volume): +$50-100 profit
- Breakeven: Early Season 2
MVP Plan: 4-Team Pilot Season
Timeline: 4-6 Weeks
Week 1: Setup
- Mint KK & KGL Tokens
- Deploy treasury wallet (multi-sig setup)
- Build basic Discord bot (link, balance, claim commands)
- Announce revival on X/Discord to gauge interest
Week 2: Team Registration
- 4 owners register teams via bot (pay mint fees)
- Mint Team Tokens, auto-create LPs
- Airdrop KK/KGL to Skunks holders
- Open public mints for Team Tokens ($1-5 each)
Week 3-5: Season Play
- Run 2 matches per week (8 total)
- Enable fantasy predictions (off-chain tracking)
- Monitor LP trading activity
- Distribute airdrops post-match via bot
- Host Espot broadcast recaps on Discord/Twitch
Week 6: Playoffs & Review
- Top 2 teams compete in finals (streamed)
- Distribute final rewards
- Gather feedback via Discord polls
- Analyze treasury performance
- Plan Season 2 adjustments
Success Metrics
| Metric | MVP Target | Scale Target (Season 2+) |
|---|---|---|
| Active Participants | 20-30 | 50-100 |
| LP Trading Volume | $500 | $2,000+ |
| Fantasy Entries | 150-200 | 500+ |
| Treasury Balance (KGL) | 50K tokens | 200K+ tokens |
| Discord Active Users | 40-60 | 100-200 |
| Stream Avg Viewers | 15-25 | 50-100 |
Risk Mitigation
- Low Adoption: Start small (4 teams), invite old players directly via DMs
- Token Price Crash: Treasury holds stable assets (ADA/USDC) for payouts, not just KGL
- Technical Bugs: Test all bot commands in private server before launch
- Legal Issues: Add disclaimers ("not financial advice"), emphasize skill-based nature
- Owner Drop-Out: League-controlled backup LPs ensure teams can continue
Bottom Line
For under $100 and 4-6 weeks of setup, you can launch a fully tokenized, automated, sustainable esports league that rewards everyone from players to fans—while keeping it fun and community-driven.