Wreck League Research Report Bored Apes Teams Up with Animoca to Create a 3A-Level PVP Fighting Blockchain Game

Bored Apes partners with Animoca to develop 3A-level PVP fighting game.

Project Introduction

Wreck League is an AAA-level real-time PVP fighting game developed in collaboration between nWay and Animoca Brands. It features cross-platform gameplay on both mobile and PC. Wreck League stands out with its diverse roster of characters from various Web3 projects (starting with Kodas and Bored Apes from the Yuga Labs ecosystem) and real-time PVP battles. Players can own unique mech parts in the form of NFTs and combine them to build custom combat characters for use in battles.

Author

JUMPENG, Senior Researcher at WJB. Holds a Master’s degree in Finance from Huazhong University of Science and Technology. With 7 years of industry experience, specializes in Layer1, DeFi, NFT, Layer2, Gamefi, and has conducted research on over 2000 projects, producing over 500 in-depth research reports.

1. Research Points

1.1. Core Investment Logic

The development team of Wreck League, nWay, has utilized their technology and experience accumulated from developing the Power Rangers game series to create this AAA-level real-time PVP fighting game over the past two years. By collaborating with Animoca Brands and leveraging the influence within the Yuga Labs community, the first season of the game will incorporate the NFT series from Yuga Labs into the game’s storyline. The game quality looks promising. Additionally, Yat Siu, the co-founder of Animoca Brands, recently tweeted about considering hosting a special Wreck League competition where players will battle against Yat Siu himself or his selected team. They also plan to establish a personal prize pool for the competition, rewarding valuable NFTs. With this strong collaboration, Wreck League has quickly gained attention within the community. The core investment logic for this game project is as follows:

Team Strength: This project is jointly developed by nWay and Animoca Brands. Both companies have rich experience and professional capabilities in game development and community operations. They complement each other in areas where they lack expertise in Web2 and Web3 (e.g., Web2 teams lacking knowledge of blockchain games and Web3 teams lacking knowledge of game development), ensuring the quality and innovation of the game.

Game Performance: After a production period of over two years, this game may have focused on fine-tuning game mechanics, content richness, and user experience, providing players with a high-quality gaming experience. From the closed testing activities of the game, it is evident that Wreck League excels in terms of visual presentation, skill design, attack sound effects, and controls, surpassing the performance of most current blockchain games.

Strong Brand Partnerships: The partnerships of Wreck League are one of its most powerful advantages. In addition to its well-known and professional development team, the publishing team Animoca Brands, and the licensed content provider Yuga Labs, the project plans to introduce more brand partnerships in the second and third seasons. This combination of partnerships is rarely matched in the blockchain gaming industry. These partners have rich experience, resources, and influence, which can provide strong support and assurance for Wreck League. They can also help expand the game’s market and user base through promotion, collaboration, and co-development, thereby increasing the game’s visibility and appeal.

Flexible game modes: Wreck League has two versions, Web3 and Web2, supporting cross-platform functionality between mobile and PC platforms. This design allows players to choose the appropriate game mode based on their devices and preferences, while also expanding the user base and market share of the game. The Web3 version allows players to enjoy the ownership, trading, and rewards of digital assets brought by blockchain technology, while the Web2 version allows players to experience the basic features and fun of the game for free. This design not only solves the pain points of the threshold in blockchain games 1.0 but also increases the revenue channels of the game. When Web2 players in the game learn that there is another group of people who can make money through this game, it stimulates their interest and curiosity in Web3, bringing more players into the world of Web3.

Innovative game concept: Wreck League allows players to freely combine mechs with 10 NFT components instead of a fixed single list. As a result, there are over 1.5 trillion possible mechs in the first season’s arena, greatly enhancing the game’s combinability, playability, and imaginative space, far exceeding similar competitors.

In summary, based on the information currently available, it can be said that Wreck League has demonstrated outstanding comprehensive strength in terms of game playability and quality, team production and development capabilities, distribution and social resources, and brand cooperation ability, making it a highly anticipated project in the blockchain gaming community. Wreck League has the foundation to stand out in the blockchain gaming community and is worth our attention to its subsequent development and achievements. Of course, this is only a preliminary assessment based on the information currently available, and the final result still depends on the team’s efforts, market response, and the influence of other external factors.

1.2. Valuation

Currently, Wreck League has not disclosed the details of its token issuance or conducted any financing, so it is not possible to provide an accurate valuation result.

2. Project Overview

2.1. Project Basic Information

Wreck League is a blockchain-based mech combat game that allows players to assemble their own mechs using NFT parts and compete in real-time PvP battles. The game features high-quality graphics, smooth animations, rich skills, and diverse gameplay, meeting players’ high standards and demands for fighting games. In the first season, it collaborates with Yuga Labs and incorporates their NFT series, including Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, and Kodas, into the game’s storyline. It will also launch a free Web2 version that does not require NFTs, allowing the Web3 community and Web2 players to play the game together while also introducing in-game purchases, creating a mutually beneficial relationship between NFT holders and traditional players.

2.2. Team Situation

2.2.1. Overall Situation

Wreck League is a project developed jointly by nWay and Animoca Brands, with nWay responsible for game development and operation, and Animoca Brands responsible for game investment and promotion. nWay is a game company under Animoca Brands. nWay was founded in 2011 and is headquartered in San Francisco, California, USA. Taehoon Kim serves as the CEO. According to the official website, nWay has nearly 100 employees, with offices in San Francisco and South Korea. San Francisco has 47 employees, while South Korea has 39 employees. In December 2019, Animoca Brands acquired all the shares of nWay for $7.69 million in cash and stock and retained its original management team. After being acquired by Animoca, a company focused on blockchain, NFT, and the metaverse, nWay transformed into a blockchain gaming studio.

2.2.2. Introduction to nWay

nWay is a developer, publisher, and technology platform based in San Francisco, focusing on Web3 games on mobile, PC, and game consoles. nWay’s Web3 game platform, nWayPlay, enables fast development and operation of Web3 games and has simple entry and exit functions. The company has a good track record in developing AAA-level mobile and console games, such as “Power Rangers: Battle for the Grid,” “Power Rangers: Legacy Wars,” and “ChronoBlade.” nWay is composed of leading developers and senior executives from Sony, LucasArts, EA, Ubisoft, Capcom, Bandai Namco, Xbox, Warner Bros., Konami, Kabam, Pocket Gems, Zynga, Glu, Jam City, and Machine Zone. The team has collaborated on more than a dozen popular titles, including “Marvel Contest of Champions,” “Injustice” series, “Star Wars: Force Arena,” “WarGames,” and “Harry Potter: Hogwarts Mystery.”

2.2.3. nWayPlay

nWayPlay is a game platform developed by nWay that allows developers to quickly create and operate competitive multiplayer cross-platform games, while also allowing players to earn rewards through NFTs. The platform has advanced real-time multiplayer technology, supports cross-platform accounts and progress, provides globally distributed dedicated servers, and offers user-customized real-time operational services. It also provides world-class customer service tools to ensure platform stability and reliability.

After being acquired by Animoca, the nWayPlay platform also began transitioning to Web3, launching an NFT marketplace and collaborating with the International Olympic Committee (IOC) to secure NFT licensing for the Tokyo Olympics and Beijing Olympics. NFT blind boxes containing Olympic badges and mascots were released for purchase and trading on the nWayPlay marketplace. Users can also earn them for free by playing Olympic-themed competitive video games connected to the nWayPlay platform. The platform also launched the Alpha Partner Program, seeking developers in the early stages of development who believe that the nWayPlay platform can enhance their gaming experience and establishing close partnerships with them.

2.3. Financing Situation

Wreck League currently has not publicly disclosed its financing situation, but we can speculate based on the financing situations of its parent companies, Animoca Brands and nWay. According to Crunchbase data, Animoca Brands has conducted a total of 9 rounds of financing since 2011, with a total amount of $263 million. The most recent round was a Series B financing in May 2021, with an amount of $88.88 million and a valuation of $1 billion, making it a unicorn in the blockchain gaming industry. nWay has conducted a total of 4 rounds of financing since 2011, with a total amount of $11.1 million. The most recent round was a Series A financing in December 2016, with an amount of $5 million. In December 2019, Animoca Brands acquired the equity of nWay and became its holding company.

2.4. Past Development and Roadmap

2.4.1. Past Development

Time Event

2.4.2. Current Progress

Wreck League is currently in the early stage of Season 1, and the main tasks include:

■ Improving the game’s technology and features, fixing any bugs and errors, and enhancing the stability and security of the game.

■ Maintaining close communication and collaboration with Yuga Labs and other partners to ensure the quality and compatibility of mech parts, as well as brand consistency.

■ Strengthening community management and operations, increasing user engagement and loyalty, addressing user issues and feedback, and improving user satisfaction and reputation.

■ Advancing the sales plan for Mint #1, completing the KYC snapshot and revealing the box rarity, and preparing for unboxing and first game access.

2.4.2. Development Plans and Roadmap

Wreck League has a grand vision and ambition, planning to continuously release new content and features in the future to provide players with more fun and value. Here are some development plans and roadmap for Wreck League:

■ August 2023: KYC Snapshot: This is an important step to determine the eligibility for casting mech parts in Season 1. Only players who have registered on the whitelist before the KYC snapshot can participate in the casting activity.

■ August 2023: MINT 1: This is the first opportunity to purchase boxes containing parts for building and casting mechs in the garage. These boxes will include mech parts from the Koda series and other brands.

■ August 2023: Koda Claim: This is an opportunity for Koda series holders to claim a Founder Mech for free. Each Koda series holder can claim one free Founder Box for each Koda NFT they own, which contains a complete Founder Mech.

■ August 2023: Rarity of blind boxes revealed: This is when players find out what rarity parts are included in the blind boxes they purchase or trade.

■ September 2023: Unboxing, first game access opens, leaderboard tournament begins: Players open boxes, collect mech parts, assemble mechs, and start showcasing their skills and style in real-time PvP matches.

■ Q4 2023: Mint 2, High Stake, Mint 3, and Wreck League Championship: Players can participate in more minting events, win higher value rewards, collaborate with more brands, and compete with the strongest opponents. The Wreck League Championship is a high-end invitational tournament that only the best players can participate in, vying for ultimate glory and rewards.

■ Early 2024: Launch of Web2 free version and NFT-to-IAP publishing system, while introducing more high-quality Web3 and Web2 brand partners, and expanding the variety and creativity of mechs and parts.

2.5. Social Media Data

As of August 18, 2023, Wreck League has shown strong performance on social media platforms, indicating high project popularity. Currently, Wreck League’s Twitter account [@WreckLeague] has attracted over 25,000 followers, with daily tweet interactions exceeding 3,000. At the same time, the Discord group also has frequent updates and has attracted over 41,900 players and fans, becoming one of the most popular channels. Players and fans on these platforms have shown a high level of interest and anticipation for the game, actively participating in whitelist registrations, community activities, feedback collection, etc.

Below are the specific data for each platform:

Twitter: 24,527 followers, 3,100 daily tweet interactions, 5% daily growth rate;

Discord: 41,933 members, 3,641 daily online users, 4% daily growth rate;

3. Project Analysis

3.1. Game Story Background

In the future world, humanity has fallen into chaos and crisis due to resource depletion and environmental pollution. To survive, some people chose to leave Earth and search for new homes, while others chose to stay on Earth and use discarded mechanical and electronic parts to create various mechs for self-protection or engage in illegal underground competitions. These competitions are called Wreck League, an extreme mech combat sport that attracts countless spectators and gamblers. Participants not only have to face attacks from other mechs but also deal with various obstacles and traps on the field. Winners can earn lucrative prizes and reputation, while losers may lose everything.

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The game story background of Wreck League is closely related to Yuga Labs’ NFT series. The Bored Ape Yacht Club is a club composed of bored apes who own their own yachts and islands, living a luxurious and carefree life on Earth. The Mutant Ape Yacht Club is an organization composed of apes mutated by radioactive contamination, engaging in secret and dangerous activities on Earth. The Bored Ape Kennel Club is a group composed of pet dogs from the Bored Ape Yacht Club, enjoying a comfortable and happy life with their owners. Otherside Kodas is a group of mysterious creatures from parallel universes, possessing extraordinary abilities and wisdom.

In Wreck League, these different characters and factions will collide and conflict with each other, creating countless stories and dramas.

3.2. Gameplay

Wreck League is a real-time PvP fighting game that supports cross-platform gaming on mobile and PC, offering both Web3 and Web2 versions.

■ The core gameplay of the game is for players to use their mechs to battle against opponents by controlling the movement, attacks, defense, skills, and more of the mechs.

■ One of the features of the game is the customization and assembly of mechs, allowing players to build their mechs using different NFT components according to their preferences and strategies. Each mech consists of 10 different NFT components, which determine the appearance and performance of the mechs. Some parts provide players with basic attacks, while others provide special skills, improved energy meters, longer block durations, and more. These collectively determine the gameplay style of the mechs. This means that players can design the available combinations of their mechs by selecting components that include actions combined together, and it also means that the way players design their mechs is equally important as game skills.

■ The game also offers various match and tournament modes, allowing players to participate in challenges of different types and difficulties and earn rewards of different values and rarities. Matches and tournaments can be organized and managed by official or community members, and some matches may require a specific quantity or type of mechs to participate. The rewards for matches and tournaments can include tokens, NFTs, cash, or other items. The game will also introduce a special match mode called “High Stake,” which allows players to bet on their own or opponents’ mechs or components and gain or lose them based on the match results.

3.3. Core of the Game

3.3.1. Mech Basics

Each mech consists of 10 NFT components: 5 body parts and 5 attachments.

Each body part and attachment are visually distinguished based on their construction and rarity. In Season 1, there are 5 builder types, 5 rare items, and 8 Yuga Mech types, which players can mix and match for unreal customization.

These components determine the visual appearance, combat capabilities, and gameplay style of the mecha. Top players closely observe how each component works together (or doesn’t work together) because the right combination can give their mecha a competitive advantage over opponents.

① Body Parts

Body parts determine the skills used by the mecha in combat, including the head, torso, weapon type, legs, and S-Bot. Each part is associated with different types of skills, providing the mecha with a balanced arsenal of offensive, defensive, and utility weapons.

② Weapon Types

Weapon types have the greatest impact on gameplay style and consist of 5 different weapon types: Drillfist, Gigablade, Sawlance, Spikeball, and Starshot.

③ Attachments

Attachments allow customization of the appearance of body parts and enhance the performance statistics of the mecha in combat. These include crests, badges, shoulder armor, knee pads, and antennas.

■ Each attachment has specified performance statistics, such as energy regeneration, maximum energy, block regeneration, critical hit chance, and supercharge.

■ Crest: Energy Regeneration – Facilitates mecha energy regeneration

■ Badge: Maximum Energy – Measures mecha energy

■ Shoulder Armor: Block Regeneration – Increases the regeneration after mechanical block instruments are depleted

■ Knee Pads: Critical Hit Chance – Measures the frequency of your damaging and non-damaging skill hits

■ Antenna: Supercharge – Tracks the speed at which the super meter charges when dealing and receiving damage

■ Each attachment also has two core statistics randomly assigned to it based on the component’s constructor attributes, including health, offense, armor, block proficiency, superpower, and critical hit power. These statistics determine the mecha’s basic combat capabilities.

■ Health – Indicates the overall health level of the mecha

■ Offense – Tracks the damage level caused by the mecha’s basic attacks

■ Armor – Measures the damage caused by unblocked basic attacks from enemy mechas

■ Block Proficiency – Measures the damage caused by blocked basic attacks from enemy mechas

■ Superpower – Displays the damage caused by your mecha’s special and ultimate skills

■ Critical Hit Power – Measures the effectiveness of critical hits by the mecha

Each component belongs to a mecha set, which is a group of similar themed components determined by constructor, weapon set, and rare attributes. Mecha sets affect the skills and statistics related to the parts. The first season has 80 Yuga-grade mecha parts, which will be the rarest parts, even rarer than legendary ones.

④ Constructor

A constructor refers to the manufacturer or brand of a component, which determines the theme and style of the component.

In the first season, there are nine constructors:

■ Prime-8: A human organization from Earth, inspired by apes, creates powerful and flexible mechas. Their components have yellow and black stripes and the face of a monkey, suitable for various combat scenarios.

■ Psycrane: A mysterious organization from the East, symbolized by cranes, creates elegant and deadly mechas. Their components have white and red colors and feathers of cranes, suitable for long-range attacks and speed.

■ Ironscale: A noble organization from Europe, worshipping dragons, creates gorgeous and robust mechas. Their components have colors of LianGuai and green scales of dragons, suitable for melee attacks and defense.

■ Infestech: A rebellious organization from the Americas, represented by demons, creates evil and cunning mechas. Their components have black and red colors, and horns, tails, and wings of demons, suitable for critical damage and special effects.

■ Components with brown and gray colors, and feathers, beaks, and claws of vultures, suitable for recovery and recycling.

■ Koda: An advanced culture from space colonies with transcendent technology. They are one of the partners of Yuga Labs and provide the rarest and most powerful mecha components. They have four special effects and the appearance of a character or creature from the Yuga series (Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, or Otherside Kodas).

■ MAYC: An ancient civilization from Antarctica, mastering the power of ice and fire. They are one of the partners of Yuga Labs and provide the rarest and most powerful mecha components. They have four special effects and the appearance of a character or creature from the Yuga series (Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, or Otherside Kodas).

■ BAKC: A wild organization from Australia, symbolized by kangaroos, creates agile and sturdy mechas. They are one of the partners of Yuga Labs and provide the rarest and most powerful mecha components. They have four special effects and the appearance of a character or creature from the Yuga series (Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, or Otherside Kodas).

■ BAYC: A peaceful organization from North America, symbolized by bears, creates gentle and robust mechas. They are one of the partners of Yuga Labs and provide the rarest and most powerful mecha components. They have four special effects and the appearance of a character or creature from the Yuga series (Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, or Otherside Kodas).

⑤ Rarity

Rarity refers to the scarcity and value of components, which determine the attributes and special effects of the components.

In Season 1, there are nine rarities:

■ Common: The most common components, they have no special effects but still provide basic performance statistics.

■ Rare: Relatively rare components, they have one special effect that enhances a specific aspect of the mech in combat.

■ Epic: Very rare components, they have two special effects that provide more combat advantages.

■ Legendary: Extremely rare components, they have three special effects that give the mech a unique combat style.

■ Yuga: The rarest and most powerful components, they can only be obtained through collaboration with Yuga Labs. They have four special effects and the appearance of a character or creature from the Yuga series (Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, or Otherside Kodas).

■ BAKC: Components that can only be obtained through collaboration with Bored Ape Kennel Club, they have four special effects and the appearance of a dog from the Bored Ape Kennel Club.

■ MAYC: Components that can only be obtained through collaboration with Mutant Ape Yacht Club, they have four special effects and the appearance of a mutant ape from the Mutant Ape Yacht Club.

■ BAYC: Components that can only be obtained through collaboration with Bored Ape Yacht Club, they have four special effects and the appearance of a bored ape from the Bored Ape Yacht Club.

■ Otherside Kodas: Components that can only be obtained through collaboration with Otherside Kodas, they have four special effects and the appearance of a mysterious creature from Otherside Kodas.

3.3.2. Defining Gameplay Style

Each builder has a specific gameplay style, largely determined by their skills and statistical distribution. By mixing and matching components from different builders, players can create a unique mech that suits their personal gameplay style.

Simple Example

Suppose a player wants to build a mech that sacrifices survivability for high burst damage output and versatile combat range. They can combine the following:

The Sawgun Arm + Torso combination of this mech provides attacks with three different ranges and a method to mitigate opponent’s skill output. Combining it with the long-range attack of the Prime-8 S-Bot and the versatile Twisted Kick of the Koda Legs, it will be able to hit opponents anywhere in the arena. Since opponents will retaliate with their own attacks in this hypothetical scenario, the mech needs to be equipped with a Prime-8 Head for healing through system recovery in case it gets hit.

As for the core statistics, this is an example of an attack-oriented mech, so focusing on offense and critical strike power may be a wise choice. Prioritizing health over armor and block proficiency could also be a good idea, as the strategy is to attack first but have enough health to heal through system recovery before taking significant damage.

Above is a possible example of mech assembly provided. Of course, players can also choose different part combinations according to their preferences and creativity to create a mech that suits them. The first season of Wreck League has a total of 133 mech sets, so players can create almost infinite custom mech combinations.

3.3.3. Mech Assembly

Players can assemble and disassemble mechs in the Garage section of the Wreck League website. To assemble a mech, players need all 10 parts (main body and attachments). The minting process will lock the player’s 10 NFT parts and grant the player a new mech NFT composed of these parts. After the transaction is completed, the player will be redirected to the Garage to view the newly minted mech. Players can choose different part combinations according to their preferences and strategies to create a mech that suits their gaming style and combat abilities.

3.3.4. Mech Disassembly

Players can also disassemble mechs to unlock the 10 NFT parts. Doing so will destroy the mech NFT. In the “My Mechs” section of the Garage, select the mech to be disassembled. After selecting, a prompt to pay GAS fees will be displayed. After the transaction is completed, return to the “My Parts” section of the Garage to view the unlocked/recovered parts. Disassembling mechs allows players to reuse or trade parts they don’t need or want, or provides them with more flexibility and creativity to build new mechs.

3.4. Collaboration with YUGA Labs

The collaboration between Wreck League and Yuga Labs in the first season is mainly reflected in the following aspects:

1) Through collaboration with Yuga Labs, Wreck League is integrated into the Yugaverse as part of the “Bored Ape Yacht Club”/”Otherside” expansion. A carefully crafted storyline incorporates Yuga’s characters into the universe of Wreck League, including some major characters from “Bored Ape Yacht Club,” “Kennel Club,” and “Otherside.”

2) Players are provided with a free Founder Mech, which includes a fully built mech that cannot be disassembled. The Founder Mech is customized based on the player’s ownership of one of the four Yuga series (Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, and Kodas).

3) It provides players with a Mech Maker system, allowing players to freely assemble and customize their own mechs. Wreck League has designed 20 unique mech components (Mech LianGuairts) for each Yuga series, so a total of 80 components can be mixed and matched to create almost endless Yuga mechs. Players can also mix and match Yuga mech components with Wreck League mech components to create original works in the Wreck League garage.

4) It provides players with a Mech Arena, where players can use their own mechs to participate in various competitions and challenges. Players can use Yuga mechs and mech components to enhance gameplay and add unique elements to their mech collections.

3.5. First Season Casting Events

In order to give players the opportunity to obtain mech components, the game also plans to hold three casting events in the first season, allowing players to purchase and obtain Genesis Mint Boxes and Founder Boxes. These boxes are special NFTs that contain random mech components that players can use to create their own mechs.

These boxes have different rarity levels, ranging from Common to Legendary or Yoga, which determines the rarity range of their contents. These boxes together add surprises and opportunities to the collection experience: buying one or more boxes can guarantee a certain number of components to manufacture mechs, but not necessarily the components needed to assemble mechs.

Yuga mech parts will also be distributed through three MINTs, starting with the Koda mech in Mint 1, Kennel Club and Mutant Ape mechs in Mint 2, and Bored Ape mechs in Mint 3.

1) MINT 1, also known as Genesis Mint

The first casting event (Mint 1) will be held from 9:00 am on August 17th to 9:00 am on August 18th, and only players who have passed KYC verification and joined the whitelist can participate. In this casting event, players can purchase two types of boxes: Majestic and Booster.

The Majestic box contains 10 random parts that can be used to assemble a complete mech. The Booster box contains 5 random parts that can be used to enhance existing mechs or build new ones. There are 25,000 Majestic boxes available for sale at the price of 150 APE$, and 5,000 Booster boxes available for sale at the price of 50 APE$. Players can only use Ape to purchase boxes and need some ETH to pay for GAS.

In this casting event, holders of Koda NFTs will have a higher chance of obtaining rare mechs. If they choose to join the whitelist and participate in the casting by purchasing one or more boxes, they will automatically have a chance to obtain boxes of higher rarity. In addition, holders of Koda NFTs can also claim free Founder Boxes starting from August 31st (the rarity of this box will not be revealed until one week after the casting), which guarantees the inclusion of Founder mechs.

The second minting event (Mint 2) will take place in the third quarter of 2023. Holders of Mutant Ape Yacht Club (MAYC) and Bored Ape Kennel Club (BAKC) NFTs will enjoy the advantage of increased rarity and receive free Founder’s Boxes during this minting event. The other activities are similar to MINT1.

3) MINT3

The third minting event (Mint 3) will take place in the fourth quarter of 2023. Holders of Bored Ape Yacht Club (BAYC) NFTs will enjoy the advantage of increased rarity and receive free Founder’s Boxes during this minting event. The other activities are similar to MINT1.

About Founder’s Boxes

Founder’s Boxes and Founder’s Mechs are special NFTs that can only be claimed for free by holders of Yuga Labs’ NFT series (Koda, MAYC, BAKC, and BAYC). After each respective minting event, holders of each series can claim the same number of Founder’s Boxes based on the number of NFTs they own. Founder’s Boxes come in 6 rarities (similar to Mechs).

Each Founder’s Box contains a Founder’s Mech with the same rarity as the box. Each Founder’s Mech is composed of 10 different types of parts, but the parts cannot be disassembled. The rarity of each part is determined by the rarity of the Mech. For example, a Legendary Founder’s Mech consists of 2 rare parts, 3 epic parts, and 5 legendary parts. Each rarity level also has two types: Random Combination and Planned Set. Random Combination is created by randomly combining parts from different series and styles, while Planned Set is a complete and coordinated set of parts designed by the developers.

Locking and unlocking of Founder’s Boxes and Founder’s Mechs: When players claim a Founder’s Box, it is locked and restricted from being traded until a specified date when it automatically opens and converts into a Founder’s Mech. When players acquire a Founder’s Mech, it is also locked and restricted from being traded until the player wins at least three battles in the game using them. The purpose of locking and unlocking is to protect the players’ interests and prevent them from unknowingly selling or trading valuable NFTs.

3.6. NFT to IAP Release System

The NFT to IAP Release System is a key innovative system (patent pending) that bridges the gap between the Web3 and Web2 communities, bringing both groups together for a unified experience. This system will be launched in early 2024 along with the Web2 free version of Wreck League.

1) Web3 Version: Battle of Mech Owners

The Web3 version of Wreck League is designed specifically for Mech NFT owners, providing an opportunity to battle with their own creations. Competing in a face-to-face environment against unique works owned by players has a powerful driving force, enhancing the competitive gaming experience and making it more meaningful.

2) Free Version: Game Players and Creators Unite

The F2P version of Wreck League aims to provide broader playability and fun. This version of the game is available for anyone to download and play without owning Mech NFTs, following the common free-to-play game model in mobile and PC gaming.

In this version, players can purchase Mechs created by other players. These Mechs are not NFTs but rather in-app purchase (IAP) options. When a player purchases a Mech, a portion of the revenue is shared with the NFT creator/owner, thus promoting a community-driven economic system.

The purpose of this system is to achieve interaction and integration between Web3 and Web2, allowing more players to enjoy the game content and experience of Wreck League. Through this system, Web3 players can give more value and meaning to their NFT components while also earning additional income. Web2 players, on the other hand, can acquire more in-game components by purchasing IAP items and also get exposed to the world of Web3.

The process of this system is as follows:

■ Web3 players can select the NFT components they want to release in Wreck League’s official launcher and set the description and price of the IAP item. The launcher will generate an ID and QR code for the IAP item based on the brand, type, level, and other conditions of the NFT components provided by the player.

■ Web3 players can share the ID and QR code of the IAP item with other players or promote it on social media. Web2 players can enter the purchase page of the IAP item by scanning the QR code or entering the ID.

■ On the purchase page of the IAP item, Web2 players can view the details and reviews of the IAP item and complete the purchase with fiat currency. After the purchase, Web2 players will receive the corresponding in-game components and can use them to assemble their Mechs.

■ After someone purchases the IAP item they released, Web3 players will receive a certain proportion of the IAP revenue. The IAP revenue will be distributed to the Web3 players’ wallets in the form of WRECK tokens.

4. Industry Space and Potential

4.1. Track Situation

4.1.1. Project Classification

Wreck League is an ACTION-type game and belongs to the blockchain gaming track.

4.1.2. Market Size

According to Footprint.network data, the blockchain gaming track has shown some interesting phenomena and trends recently. This includes analysis and summary of the blockchain gaming track from four aspects: on-chain daily active players, on-chain game trading volume, game player rankings, and investment in the blockchain gaming track.

First, from the perspective of active players on the chain, there are currently around 843,019 active players on the chain, and the GameFi transaction volume on the chain has exceeded $4.6 million. Among them, the number of chain game players on Ethereum and BSC accounts for the most, with a proportion of more than 25%. As shown in the following figure:

Although the number of chain game players on Ethereum and BSC is currently the highest, the player activity on the WAX and Hive chains performs the best. The daily player activity on these two chains has been maintained at more than 200,000 for a long time, higher than the daily chain game activity on other public chains. This indicates that chain games on the WAX and Hive chains have higher user stickiness and retention rates, which may be related to their game types and gameplay.

Secondly, from the perspective of the transaction volume of chain games, currently, the Axie transactions on the Ronin chain account for the highest proportion, reaching $125,191. The second is Merit Circle, with a daily transaction volume of $795,320. Details are as follows:

Thirdly, from the perspective of game player rankings, the top ten GameFi projects in terms of game player rankings are as follows:

As can be seen, the number of players in Alien Worlds and Farmers World, two chain games, is above 120,000, far higher than the third-ranked SuperWalk (with a player count of about 40,000). These two games are virtual world games based on NFT, allowing players to explore, mine, trade, etc. on different planets. This type of game has a strong sense of immersion and freedom, which can satisfy players’ imagination and creativity in the virtual world.

Finally, from the perspective of investment in the chain game track, the total investment amount and rounds of financing in the chain game track are as follows:

As can be seen, after the small peak in January this year, the investment amount in the chain game track has been gradually declining, and the financing rounds are in the early seed or strategic rounds. This may reflect a cooling of the market’s enthusiasm for the chain game track, or it may be because there are fewer high-quality projects or they have not been made public yet. However, it is worth noting that during the period from September 2021 to June 2022, the chain game track received a large amount of financing, and these projects may be launched one after another in 2024-2025, which may trigger a new wave of chain game boom. The entire track is still very much worth looking forward to.

Currently, the overall activity of the chain game market is still not high. According to the “2023 Q2 Global Blockchain Game Industry Report”, the three old-generation chain games Alien Worlds, Farmers World, and Splinterlands still occupy 50% of the market share on the chain, and their positions have been stable for more than a year. The chain games launched during the same period and later have not posed effective competition to them. Therefore, newly launched chain game projects not only need to adapt to new market trends and user needs during the development process but also need to learn from these three successful cases, such as innovating and optimizing in gameplay, community building, incentive mechanisms, etc.

4.1.3. Core of Blockchain Games

In 2021, the success of Axie Infinity triggered a wave of Play to Earn. In the second half of 2021, numerous blockchain game projects emerged, creating a sharp contrast with traditional games.

However, the economic system of Play to Earn is not perfect. Most blockchain game projects exhibit obvious characteristics of a Ponzi scheme, including Axie Infinity. A Ponzi scheme is a financial structure that transfers the value provided by later participants to early participants. This means that the sustainability of GameFi projects requires continuous participation of new users. However, some development teams did not focus on designing a reasonable token economic model. They only wanted to quickly attract funds from the market and then exit. As a result, some GameFi projects quickly went extinct.

According to the “Q1 2023 Global Blockchain Game Industry Report,” the average lifespan of GameFi projects does not exceed three months. The common development process of GameFi projects is as follows: early development stage, speculators enter the project -> token speculation sentiment rises, prices increase -> speculators sell tokens -> token prices fall -> fear causes actual users to sell tokens -> token prices further decline -> prices fall below the breakeven point for user returns -> due to small economic rewards, users continue to leave -> Game Over.

If we analyze these projects, we can find that in addition to the economic model problem, current blockchain games also have the following pain points, and Wreck League proposes its own solutions:

1) Entry Barrier Pain Point

Currently, the entry method for most blockchain games is that users need to first purchase tokens or NFTs to participate. Secondly, users need to register a wallet and deposit to purchase the corresponding tokens or NFTs. Then, users need to bring the tokens or NFTs to the wallet and verify them through an exchange or marketplace. Finally, users need to keep a certain amount of tokens in the wallet to support gas fees. This entry method increases the user’s operational and time costs, reduces the enthusiasm of new users, and excludes a large number of Web2 players.

Wreck League’s solution:

Wreck League’s entry method is different from most blockchain games. It provides two versions, Web3 version and Web2 version. By offering two versions, Wreck League satisfies the needs and habits of crypto users, while reducing the entry barriers and operational difficulties for traditional players. At the same time, through the NFT to IAP system, it empowers NFTs for Web3 players. When Web2 players discover that there is another group of players making money through this game, they can gradually guide them into the Web3 world.

2) Gameplay Pain Point

Firstly, the playability of most blockchain games is significantly insufficient compared to traditional games. They often lack attractive elements such as exquisite graphics, rich gameplay, and interesting stories to attract users. 70% of blockchain game users claim to be uninterested in the games themselves and only participate for speculation.

Secondly, most Web2 players find it difficult to adapt to the new gameplay of Web3, which involves native tokens. They may even have a strong resistance towards it. They need to adjust to complex entry methods, high transaction fees, fluctuating returns, and other factors. According to the “Global Game User Survey Report for the First Quarter of 2023,” 80% of Web2 players expressed no interest or lack of understanding in Web3 games.

Lastly, most Web3 games adopt a permanent ownership model, where users have complete ownership of in-game assets. While this model protects the interests of users, it also brings some risks. For example, it can lead to whale users hoarding and manipulating in-game assets, thereby affecting the fairness and balance of the game. At the same time, the lack of deflationary mechanisms to regulate the in-game economy can impact the sustainability and stability of the game.

Solution of Wreck League:

The development team of Wreck League, nWay, has been focusing on fighting games for 12 years and has more than 100 game teams. They have extensive experience in developing such games, which is believed to be stronger than most Web3 teams in terms of gameplay control.

Furthermore, Wreck League belongs to the Action game category, which is one of the favorite game types among Web3 players. According to the “Global Blockchain Game User Behavior Analysis Report for the First Quarter of 2023,” Web3 players have a clear preference for game types and enjoy fast-paced, highly interactive games. Action, Strategy, RPG, and Shooter are the most popular game types, and players generally spend 10-15% of their total game time on these types of games.

3) Development, Design, and Operation Pain Points

Currently, most blockchain games on the market enter the blockchain field through blockchain transformation, resulting in a lack of fit with crypto users. However, overall, the R&D capabilities of the team have improved, and the proportion of self-developed games has increased. However, there is a lack of innovative design in game mechanics. Secondly, traditional teams lack the ability to mobilize communities from the bottom up: the use of social media accounts such as Discord/Twitter, the exposure of the founding team to the community, and whether the game mechanics can meet the needs and habits of crypto users. Lastly, crypto-native teams lack experience in game value design and adjustment of game economic models, and they are not proficient in various means to maintain the stability of the game economy.

Solution of Wreck League:

Wreck League is a game developed by the nWay team over two years to cater to native Web3 users. The game’s R&D capabilities and innovative mechanisms are beyond doubt. Although nWay was previously a traditional game team, after being acquired by Animoca Brands, it has successfully transformed into a Web3 game team. As a leader in the blockchain gaming field, Animoca Brands’ strong resources and capabilities in the blockchain gaming field will provide powerful technical and operational support. This can be seen from the collaboration between Wreck League and Yuga Labs in the first season, which avoids the drawbacks of pure crypto-native teams and the lack of community mobilization capabilities of traditional teams.

4.1.4. Competitive Projects

Wreck League is an ACTION type blockchain game. There are many games of this genre on the market, and we further classify it into fighting and esports games. Strictly speaking, Wreck League does not have direct competitors, but we have selected several well-performing fighting blockchain games on the market as competitive projects.

1) Cyber Arena

Cyber Arena is the first real-time metaverse Web3 multiplayer P2E fighting game built on Dogechain. The game is compatible with popular web wallets, bridges with top-tier blockchains, and has been adopted by major institutions and global brands.

2) Crypto Legions

Crypto Legions is an NFT game based on the BSC chain. It is set in the 31st century world, allowing players to collect and train different warriors and beasts, and then battle against other players or monsters to win rewards and honor. The game uses an innovative Omni-Balanced Oracle system to ensure fairness and sustainability.

3) DexiKnights

DexiKnights is a blockchain-based NFT game and the first game product of Dexioprotocol, released in October 2021. The game is an arcade-style sword fighting game that allows players to engage in intense competition with other players or environments in different scenarios, using upgradable NFTs as weapons and equipment.

4) Fight Legends

Fight Legends is a blockchain-based 2.5D fighting game that utilizes cryptocurrency and NFTs to create a truly unique fighting game experience. Players can collect in-game assets and battle against other players for honor and glory.

5) Competitive Comparison

In a horizontal comparison across multiple key dimensions such as community engagement, funding status, team qualifications, game visual effects, and launch status, Wreck League has shown significant advantages. In addition, Wreck League also has additional advantages such as social resources, further enhancing its market competitiveness. Therefore, from a comprehensive analysis, Wreck League has a significant advantage in the corresponding field.

Attached: @TierMaker has created a classification table for Web3 games, ranging from S-level to C-level. Wreck League ranks in the second-level category, and there are high expectations and evaluations from the outside.

4.2. Token Economy Model Analysis

Wreck League has not yet disclosed its token economy model.

4.2.1. Token Utility

Wreck League has not issued tokens yet, but based on the analysis of the entire game, if tokens are issued, they may have the following functions:

■ Crafting Parts: Players can use tokens to craft parts in the game. The cost of crafting each part depends on its rarity and brand partnerships. The crafted parts are randomly generated, and players have a chance to obtain rare or limited edition parts.

■ Purchasing Parts: Players can use tokens to purchase parts from other players within the game or on platforms like OpenSea. The price of each part is determined by the seller and is influenced by market supply and demand.

■ Selling Parts: Players can use tokens to sell their unwanted parts within the game or on platforms like OpenSea. The price of each part is determined by the seller and is influenced by market supply and demand.

■ Participating in Community Activities and Competitions: Players can use tokens to participate in community activities and competitions, such as voting, guessing, and auctions, to win more tokens and part rewards.

■ Governance Rights: Token holders can participate in the governance of Wreck League by voting on important game decisions, such as adding or modifying game rules, increasing or decreasing game rewards, and introducing or canceling brand partnerships.

4.2.2. Token Valuation

Token valuation is mainly based on the following aspects:

■ Game User Base and Activity: The size and activity of the game user base are important indicators of a game project’s success and also significant factors influencing token valuation. Generally, the larger the game user base and activity, the higher the token valuation, and vice versa. According to our predictions, Wreck League is expected to attract and retain a large number of players in the coming months, especially players who enjoy fighting games and NFT collections, as well as investors interested in Web3 games. This will increase the game’s user base and activity, thereby enhancing the token’s value.

■ Completeness of Game Content and Features: The completeness of game content and features is an important factor influencing player experience and satisfaction, as well as token valuation. Generally, the more complete the game content and features, the higher the token valuation, and vice versa. Wreck League offers high-quality graphics, smooth animations, rich skills, and diverse gameplay, meeting players’ high standards and requirements for fighting games. Additionally, Wreck League is a project that continuously improves and innovates, with plans to introduce more high-quality brand partnerships and enhance game content and features. This will enhance player experience and satisfaction, thereby increasing the token’s value.

■ Influence of Brand Partnerships: The influence of brand partnerships is a significant factor affecting game visibility and attractiveness, as well as token valuation. Generally, the greater the influence of brand partnerships, the higher the token valuation, and vice versa. Wreck League has already partnered with well-known brands like Yuga Labs and provides special treatment to holders of these brands. These brands have high visibility and influence, with a large number of fans and supporters in the NFT market. Therefore, by collaborating with these brands, Wreck League can increase its visibility and attractiveness in the NFT market, thereby increasing the token’s value.

5. Preliminary Valuation

5.1. Core Questions

Which stage of the business cycle is the project in? Is it in the mature stage or in the early to mid-development stage?

Wreck League is currently in the early stage of development. The game has not been officially launched yet, only the name, concept, and gameplay have been announced, and whitelist registration has been opened. The game still needs more testing, optimization, promotion, and other work to attract more users and capital, and achieve a larger scale and influence.

Does the project have a reliable competitive advantage? Where does this competitive advantage come from?

Wreck League has certain competitive advantages, which mainly come from its excellent team strength, innovative game concept, strong brand cooperation, flexible game modes, and unique NFT to IAP release system, etc. These aspects allow Wreck League to differentiate itself from other blockchain games and provide more diversified and high-quality game products and services, as well as more value and profits to players.

What are the main variable factors in the project’s operation? Are these factors easy to quantify and measure?

User quantity and activity: User quantity and activity are important indicators for measuring the success of a game, which reflect the attractiveness and retention of the game to players. User quantity and activity can be quantified and measured by some data, such as the number of players on the chain, daily active users, monthly active users, retention rate, churn rate, etc.

Game revenue and expenses: Game revenue and expenses are important indicators for measuring the profitability and sustainability of a game, which reflect the value capture and value distribution to players. Game revenue and expenses can be quantified and measured by some data, such as blind box sales, mech sales, game platform downloads, advertising revenue, total expenses, average expenses, net profit, profit margin, etc.

Community participation and satisfaction: Community participation and satisfaction are important indicators for measuring the effectiveness of game community construction and governance, which reflect the trust and loyalty of players to the game. Community participation and satisfaction can be quantified and measured by some data, such as the number of voters, voting rate, feedback quantity, feedback quality, ratings, evaluations, etc.

What is the project’s management and governance approach?

The project’s management and governance approach will gradually transition from early-stage official operation to decentralized DAO governance.

6. Project Risks

From the official progress and roadmap, Wreck League is still in the early stage, which brings a lot of uncertainties.

Economic model risk: To date, Wreck League has not yet disclosed its token and game economic model. Due to the problems faced by blockchain games 1.0 in the death spiral model, Wreck League’s solution strategy is still unclear. If Wreck League fails to propose an innovative economic model, it may face significant challenges in the future. This uncertainty essentially increases the project’s risk, so the future development trajectory remains to be observed.

Risk of Subcategory Games: In the perception of most players, fighting games have always been considered as a niche game genre with high barriers, difficulty, and relatively hardcore gameplay. Therefore, it is still difficult to conclude whether Wreck League will be welcomed by Web3 players or even free game players.

Competition Pressure Risk: According to the analysis data of the track, the current number of real players in blockchain games is relatively small, with approximately 800,000 daily active users, and the ratio of human players to AI players has not been determined yet. In addition, three games occupy nearly 50% of the activity on the blockchain, which further highlights the challenges faced by the blockchain gaming industry. In this situation, Wreck League faces a great challenge if it wants to attract players’ attention, break through the current situation, and even lead the development of the entire blockchain gaming industry.

Monetization Pressure Risk: Wreck League started development in 2020 and did not announce any financing news during the boom of blockchain games in 2021. It is currently unclear whether this is due to the team’s confidence in the project or due to difficulties in financing. Considering that the project has been in development for over two years, the team may face pressure to monetize. In this case, it is uncertain whether the project will rush to launch. There are still many aspects that we need to keep an eye on.

7. References

https://wreckleague.xyz/ – Wreck League Official Website

https://docs.wreckleague.xyz/wreck-league/what-is-wreck-league – Wreck League Project DOCS

https://twitter.com/WreckLeagueHQ – Wreck League Official Twitter

https://medium.com/wreck-league – Wreck League Official Medium

https://nway.com/nwayplay/ – nWayplay Official Website

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