Risks

Too small rewards pools will not create enough incentives for new players to try hard in climbing leaderboard

  1. Mitigation #1 - use more than 50% of Tower Defense revenue to increase rewards pool

  2. Mitigation #2 - add VLX to increase rewards pool

  3. Mitigation #3 - winning community keeps it's rewards pool for next Duel, increase it through time

Majority of Duel players will not want to stay to play Strategic layer and they'll want to dump all Islands received from airdrop

  1. Mitigation #1 - keep Duels happening almost all the time (need connections, no technical limitations even to have 8 Communities fighting in championship of 3 months)

  2. Mitigation #2 - give certain NFTs as part of Duel rewards that can be used only in Tower Defense game (Portal entry NFT for gathering resources)

  3. Mitigation #3 - reduce amount of Islands given for airdrop

  4. Mitigation #4 - dedicate some % of revenue to buy back cheaply dumped Islands after each Duel, use them for marketing purpose

Systematic risk of infrastructure - network congestion - if XXX blockchain becomes congested, it could cause delays or failed transactions for NFT usage in game activities

  1. Mitigation - Ensure off-chain handling and use batch transactions to optimize on-chain operations.

Performance - as player base grows, increased demand on our infrastructure could cause performance issue

  1. Mitigation - the backend service is scalable using cloud infra that can automatically adjust resources based on demand

External dependencies - third-party services (e.g. external API) could introduce risks if they go down or become compromised

  1. Mitigation - we use redundant services and keep critical operations decentralized

Governance risks - if the governance model of XXX network or other components in our technical stack changes, it could impact our infrastructure.

  1. Mitigation - we could minimize this by designing to be adaptable to governance changes or network upgrade

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