# 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
