We have received a lot of feedback about the Producer Letter.
It is a rather complicated story, so let me give you some additional explanations.

I am stating what I am thinking at the moment in a straightforward, no-holds-barred manner. Please forgive me if I may have overstated some things.

Anyway, my desire to think of ways to make this as good as possible for everyone who has supported us and everyone who will enjoy it in the future has not changed.

I don't think I can convey this well enough. For more details, we are planning to hold another AMA next week (we are looking for people who would like to join us!). We are looking for people who are interested in joining us.

1） Relaxation of Withdrawal Restrictions

It really pains me that I cannot give you good news about the easing of withdrawal restrictions, which was the most anticipated part of today's announcement. Let me explain a little more in depth about the “why we cannot ease the withdrawal restrictions immediately” part.

To put it simply,

・The price is likely to fall further at the moment of easing.
・If prices continue to fall at the same pace as they have since the beginning of the year, there is a strong possibility that there will not be enough GEEK to pay out.

That is to say.

The overall number of GEEKs issued is fixed, and the maximum amount that can be issued is released over time. In other words, the maximum number of GEEKs that can be withdrawn as of today is fixed.

When this issuance limit is reached, the withdrawal function will simply stop completely, regardless of the withdrawal limit or anything else.

And since the withdrawal limit is set against the xGEEK price, the number of GEEKs to be disbursed increases rapidly as the price falls. The lower the price, the shorter the time it takes to reach the payout limit.

Conversely, as the price goes up, the amount of GEEK to be paid out decreases rapidly, so there is no need to limit the amount of GEEK to be paid out. However, the price of GEEK does not rise by itself; it rises when there is a reason (demand) to buy GEEK.

This new economy initiative, including the Ronin chain, is an effort to provide a clear reason why you should buy GEEK.

In ideal terms.

A） Provide reasons why you should buy GEEK
↓
B） Increase in GEEK prices (with everyone understanding why)
↓
C） Easing of withdrawal restrictions

I would like to make this a process.

If we remove the withdrawal limit first, we believe that there is a strong possibility that the pressure from those of you who want to sell first will be too strong, and despite our efforts in A, it will not lead to an increase in prices in the end, and we will not be able to ease the withdrawal.

Some may see this as just us pushing our own convenience, but we are doing this in the belief that we can make things better for everyone by getting things back on track.

Another means of mitigating withdrawals is to eliminate the GEEK issuance limit. In general, it is inherently illegal to switch to infinite issuance of tokens later if finite issuance is chosen.

However, in the case of GEEK, there are no venture capitalists or other investors participating in the token issuance other than the players, so it can be said that only the management team will suffer an overwhelming disadvantage if the issuance is made unlimited. Once the limit is switched to unlimited issuance, the limit itself will no longer be necessary, as there will be no need to worry about the issuance limit. However, GEEK can only handle up to 18 decimal places, so that is the limit.

So, there is an ultimate last resort of infinite issuance, but it is only a last resort. By the way, infinite issuance does not mean that we will always be issuing at a leisurely pace, but rather that we will be ready to issue when there is inevitably a shortage.

2） About the Ronin Chain and the New Economy

In the body of the letter, we will explain why the Ronin chain and the new economy are reasons why you should buy GEEK.

As some people have posted, the current GEEK economy has become distorted in many ways, and it is not a condition that can be easily corrected with a little work. The result of this distortion is manifested in the form of “GEEK continues to fall.

One of the reasons for this is that the management is selling NFTs, which provide a return on investment and profit in a short period of time, and since NFTs are sold as a gacha, there is some variation when the number of units purchased is small, but when a certain number of units are purchased, the system provides a very stable profit.

Furthermore, since there is no place to invest additional GEEKs other than in-game consumption, the situation is such that the GEEKs earned are inevitably directed toward gains.

In the new economy, we have fundamentally revised the structure of profitability in this area. Instead of providing a fixed amount from the management side, each player will be able to decide the size of their investment and increase it on their own. In the process, the current GEEKs (oGEEKs) and the GEEKs on the Ronin chain (rGEEKs) themselves will be consumed (reinvested).

On the Ronin chain side, we would like to adjust various settings and the listing price of the tokens so that the scale of returns will be larger than the current GEEK Verse for a larger initial investment and additional investment.

This is a long story, but I'll summarize it in a crazy way,

• The Ronin side of the chain is less stable than GEEK Verse, but we want to make it a dream economy.
• The entry point is oNFT upgrades and rNFT mints using GEEKs (oGEEKs).
• If you want to get on board, now is the time to do it, when GEEK prices are insanely low! Let's get excited together!

This is what I mean.

Finally, Ronin chain onboarding is not a transfer of chains; it is a multi-chain conversion that makes the GEEK Verse side more valuable than ever as long as GEEK and NFT on the GEEK Verse side are the starting point.

P.S.

In light of the situation where withdrawal mitigation is not immediately possible, we have decided to add an in-game xGEEK(EARN) -> xGEEK(paid) + xGEEK(lite) purchase limit.