Case Study: Shrapnel

Shrapnel is an intensely competitive AAA extraction shooter game on PC, where true ownership and real-world value are offered to players for the first time – featuring skill-based play, creative modding tools, and a community marketplace.

Who will benefit from this case?

Game studios considering the transition from Web 2.0 to Web 3.0 and companies entering the GameFi market.

The challenge

Our task was to develop a qualitative economy design and test the fundamental supply and demand drivers affecting value of NFTs and fungible token in the economy. The focus was on testing the determined mechanisms and models through quantitative modelling with systems simulation.

How we did it – in detail

Phase 1: Protocol Discovery

At Economics Design, any round of strategic consulting begins with an in-depth audit & analysis: what has already been done and what remains to be done to make the project attractive in the eyes of potential users and investors. We draw up checklists that evaluate various aspects and quality of the project and identify growth points (issues).

In this case, we carried out the following to determine our strategy:

• Initial risk assessment
• Value flow chart
• Qualitative economics report

In this case, we identified the following issues & growth points:

• Fundamental drivers
• Gear distribution timeline
• Sustainable growth
• Risks identification and reduction

Based on the audit results, we mapped out the next steps, with several types of activities to run in parallel. We started working on improving the pitch deck during the audit process, to bring it to a format familiar to investors as quickly as possible.

Phase 2: Modelling & Testing

At Economics Design, any round of strategic consulting begins with an in-depth audit: what has already been done and what remains to be done to make the project attractive in the eyes of potential users and investors. We draw up checklists that evaluate various aspects and quality of the project and identify growth points (issues).

• 3-year cash flow model
  • Financial modelling in the secondary market
  • Determine impact of various factors on company revenue
• 3-year fungible token flow model
  • Economic incentive modelling in the primary market
• Analysis of primary market use-case
• Analysis of potential financial outcomes
• Sensitivity analysis Correlation analysis

Phase 3: Simulation in Machinations

• Testing economic model viability
• Actions of simulations based on the value flow in Phase 1
• Parameters of simulation based on parameters highlighted in Phase 2

Phase 4: Report

• Risk report
  • Outline of idiosyncratic risks
  • Finalised solutions
  • Market risks
• Economics Paper
  • Documentation of all planned economic components suitable for public consumption