Treasury Mechanics
Understand Checkmate's Treasury mechanics. Learn how funds are managed, distributed, and used to benefit the chess community
Last updated
Understand Checkmate's Treasury mechanics. Learn how funds are managed, distributed, and used to benefit the chess community
Last updated
We are on a mission to accelerate online speed chess as an esport. The Checkmate Treasury and the attached prize pool is a dynamic fund that grows with every trade and treasury drop.
Alphas who engage in the Alpha sale and players that trade contribute to the Treasury.
In the spirit of sports governance and web3, Checkmate has established a co-governance model for the Community Treasury. Our model is designed to be fair, transparent, and geared towards sustainable growth, with a share of Checkmate revenues allocated to support initiatives and the Checkmate community.
The Community Treasury receives:
100% of treasury drops
50% of Founders' drops pre and public sales revenue
50% of Checkmate and participating marketplace secondary sales royalties
50% of Marketplace TX fees
The initial funding of the community treasury will be funded by the Alpha Launch and continue to grow as players trade on the platform.
The following allocations will be made within the Community Treasury.
A hefty 40% will be committed to the Prize Pool, Marketing and Event Fund, driving exciting gaming experiences, marquee events, community and Alpha events
10% dedicated to the Creator and Sponsorship and Scholarships pool, commissioning creators, fostering partnerships, and nurturing new talent through scholarships and a community grant program.
40% steered towards cutting-edge Research and Development, including AI, anti-cheat mechanisms, XR technologies and Development for robust platform growth and maintenance
10% allotted to the Administration and Integrity team to ensure a smooth and safe experience
Post platform launch the mechanics will be:
100% of net treasury drop revenue will go to the community treasury
50% of Checkmate and participating marketplace secondary sales royalties is committed to the community treasury
50% of treasury yields retained by the treasury
An overall % or amount of the funds will be retained within the community treasury for investment. This % or amount will be based on the final result of the Alpha Drop in consultation with the community.
The distribution of funds will be as follows:
Community grants and sponsorships will be allocated as per the co-governance model
Research and Development will be allocated and managed by Checkmate. The community can vote on new platform features and builders and engine devs committed to fair play will be able to apply for grants.
Checkmate will allocate the initial allocation of event and prize pool funds to ensure a fair distribution of prizing and resourcing across player and fAlpha-only events. A further allocation will be provided to the planned community councils.
A Community Investment Charter will be developed in conjunction with the community. In addition to regular updates, an Annual Community report will be made available. The community treasury pool total and wallet subtotals and any third-party PFP collections held will be available on the checkmate website and on-chain.
The thinking behind the community treasury has been driven by the web3 ethos and our previous experience in community fundraising, pay-per-view, sports and esports governance. The beneficiaries and stakeholders, in this case, are the players in our community and the player ecosystem. Not all players have equal access to opportunities and representation, whether due to their gender, resources or where they live. The community treasury seeks to provide a platform for players to level the playing field, increase opportunities to earn, have a say in its direction and support the development of promising players.
Checkmate is a private company doing its own thing; the Community Treasury co-governance model has been implemented by Checkmate voluntarily. We do not represent it to a DAO but an effort to lean in and provide the community with the opportunity for shared decision-making and participation and promote community-led initiatives. At the same time, we need to ensure we can complete our mission by managing operational risk:
Legal, Tax, and Regulatory Compliance: Checkmate retains 51% say to ensure all decisions align with necessary laws, tax obligations, event and broadcasting regulations, and local regulations. This is crucial for safeguarding the project's overall legal and regulatory compliance.
Financial and Operational Responsibility: As Checkmate bears the main risk and liability, having a majority say in decision-making processes, including those related to financial management, tax strategy, and regulatory adherence, is essential.
Expertise and Capacity: Checkmate's 51% say allows it to use its own and professional advisors knowledge, including an understanding of complex tax laws, financial and crypto regulations, advertising broadcasting rules, and non-discrimination principles, and resources effectively for informed decisions.
Accountability: Given Checkmate's legal, fiscal, and regulatory accountability for the project's outcomes, having a majority say enables it to manage risks effectively and fulfil its legal, tax, and regulatory obligations.
Non-Discrimination and Community Guidelines Compliance: In addition to the above, Checkmate's majority say aids in enforcing non-discrimination policies, ensuring that all operations, community interactions, and project outcomes respect the principles of Fairness and Tolerance and community guidelines.
We maintain a 51% say as our safety value against insane ideas, community voting manipulation [Eg whales] and decisions that would conflict with our operational requirements.
Initially, community management for Checkmate will be done through Discord, a popular communication platform for gamers. Post the Alpha Launcht, third-party web3 management tools will be used.
The Checkmate platform offers a fully integrated web2 [chat and video] feature. In time, we will implement internal voting tools.
All payouts are calculated net of any third-party transaction costs. These include any credit card, insurance or gas costs.
Revenue Source
Distribution
Alpha Pack Pre Sale and Public Sale
Total Net Revenue
100%
Community Treasury
50%
Checkmate
50%
Alpha Pack Trading (Public and pre-sale Avatars)
TX Fee
10%
Community Treasury split
50%
Checkmate split
50%
Marketplace Trading Fees
TX Fee
10%
Community Treasury split
50%
Checkmate split
50%
Treasury Drops
DLC Drops
TBA
Community Treasury split
100%
Affiliate Program
Refferal fees
As per Rules
