Andrew Ringlein's 5 Crypto Accelerators in Gaming and Business

work in tech and life and whatever. And we just had one of these walks last week where I asked him a simple question What does he see as the intersection of gaming and crypto? Andrew is a lifelong gamer and he is active in the crypto space as well. So the resulting hour long conversation was something I just knew I had to record, and that is what this conversation is. So with that, here's Andrew Ringland on crypto

gaming and business. So, Andrew, good to see you. We had this amazing conversation walking around the lake the whole time I was walking. My phone was in my pocket and I was worried that if I tried to record it, it would just sound like crap. But the whole time we were talking, I was like, Damn, I really wish I was recording this because I feel like we're going to forget everything. And then we basically said, OK, we

just need to do this again on a podcast. So we're going to do our best to reproduce that, and it'll probably be a little kludgy, but we'll make an attempt.

And I said, Is there anything here? I'm missing? Is there any reason this should be decentralized? And I got on the phone with three different sales reps and had them describe to me what they would do. They would they would give us money. They would years. And I kept asking the question of why, like, why should we change our reworked currency to crypto? And I did not get an answer that was anything other than it'll stick the word blockchain next to your company and you'll be

caught right? There was nothing that some gave and I talked to three sales reps who were trying to convince me to use their blockchain. And I said, why? And I got no answer. And I kind of feel like the world is asking why. And at the wake, I think you also kind of said to me, you said, why? Like why? Why does it matter? And I didn't have an answer for years ago. No one else had an answer for years ago. And I think now now the answers are starting to emerge that the wider story.

But then it got proven that it's actually a better model, and one of the reasons that free to play is a better model and pay to play is you're only paying for what you want, right? As a consumer, I can go and I can play 20 games, not pay anything fine one game I like and I can spend all my money on that one game that makes left the cream right at the top. It means that the game that is successful can make a lot more money than the games that are not successful.

ones that are good. And so all of gaming, I mean, not quite all of it, but the vast majority of money in gaming has moved to free to play. Can you go back 10 years? And it's a very toxic idea. If people didn't like it, it's like, Oh, this is just a cash grab. Right? But now you look at, you know, the largest games are already looking at like Fortnite and look at League of Legends, and they're free to play

twice as good of a model. Well played earns probably like four times as good of a model so that the speed of adoption is even faster.

billion today and fourteen billion dollars devoid of caps. It's not worth that, but that's sort of what's worst blizzard, which is the preeminent preeminent IP, most significant third third largest gaming company in the world and the single largest acquisition ever in U.S. history, which it acquired because of blockchain. Why did that happen? It happened because of Axiom. Infinity came out of nowhere and is suddenly on everyone's radar.

And after Axie Infinity sort of showed a superior financial model, five of our games came along and did the exact same thing. And so when a when a Yahoo like me can make a phone call and suddenly talk to a CEO who has got a billion dollar company because he did something three months earlier? It's bizarre, it's accelerated the speed of these game companies growth. So every game company is now thinking, OK, what do I do that is this new model? It's much, much faster than the

free to play option. It's what drove the Microsoft user acquisition. It's also what drove Facebook renaming itself. So the financial implications of this in the gaming world are being seen by these other companies. And they're all trying to rapidly move as fast as they can to adopt it. And that's just the sort of the proof behind that, that first change.

any major way anytime recently. But if someone were to ask me, Hey, what's actually in of these prospects, I would say it's great because they just put all the money in the world in the bank, and everybody knows with their IP is they have done the thing you're describing, which they basically do to fundraise on a kind of bad game. Now they can iterate on that game and they can invest a lot of capital in making better

versions of the game. And in one year, they're going to have games that are better than Pokemon Go because they have all this money.

And the reason we have Apple devices is because of you, because many years ago you dragged me into a, you know, an Apple store and you bought me an iPhone because you're a man who influences people, write you. You basically have like a an attachment to Apple, and you shared and dragged me along that attachment spread to other people in marketing. This is called also being an app, and it's also being an influencer right near that, whether in a podcast or in person, you do the same thing

with people all around. Mm-Hmm. Well, when you when you take something like a game and you actually give people an ownership stake in it by giving them a thing that they can then transfer and own and can change in value, you turn people far more into being mavin through your product, being influencers, free product, being stakeholders, having a reason to get other people to do it. So one of the shocking things is this game that is terrible.

Axie Infinity actually has longer play times, higher growth than other conventional games because they have turned every single person who owns any piece of it, who owns an NFT. Who's playing this game into an advocate for it? And so they are they're weaponizing their own owners and their own community members to go and recruit more people because they all share that benefit together in the same emotional

way that you advocate for for Apple. When you bought me and I thought you didn't have a stake, that right?

between one to $200 a day on that asset. And that's the exchange, the way people think about I own that, I own the thing I own property, what moneys that you bring for me. So the money being generated from a job in World War Craft is like 25 percent per day of the value that I set. If you go and buy a team for accidentally, it costs $100 and it generates about $35 dollars a day. So the people who are working in this, so people in the U.S. are buying the assets and then they're farming out the

jobs to other countries, like in East Asia. But the income per job is much, much worse than will work out. Well, what's the difference then between Acxiom theory and will work out why is actually infinity engaging people more and being more viral? And the reason is it's allowed. And apparently, when you make something of black market item like in World of Warcraft and you, there's a risk hanging over your head. People don't build businesses and do jobs out

of that. So what a work. The simple idea that Blizzard never approved these types of transactions. They're still happening on a black market, but that disapproval, that complexity made it so people, not as many people are doing it as a job, even though it pays better. Whereas once you approve it and you say, you know what? This is the difference between like, are you a taxi driver? But you're looking over your shoulder constantly to see if cops are going to stop you and take away your taxi? Hmm.

But you can earn a hundred times more if you're a black market taxi driver or are you a legitimate taxi driver or legitimate Uber and you're allowed to actually operate? And so when they made it, you're allowed to operate in this fashion that that was the change, even though the mechanisms to make money were already there. One is legal and one is essentially illegal.

and battles they were. They were battle rails. They were inspired from the movie Hunger Games. Mm-Hmm. You weren't to modifies them, right? So somebody made this mod and they gave it away for free. Now, when you're when you're making something, you're giving away for free and you can't monetize it. You you're not putting incentives in the right place. Right? It's like a weed startup companies b start companies. If they couldn't make any money, would pharmaceutical please make drugs

if they couldn't, you know, benefit them? Afterwards, somebody went. And with no perceived long term benefit when it created Hunger Games mod in Minecraft, made no money on it. And then a bunch of people realized waits is way better, and then lots of different games started coming out following that same formula. And that led us up to Fortnite, which is one of the juggernauts now is literally a knock off of this mod now who made The Hunger

Games mod? I have no idea. Did they make any money? No. So they did not drive innovation in the way it should have. If the incentive had been in a better place.

relates to your community. Hey, let's do something great with your community. They're going to be free to internet of a conventional game company right now is built on the idea that I'm going to go market. I'm going to get users and I try to maximize the value of most users. And if I can do anything to maximize my value, I'm going to do that thing. How do I make the most money from my people and how do I get more people? And that's where their brains are at. When you go to all the crypto gaming

companies that exist right now, they're very different. The CMO for Gallo Games lives inside of their discord and talks to people all day long. So I went and met him at Decentral, which was a defy convention in Florida three months ago. And I said to him, Hey, what's the most important thing in your company? And his answer wasn't how good my game is. His answer wasn't how much money we make per user. His answer wasn't our user acquisition. His answer was our community. Most important thing

to us is our community. This is a guy who the CMO of this now 10 plus billion dollar company. He lives all day long in discord. It's like his desk is sitting in front of a glass window that has a test. A testing group going on inside of it, which is constantly testing everything they're doing. And he is watching that nonstop. He is completely plugged into the community,

as is everybody in the company. And if I say to him, Hey, listen, I've got a technique that will add 30 percent more to your monetization, but you know your community may not like it. He would laugh in my face and say, like, Are you kidding me? We don't do things like, you know, you just like all these crypto companies because there is a an absence of ability to market conventionally right now for crypto games. They have been built from this fundamental idea of We are

games for communities. Our users are our mavens. Therefore, they must be happy. This is like if Apple said, Hey Dan, do you want me to charge you? X amount more for an Apple product? Right? And all they care about how much money they get from you? Or do you want Apple to call you and say, Hey, hey, Dan, what was going to make your experience with the iPhone better? Hmm. Right? These are companies that are built fundamentally from the idea of how do we keep our community engaged? How do

we listen to our communities? How do we be responsive? And because they're built that way? The occurrences I mentioned earlier League of Legends of being a mobile and battery owls like Fortnite being a. Being a battle royale, those things were invented by communities and ignored by game developers for years. Hmm. It's very slow adoption. The crypto gaming world does not ignore its community. They are the most

hyper responsive to community companies, their art. It is fundamental in their DNA, and I do believe that as they're getting bigger and bigger, they're not going to lose that in their DNA. And I do believe that that is a massive competitive advantage because they're actually listening to the consumer in a deep way that that other people are not.

Or try to involve the individual. And when my kids bring TikTok home and they go, Oh, look at this new TikTok. What they do, they they go filmed themselves doing the same thing. They've now flipped it around and now they're bringing all their friends and they're recruiting and they're becoming those advocates for that software that has helped

drive TikTok. Well, that's true of all of these CryptoGames in an even deeper fashion, because not only are you essentially part of creation, but you're also part of ownership. And that transformation in the way that people are involved has made these companies recognize, OK, you know, community is the most important thing. And now when Blizzard and Facebook come along and try to play in this in this arena,

they haven't grown up from that DNA, right? They they have people who are over here thinking about how do I maximize my user experience? How do I get the most money from people? How do I make this so I can have the best marketing campaigns there? Their old world mindset is not going to change that easily to thinking instead, Hey, I need to be sitting in a room with a thousand people who are who are my advocate and my users right now and all the time.

That is a fundamental different DNA that I do not see in these major companies that I do see in all of the crypto companies. And I think it's going to give them a long term competitive edge. It's temporary because actually the rest of the world might change that model to eventually. So this is not an implicit like inherent persistent advantage, but it's certainly an advantage it's going to carry forward for a few years.

the UGC standpoint than, let's say, you know, like television. Mm-Hmm. As we can see, just like a caucus now when it comes to game creation. Right? Minecraft had a model that said for a long time and a model that said, Hey, you can come and build games out of Minecraft, but you can't monetize them. So the incentive to do it was very low. People still did it right. People still created. What turned into now is Fortnite, but they didn't. They

didn't reaping the benefits. Well, if you look at the sandbox, which is one of the games right now that exists, they're mostly a toolkit to help people make their own games. This is can magnify the capacity for innovation because now all those people who used to go mod games for every other game are going to say, Well, do I want to go make them on my free game where it's really hard to be a monetized? If I want to monetize off of Minecraft Mod, it's actually not super easy.

You can do it now. Now they've adjusted so you can do it, but it's still not very easy. You want to go and do something out of the sandbox. You have much more tools available to you to make something that is unique, and you immediately own the vast majority of the benefit. Right? How much money does the sandbox make when I go invent a game that's really

a structured sandbox? It's like five percent. Almost all the money is going straight to the creators of those games, and this is the same kind of model that is happening for all across in piece. The minting platforms and the infrastructure are taking very little, but they're facilitating and they're enabling people to actually create UGC and benefit from it on YouTube. You know, you can benefit from your UGC.

It's actually pretty hard to make a living because YouTube is still keeping the vast majority of the money right. Most of the advertising dollars go to YouTube at a very small amount goes to video creators. In this case that that model is pushed much more extreme, where ninety five percent of all the money from anybody who's trading anything goes straight to the creators, which creates a much

bigger incentive for them to create things. And those things have a lot more flexibility, maybe just from the past.

one of the world's. MM-HMM. And I'm getting 95 percent of the value out of doom or doom was owned by a lot of people. It's actually spread out in terms of ownership. And there is there's a company that has that created infrastructure, but it's decentralized as possible. I think it's the one piece that was missing from Ready Player One that if you could go back and say, how will that actually be in the future? It's actually going to be okay. All those various worlds are owned

by individuals. And ironically, that if the if that core infrastructure company, you know, went out of business or started being exploitative, those worlds would go somewhere else because the worlds are actually portable.

put out? And they're like, No, it's all up to them.

couple examples of this. But first, we can start with the Ready Player one example. The Ready Player One example is, let's just say IOI from the movie takes over and takes over the entire metaverse. And they say, Hey, guys, we're gonna put up ads everywhere, right? And all these are ago. Yeah, we don't want to have that experience. Well, what happens to the person who's created the doom world is the doom world is its own body of code. It doesn't maybe have an interpretation of the K, but

it actually has its own group of users. It has its own community, and what they can do is say, You know what? We're going to unplug doom from your work, your system, because you're showing all these ads and that's shitty, and we're going to go plug it into the competitor viewers that just made this just kind of copy too much of your SDK elements. And if teams are essentially infinitely transferable, it's not. Doom is going to pick up its entire entire body and walk over here and plug

into a different system. And that new infrastructure could offer a competitive edge. And you guys know, ads ad free and all of those worlds pick up and walk over, and Iowa is they're going, Wait, hey, guys, wait. But we're the ones who started all this doesn't matter. Right? This is a decentralized, persistent ownership that can be transferable. You can transfer the entirety of the assets. And there's

an interesting example I have of this. There is an NFT project that one of my colleagues is involved in. I guess maybe all of singer name because this is super disparaging, but they basically the guys ran off with all the the money that was generated insanity project and they're supposed to be building a game and they have really engaged community. Well, they raised a bunch of money. They took the money and then they left right called

a rental. It happens a lot in the NFT project, right? Well, a different group came along and said, Hey, guys, you know what? We like this community. We like this NFT project. We know where the money got take out, but whatever we'll take over the project or we'll clone the project. Hey, everybody out there who already has this thing on the blockchain? You know what? We're going to issue a new thing for you on this other and this other chain we're

going to. We're going to give it to you, and we're just going to migrate all you guys over here. And hey, you know what? We're going to take care of you. We're going to do cool stuff that they're talking about.

won't answer the phone. So I went made my own racing game and everybody who owns a spider tank gallon games, I've just issued you one of my one of my race cars and I've inspired it off of the art from whatever it was you already had. It's portable and it's persistent. Something can die. Bard's tale can go out of business. Gallon games can close their spider tanks. I can put up ads and those assets are portable and transferable, and it's it allows for a type of persistence that

means that these things won't die. This is why people are obsessed with this, this real estate and obsessed with kind of the digital. I can only own a piece of digital real estate because it'll be persistent. Even the company issuing a ghost business, that real estate is still there and someone else will use it in the same way.

get stoplight, you know, tickets or whatever. And like, here's our system and you decide to be part of it or not. And you have a competing one over here in Houston. Yep. And the idea is that you, you vote with your feet or whatever. In this case, more digitally. But it seems like it's kind of the same thing you're saying. It's like, I love this damn world, except for, I hate the rules over here. So someone just forks it.

And now it's it's it's almost the same, but slightly different because these these different rules are different.

made free to play better than pay to play. Right now, you can vote more accurate with your feet because you're actually spending money where you want to, not just to try a thing, but for thing that is actually proving more long term value and then play to earn is allow you to vote your feet in a more long term way of like, Hey, first, I can try things for free. Typically, then I can spend money where I care about it, but then that money where I care about it could both give back to me and be

persistent and can be transferable. And so there now becomes like all these different ways to vote with your feet that we didn't have before, and that magnifies your level of engagement and magnifies you doing the right thing out of it. So now the people who are involved here start getting the things they care about, and we've removed a big brother who's deciding what you care about. And now we've turned it into, Hey, what are the actual people saying they care about?

They know this. So if you go to the sandbox for Gallo games, these are two of the, let's say, six biggest companies out there right now that are already established in the in the crypto gaming world. They play super nice together. In fact, like they really, really want to be friends because they recognize that they have to actually have, like sort of friends and collaboration and communities, and it's all about playing together. They can't stick out

their territory. Like, does Facebook go and call Microsoft and say, Hey, guys, we want to figure out how we can play better and nicer together. We want all of our stuff to crossover. We should know. They're putting up fences and trying to stake out their territory, right? Games and sandbox are inspired by each other. And when a new thing comes out, Hey, hey, this new thing? Hey, can we do this thing together?

this is actually better, so let's do more games. And so they started hiring independent game publishers with their money, and they started building up games. And they basically their approach was to go and individually themselves or contract to build different games and then have a bunch of games all under the banner. So they are much more of a hey, we have like six games in development, like

three you can play right now. So they went and built individual sandbox style tools to build games and built this metaverse component. So they're playing together right now because gal games like we have all these games, we have no metaverse and we have tools to make games. Sandbox is like we have a metaverse and we have tools to make games. Let's play nice with delegates. And so they're, you know, sort of being friends trying to connect these things back and forth of Mexican, so.

they're aware that they missed that piece. They did this launch a new thing that is also UGC So they obviously know they're going to start filling in those gaps.

you know you're an advocate for Apple. Right? That happens automatically, much more powerful. You give somebody something. You give them a stake in something. They are way more likely to think of it positively and recruit others. Mm-Hmm. The second one is that the change in the model of ownership by bringing people into the ownership.

be like that, it might never happen. So all of the existing companies that are that have grown up inside of crypto gaming have this fundamental DNA that is, let's listen to our community, which is a great practice for any company and quadrupling a great practice for companies that are in crypto game.

can do on YouTube. You can record yourself and you make, you know, 25 percent of what what is coming in from advertising for this gaming is actually got more money behind it, more user behind it. Ninety five percent goes to the U.S. creators, and the amount of flexibility that UGC is much, much greater. OK. And then the fifth one is that decentralization and persistence, the fact that you can port something from here to here, I can leverage spider tanks, oh, I can't kind of come in to

control the whole thing. So your actual ownership of is more true because because it is decentralized.

four of the best types of content there is. So when they announced Disney Plus, I'm like, OK, I'm in. I am going to own Disney Plus for my entire life. There is no chance that I won't. I know that the second it gets announced that no matter almost no matter how much they even charge, they charge four dollars a month. I would still own Disney Plus. If they charge one hundred, I would probably still own Disney Plus. It relates to all five of my kids, myself, my wife.

It is of great importance and I believe it is going to do very, very well. I'm like Disney Plus is these are the kings of content. Remember, we called it. Yeah, I said, this is going to do extremely well. There's no prediction. It's going to be on the nose for a while is going to do it's going to get better and better over time. And they will win if they're going to be three winners. It's one of they will be one of those winners. So I would be willing to invest in Disney Plus if it was a

carve out from Disney. Now, I don't know how successful Disney would be. And, you know, coronavirus can by kick the ass of their parks. But I knew and I was sure Disney Plus was going to be successful if Disney Plus had been modeled using this new blockchain. And they had said, Hey guys, we're going to take a page from the books of these other hyper growth, successful financial models. And we're going to we're going to launch

a piece of Disney Plus. We're going to get an NFT and this NFT is going to be a VIP pass. And there's a lot of privileges we can add. And this is where Disney let's just keep it simple. First things first, this VIP pass is going to give you a lifetime subscription to Disney Plus, and you're going to own it and it's fully transferable. So this thing is going to cost a thousand dollars. Now, Disney Plus cost, is it six dollars an hour? I don't know, but

that's a hundred months of Disney Plus. Mm hmm. Hey, we're going to sell four thousand dollars. We're going to do 100000 of these VIP passes for Disney Plus. Well, what would happen on day one? Prior to day one, I would have gone out about three. Right? Because I would have immediately invested in that micro opportunity because I was such a big believer in it. I would have bought 30 and I said, Hey, Dan, I'm going to sell these for a long time because I think the

is going to go up. But if you want to watch Disney Plus having a loan, you one of mine. So here's one of my What am I going to VIP badges? So you can also watch Disney Plus. I'm going to let all my friends use my my things. I get to be cool for a while, but I also I believe that the value think significantly. So now there are there are 100000 of these things, right? They will sell out on day one, for sure. I bought 30 myself. People like I get to own a VIP

lifetime pasta, always on Disney Plus. How many people are there who bought just like me? Quite a few. Which is why their numbers have blown up. They would have earned more money on day one than they have earned up to date so far. That's on day one. And it would not cannibalize their audience is actually a small percentage of their audience where they're charging a thousand dollars.

Now what happens on day to on day two? You say to me, Hey, Andrew, did you notice that these things sold out instantly and their value was now doubled? I can't buy them anymore on the open market. They now cost two thousand. Will you sell me one of yours for fifteen hundred? And I go, Okay, sure, you're my friend. No problem. I will sell you one of my Disney VIP passes for fifteen hundred. I now make $500.

Five percent. That transaction goes back to Disney. Wait. Disney just covered their monthly subscription fees for all my 30s and 40s that I have off of off of Vine. So they still are making their money. Now you also own something that is part of this future right now. Assuming they do this correctly and they don't go just print way more of these, their value goes up and up. And three months later, there are more and more people saying, Well, I want to have a lifetime pass for Disney Plus.

And actually, if I'd been smart and I bought one, the value of that pass without before. The more people who do that, the more that the value was driven. And now I have I have twenty eight sell well passes that are all worth four thousand dollars. I go, You know what? I give some of my kids to college, so I'm going to go and liquidate 20 of these and I'm going to make 80 grand. I have now

pocketed 50 grand. I've benefited personally off of the success of Disney Plus because I called it as an investor. I didn't it to be a Qualifié investor. There wasn't paperwork. There's not particularly like any complexity with doing that. So I've now made way more money than I invested in this thing. That was pretty reliable, and this would have would multiplied almost for sure. And I still have my life. A VIP for Disney Plus now, has Disney Plus lost anything? No,

they're way ahead financially. They're getting residual income off of the secondary market sales, which is more than they would get off of subscriptions. I'm able to be able to signal that I'm a cook because I own a Disney VIP pass. I don't have to worry about paying that bill anymore because honestly, I was going to pay that bill for the rest of my life anyway. It's not going to happen. I still wanted to do this same thing.

The MCU like, Hey, you know what? I buy a a one time ticket to go to a movie theater like, you know, and I can just go every single week. They keep trying to do this with subscription fees, but like they could do with an NFT and they could raise theatres, could do the same thing with a smaller people and actually raise a lot of money in the short run, puts money in their pockets and then they're still going make their money off a residual. Now, I don't know how long will be until a company like

Disney can adapt to a new kind of model. But this model's been proven in the nifty world by people who aren't significant brands. And so my expectation is within two to five years, this will sweep through everything, right? And it's going to be now a hand in hand. OK, I'm watching Disney Plus. OK, what's the part that we're going to do that is persistent and decentralized and gives ownership out because I want to create all those advocates. I want to have more money upfront. You know, I

want to be seen to be give back to my community. OK, that's half of it. And then what's the other half? Yeah. And how many years will be until it happens and happens everywhere? It's starting to happen, but it'll be slow because it's hard for people like Disney to go, OK, here's our conventional projection. We're using Disney Plus as using a model from tells you to like you to look

at Netflix and see what Netflix do. They're not thinking, OK, what's this innovative thing that just changed the way money is flowing, the way users are engaged? That's not where people are at yet. Not yet, but gaming will lead the way for everything. And what's gaming does this, which is sort of starting to, you know, Metta and Microsoft and Blizzard? And you give us one more year in

gaming and then two more years in gaming. This is going to sweep through and other gaming companies who don't adapters can be decimated because it's going to be so much superior in terms of its adoption. So a couple of years from now, you know, it's Fortnite will be doing this just like everybody else. All of gaming will do it. And then it'll become very easy for companies like Disney Plus to be like, Oh, wait, you know what? It works in gaming. Why wouldn't that work over here?

job is to go out and get out 300 free tickets. So. So that's one thing where people show up to this club and then they get a small percent of the door and that's their model. And they're like, Yeah, we're always looking for ways to improve our model. I said, OK, well, you have a mailing list. You go out and give out tickets in person. You do these very things that these tickets out well, why don't you just sell the

interests of these clubs costs $8000. So cost, you know, let's say it cost $10 to get in one door. Cost $7. Medicare cost $7 to get in one of these clubs. Mm hmm. Well, when you give out those theater tickets, people are happy because reading something free, you're turning them into your marketing and for free else. Why

don't you take those people that you're regularly emailing? Take people that you're really going out and trying to get them to sign up and go to these these parties for free and actually offer those people hey, instead of one free tickets, I'm going to give you a free ticket to every party happening in Prague, in Prague, at one of these giant clubs, and they actually have one every night because they've been doing this event thing every night.

So there are seven nights a week and people, you know, young people in the party love to go to clubs so you can go and say, Hey, by the way, it normally costs you seven dollars to get into one of these clubs doing one of these events because they're really cool. Hey, if you buy this thing right here, which costs $50, this is lifetime free lifetime. How many? How many of these parties do you go to per month? Is it? How often? How long is it until you

get your money back? Right? And they said these people's return rate is super high and these people are going to one or two parties a week. Mm-Hmm. So in what month they will get their money back? Right? So you can say to them, Hey, guys, I could give you a free ticket or I can sell you a lifetime supply of free tickets. Every one of these parties you can go into and they can go out and they could sell a thousand or 2000 or 4000 of these.

And it's the technology makes it very easy for me to do this, and that gives somebody a VIP pass to get in all these clubs. First of all, it's signaling it's cooler. They get to show up and be like,

They already want people show up for free. This goes back to our point number two of turning like owners and mavens and try to get people to bring other people. They're using that same kind of concept. This is magnifies it and actually lowers their workload. They could do this NFT, and they could not even do the rest of what stuff to do. They could literally just sell EMT and then say, You know what? We're done. The only thing we do is we get two percent of the door.

You have a right to use our app at your door. They go to a club and say, Hey, by the way, we want 30 percent of the gate in exchange for you using our app, so now let's face gambling.

like the actual business model that flows without as many humans. Again, a bunch of cattle up front and they have no problem. That's what they're doing. Now that simplicity means they can do this in Prague, and they can pick up their exact methodology and they can go to Paris and they can do the exact same thing. And how much effort is it going to go to this thing in Paris? They were going to in Prague when it's all based on selling out these, these adapters that give you VIP entrances.

They walk into the clubs show what happened in Prague. Now it's really easy to replicate their business. So we take in business and made it easy to replicate through this technology innovation, giving them way more money. Now it's actually like right away, they'll have plenty of money to say, You know what? We're done here. Prague is running by itself. We're earning residuals on this. We're earning a percentage of gate. Let me go to Paris in.

are you doing for crypto? And what you're going to get is either pain, joy or fear because every single person is being dragged into conversations about crypto because they all have realized, Oh, wait a second, that the why has been proven the what the first y of like holy shit exchanges. All the money is enough, and now

everyone's going to change. But a bunch of these same drivers are sure and all of you know, crypto, whether we talk about Disney Plus or, you know, ticketing or a lot of things, you're also crypto currency.

hard to have a content creation team. You can only make so much. But if you can get people excited and have them create their own stuff, which they have financial incentives to actually creating that sense of that sort of interlocking incentives work together to create something amazing that works for gaming. It also works other places. You had a dirt example do the dirty example.

so skeptical of this. And after talking to Guy for an hour, I walk away going, Holy shit, that actually matters. This guy is actually able to do a bunch of things that that actually really do matter because he figured the model out. And so I started to challenge myself of saying the why in regards to anything. And like the why is there a way that you know that we can leverage blockchain and these crypto concepts on different things?

So I'm at a I'm at Christmas dinner with my brother in law who always says, Oh yeah, you do things with computers. Those aren't real. I build houses. That's real. Like, that's kind of a shtick of the 80s. Feel funny. And so I say to him, like, Hey, listen, give me any problem that you have. And there might be, you know, I'm gonna try to find a way to solve that problem in the future using using blockchain. And he goes, My problem is dirt. I say, OK, this

is perfect. This is the forest away from from technology. You can possibly give me your problem of dirt. And he's like, I have dirt that I need to get rid of. It's going to cost me $30000 to go and dump it into, you know, landfill or appropriate EPA approved place if I can get a golf course to take it. I'm calling golf courses every day, trying to get some golf courses. Take it because occasionally they'll take dirt. But I am always stuck with this problem of having

to get rid of dirt. And then, you know what, in a couple of months, I'm actually going to buy dirt from somebody. It's super annoying that I both need to sell dirt and I need to buy dirt. And there are a lot of people at the same problem, but like, that's a real problem, like dirt under your fingernails. How are you going to solve that with, you know, digital ones and zeros? And I go, OK, let's let's

try this out. So how many contractors are there who deal with dirt, who want to either buy or sell dirt in the in the Bay Area right now? And he's like, There's 10000. I'm like, OK, would you spend $5000 to have a pass that allows you to dispose of or pick up dirt? He said, For sure, I'm going to spend thirty right now to dispose of a bunch of dirt. Why wouldn't I spend $5000? I said, OK, great.

Let's convert those 10000 people, uh, into. I mean, this is this assuming we can do some you have connections and that there's some way for us to get this started. But let's assume that's the case. We go out and we tell all these guys, Hey, by the way, you buy a $5000 pass to drop off and pick up dirt. Uh, it makes sense for all of them. They're all going to buy into this pass. Right now, you have five million dollars to create a center and Stanford center that

will pick up, store and then distribute dirt. You've got plenty of money to actually process this like that's way more money than you're going to need to actually process all the dirt and allow people to come in and take it. And now all of you have this right, you're the owner. You're also going to be an advocate. So we only get five thousand people start with every one of your people who, you know, is like, I'm dropping off the dirt and my dirt center and they go, Wait,

your dirt center? Yeah, I own part of the dirt center that I can drop off and pick up whatever. I want that right? So it will spread right. It has the capacity to spread from person to person to go sell out. Right now you've sold out and again you limited supply. This, uh, so there is 10000 passes. A new contractor moves in the Bay Area and he goes, Wait a second, you mean that I can get rid of and pick up dirt whenever I want. This is fantastic. How do I get in on that? You can't all

the passes were sold. OK, I really want it on that. I've got three major projects coming up. Who has a pass? I can buy some else over here. I'm retiring next year and I don't think I'm doing any more stellar dig out. So you know what I will sell. You might pass for 40 grant. I'm going to be nice to you because you're a nice guy. Guy buys a pastor 40 grand, so somebody over here bought a pass for 5000 brands to pick up and drop off dirt, right? A couple of days later, someone who showed up needs

a pass. They sold their pass. They pocketed the 35 grand. Right. So they benefited by the marketing adoption of this center. The dirt centre gets a five percent cut to maintain their staff and their infrastructure. That $40000 transaction pays money back to the drawing center to keep it right. Right? Who owns the dirt center? All the people who bought

these in a piece, right? He transferred his ownership of his piece of the drug center to this new guy, paying money to the senator to keep it running, pocketing a bunch of money himself. All of those initial people who created a strip center now that they've actually made a bunch of money off of this dresser because all of the things that they possessed, they can let us see. You know what? I'm selling kid to college. I don't

care about dirt any more. And they can sell their thing, and it's worth the money because the value has been proven out. So this allows for upfront fundraising to create the dirt, so it allows for distributed ownership, the center, all those people are involved. It allows for those people to become advocates of the center, allows them to share in the benefits and the rewards, right. In a way,

this is like UGC for business, right? A guy created his own custom use case that, you know, is some investment company going to come and say, or some start company, I want to sell dirt. They're not going to do that right? But but we took the financial possibilities and we made them granular enough and flexible enough that they could apply to contractors and the infrastructure is easy to do that. I don't have to go through as many

different legal proceedings to even transfer ownership. Again, all of this has made a lot easier when you're doing it on blockchain. And so the ease of simplicity, if we harken back to one of the really early examples of World of Warcraft versus Axie Infinity Warcraft, you can make more money in. But it's illegal. It's hard. Actually, infinity is it's legal and it's easy to change to making

it easier does actually alter the adoption. So the fact that the blockchain ownership is shared much more easily and much more transferred does help enable. This does help make it possible. And that's a solution for dirt, which is, you know, like, is that going to happen tomorrow? Probably not. Is that going to happen three years from now? There's a good chance.

bad reviews. If they get you big in your Uber, it smells and you're mean you can put out of business. They have decentralized. That relationship to different sides are both validating one another. Yeah, that kind of model is the model that we need to regulate all the things in the future. And that kind of model is made much easier through blockchain, right? Uber is still an example of that type of regulation, but it's still owned by Uber.

But that model can be further improved by being blockchain, and then it can be applied to nearly everything. And so we'll have way less transactions that are better, not peer to peer regulated. We're going to get way more punitive regulation. That's again, the reason why Alleghenies does something to disrupt the community. Well, they're being regulated by their community. Their community has a voice, their concerns, boat and a lot of games and companies that are in the space

are allowing for that kind of regulation. So the sandbox goes and has people vote on things before they're going to do a thing that changes the way their currency is deployed, structured, they go and they hold a vote and people who hold an ownership vote. And so they're decentralizing that regulation implicitly inside of their model.

technically that different. You're just changing the way ownership exists. Well, when you when you do a bunch of these small, subtle changes and you involve people in the ownership and you make things easier and you make things easier to vote and you make them persistent and you start to do all these little tweaks, suddenly it actually has powerful psychological.

nature overnight. And it's all about, you know, finding the right ways to leverage that that can help grow the most correct kind of business, like I actually think that these businesses are better models for the future. We're not going to be, you know, people who dislike Facebook being the man we yeah, it's actually going to be really hard in this model for there be a Facebook in the future. Yeah. The Sandbox and Cal games are not going to that. They're very different. They're giving out most

of the value of the users. It's mostly UGC. They're super committee directed. It's decentralized. You can pick up and walk away. So when, when, when this next metaverse and this next level of all these products is built, it's not around these sort of giant corporations that have all the power.

wanted the old school world of only ration cards. Yes. Once magic gets off their ass and allows you to honor magic cards, they basically will be doing crypto gaming and it is a superior model. That is what made magic huge to begin with, because that model was more present in physical, tangible things. Digital is an easier way to reach more people. But once you combine those two models, it's going to be way more effective. So the second magic and another company come out and show how much

better it is. Everyone can follow suit. People are going to own their own magic cards and the guy over here saying, why, why? Why are you try to steal my money by selling NFT? No, no. We're trying to give back to you, right? We're gonna make it so you can own this thing. I want to go live in a regular world. I want to play in a game where I can earn money, right? I want to. I want to have the things that I'm doing. Relate back to my own financial prosperity. Like, that's better.

that is being realized. So there's the same amount of money. But now the things that are good rise. The top free to play allows more for the things that are good to rise to the top. This does that even more so. So that new good things can come out and in a blink of an eye, they'll be all over the place.

want to play different universes. And to your point, that's not zero sum money that is more and more money around more and more content. So the better you incentivize the content, the more money there is.

inside of Minecraft. That kind of thing is more innovative. And so we're going to have more things that come from just random communities because the past is to being successful in bigger way, more so now we're we're allowing that spark of innovation, the idea that innovation is kind of like you need the right level of opportunities and the right combination of ideas and then something something.

platform like that. Large lumbering play isn't going to be the point at which it's going to be three guys who got together, who were drunk while playing some music, and they figured out a thing that was kind of funny. That was more interesting. They deployed it. They suddenly got a bunch of money on it. It suddenly works way better. Nobody loves this thing. Now, this thing is a new super hot thing, and it came from nowhere.