Launching Community Contributions on CoinPoker
Since starting in 2017, CoinPoker has been operating as a commission-free platform in order to encourage users to test and try crypto poker. In order to continue to progress and deliver value to the community, CoinPoker will introduce low community contribution rates to cash and tournament tables, as well as initiate token burning practices to boost CHP value.
Traditional poker rooms both online and brick and mortar sustain themselves with revenue from table commissions. While keeping CoinPoker low-cost and easy-to-access for everyone is still a priority, growing and delivering more value is also the key to moving forward. Community contributions make value-driving activities like token burning possible, and deliver the means to attract potential partners and advertisers as we continue to scale.
There is no commercial incentive behind this, and all contributions are reinvested into CoinPoker with the aim of continuing to build a thriving community and ensuring the value growth of CHP.
75% of Contributions to Be Burned
While it may sound like a destructive process, token burning is a common practice by token-holding companies like Binance, who burns tokens every quarter, and Eidoo, who burned tokens post-ICO and after generating revenue. In accordance with the economic law of supply and demand, by destroying or “burning” tokens you reduce the supply on the market, thereby increasing demand and monetary value.
While the initial allocation for tokens to be burned is relatively low, our advisors, an avid cryptocurrency experts, explains why it is an essential step in a long-term growth strategy for CHP.
“While the best strategy for increasing token price is delivering user value through your product, burning a small percentage of tokens collected from community contributions will allow us to test and develop technical ways to drive up CHP price.”
The token burning is done by transferring a certain number of tokens to what is called an “eater address”, which is also referred to as a black hole. The explanation behind the name is that these addresses are inaccessible, rendering all coins sent to them permanently off the market.
Burned CHP tokens will also be reported along with a transaction number, allowing anyone in our community to view and verify the tokens burned on the Ethereum blockchain. Community contributions are designed for our players, which is why transparency is integral to the success of this new phase of our long-term growth strategy.
25% Returned to Players
Community contributions have been a part of our roadmap since CoinPoker’s ICO stage, and while our plans have evolved and adjusted over time, the overall goal remains the same. While 75% of contributions will contribute to token burning, the remaining CHP will be returned to the community in the form of community-centric promotional activities, partnerships, and more.
Initially, community contributions on cash games will be set at 1% with a cap of two big blinds, while tournament contributions are set at 5%. These figures are subject to change depending on community feedback, which will be monitored closely.
Any changes, adjustments, or results regarding distributions for token burning and promotions will be reported to our community in a monthly newsletter. This report will include the total amount of contributions collected during the month, as well as a breakdown of tokens burned and community activities financed by the contributions..
The Growth Opportunities Community Contributions Represent
Introducing contributions from the community is a big move, yet CoinPoker will still have one of the lowest collection policies on the planet as far as online poker rooms go.
In addition to delivering community incentives in the form of a better gaming experience and higher token value for investors, community contributions can also be put towards attracting more partners and advertisers, which is also an essential part of building a thriving community.
During the first stages of implementation, we will carefully review player feedback, after which we may adjust the percentage to accommodate bigger campaigns and attract partners and audiences interested in joining the CoinPoker community. These campaigns would be geared towards incentivizing advertisers and influencers to promote CoinPoker and help us spread our vision of crypto poker to all corners of the world.
Thoughts? Let us know in the comments!
3 thoughts on “Launching Community Contributions on CoinPoker”
These were all recommendations that I made to your team multiple times over the past couple of months. I’m really glad that you are starting to implement them. Just monitor the situation and go slow and it’ll work out great. The main goal (as you have stated,) is not to profit from the small contributions but to promote & allow for community growth through sponsorship. After a while, the regular burns could potentially lead to a rather significant increase in the price of the CHP token due to the regular burnings. Plus, CHP token itself should be at least slightly more valuable intrinsically (or at least, fundamentally) now that the entity operating CoinPoker will be collecting a very small fee from regular players. Even …and honestly, especially if the fees are just being reinvested back into the CoinPoker project itself. Rather than a large portion of the contributions from players being taken as net profit for the owner/operators such as how a normal online poker site or other business would operate, everything will go towards either “buybacks” (aka token burns==CHP price goes up automatically) or towards promoting CoinPoker via special offerings and promotions that give back to players in the form of freerolls or other promotional activities in order to further its growth, attract partners, increase customer satisfaction & increase it’s community of players. All of which can only benefit all of us, and there were no real growth levers in the past. CoinPoker will be better equipped going forward with this decision.
that cash game rake is ridiculous, no one who understand poker will play for 2 BB cap. Cap absolutely has to be maximum 0.2 BB per game if you want to have any players
I agree that 2BB is a bit too high even with the lower percentage. They either need to lay out the algorithm choices in front of us and explain in detail to the players why the current algorithm is worth it, or perhaps let the community vote on choices to rework it themselves in a way that’s even more fair to players of all levels. I understand they’ve said they will monitor community feedback so I do expect them to eventually do that. It’s worked so far but I believe we need flatter structure. Players do need to keep in mind that funds are used to benefit investors, players and the community overall and that they are not for profit which is obviously of the utmost importance and makes any comparison to other poker site’s rake a non-factor. However, again I do believe they need to create a rake structure that’s more flat. It could even involve rakeback if they feel necessary but certainly not required. While I am not entirely against the higher stakes shouldering a SLIGHTLY higher rake burden, and while our rake is similar to government taxes in a republic (eg. USA- except that players see immediate benefits from these taxes unlike citizens.) I don’t believe the rich should have to shoulder THIS MUCH of a higher tax burden in the case of Coinpoker. This is, at least in very small part, due to the fact that higher stakes players do not necessarily have more money than lower stakes players and the fact that people playing higher stakes are benefitting the site and community more than the lower stakes players already because of the way all rake works via percentage and they shouldn’t be penalized for that and for bringing more volume to CHP overall on both markets and in game. At least the way it appears to me now, it doesn’t seem horrid but it just seems like it’s not quite flat enough across the board. If CoinPoker management think that it is then they need to explain exactly why they believe as much.