Impact-Led Treasury
Detailed explanation of how the Treasury will function
Overview
The Impact Treasury, an integral element of the Saltwater Games framework, functions similarly to a conventional investment fund in many aspects. Its unique feature, however, is the emphasis on dual-yield investments, cultivating both financial gains and beneficial social and environmental impact. In addition, the generated yield is used to nurture the growth of the Saltwater Games' player base.
The operational core of the Impact Treasury is at the crossroads of financial management, impact investing, and gamification. The Treasury targets investment possibilities that not only aim for financial yields but also have substantial contributions to social and environmental initiatives. The identification of these investment prospects undergoes a rigorous procedure, keeping in line with the Treasury's pledge to propel both economic and beneficial societal consequences.
Moreover, the Impact Treasury interweaves a robust element of community control. Certain affiliates of the Saltwater Games universe, especially those in possession of specific NFTs and Saltwater Games' inherent tokens, can partake in the administrative procedures. These members have the privilege to vote on the distribution of available funds across various investment options. This approach allows the gamer community to have a direct role in deciding the capital allocation to investments that matter to them the most, thereby deepening their engagement with the game. This method nurtures a sense of proprietorship and active involvement within the gaming community.
Role of the Impact-Led Treasury
The Impact-Led Treasury plays a vital role in the Play2Impact model. It provides the financial backbone to the model, ensuring a consistent flow of rewards for players, and making the gaming economies sustainable in the long run.
The treasury's dual-focus on financial and real-world impacts aligns with the Play2Impact model's philosophy of creating games that extend beyond the digital realm. Through this model, player actions and decisions can lead to real-world benefits and contribute to the causes they deeply care about.
What do we mean by Impact?
In 2015, under the guidance of the United Nations, countries adopted a set of shared goals to end poverty, protect the planet and ensure prosperity for all, known as the Sustainable Development Goals (SDGs) or Global Goals.
“Impact” to Saltwater Games means measurable outcomes tied to one of more of the UN SDGs.
How do we want to make an impact?
In order to determine what outcomes the SWG community cares about, we grouped the SDGs into themes and conducted a survey of our team, advisers, investors and partners. The initial results indicate Environmental and Social impact are the priorities. As the community grows, we will continue to gather input on what causes community members care about and align our impact activities with them.
Why Raise an Impact Fund?
The Saltwater Games Impact Fund will help us serve our mission in a number of ways:
Allocate capital to projects that align with our vision
Produce financial returns that will finance game development
Create an investment vehicle for Saltwater Games and its likeminded partners to contribute future profits toward
Take a leadership stance in the gaming community
Phased Approach
Saltwater Games will build its innovative impact investing function in three stages, with each stage designed to prove a capability and allow for future growth.
Stage 1 (mid-2023 to mid-2024): Establish the Impact Fund as a regulated legal entity and seed it with internal capital from the proceeds of the artist collaborations, revenues from the sale of NFTs and future capital raised.
Stage 2 (mid-2024 to mid-2025): Contribute a percentage of Celeros game revenue and sale of in-game economic activity to the Impact Fund.
Stage 3 (mid-2025 onwards): Expand access to the Impact Fund to external Limited Partners, including other metaverse/gaming projects that wish to generate dual-return from their treasuries.
Initially, the Impact Treasury Fund will be managed by an experienced asset manager with direct origination capability and deep asset management expertise, appointed and governed by the Saltwater Impact Investment Committee with guidance from the community. By Stage 3, the fund will have reached scale and the investment management team will be brought in-house.
How the Impact Treasury will benefit the players and the overall ecosystem
The Impact Treasury benefits both the players and the overall Saltwater Games ecosystem in multiple ways:
Player Rewards: The financial returns from the Impact Treasury's investments form the basis of player incentives and rewards, enhancing player engagement and satisfaction.
Community Engagement: The inclusion of community governance in the treasury's operation empowers players, allowing them to have a say in the allocation of resources, fostering a sense of ownership, membership and connection.
Sustainable Gaming Economies: The Impact Treasury contributes to the sustainability and longevity of the gaming economies that Saltwater Games creates, thereby ensuring long-term value for the players.
Positive Impact: The investments made by the treasury contribute to social and environmental causes, aligning with the players' desire to make a difference through their gaming activities.
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