Retrospective: November highlights
The highlight of November was the successful execution of our Token Generation Event (TGE) on Tuesday. From a technical standpoint, everything went as planned — staking, claiming, and trading of $L7L all went live without any issues.
1. Launch strategy pivot:
Before TGE we faced a dilemma where low FDV launches (<$20M) were trending in our industry.
Recognizing this, we reduced our FDV from $35M to $17.5M to make $L7L more competitive and accessible.
To support this, we had to decide between two options:
- Give investors extra tokens: Doubling the investor token supply, risking higher initial selling pressure.
- Maintain supply: Keeping circulating supply low for a potentially stronger initial price action, but possibility for a slow bleed later on as more tokens got unlocked.
After community feedback, we decided to double the tokens for all investors accompanied with full unlocks, giving everyone a bigger slice of the pie. This would increase the selling pressure at TGE significantly but aligned well with our “community-first” ethos.
As expected, with 300M tokens unlocked, heavy selling pressure emerged, primarily from speculative investors wanting to rotate into other narratives. However, this phase is temporary, and we expect market performance to improve significantly as unlocks are priced in and selling pressure eases.
2. Strong fundamentals driving growth:
Our growth fundamentals remain overall robust, driven by four key factors:
A. User growth:
- With every new integration of our quest engine, we’re seeing around 5% growth in paying users (“avatars”) on average.
- Partnerships with top projects, including DeFi Kingdoms, Anichess, Tower Token, Overtake, League of Kingdoms, and more, are fueling this growth.
- We see no tendency that the inflow of integrations will stop at any time soon, rather the opposite as we’re doubling down on that strategy and games seems as eager as ever before to partner with us.
- To scale our paying userbase is therefore more about putting more resources at play to drive in more partnerships, rather than there being any hard limitations for user growth.
- We expect these metrics to grow significantly and act as an important bridge until we release our revamped XR platform with new cool games and features for UGC development.
B. $L7L utility:
- All fees from paying users (mints and renewals) will be used to buy back $L7L from the market, creating more demand and liquidity for $L7L.
- These buybacks will become visible on-chain soon, showcasing real activity and demand for $L7L.
- The staking pool is live, removing $L7L from circulation with a 32 day unstaking period.
C. Marketing & narratives:
- We headlined the largest X show this week with 177,000 viewers, increasing visibility and drawing new participants into the ecosystem.
- Elon Musk’s recent discussions around anti-corp gaming studios align with our vision, potentially boosting market interest in projects like ours.
D. On-chain metrics (Nov 29th):
- Market cap (Circulating): $1.5M
- Market cap (FDV): $6.3M
- Holders of $L7L: 354
- Staked $L7L: 7,346,998
- Stakers of $L7L: 65
- Staker/holder ratio: 18,3 %
Prospective: What’s Next
Here’s what we’re focusing on next month:
1. Fee capture model
For the network, it will be important to ensure that the sum of speculative value and network income superseed its expenses such as player and staking rewards over time. That’s the only way the token can grow in value. To balance expenses with income longer term, we’re proposing to implement a fee capture mechanism for quest claims and leaderboard shop swaps, which can later be removed once the network captures 5% of game revenues.
How fee capture works:
- For each quest claim, users would pay a small fee (e.g., 0.01 POL). These fees would be used to buy $L7L tokens on the market, along with avatar mints and renewals, which are then returned to the network pool.
- Players leveling up the most will earn more rewards, covering their claim fees and more.
- Those unable to level up enough will contribute to the rewards pool, turning LE7EL’s rewards system into a PvP game.
- Most network net revenue would then would come from new users, making it a way to monetize partner integrations.
- Partnerships that don’t require avatar mints would still generate revenue, as users would pay claim fees regardless.
- This creates a self-sustaining model for network growth.
- Removing claim fees when the network captures 5% of economic activity on it’s infrastructure ensures scalability while supporting our general plans of removing gas fees and complex ux for mainstream users.
- The 5% revenue capture has more potential to replenish the rewards pool than claim fees longer term.
We are welcoming any inputs from the community on this proposal.
2. Platform enhancements:
- In Q1 2025, we’ll release a revamped web app with an improved UX, sleeker design, and better features to convert more users into $L7L buyers.
- That includes a dashboard where you have complete overview over your avatar, games, quests and on-chain metrics & actions.
3. LE7EL chain:
- We’ve initiated discussions with the Polygon core team to develop a custom zk-proofs chain where $L7L serves as the gas token. This will allow us to support games with their own token economies while capturing native value through $L7L usage. The launch of this chain is further down our roadmap, but for us it’s important to start the process already now.
4. Market strategy:
- While we launched on Polygon due to all our users being there, we plan to expand to other chains to increase trading volumes before eventually listing on centralized exchanges (CEXs).
- We’re continuing to drive exposure to LE7EL and $L7L through integrations and partnerships.
- We receive a lot of praise about our product, however so far it’s largerly not known by the wider market — which means there’s a big opportunity gap in making the industry aware of it. This gap alone could translate to a lot more positive market activity, both in terms of user growth and $L7L buys. As such, we’re going to assess if doing a KOL campaign can be a good idea, but it will only be done if it doesn’t create any additional selling pressure for $L7L. That is — deals must be done in stablecoins or in $L7L with a 1 year + lock period.
5. New ideas:
- While our roadmap remains untouched and solid, we’re playing around with ideas on how to implement financial games on our platform, tapping into the memecoin movement. At last, we’re a community-oriented gaming platform, and games can be financial games, or non-financial. Memecoins are in reality financial community-oriented games. As many of you know, “fun” and “memecoins” are part of the set of values in LE7EL, and while we build hardcore tech — this shouldn’t limit ourselves from being creative and embracing fun.
- This will only be done however if we can sufficiently protect our users from being harmed, and that it will not steal focus from the main strategy. We know as well as you, that narratives come and go. It will likely be deeply rooted in the community before any initiatives are being made.
Closing thoughts
We remain confident in both our near-term plans and longer term vision. Furthermore, we believe the $L7L charts rights now provide a rare and attractive risk/reward bet for those bullish on anti-corp gaming products and narratives.
With strong fundamentals, community support, and a robust growth strategy, we’re positioned to scale $L7L into a leading utility token in our vertical.
Thank you for your continued support. The next months will be pivotal, and we’re excited to share this journey with you and make you a part of a success story.
Warm regards,
The LE7EL Team
