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This is an article in our “Opinion” series. Here we write more freely our opinionated thoughts and ideas and would love for you to comment your thoughts about the article itself or your own ideas and debate the thoughts in the article!
EARTH2 Just released their WHITE PAPER…or wait..no.. it is a “Draft Summary Update” but it will suffice as our new BIBLE! (Substitute “Bible” with your religions most important document) It will be cherished, loved and some of us will sleep with it under our pillows. Thank you Shane!
We just could not avoid to joke and tease a little about it. Of course, this is the first time ever Earth2 made the effort to communicate a, somewhat, holistic package of information, including a roadmap! And oh boy are we happy for that!
In this article we will not mention everything that is in the Summary Update. Thus, we recommend everyone to read it themselves. (CLICK HERE)
2022-02-22 the date of “the aligned 2’s”, Shane Isaac (CEO) posted a twitter consisiting of an image (seen below) and a Video (CLICK HERE). The Image contained one or several Easter Eggs!
The Video was a message from Shane himself, winging it a lá Shane Style, that revealed some very interesting facts.
- ESSENCE volume cap of 5 000 Million (5 billion) ESSENCE
- Aproximately 112 Million is in CIRCULATING SUPPLY
See our page about ESSENCE where our calculations were almost spot on. (CLICK HERE)
Confriming that we have managed to crack the ESSENCE Yield distribution performance quite accurately .
Do not forget to check our ESSENCE Yield simulation tool to try it out (CLICK HERE)
- Earth2 will try to refrain from “PRE-SALES”. e.i. Selling ESSENCE in their reserve in order to raise capital for the EARTH2 venture. Shane noted, however, that if the company is in need of funding they may initiate “pre-sales”.
- The future MAIN method to obtain NEW ESSENCE will be via GAME PLAY in Earth2. a.k.a Play-2-Earn concept. Potentially already implemented in the D.R.O.N.E game Earth2 acquired recently. Hence, properties’ ESSENCE yield will not be considered the main source for ESSENCE.
The link to the Draft Summary Update later became available on the Earth2.io website (CLICK HERE)
Like we said: READ IT! LEARN IT BY HEART!
What IS Earth2 ? New clarity?
The BIG Question that need clarification is what Earth2 really will be. “Veterans” and especially newcomers still can not answer this question with perfect clarity.
The current consensus is that it will be a Platform… of sorts.
This is however the question since the dawn of Shane/Earth2: Is it a Game? an E-Commerce? Social Media? Internet 2.0? <- Our old article about it
Now we may know more after the release of the Draft Summary Update, let’s have a look.
Firstly, THE GOAL is now outlined and came as a bit of an unexpected surprise for us!
"Earth 2 is the biggest central point of ownership for virtual real estate in the world and our vision is for the growth we have experienced, the technology we have been building, and our passionate community to assist us in achieving our next goal. Earth2’s goal is to become a central point for Web3 and other metaverse projects by providing the ability to display, link and create visual representations of them and their data within the Earth 2 Metaverse and the 3D, digital, Earth-sized world we are building."
Aiming to be a central point for all metaverses and even WEB3.0 as a whole, linking or stitching everything together. A sort of hub (One of the future hubs). Later on in the Summary Update it is also clear that Earth2 is heavily focused towards being a GAMING platform where the EcoSim will be central for the GAMING side in the platform. However, PvP is the only aspect mentioned where PvE games and several other game types where left out from the text at this point. What if we want to play THE SIMS with our killing our neighbour or just build and manage good old fun Roller Coaster Tycoon parks without killing all the guests…though it all starts to sound very appealing…maybe PvP is quite the ultimate joy in all forms and shapes…
The Summary continue to mention heavy investment towards Social Media functionality. This has been mentioned in previous Earth2 news but now with additional information. Maybe we can soon actually message each other! Breakthrough Varning!
"6.3 OFFICIAL EARTH 2 SOCIAL MEDIA PLATFORM A large part of the Metaverse is about bringing people together, online. For this reason Earth 2 will be releasing its own official Earth 2 Social Media Platform later in 2022."
The 9.3 section in the Summary Draft continue to mention several functionalities to be expected as a demonstration of the large investment being done in this area.
What was left out completely from the Summary Update is the E-Commerce aspect for physical goods and services, regular businesses. The ability to invite Earth1 businesses to do full commerce inside the Earth2 platform. An area that historically has not been mentioned at all or at least not much by Earth2. For this we are a bit sad. Where will I buy my next Samsung Phone… do I really have to link myself via Earth2 to Decentraland? yuck!
The commercial side mentioned in the Summary Update was more directed toward the sales of digital assets (Creator made content) and in platform services such as “hiring people” to manage the Landowners Properties and alike.
Some light have been shone on the subject but it is clear to say that it is STILL quite difficult for the normal investor to gain a clear “end game” picture of what Earth2 really will be. Though we know we can kill each other, it has been highlighted by E2, at several occasions.
Earth2 also listed 5 types of “PLAYERS” which is another indication of what the focus or perspective EARTH2 has for its platform.
- The Base Players
- The Landowners
- The EcoSim Players (Trading Assets, Especially Resources)
- The Gamers
- The Creators
The fact that users inside Earth2 is referred to as players and not..users indicate that the general “mainstream” user is left out. E.g. the grandmother wanting to purchase a product for her granddaughters’ baby shower during black friday. Well, maybe the grandmother loves to fly drones and shot up stuff, then we rest our case!
The EARTH2 ESSENCE Treasury/Reserve
From the Summary Update it is now known that Earth2 is in power, centrally, to dispose the ESSENCE token as required. Hence, the ESSENCE is NOT created / “mined” via claiming, unaccessible for Earth2. It is rather a distribution mechanism from the central ESSENCE reserve in Earth2s’ possession.
As of now, we could then see Earth2 as the Earth2 “World bank” and only they can decide to increase the volume if they ever would want to make that decision. Whether this power will be decentralized in the future via the DAO, Voting rights, is not sure and we deem it quite unlikely. Not to mix up with the many other voting rights investors and players will gain via the future DAO token.
The Release of Essence
The Summary Update did not reveal the full release schedule and pointed to the true White Paper arriving later this year for more info. However, mentioned the distribution plan of the 5 BILLION ESSENCE.
- 25% (1.25 BILLION) to the Earth2 TEAM, close Stakeholders and the company’s own ESSENCE reserve.
- 24% (1.20 BILLION) for disposial to external acitivies, sponsors and funds for Earth2 survival and development.
- 51% (2.55 BILLION) distributed to the Investors and Players. Where most of the ESSENCE will come from PLAY-2-EARN gameplay and not properties! Currently the ESSENCE circulating from properties is only about 2.5% of those 51%. The EDC is about 5% of the 51% but not all is in circulation yet.
Is a 1 USD ESSENCE USD Price Possible?
If a value between the 112 million currently in circulating supply and 250 Million, which we predict will be circulating at the end of 2022, hits a big or several big Crypto Exchanges it is highly likely we would see levels above 1 USD. The price will be extremely volatile and with such little supply on the market could create tight supply sqeezes creating price spikes.
ESSENCE is currently valued on the JEWEL BAZAAR at 0.11 USD. This is the premium (extra) price investors need to pay for a luminous jewel versus a cracked. It is likely that the open market price of ESSENCE will heavily impact the price of upgraded Jewels. They may become super expensive…and we hope they better be worth it. Though Resources seem to also be super expensive if ESSENCE goes above 1 USD. (more on this below)
Though we urge all investors to be carefull in “playing the trades / the ESSENCE market” in the future trying to capture the peaks and troughs! It is a very good chance to get burned and lose a lot of capital or ESSENCE. General advice is to decide on your exit price points and hold bone steady to that strategy. As well as decide how much should make the exit at each price point and how much of the ESSENCE balance that could be more free for experimenting or HODL. Prepare your strategy for the sake of your mental health!!
If we would make any predictions we would look at the Sandbox Game SAND token or the Decentraland MANA token price charts as the ESSENCE token will have the potential to act quite similar to those cryptos/tokens in price and movement/behavior.
However, a “high” ESSENCE price involves a lot of good timing (Macro economical wise)! SAND and MANA rocketed as Facebook hyped the Metaverse concept. At the same time as all world markets are currently “inflated” and now like bubbles ready to pop ALL due to intense world wide money printing during the pandemic. SAND and MANA caught a perfect wave to ride on. Them both had waited a couple of years before that wave came along. It is all about timing.
There is no way to make any price predictions and when anything will happen though the outlook for ESSENCE looks GOOD in our eyes. Stay true to your exit strategies (price points). (And potential “entry points” buy strategy)
We expect ESSENCE to be Launched at 1 cent. 0.01 USD (technically). Though, not be purchasable, no sellers would sell for 1 cent. The first trade will probably settle between a seller and buyer somewhere around 0.1 USD or above, reflecting the Jewel Bazaar. And then the game is on!
The ESSENCE role in the growing complexity of the EcoSim & Value of Earth2 Assets
Above is the E2Economist Asset flow chart (This will in near time be further updated).
An important question is HOW ESSENCE will impact other ASSET’s prices. What determines if an ASSET will be impacted by the ESSENCE price fluctuation is whether the ASSET will have a FIXED USD(E$) price (NOT AFFECTED BY ESSENCE PRICE) or a FIXED ESSENCE Price (AFFECTED BY ESSENCE PRICE). Below is a list of the current list of these ASSETS:
- EPLs (Earth 2 Property Locator) – FIXED AMOUNT OF ESSENCE / FIXED USD COST
Essence can be used to purchase or rename an EPL.
- Jewels Quality Upgrade – FIXED AMOUNT OF ESSENCE / VOLATILE USD COST
Essence is necessary for improving a Player’s Jewels. See Jewels for more information.
- Resources Replication – FIXED AMOUNT OF ESSENCE / VOLATILE USD COST
Essence is necessary for the production of Resources. See Resources for more information.
- Upgrading T2 Properties to T1 – FIXED USD COST / VOLATILE AMOUNT OF ESSENCE
Essence will be required to upgrade Tier 2 Properties to Tier 1. The price to upgrade a T2 Property to a T1 Property will be pinned to the T1 E$ value of the land in that country. The amount of Essence required will be determined by the value of Essence on the decentralised exchanges
Hence, we can expect EPL, JEWEL QUALITY UPGRADE, BRILLIANTS and RESOURCES to be heavily impacted by a rising and falling ESSENCE price!
EPLs are a bit special as we both have a FIXED USD price and a FIXED ESSENCE price. Thus investors could choose the payment that would be the cheapest. EPLs were only payable via a pinned USD price at launch but the community intervened and demanded it to be payable by ESSENCE. Since ESSENCE was not tradeable on the open market at the time it recieved a fixed price of 400 ESSENCE. We suspect the FIXED ESSENCE Price will be removed and act like the above ASSETS.
ONLY Upgrading Properties from Tier2 to Tier1 will not be impacted by the ESSENCE price fluctuations. Instead the required ESSENCE will move on a daily basis and the upgrade cost will be an E$ price equal to the value of a same sized Tier1 property. E.g. 1 Tier1 tile in the US is about 68 USD. To upgrade a T2 single tile in the US would thus cost 68 USD and you would have to spend the correspondent value of ESSENCE at that specific time.
Conclusion: For now it seems like the ESSENCE value will HEAVILY impact all of the other ASSETS VALUE! It is yet to be seen if this will be changed or remain and if remained how it would actually work for the EcoSim.
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