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Phantasma - The Technological Backbone of the Future of Gaming

Fear & Greed
Phantasma - The Technological Backbone of the Future of Gaming
By Crypto Fear & Greed • Issue #3 • View online
The lockdown of 2021 changed the way we looked at things. 
Many took to gaming, and the global gaming market is now worth around $335.5 billion. Gamers, however, know that they are not rewarded for putting time and effort into a game. If gamers could participate more fully in the in-game economy, they would create value for other players and the developers. 
Blockchains, like Phantasma, that incorporate NFTs can solve this.

What do they solve?
Problem: Gamers dislike Blockchain
While gaming adoption went through the roof during the lockdown, the crypto market also exploded. GameFi and NFTs were the dominant new trends of 2021. NFT sales volume totalled $24.9 billion in 2021, compared to just $94.9 million the year before. On top of the generalized rise in interest in NFTs, popular blockchain-based games like Axie Infinity have led to the emergence of play-to-earn games across the crypto ecosystem. 
NFTs are a crucial part of the play-to-earn trend. Previously, you grinded for months or years and did not own anything, but now you can suddenly fully own the digital assets you gathered in-game. 
But this is where it gets tricky. Burnt by microtransactions and loot boxes, gamers see play-to-earn and NFTs in particular as a force likely to warp the gaming industry into something less entertaining and less accessible. They worry that NFTs will morph into another version of loot boxes. It also makes zero sense to mint an NFT if they cannot customize it, as character progression is critical to many. 
Whilst I would argue that most gamers are misinformed here, it results in strong resistance. Ubisoft and EA were both on the receiving end when introducing NFTs. It is then no wonder that 70% of mainstream game studios have no interest in NFTs.
Solution: A Programmable SDK for Game Devs
Ultimately though, neither NFTs nor gaming will go away. They are two unstoppable forces that eventually will come together. Gamers will love NFTs when they understand nothing changes except that they will fully own their items.
Justin Kan, the co-founder of Twitch, summed it up nicely as follows:
Justin Kan ❄️
NFTs are a better business model for games.

Many gamers seem to be raging hard against game studios selling NFTs.

But NFTs are also better for players.

Here’s why I think blockchain games will be the predominant business model in gaming in ten years.
Phantasma comes into play here, describing itself as “the technological backbone of the future of gaming”. Phantasma itself is a third-generation L1 blockchain. More importantly, it has around it an ecosystem of dApps that are so easy to use that even your grandma could use them, all under the same economic system.
Smart NFTs: Phantasma Smart NFTs support a range of advanced features, including royalty fees, multilayered NFTs, fractional NFTs, on-demand NFT minting, infusion of multiple assets, infusing NFTs within NFTs and nesting of NFTs with their own NFT marketplace. For example, this means that a weapon could level up without burning the NFT or that two NFT ingredients could be crafted into a new magic potion NFT.
NFT Marketplace: Despite being incomparable in trading volume against OpenSea, GhostMarket has one feature that the former lacks: Cross-chain compatibility. In fact, on GhostMarket, NFTs can be traded across the Phantasma, Binance, Neo, Polygon and Avalanche blockchains, with Ethereum and Solana next in line to be added.
Gaming Platform: Pavillion is a one-stop-shop for hosting, and connecting chain enabled games to private wallets via the power of Phantasma. Pavillion makes it easy for users to buy, browse, trade, and access on-chain assets for hosted titles. It also features seamless connectivity of blockchain to Steam.
Decentralized Storage: Storage cannot be bought or sold, only earned. Each $SOUL staked provides 40 kilobytes worth of storage. This storage solution is self scalable and redundant, ensuring the safety of your data. The storage solution combined with the Phantasma App makes it possible for developers to deploy dApps fully hosted on Phantasma Chain.
If all that wasn’t enough, Phantasma offers the Ecto and Poltergeist native wallets, Cosmic Swap for on-chain liquidity, and Oracles to access data from outside their network to execute smart contracts. It also has an integrated name system, so you can use your username rather than your wallet address, which obviously will appeal to gamers.
Because of all this, Phantasma is superbly positioned to take advantage of both the GameFi and Metaverse trends. In fact, Coin base referenced them in their article on Metaverse:
However, what makes Phantasma different from, say, Enjin or Rarible? While they both offer some excellent features, it turns out that only Phantasma can offer them all. In short, Phantasma offers the combined features of Enjin and Rarible — and more. For example, Rarible offers royalty but not infusion, while Enjin offers infusion but not royalty — Phantasma provides both.
Technology: Scalable, Cheap and Carbon-Negative
Phantasma is a gaming-focused blockchain solution. However, what makes it stand out from anything out there are its Smart NFTs. Game Devs want programmable and dynamic creation tools, whilst gamers wish to have digital assets that can evolve with them.
Smart NFTs do this by, unlike other NFTs, having a RAM and ROM element. The ROM is immutable and cannot be changed but also allows for storing of NFT meta-data on the Blockchain - something Ethereum cannot do. The RAM, however, can be programmed to the developer’s specifications, which allows for endless in-game possibilities as the following video shows:
What Is A Smart NFT?  | Learn How Smart NFTs Are Powering The Gaming Metaverse
What Is A Smart NFT? | Learn How Smart NFTs Are Powering The Gaming Metaverse
Besides offering tons of NFT functionality, Phantasma itself is also a fast, scalable, and highly secure L1 blockchain network.
Decentralization: Phantasma keeps tight control over its network of Proof-of-Stake block producers (BPs). At the time of the main net launch in 2019, 10 active BPs and 15 standby BPs (making for 25 total validators) were preselected, with the total number increasing at a rate of three a year. The number of active BPs is proportional to the total.
Scalability: Like Polkadot with their Parachains, Phantasma will allow infinite side chains to be deployed. Every side chain will achieve the same maximum TPS independently from both the main chain and all the other side chains. To know the total TPS of the Phantasma ecosystem, multiply the total number of chains available with 10k TPS. 
Security: Phantasma has adopted a proof-of-stake (PoS) consensus algorithm that uses a hundred times less energy than Ethereum. Like every Blockchain that utilizes PoS, a rotational scheduling model determines the active validator user. SOUL holders vote on which validators get to be active every quarter through on-chain governance. 
Cost: You can mint NFTs on Ghost Marketplace for just 1 $KCAL - which is around $0.09. GOATi, who develop the 22 Racing Series game on Phantasma, have minted over 280K NFTs, costing them about $50. In contrast, this would have cost them around $100,000 — $300,000 on Ethereum.
Carbon Negative: Phantasma uses 52,500kWh per year - the same as five average American households. Ethereum and Bitcoin have a notoriously high carbon footprint, but Phantasma is actually certified as carbon-negative.
Phantasma is Now a Carbon Negative Blockchain
Interoperability: Phantasma has added interoperability with multiple blockchain networks, including Ethereum, BSC and NEO. Whilst Ethereum based NFTs are constricted to its blockchain, Phantasma will support cross-chain migration of NFTs as part of its global oracle based solution for swaps. Currently, interoperability is live for fungible assets only, with NFTs in the works.
Phantasma
On the 5th day of Christmas #Phantasma gives to you a Layer 1 smart contract ecosystem, quad-chain interoperable with $ETH, #BSC and $NEO for fungible tokens and soon for Non-Fungible Tokens(#NFTs)

$SOUL $BNB #smartNFTs #blockchaingaming #GameFi https://t.co/vcpXmqO66r
How are the tokenomics?
Distribution: Fully Diluted
Phantasma’s economy consists of two native cryptocurrencies with their unique purposes. SOUL is the primary unit powering the entire ecosystem, used for staking, governance and storage allocation. At the same time, KCAL is required for all on-chain actions related to minting and swapping NFTs.
There is a circulating supply of 72,769,211 KCAL and 104,185,056 SOUL. For both, all coins are in circulation.
KCAL is the fuel. Minting and transaction fees are paid in KCAL. Interestingly, SOUL token holders can stake their tokens to earn Phantasma Energy (KCAL). These, in turn, can be used to pay for transaction fees - making transactions free for SOUL holders.
The SOUL tokens awarded to Block Producers for validating network transactions are distributed to each Block Producer at the start of each month at the same time as SOUL. There are also developer incentives for those who contribute their fair share.
Soul Masters staking a minimum of 50,000 SOUL continuously will receive a CROWN NFT. Soul Masters will share a 125,000 monthly pot of SOUL. 
Vesting: Slightly Inflationary
Phantasma has a fully diluted Market Cap. The yearly inflation is coded to be 3%. As Phantasma is inflationary, there is no maximum supply. The allocation of the inflation is as follows:
  • 1% is allocated to Phantom Force, developers dedicated to creating and launching DApps on the Phantasma cryptocurrency chain. 
  • Another 1% is reserved for the all-important BP rewards, allocated to nodes helping to keep the chain secure. 
  • The last 1% is reserved for ecosystem incentives.
In addition to the 3% inflationary coins, 125,000 SOUL are minted each month to distribute staking rewards to Soul Masters.
Rocket Fuel: Limited Burn Mechanism
Although Phantasma is inflationary, it has an interesting burning mechanism through KCAL as 25% to 50% of $KCAL used in every blockchain transaction is burned. The market cap for $KCAL is only $6,554,179, which is significantly undervalued.
How are they doing?
Team: Experienced, but Under the Radar
Phantasma has an accomplished team behind it with decades of blockchain experience.
  • Sergio Flores (Founder): Senior developer, smart contract expert and blockchain consultant. 19 years of programming experience.
  • Bill Petridis (COO): 20+ years of Enterprise Software Delivery focused on E-Commerce, Collaboration and Content Management.
  • Scott Gallagher (CMO): With a degree in marketing, Scott founded his Internet marketing agency in 2005 focusing on the transportation industry.  
Roadmap: Focussed on User Experience
Phantasma released their 2022 Q1/Q2 roadmap with all of the chain updates they have in the works. With gamers in mind, they are focusing on an enhanced, simplified user experience and on improving developer enablement and onboarding. 
Traction: Limited, but Early Days
Phantasma is lacking some traction on social media: 10k on TG, 3k on Discord, 43k on Twitter. Having said that, especially on Twitter it punches above its weight and is often high up on the LunarCrush ratings.
The dApp partner Pavillion recently partnered with AMD and Cudos to provide gamers with more games, more rewards and better experiences than ever before.
Nevertheless, by and large Phantasma still flies under the radar of most crypto investors. Whilst the underlying technology has matured significantly, the application of it in the shape of their Pavillion games hub and Ghost NFT Market remains in the early stages and either lacks content and/or user-friendly functionality.
212 Racing is currently the flagship game that is being developed on the Phantasma blockchain. Whilst it looks promising and stands up well against most other blockchain based games, so far Phantasma has been unable to attract other AAA games.
Would I buy?
Phantasma is an infinitely scalable, cheap and carbon-neutral 3rd Gen blockchain that was built for NFTs and Gaming, and is 350x faster than Ethereum.
The high throughput, low-cost capabilities of Phantasma make it an attractive option for gamers looking to maximize their earnings while minimizing transaction costs.
Whilst the technology is advanced, its application has been so far lagging. All in all, I feel that the marketing is severely letting this project down so far, as from a technology and use-case perspective they have hit the nail on the head.
Edit: Phantasma themselves have confirmed that marketing has been subdued for good reason, and that 2022 will see a significant uptick in their visibility.
GMRadford
@CryptoFandG @PhantasmaChain @Pavillionhub TY. We were never going to waste money hyping a chain that wasn't quite ready & our developer docs needed some tweaking but we're all good, well funded, ready to drop bombs in '22, increasing marketing, talking to a ton of projects & we tend to under promise and over deliver.
Nevertheless, the GameFi trend itself is in its infancy and the gaming market, by and large, hasn’t realised the potential of smart NFTs. Therefore, Phantasma may just be ahead of the curve and its time will come, which provides an opportunity to get in early.
There are also plenty of rumours abound that further CEX listings are in the work, including on Tier 1 CEX, and that discussions with AAA games are ongoing.
Profit targets for crypto projects are always very difficult to define. This is even more so the case with Phantasma. They’re not an Enjin, yet also in many way provide a SDK to developers. They’re not a Rarible, as the Ghost Market place is just a dApp build on them. They’re not a Polkadot, yet use a similar approach for scalability and interoperability. They’re not a Polygon, yet are also very GameFi centric.
The fact of the matter is that there isn’t anything comparable, which makes me so bullish on this. Therefore, the best method is to provide you with a range of price targets based on the market cap of the aforementioned projects, and you can decide for yourself what is likely.
  • Rarible: 0.3x
  • Enjin: 9x
  • Polygon: 60x
  • Polkadot: 105x
On the basis of this, I feel that a 25 - 50x would be possible. Mix in the tailwind of GameFi and NFTs and a 50x is definitely feasible if they play their cards right.
This does rely on them getting more traction. As a result, Phantasma is a high risk / high reward play. In my eyes, however, GameFi will be the crypto sector that will rebound the hardest from the recent retracement and NFTs and GameFi will be the prevailing themes for 2022. Therefore, I see Phantasma riding the crest of the wave of an early stage secular trend.
Phantasma is one of my 10 core holdings.
  • Price at time of article: $2.11
  • Available on: KuCoin, Gate.io, Pancake Swap
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