After reading the announcement about dividends and buyback from @kryptogames I wanted to check out the token because - just like many others here - I generally appreciate dividend tokens. The dream of a passive income...
So the GAMER token promises a lot of things, among which is that 70% of daily profits will be paid out to token holders as dividends and there's some monthly buyback mechanism. It doesn't say what happens with those tokens after they get transferred to the @kryptogameapp account, but yeah, I don't want to focus on that too much (or should I?).
Dividends
Let's check how much of a payout you can expect daily from the tokens and how much you pay to get them.
First up, price. There's a few ways of generating GAMER, but I want to focus on the two most immediate ones: Playing and Buying them.
Playing
According to this announcement you get 100 GAMER tokens for every STEEM wagered. This sounds like a lot, but with a total of 10 billion tokens in the max supply, those tokens currently can't be worth much. If you spend 1 STEEM at a house edge of 1% (which is pretty low for a blockchain casino), it means you're losing 0.01 STEEM on average and make 100 tokens. So you get 10000 tokens for every 1 STEEM you actually lose.
However, 100 GAMER tokens per each STEEM is not the deal anymore. I had to take another look at the announcement that also says:
Right now at a base level you get 50 tokens per STEEM wagered; you need to have the highest "club membership" to get a bonus of 100% (getting you back at 100 per STEEM), but in order to get there, you need to wager 1m STEEM in one month and then a lot to retain your status:
So for each STEEM I lose, I'll have 5000 tokens.
Buying
Currently there's heaps of sell orders on steem-engine for 0.001 STEEM per token, which gives you 1000 tokens per STEEM. This is actually quite suprising: Playing is better than buying tokens. But it's also good, as it incentivizes playing, and after all, this is what all token holders are looking for.
Payouts
Now, let's have a look at the ROI you get for your tokens. Let's imagine you've spent that 1 STEEM (you lost it) and got your 5k GAMER, how much do you get each day?
Looking into the Dividends section of the Dashboard on kryptogamers.com you see this:
The right column isn't interesting, should just show that there's been some sustainable development.
Let's have a look at the left one: it says about 300 STEEM daily payout. Sounds like much?
In total there's currently more than 1bn circulating GAMER tokens. If you hold 5000 of them, this will make 0.0015 STEEM in dividends every day, assuming that the profit of the platform will grow as quickly as the circulating token supply.
At a constant rate like this, you'd get paid back your 1 STEEM after about 600 days at the base loyalty level, or almost two years. That still seems better than selling votes in terms of ROI, but you run the risk of losing your investment entirely.
Conclusion
I really like that gamification part around, well, games: loyalty, dividends, what have you. It seems to be nicely structured and kinda motivating in this case. Whether it's gonna be enough to keep people playing long-term, I'm not so sure - this will depend on the games to come. However, having a few of these tokens can't be that bad (legal issues with gambling or securities regulators aside).
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