MiniGame (S.MG), January 2016 Statement

S.MG incoming and outgoing

Incoming

Outgoing

Description

Value

Description

Value

Copper sale

7.00000000i

Game server

2.28232957

Loot pool provisioning

0.0

Total

7.00000000

Total

2.28232957

S.MG assets

Account

01.01.2016

Net change

31.01.2016

Cash

8`458.926735253

4.71767043ii

8`463.644405683

Tangiblesiii

269.29327995

0.10134682

269.19193313

Intangibles and goodwilliv

69.162325217

0.10134682

69.263672037

Total assets

8`802.10001085

S.MG liabilities

Account

01.01.2016

Net change

31.01.2016

Player holdingsv

23.38218852

7.05400847vi

30.43619699

Shareholder equity

8`774.0001519

2.33633804

8`771.66381386

Total liabilities

8`802.10001085

S.MG has a total of 88`096`605 authorised shares outstanding. The shareholder equity per share implied value is thus 0.00009956 BTC.

S.MG has Special Stock Warrants outstanding, as follows :

#

Fingerprint

Shares

BTC

Par

1

6160E1CAC8A3C52966FD76998A736F0E2FB7B452

88`096`605

8`809.6605

1

2

AE3A51FA6C038A5B4D3FE80FBD7C5558DD9EFA14

10`850`000

1`302.0

1.2

vii

3

5015BD3D0AE659C8B8632F31CF2950F23C844002

192`307

25

1.3

T

99138912

10`136.6605

1.0224

Provisional statement, will be considered accepted within 24 hours. Make any observations or corrections below.

Miscellaneous

CTO still on sick leave. Sadly, chetty passed away this month. In general, IT projects at this stage in their life do not survive the death of a founder, and in principle Eulora should be no different. While I do have a reputation of carefulness with resource deployment and for cutting losses early if painfully, nevertheless an exception seems to my eyes well warranted here. The game has a loyal if yet smallviii fanbase that is growing markedly and our first cashflow-positive month, not to mention it's absolutely great in terms of gameplay, metagaming and all that. So - Eulora will continue. I will endeavour to restructure its operations and carry on.

As promised before, we are issuing stock warrants to reward one particularly active mod developer, as follows :

-----BEGIN PGP SIGNED MESSAGE-----

Hash: SHA512

Under the terms of the S.MG Initial Public Offering Agreement is

hereby issued this

Special Stock Warrant #4

Today the 2nd of February, 2016 at 11:00 AM ART, stipulating that on

or after February 2nd, 2016 E72DCCB73A5E06694C5CD781D5196EE6390F999E

shall be issued 10`000 new S.MG shares upon payment of 1 BTC to S.MG

S.MG will not process or administer any assignments of this Warrant

by or among third parties. The administration of any such contracts

remains the sole responsibility of the respective parties involved.

S.MG will honor partial conversion into shares of this Warrant,

under the reservation that conversions of less than 1 million shares

will be charged a 1 BTC processing fee.

-----BEGIN PGP SIGNATURE-----

Version: GnuPG v1.4.10 (GNU/Linux)

iQIcBAEBCgAGBQJWsMZsAAoJEIpzbw4vt7RSQxsP/22vcWoNDrhRNzO4fl9yZddG

emYcqoogwUMmD33SHKtI3Ps7EzP8fm4sE9jE65NlJSYLT89YjnHZoHZfRwhWt7eA

935oeIQkFYlH1GUqfJeESbq89FIK/s085+t0QeSBk67/nDFxpvkWKOTp6ZEaZFyg

y5Ea3SpJMavRTzH/2REGRdiyyclz0I3ONofZVGqhqT9lolpTo+HIXZfzdCNyWlh8

WQ/1lRw4trxfnARqJlUTzdGTekOVkslrQ63X7r3vZzHoxcSbTDbwRYHzRq/6YOe4

j3kSpG0slVgxOcrOzOvP76x8bpiOEp6g7fTKw2+u9i5cn1oVaKSVG1SsQbC4mHVo

vi8Wcs+q+zAq9t1mXG+H5Tg0EC8ibnhaGVv6buJW9+bzsPd01km5oGDDgisjapOA

Keeeo8RbVPrOQa13avu2k/H8j0wZosBF7Wopv5bEw5x66kZlf8riIFXIem4XEKAl

xD83lLdUrBE1J5xbN1vYX+X5u4oJzdIQqkpgQD5u9Qw6ADu5QhN7/+onuvDmyOqo

cA9SjyYzN4/iShjR83l6/0ED1bgatlkUj5oEuV4e9TkU83q8kCkvW2goEj4q/E07

Fv3BK2ZDX/GDs7hhnq8vsil1MA1s05H6Mw3x/2N8uCscTv++MfbZTeU7XtQH9lHq

+j+y1A4KYzN2Vk3R4to7

=z8TW

-----END PGP SIGNATURE-----

This issuance will be reflected in the cap table in the coming month.

———5 of which via jurov. [↩]This, if memory serves, is a first. Congrats to the winners! [↩]Ten bitcents went away this month. [↩]Note that any player gains against the loot pools are reflected as debits against the Tangible Assets line, but must also be reflected as corresponding credits in the Intangible Assets line, while all player losses against the loot pools are reflected as credits towards the Tangible Assets line, but must also be reflected as corresponding debits in the Intangible Assets line.

To understand why this must be done, consider what happens otherwise if players gain 1 BTC through playing : the Tangible Assets section loses 1 BTC through the loot pool component that is reported in there. This reduces the Total Assets of S.MG by 1 BTC, and implicitly the Shareholder Equity by the same amount, since assets and liabilities match. If Player Equity is reported under Liabilities, then that gain of 1 BTC reduces the Shareholder Equity by 1 BTC further. It obviously makes no economic sense that S.MG would have lost the same BTC twice, once because it no longer has it and once more because now the players do.

To put the matter in stark contrast, should all S.MG's capital be placed in the loot pool, and should players gain through playing half of it, the Shareholder Equity would figure as 0, the half of their capital remaining being negated by the half of their capital the players now own. This obviously makes no sense economically. Moreover, it is fair to say that the more S.MG loses to players, the better it's liked, and vice-versa.

Through oversight reporting was incorrectly on this point before. The sums involved aren't considerable and for the sake of simplicity I will not be remedying the error. Can't believe nobody spotted it before, either! [↩]The nominal (ie, what merchant pays) of all owned items plus cash held. The value of skills is nominally 0. [↩]Players made money this month. Everyone wins in January! Well... almost everyone, anyway. [↩]This block of stock warrants has expired together with its owner, as per our agreements. Unfortunately. [↩]Smallness is relative. We added 12`452`593 play-seconds this year, sixth month after release. I doubt there exist 100 games released in 2015 that can boast that figure, and in fact the count may well be as short as 10. (This alone should make Eulora the talk of everyone in gaming - but of course "everyone in gaming" everyone posturing on social media about being in gaming has other concerns. Then again, everyone in cryptography posturing on social media about being in cryptography has other concerns, just like everyone in lisp is blesfully unaware of how lisp matters today and everyone in everything else etc etc. Not that it matters - but just in case you come years later to this and wonder as to the why and wherefores - it's not luck, and it's not skill. It's almost always everyone else being a pompous idiot and missing out.)

If no further growth happens we're on our way to get those 100 to 200k players Dave said RealTime Wolrds needed to "do ok financially" in about 80 years or so. Comparing the balance sheets of the two ventures should be a very instructive exercise to anyone seriously dedicating themselves to understanding what Bitcoin is disrupting : RealTime Worlds owed 104.5 mn in dollars, MiniGame owes 8`797.38234042 in Bitcoin (about 3.5 mn in dollars at current prices). RealTime Worlds couldn't have survived 8 months due to that burden, let alone 8 years. Meanwhile cashflow projections show 80 years is perfectly feasible for MiniGame - yes, I'll die before that too, but hopefully someone who comprehends how to run Bitcoin businesses from having followed the example can be found to replace me by then.

You think you want to take dollar investment, you think you want to make a non-Bitcoin company ? Think again. Think long, think hard, and start with this : what makes you think a fiat company is even possible anymore ? [↩]

« The necessary prerequisite for any change to the Bitcoin protocol

Qntra (S.QNTR) January 2016 Statement »

Category: S.MG

Tuesday, 02 February, Year 8 d.Tr.

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