October 10

PawPower PULSE / transcription PART 2

Matthew CM: Let me go first; we’ll answer a couple of questions and then continue. Here’s the plan. We were previously asked whether there will be an app and if it will have a Play-to-Earn format. But Alpha has already addressed this in his speech.

TON Cats Alpha: Let me add something about Play-to-Earn. I just forgot to mention it earlier, and it’s important. It’s connected to our Tap-to-Invest concept. You need to know that you can earn not just in the main topology by completing tasks, stages, and so on, but also in games. For example, if you’re bored, or you’re tired of all the other activities but still want to earn something, we have a solution. Please, try the snake game, which will be the first one released. Just play the snake game. It’s a more engaging mechanic. A portion of the points you earn in the snake game will automatically convert to the pool, increasing your balance. This way, we want to encourage users to not only tap and perform tasks but also to play our games.

What’s important to understand here is that in games, you’ll be able to earn more than just by tapping and completing tasks. We understand that the tapping mechanic is more about the initial interaction, capturing the audience’s attention, and driving initial engagement. It’s the first step in communicating with the community, and in that sense, it has been very successful. I don’t think there’s anything more to add on that front. But the next steps, the subsequent interactions, should come from actual products. Especially since our concept is Tap-to-Invest, the user should first understand where they can invest.

They should enter the product, play it, and understand the monetization model — how interesting it is to purchase something or spend money. That’s why we have this unified server I mentioned earlier. It will be responsible for handling purchases based on a certain percentage of the points users earn in our games.

As for the direct game mechanic — the classic model where a player plays, earns an in-game item, and then sells it or earns another in-game item or character to sell — we won’t have that for now. At least, I don’t currently see the point in it. But since the games will allow users to earn, and eventually they’ll be able to withdraw and sell their earnings on the market, this mechanic, which many love to call “Play-to-Earn,” will still be present in some form. But our goal isn’t to make a game purely for earning money. No. The game should be fun. If you’re playing because the game is genuinely interesting, and you also earn a small income that you can withdraw and sell, that’s a better concept in our view. I hope that answers the question.

About bots and farms

Matthew CM: Thank you very much. The next question from Alan is, in my opinion, quite interesting. How are we going to deal with the main issue of tapping apps, namely bots and farms?

TonRuh CBDO: Yes, let me answer that.

Matthew CM: By the way, before you start, could you also introduce yourself and tell us a bit about what you do in the project? I think the community hasn’t really come across your profile before.

TonRuh CBDO: My name is Nikolai. Yes, I joined the project. We started collaborating with Alpha in May, at the end of May, to be exact. At that time, I assembled a team to focus on building constructors, similar to NOT Coin or Hamster but simpler — like a Tilda for caps (cap projects). After some discussions, we decided to join the MKS team. This team is currently focused on developing the cap system, which distributes the effort.

Our main question looking ahead was how to connect all our products — games, the community, our authentication system, the exchange. It has its own roadmap, and we want to transfer and analyze the data using various tools to not only eliminate bots but also better reward active community members who participate in games, tapping, and other activities. We also want to use this data to identify and interact more with the project’s biggest fans, giving them more opportunities. This fits into the format that Alpha envisioned from the beginning of the project, where Typekit (the project’s architecture) serves as a foundation for growing the organization. It could become a strong basis for engagement and project management in the future. We’ve thought a lot about all of this.

In our opinion, what we’ve already laid out technically is very solid. We have three or more large teams of developers working on different products. We’ve built a system that combines all of this, from databases to handling large loads. We’ve created a strong foundation not only to exclude bots and those who try to earn unfairly but also to identify and communicate with different user groups — like those actively building networks or playing games. We’re focusing on the audience and providing opportunities for different groups, including people from the gaming industry and newcomers who aren’t tied to games or the industry. This could be a topic for a deeper conversation, maybe in the Friday sessions, where we could go into the logic behind the constructor in more detail. I’d also like to explain why I got involved in creating this product and how it will increase the value of TON Cats, and what it will bring to the community in the future.

I’d also like to share more about our work over the past four months and what I see as valuable and promising in TON Cats’ economy, compared to other top projects. This is a separate topic, and I could talk about it for a long time. For now, I’ll say that our focus has been on products and what’s about to launch — the product that lets you collect items. We have a lot more to tell. We’ve been in stealth mode for the past four months, working hard to prepare everything. This includes content, community engagement, and product releases. Now we’re ready to go public with what we’ve been preparing. This is our first presentation. We only decided earlier this week to hold it on Friday, spontaneously, to kick off our engagement with everyone who follows us, owns cats, and wants to dive deeper into the project. I’m glad to be part of this project and have much to share.

About the $CATS Token Price

TON Cats Alpha: Thank you. I think many are concerned about the $CATS token price.

We posted about the situation four or five months ago, but I want to go over it again because it’s important, and many people don’t understand what happened and why it occurred. For those who participated and remember on April 26, when they tried to claim on TON Raffles and experienced issues—this was because at the time, the network was down, everything was down, and there was panic in the market. Why? Because two hours before us, the TON Fish launch had ended. There was a large number of participants, and the network was overloaded, so people couldn’t claim on the first try. Moreover, in our token, around 1% or more of the total supply is still unclaimed. We can’t do anything about it because people seem to have abandoned it and stopped trying.

The issue was that people couldn’t claim immediately. Those who managed to claim started selling at a loss because the opening price was the highest price, and everything below that was sold at a loss. If you look at the charts, they are very similar because people started panic selling at a loss but continued selling nonetheless.

Why am I confident that the price will not only return to its initial level but also rise much higher? Even though we have substantial liquidity, which makes moving prices more difficult, unlike many other projects, including those of other teams that have tokens tied to a game like Catizen. Many teams create separate tokens for each game they develop. We, on the other hand, decided to stick to a model where multiple products are built around one token, which is used as a single payment method across all of them.

This means that in-game purchases, and in our case, payments for various services in non-gaming products, are all made using the same token. When someone makes a purchase, they buy the token and essentially burn it by spending it on our products. This means the liquidity is constantly replenished with new funds, but these funds don’t return to the market. It’s not like trading, where you buy, wait for the price to go up or down, and then sell to get your money back. In our case, the user buys the token, spends it, and burns it. As a result, liquidity isn’t growing, and the total number of tokens decreases due to the burning mechanism. This creates a liquidity deficit, which drives the price up.

Now, imagine we have 1 million users, or even 100,000 users, who spend one TON per month on in-game purchases (about $6 at the current rate). They don’t return the funds to the market; they just buy and burn. That would remove 100,000 TON from liquidity. Currently, the total liquidity of our token is about 160,000–159,000 TON. So, if 100,000 TON flows into liquidity in one month, that would increase the price by at least 70%, due to the deflationary effect of token burning. And that’s only 100,000 users—we expect significantly more, based on similar projects like Catizen. We anticipate an audience of several million users.

Considering that our primary games will be the main sources of revenue, and users will be able to sell, invest, and so on, the number of paying users can increase.

Additionally, our setup stimulates small purchases, which boosts the number of paying users. Over time, as users make more purchases, it becomes easier for them to keep buying. Each time a user makes a purchase in our games or products, the person who referred them gets a commission according to their level in the referral system. This information is available in the community, and you can check the Referral System section to see the percentage breakdowns. You should already know that having a passport gives you higher percentages, further encouraging users to invite new players.

All of this creates a self-sustaining cycle, and I’m confident that this model will show its effectiveness. I won’t make any specific predictions, as that’s always tricky, but I’m sure that after launching even the first product, you’ll feel how this model works and how efficient it is.

About In-Game Purchases

Matthew CM: Yes, there’s a question about purchases. I’ll hand you the mic now.

User: Yes, my question is about the cost of in-game skins and other items. As Alpha just mentioned, the current price is about 200 $CATS, which is less than $0.50, but as the token value rises, the cost of in-game sets will also increase. How will this affect user interest in buying more expensive in-game skins? Will you introduce some correction mechanism to reduce the price of in-game items as the token value rises to maintain user interest?

TON Cats Alpha: Thank you for the question. Great question! I didn’t have a chance to explain this point earlier. We already have this mechanic in place in the community bot. The NFT upgrade is linked to the TON rate, so the price of the upgrade fluctuates dynamically based on the current TON rate. The same mechanic will apply in our games. We plan to keep the prices of common items around $0.05, rarer items around $0.10, and the most expensive items will cost around $0.20. So, the in-game item prices will be tied to the current exchange rate.

By the way, we already have a $CATS to USDT liquidity pool. It was added to make it easier to directly peg prices to the dollar, as calculating prices based on TON and then on $CATS isn’t very convenient. It’s simpler to have a direct market price for $CATS, making it easier to calculate the cost of in-game items. Therefore, as the token price rises, the cost of in-game items will decrease, and when the price falls, the cost of items will increase. I hope that answers your question.

Matthew CM: Thank you for the question. We originally planned for this session to last 30-40 minutes, so let’s take one or two more questions before wrapping up.

TON Cats Alpha: If I don’t manage to answer some questions in this session, feel free to write them in the chat, and I’ll reply to them later in writing.

Matthew CM: Or we’ll answer them in the next session, which will be in a week. Yes, we still have plenty of live streams ahead, and we’ll have time to discuss everything in detail. So, if there are no more questions, should we discuss something else or say our goodbyes?

Tina Malina CMO: First of all, I want to congratulate us on going live! This is great! Thank you to everyone who’s listening today. We’ll make a transcript of the session and translate it into English. Congratulations on the new format!

TON Cats Alpha: We should cue the fanfare here! Well, if there are no more questions, I think we can wrap up. Thank you so much to everyone who attended. Honestly, I didn’t expect anyone to show up besides our team for the first PawPower Pulse, so it’s really nice that people came and asked questions. It means there’s interest. Of course, we plan to increase our presence in the ecosystem and beyond because our audience is not limited to just us. In fact, our main audience consists of more traditional players. So, thank you all again, and I believe that as we launch more products, you’ll see growth in our audience, activity, and interest in the project overall. Thanks to everyone. Thanks to the team for coming and supporting us.

Tina Malina CMO: Yes, special thanks for the comments, especially to Apollon for being so active in the chat. I also want to add that if anyone knows any interesting bloggers or people who would like to collaborate with us, feel free to write to me or reach out to the team. Live contacts are always great. Thanks!

TON Cats Alpha: Well, I think it’s time to wrap up, right?

Matthew CM: Yes, thanks to everyone! We look forward to seeing you in a week, in our chat, and in our games. Thanks again.

Tina Malina CMO: Meow meow, meow meow meow, meow meow, bye-bye!