Whitepaper - Game Loot Network

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PLAY BUILD

EARN

30 June 2018 - v1.1

Important Notice This whitepaper may contain product statements regarding the LOOT token sale and the results of operations, plans, objectives, and future performance of GLN Holding Inc.’s (“GLN”) business. Statements preceded by, followed by, or that include words such as “may,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or similar expressions are intended to identify some of the forwardlooking statements. All statements, other than declarations of historical fact included in this whitepaper that address developments that may occur are forward-looking statements. These issuances are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses that GLN, and its subsidiaries, (together “GLN Companies”) makes based on its perception of historical trends, current conditions, expected future developments, and other factors appropriate in the circumstances. Whether or not actual results and developments will conform to GLN Companies’ expectations and predictions is subject to a number of risks and uncertainties, including the general economic, market and business conditions, changes in laws or regulations made by governmental authorities

or regulatory bodies, and other world economic and political developments. Consequently, all of the statements made in this document are qualified by cautionary indicators and there can be no assurance that the actual results or developments GLN Companies’ anticipates will be realized or, even if substantially realized, that they will result in the expected consequences to its operations or the value of the services it offers. Moreover, neither GLN Companies’ nor any person affiliated with it assumes any responsibility for the accuracy or completeness of the product statements. GLN Companies’ is not under a duty to update any of the product statements to conform to actual results. Lastly, there are risks associated with the use of blockchain technology in the LOOT token sale process or products that use the LOOT token, and the purchase of LOOT generally. You are aware and agree that this and related documents cannot disclose all information about all potential risks due to a variety of possible events and situations.

© Game Loot Network 2018

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Table of Contents 1.

Summary

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1.1 The Software Studio

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1.2 Addressing Problems In The Commercialization of Games

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1.3 LOOT© and the GLN Platform

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1.4 Member Demographics

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1.5 Roadmap

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1.6 How GLN Generates Revenue

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1.7 Market Size

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1.8 Participating In The Evolution of the GLN Ecosystem

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Unifying The Gaming, Affiliate and Crypto Industries

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2.1 The Gaming Industry

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2.2 The Affiliate Marketing Industry

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2.3 The Cryptocurrency and Blockchain Industry

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2.4 Market Growth: A Perfect Storm

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2.5 LOOT and Participant Demographics

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2.6 Risks

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The GLN Platform

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3.1 The Platform

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3.2 Build Portal

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3.3 Play Portal

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3.4 Earn Portal

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3.5 Under Development

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3.6 Decentralization

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4.

Decentralized Goal

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5.

The Team

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5.1 Organizational Structure

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5.2 Core Team

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5.3 Advisors & Consultants

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2.

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6.

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The Token Economics and How To Participate

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6.1 At A Glance

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6.2 Private Sale Summary

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6.3 Affiliate Marketing Program

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6.4 Business Sustainability

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6.5 Token Metrics Breakdown

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6.6 Token Releases

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6.7 Roadmap

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Appendix

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7.1 Rewards Snapshot

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7.2 Payment Paths

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7.3 Badges & Qualifications

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7.4 Glossary of Terms and Definitions

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1. Summary Game Loot Network (“GLN”) is a gaming platform and ecosystem where developers can showcase and develop games in mutual collaboration with their fans. A global affiliate marketing program feeds the ecosystem with members who are incentivized to play games, engage with developers and become fans.

1.1 The Software Studio

With the GLN gaming software studio, developers can build and manage games much faster and more efficiently than with traditional tools. They can also use the software studio to integrate into relevant blockchains1 (e.g., to reference game scores, track gamer progression, etc.) and leverage third party design tools, such as Unity2, to enhance their games. From there, games can be published to popular mediums like the Google Play Store, the Apple App Store, Steam, Xbox, PlayStation, Facebook and the web.

1.2 Addressing Problems In The Creation & Commercialization of Games

Several problems exist in the way online games are currently commercialized. 1. The large number of games available in the marketplace creates fierce competition that can only be won if developers have a large advertising and marketing budget; 2. App stores (e.g., Apple App Store and Google Play Store) take significant commissions in the commercialization of games, affecting the revenues of developers; 3. There is an ongoing struggle to retain the attention and loyalty of players once they try a particular game. A next generation gaming ecosystem must provide robust solutions to these problems.

1 Data can be persisted into blockchains that expose API (Application Programming Interface) capabilities to offer, amongst other things, transparency, digital security, and peer-to-peer tracking of elements that make up a game (for more information on blockchains, see: https:// en.wikipedia.org/wiki/Blockchain). Further, particular blockchains that support smart contracts (for e.g., Ethereum) can be used to maximize the decentralization of gamers’ interactions by entrusting the rules of a game to that contract. The GLN software studio makes it easy for game developers to tap into these capabilities. 2

See www.unity.com. Unity is the world’s leading content-creation engine. © Game Loot Network 2018

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To address these issues, GLN acts as a marketplace to drive attention to games by providing:

1. An ability for GLN members to group into communities and provide feedback to developers while games are being built. Games developed in this fashion create anticipation prior to their release and engage audiences following their launch. We dubbed this process “Crowd Curation”; 2. An affiliate marketing program that provides the GLN community with new members and affiliates; 3. A reward center that generates member loyalty; and 4. An integrated ranking system that keeps members engaged with a sense of progression.

GLN unifies three powerful community-driven industries:

Cryptocurrency

GLN Gaming

1.3 The GLN & Loot Platform

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Affiliate Marketing

GLN’s LOOT cryptocurrency3 is a reward token that fuels engagement and recurring activity by creating an ecosystem laden with rewards. Every activity on the GLN platform, from referring friends to winning gaming tournaments, can lead to real-life prizes and LOOT earnings.

LOOT is a cryptocurrency based on the ERC20 standard (Ethereum). © Game Loot Network 2018

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Build Portal

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Play Portal

Earn Portal

Environment

Environment

Environment

Software studio

Games Directory

Network Affiliate Module

Cost Free

Cost

Cost

Free or Subscription (premium members)

Affiliate joining and subscription fees varies

Playing Credits

Requirements

Members can purchase game credits or exchange their LOOT for the same

Affiliates can introduce persons to become premium members and other affiliates

Incentives

Incentives

Prize tickets earned while playing games are redeemable for gifts or LOOT

Affiliates get rewarded with LOOT tokens when their referrals and their social network become paying members of GLN

Capabilities Build back-end infrastructure for games faster with traditional tools (includes blockchain agnostic capabilities)

Audience Developers can create a community page for a particular game that they’re building. Members provide feedback during the game development process.

Battle Bidding Members can participate in an auction for real-life products or LOOT

Providing Feedback

LOOT Purchase

In order to provide feedback, members are required to contribute a fixed amount of LOOT per post, which is collected (100%) by the developers.

Members can buy LOOT directly from GLN

Incentive Mechanism Members that contributed LOOT to a game, earn tickets whenever players win tickets playing that game. The amount earned is based on the pro-rata amount of LOOT they contributed to that of the total contributions of LOOT received by developers for a game.

LOOT Security Members can send LOOT from their GLN account to their crypto wallets and become custodians of their LOOT (for security purposes). This is an advanced user module. Head-to-Head / Tournament Games Players can stake an amount of LOOT in P2P and group tournaments in skill based games. Wagering Relevant players may also be able to participate in regulated wagering.

Figure 1: Unshaded areas represent activities that can experianced today on GLN (to the exception of LOOT, which will be introduced in October 2018). Shaded area shows cmponents currently in development. © Game Loot Network 2018

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1.4 Member Demographics

GLN caters to several unique demographics, all of which require different forms of incentivization:

Game Developers. 01

Developers frequently crowdfund their games both to gauge consumer interest and generate funds4. However, GLN allows developers and players to interact on a deeper level and share in greater rewards, thus incentivizing both audiences: 1. Members can offer feedback on games, but to ensure suggestions with merit and legitimate interest, members must contribute LOOT to do so. Developers receive 100% of the contributions. The more interest a game generates through comments, suggestions, and contributed LOOT tokens, the more LOOT a developer has to kickstart the commercialization of their game; and 2. When games are played, players can earn tickets, which are redeemable for real life prizes or LOOT. Any member that provides validated feedback while contributing LOOT for a game, will also earn tickets when a player earns tickets for playing that same game. This incentivizes members to share games they have contributed feedback and LOOT to.

Affiliates. 02

Affiliates are rewarded in LOOT for referring paying members to GLN. GLN was one of the first companies to offer online games (a digital product) for sale through an affiliate marketing program5. This proved very successful and a viable strategy for growth hacking. During GLN’s beta program in late 2016, this generated an exponential influx of affiliates totaling approximately 65,000 people and over US$5MM in revenue.

For example, www.brightlocker.com.

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For this purpose, GLN benefits from a long-term license to use a cloud-based affiliate marketing management software.

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Unlike other affiliate marketing programs, affiliates don’t have to worry about the logistics of storing or delivering physical products, and they get rewarded at 60 minute intervals6. Conventional programs often take weeks to compensate their affiliates.

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Cryptocurrency Community. 03

Crypto community backers believe in projects that have the ability to reinvent an industry or greatly improve the status quo. Today, the majority of token sales are successful based on the hype they generate. However, GLN believes that backers will soon demand results. Thus, public-facing tokenized business models must demonstrate an ability to produce actual adopters rather than speculators. The design of the GLN ecosystem pushes all users to use LOOT rather than engage in speculation. LOOT can be used to provide feedback in the curation of games, enter head-to-head tournaments and competitions, battle bidding (i.e., auctions) and can be redeemed for in-game credits. LOOT can also be earned by playing games, contributing feedback to games and participating in the affiliate marketing program. Therefore, GLN expects to bring the affiliate marketers and the cryptocurrency community closer together with sustainable and quality gaming entertainment.

1.5 Roadmap

GLN’s goal is to maximize the decentralization of dealings between members within its ecosystem using a blockchain capable of matching its required scalability needs7. However, in the near term, GLN is focused on onboarding members to its platform by focusing on: 1. The deployment of its “Crowd Curated” gaming module called the BUILD portal;

Only where rewards are owed to the affiliate within that 60 minute interval.

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2. The introduction of the LOOT rewards cryptocurrency within its ecosystem; and

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3. The reorganization of several modules of its platform for a streamlined user experience.

1.6 How GLN Generates Revenue

GLN generates revenue by offering the following: 1. A US$10 per month subscription to its platform. While members are able to play for free, they can subscribe to become premium members to gain access to compelling platform features and benefits; 2. An affiliate subscription for US$125 per month. Affiliates have access to marketing tools that help them manage to their referrals. They earn commissions when referrals become paying members of GLN; 3. The sale of LOOT; 4. A sales margin on products offered to members through auctions (i.e., in the battle bidding module of the GLN platform); and 5. In the near future, advertising.

1.7 Market Size

GLN operates in three industries (cryptocurrency, gaming and affiliate marketing) that are growing rapidly. In 2018, the gaming industry is expected to reach a market size of US$125b8 with a projected growth of 15% annually up until 2022. Meanwhile, the combined cryptocurrency market sits at around US$300b9 and, although growth rates are hard to determine due to the current volatility in that industry, some experts estimate the market to grow at multiples of its current value10. Likewise, the affiliate marketing industry is booming due to Asia’s increasing

For example, by using smart contracts to oversee and deliver on earnings and prize redemptions.

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See www.statista.com.

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See www.coinmarketcap.com. Novogratz, Mark (2018) in https://cryptoslate.com/billionaire-mike-novogratz-cryptocurrency-market-to-reach-20-trillion/

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appetite for quality, cutting-edge affiliate programs11.

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GLN is well positioned to soak in the growth in those industries.

1.8 Participating In The Evolution of the GLN Ecosystem

Depending on the relevant person, GLN is offering the following promotions in its launch phase: 1. A forward (wholesale) contract (also called the SAFT) for the future delivery of LOOT - offer ends on 31 August, 2018; 2. Promotional Launch affiliate marketing packages, which include LOOT bonuses - offer ends on 31 August, 2018. LOOT will also be available for purchase from GLN during operations of the platform (as of December 2018).

Statista expects the affiliate network market to increase by approximately 400% over the next decade.

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2. Unifying The Gaming, Affiliate and Crypto Industries 2.1 The Gaming Industry

In the early days of gaming, no one could have predicted the gaming industry’s multi-billion dollar trajectory. Innovators evolved pixelated sidescrollers into digital odysseys through immersive lands. Design tools and development resources streamlined game development, and more games exist today than ever before. Unfortunately, this wake of evolution catalyzed several issues within the industry. Specifically, in mobile gaming where centralized platforms like the Apple App and Google Play stores monopolize the lionshare of the market’s audience. Apart from outlier exceptions, mobile games outside these exchanges struggle to gather users. Within these overpopulated platforms, Independent developers lack the budget to compete with the corporate colossus. Design costs and marketing campaigns necessary to launch a successful game often preclude developers from delivering their visions; ideas fail despite their merit. On the other hand, while gamers may not struggle to find games to play, their role in the market goes unrewarded. Companies rely on players for beta-testing, customer acquisition and game curation; however, they rarely share rewards beyond in-app upgrades or early access to anticipated content. Although users are the obvious audience for games, their desires are rarely listened to in the blueprinting stage of development. Large gaming companies then design game concepts without ground floor feedback from their future player base. This leads to unwanted creations and frustrating features.


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GLN’s software studio, the BUILD portal and member rewards address these issues by focusing on the creation of devoted fan-bases around developers and quality games. 2

2.2 The Affiliate Marketing Industry

The power of affiliate marketing is founded on the fact that most people tend to seek advice about products, services, and even business opportunities from friends or relatives. More importantly, they tend to trust that advice. Affiliate marketers puts that trust to work12. Over 13 million people in the USA are affiliates for network marketing companies. During the next decade, with an increasing Asian market appetite for affiliate programs13, it is predicted that affiliate marketers will recruit more than 200 million new affiliates globally (400% growth). Affiliate marketers share the GLN platform and earn commissions when members purchase a subscription to its digital products (i.e., upgraded game features and benefits within the GLN ecosystem). The games are entertaining and thus the sales pitch is fun and compelling. The speed at which the GLN platform can be shared creates a quickly monetizable and effective platform for affiliates to market. A possible friction point is the introduction of the LOOT cryptocurrency as reward or payment to affiliates as it relies on people being comfortable in dealing with cryptocurrency. However, GLN has experienced strong demand for payment of affiliate fees in LOOT as it enables real time payment of commissions without bank fees and the typical delays experienced in transferring fiat currency.

2.3 The Crypto/ Blockchain Industry

The popularity of blockchain assets is driven by people that believe in disrupting traditional, hierarchically-governed businesses towards a more decentralized model14. In 2017, with

Affiliate leaders build sales teams and receive commissions or bonuses on the sale generated by their team members, who are themselves rewarded from the teams they create. 12

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See www.statista.com.

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For example, AirBnB, Uber, Bitcoin, Ethereum, Shopify etc. © Game Loot Network 2018

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the coming of age of Ethereum’s ability to enable crowdfunding of various ventures on a large scale, decentralized and tokencentric business use cases exploded in the mainstream15. As of June 2018, an estimate of the market cap of blockchain assets is around US$300b, although this reached US$800b at the end of 201716. While the crypto market is highly volatile17, blockchain asset industry experts believe that this growth trend isone that will persist in the long term.

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On the GLN platform, the LOOT is a reward cryptocurrency used to incentivize its members. The use of tokens in games and loyalty systems is well understood by people familiar with these ecosystems19. This is not necessarily the case for businesses in other industries that are attempting to introduce tokens to enable commerce (e.g, b2b supply chain ventures, land titles, remittance, etc.). Therefore, the LOOT represents an experience that is more in tune with what GLN members expect, rather than the extensive and costly education on the use and benefits of tokens required in other industries. This can lead to faster adoption and demand fueling the desirability for affiliates and investors to hold or deal in LOOT.

2.4 Market Growth: The Perfect Storm

Growth Trends

Cryptocurrency

Gaming (30%) Network Marketing (25%) Figure 2: Approximate Growth Trends in the Cryptocurrency, Affiliate Marketing Programs and Gaming Industries (source: www.statista.com; www.coinmarketcap.com)

2018

2020

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www.coindesk.com estimates the size of the initial coin offering market at around US$4b in 2017.

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See www.coinmarketcap.com. Note that in February 2017, the market cap was only around US$20b.

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For a measure of volatility, refer to Sifr Data at https://www.sifrdata.com/cryptocurrency-volatility-index/.

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For example, GameCredits, SatoshiDice, MobileGo etc.


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1. The hook.Through compelling games and engaging member interactions, GLN can provide quality entertainment to its members. This makes it easier to compete for a person’s attention against other entertaining activities such as watching television, surfing the web etc. With the gaming industry growing at approximately 15% annually, GLN should have an easier path to claim market share. Further, if industry trends are to be believed regarding the considerable amount of time players spends on games20, this can be expected to translate to loyal GLN members.

in the affiliate marketing industry of about 13% annually, the GLN ecosystem is poised to generate new members and affiliates at a fast pace. 3. Supercharger. The LOOT, a cryptocurrency with limited supply, can be exchanged peer-to-peer, and carry the promise of leader status within the GLN gaming ecosystem. While the growth in the cryptocurrency industry is hard to predict22, the use of LOOT as a rewards currency should retain the attention of GLN members by incentivizing them to play games and being showcased at fun GLN events.

2. The fuel. For affiliate marketers, GLN offers a front row seat to the redesign of an industry. While the sales of subscription packages is for a gaming product, the “Crowd Curated” Gaming module within the BUILD portal and the introduction of the LOOT cryptocurrency offers much more: the mechanism to decentralize the gaming ecosystem21. This enticing message allows affiliate marketers to get behind GLN and commoditize the trust that their advice carries with their friends, families and social connections. Together with a healthy growth experienced

It is estimated that a third of 16 to 34 year olds claim to spend time playing video games online each week, with approximately 3 percent playing online games up to 20 hours or more a week (source: www.statista.com).

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An analogy is what Uber did to taxis.

Bullish investors put the estimates of the cryptocurrency industry at US$2T (Novogratz ,M) and bitcoin price of US$1MM (Potter, J). More conservative estimates predict a price of US$100k for bitcoin by 2022 (bitcoin generally drives the price of blockchain assets, although as the market matures, its dominance may subside). 22


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2.5 LOOT and Participant Demographics

GLN unifies the gaming, affiliate and crypto industries by carefully designing all interactions within its ecosystem as if it were a game itself.

02 The Player’s Goal

01 The Game Developer’s Goal The Game Developer must provide quality content to attract an audience that wants to contribute feedback (each post requires LOOT to be contributed) and engage with them to get them to contribute more. This should result in funding, an attentive audience, quality games and in-game revenues.

Players must play games to earn tickets. They are also incentivized to provide feedback, because when the game is played, by anyone, they also earn tickets. Good feedback should result in better games and more players. This should mean more tickets (hence, more LOOT since tickets are convertible to LOOT).

03 The Affiliate’s Goal The Affiliate Marketer leverages the desirability of games, the overall decentralization message and LOOT rewards to make sales. They get commissions in LOOT instead of fiat currency.

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The Investor’s Goal

Crypto Enthusiast’s Goal

Investors are similar to the crypto enthusiasts, although they take a less hands on role in participating in the ecosystem. They are focused on supporting the LOOT value through typical financial management methods.

Crypto backers want to back the right venture and partake in supporting the entire LOOT ecosystem. In this process, they are active participants of the ecosystem, act as ambassadors for the same so they can acquire as much LOOT as they can and increase LOOT velocity (hence, increase demand).


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While it could be argued that most activities in life exhibit gamified aspects, ecosystem designers must properly communicate and craft a narrative so as to align the desired activities of the participants in that ecosystem. GLN believes that ill-designed ecosystems leave the door open for reduced engagement between participants, unfair exploits and ultimately member discontent.

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In the GLN ecosystem, the aim for all participants (investors, game developers, players, affiliates and crypto backers) is to work together to increase the demand for LOOT.

2.6 Risks

There are risks in the assumptions made in this section of the white paper. For example, the execution of the GLN plan may not yield a vibrant ecosystem, the games produced may lack the relevant audience and the fact that blockchain technology is still in its infancy may create additional unforeseen risks. Market factors may also affect the LOOT demand and reduce its perceived value. Further, the growth hacking of the ecosystem through the GLN affiliate marketing program may not replicate the success and influx of members experienced in GLN’s 2016/2017 beta period.


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3.The GLN Platform 3

GLN’s focus is on attracting and engaging members. This relies on having a user experience that meets members’ expectations and leveraging its affiliate marketing program to make that experience visible to the world. The elements of the GLN experience are detailed below.

3.1 The Portals

GLN’s platform is organized into three portals: BUILD, PLAY and EARN.

EARN

BUILD

PLAY


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In the BUILD portal

1. The GLN software studio is used by developers to build the back end infrastructure of games. It leverages integration capabilities to access popular gaming tools and relevant blockchains. 2. The “Crowd Curated” Gaming area is where developers submit their game ideas, screenshots, demos, gameplay footage and other information when they build a game. Members of the GLN ecosystem are invited to participate in providing feedback (this is received in the form of posts, which require a LOOT contribution to publish).

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In the PLAY portal, members have access to:

1. A directory of games that they can play to earn tickets. This directory contains head-to-head tournaments, game competitions, popular games (which are the highest rated and played). In the future, wagering products will be open to suitable audiences (unsuitable audiences will not see this advertised and will not be able to participate); 2. A profile page with the type and status of their membership, their rewards data and the ability for them to buy in-game CREDITS and, where relevant, subscribe as affiliates or premium gamers; 3. A Battle-Bidding area where they can buy BIDS or exchange CREDITS for bids. Bids are used to compete with other members to obtain real-life prizes. If a member is the last person that has placed a bid before a countdown reaches zero, then that member buys the product at the deeply discounted price, which is significantly reduced from the regular product price. Members can buy bids with LOOT (20% cheaper than purchasing with fiat currencies). Members can also buy P remium Bids to bid on LOOT and other premium prizes; 4. A LOOT purchase area where they can buy LOOT with Ethereum (a cryptocurrency). GLN introduced a gamification element in this process by making the sale of LOOT a blind auction (i.e., a specific amount of LOOT must


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be distributed at the end of a set period of time; typically, hours). The allocated LOOT is distributed pro-rata based on the amount of Ether contributed by a member to that of all contributions received by all members in that period. These periods are repeated over a number of weeks or months; 3

5. A redemption area where they can convert tickets to reallife prizes or LOOT; and 6. An advanced member area that allows members to send LOOT held on the GLN platform to their own cryptocurrency wallets. This option is for expert members and made available to give them the option of securing ,and being the custodian of, their LOOT.

The EARN portal is exclusively reserved for affiliates.

Affiliates join by purchasing an optional promotional pack (launch pack). They keep their affiliate membership current through a monthly subscription fee. Affiliates (or an affiliate’s team members) that refer paying members to GLN will earn commissions on their introductions, as long as the referred member keeps their subscription current. Optionally, an affiliate may also personally refer and maintain 10 or more active premium gamers to keep their affiliate status active, which will then only require a US $25 monthly subscription for the GLN company approved marketing system.


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3.2 BUILD Portal

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The GLN software studio allows developers to get a headstart in building their games. The studio was built to streamline the game development process from lessons learned during years of game developing experience. It is loaded with features, such as API ingestion and management, code injections, preset gamification modules, virtual currency tailoring, redemptions rules, leaderboards, etc. The studio is also a management tool capable of providing in-depth analytics of games and players, and can also manage back-end game interactions in real-time across several game publishing platforms.


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Figure 3: The Studio’s landing page.

Figure 4: The Studio’s extensive game publishing environments.


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3.3 PLAY Portal

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Figure 5: The gaming experience on GLN.


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Figure 6: The GLN game directory.

When members choose a game, they are directed to the relevant app store to download it, or a publishing environment(s) chosen by the game developer. The GLN Developer plugin incorporates the relevant characteristics (e.g., the use of credits or tickets) a game must have to participate in GLN’s social gaming ecosystem. This is how GLN keeps track of member earnings and redemptions.

Figure 7: Battle Bidding example. Goods offered are delivered to the member (conditions apply).


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3.4 EARN Portal

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Affiliates join by subscribing to the relevant affiliate package. During the launch phase (pre August 2018), affiliates will qualify to receive LOOT in an affiliate token bonus promotion (provided they keep their subscription active until 31 August 2018). Each person that signs up as a paying GLN member through the affiliate counts towards that affiliate’s personal sales volume. Affiliates achieve different badge levels and are paid commissions based on the same23. Commissions payable are given every 60 minutes in LOOT (prior to LOOT being released in September 2018, payments to affiliates is provided in US dollars).

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See the affiliate marketing program details in the Appendix to this document. © Game Loot Network 2018

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Figure 7: Live view of the GLN affiliate marketing program module. This shows the lead affiliate at the top of the tree and the red dots are the persons the affiliate (or the affiliate’s team) introduced.

3.5 Under Development

The components of the GLN ecosystem that are currently under development include the following: 1. The use of LOOT within the ecosystem (see the token metrics in section 6 of this whitepaper); 2. The “Crowd Curated” Gaming (member feedback) module, the BUILD portal. The elements of this module are described below; 3. Head-to-Head tournaments and competitive games. To experience a competitive game from GLN, play Eggies (to play, go to https://www.facebook.com/games/pb_eggies/?fbs=-1); and 4. The reorganization of several modules of its platform for a streamlined user experience. The reorganization will be effected in several stages and GLN expects the complete ecosystem to be released at www.gamelootnetwork.com. before the end of 2018 (see GLN’s roadmap in section 6 of this white paper for more information).


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3.5.1 Crowd Curation

GLN’s “Crowd Curated” Gaming concept addresses the marketing problems of game developers by incentivizing their followers (players) to engage with them throughout the game. building process and following a game’s release.

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Figure 8: “Cowd Curated” module on GLN.

GLN’s “Crowd Curated” Gaming module resembles a mix of Steemit24 and Facebook. Developers create a page for a particular game they’re building and engage with members to get validated feedback through a LOOT contribution. A star rating system based on member engagement determines a game’s ranking within the GLN game directory.

1. Administration of Game Pages

Developers administer their game pages. For example, they can provide the relevant information to advertise their game, mute members (remove the ability for members to post), and set the amount of LOOT required for a member to post feedback or give a vote. A game page contains the elements enabling social interaction, such as ratings, post forms, vote buttons along with a

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www.steemit.com © Game Loot Network 2018

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member’s share of tickets (i.e, rewards) when the game is eventually released and played.

2. Engagement 3

The aim of the “Crowd Curated” Gaming module is notto act as a customer service portal. For this reason, the developers do not have the ability to respond to comments. However, they can mark a feedback post from a member as having been “accepted”. Members can offer suggestions, post images, upvote good feedback or downvote others so that there is a curation of member feedback based on what the majority of members believe is more relevant. When games are played, players can win tickets, which can be redeemed for real-life prizes or LOOT. Any member that provides feedback on a game will also earn tickets when a player wins tickets for playing that same game. This incentivizes members to share games they contributed to.

BUILD Portal Rewards Pool

The mechanism by which contributors of feedback to games are rewarded is as follows: 1. Whenever a game developer sets up a feedback page, a rewards pool to receive tickets is set up for allocation to member contributors; 2. As tickets are earned by players that play the game, tickets are also credited to the pool; 3. Depending on the LOOT contributed by members on the feedback page, that member obtains a percentage of tickets from the pool (an increased weighting to the pool is applied if the developer has checked off a post as having been “accepted”); and 4. After the launch of the game, members are able to continue contributing feedback. However, post-launch contributors earn less tickets than those that contributed prior to the game being launched.


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3.6 Decentralization

3

GLN aims to decentralize interactions amongst members within its ecosystem. However, its initial focus is on achieving a suitable member mass required for the successful commercialization of decentralized applications. Once a strong membership base is achieved, GLN will start the process of completely decentralizing several modules of its platform with the use of smart contracts. For example, the tracking, settlement and auditing of affiliate fees will be pushed to the relevant blockchain. LOOT dealings will originate directly from member-controlled cryptocurrency wallets. Depending on the progress of decentralized cloud solutions, GLN will also aim to host its entire platform on a peer-to-peer network (for example, Crowd Machine). Storage of information could be in environments such as Storj or IPFS (Interplanetary File System). GLN has already started work on architecting its decentralized solution as follows. The design of: 1. Requirements for a series of smart contracts to address: (i) creation of the feedback page by the developer, (ii) the process of paying for posts and votes, and (iii) the distribution of LOOT rewards to members providing feedback; 2. A tracking system to tag particular persons introduced by affiliate members, with the representation of the family tree being from a block explorer; 3. A decentralized marketplace ( for the exchange of tickets (virtual currency) to gifts (where this is offered from GLN at first, but that is then shared with third party vendors). The GLN marketplace is expected to cover battle bidding (auction), which is the exchange of tickets or LOOT to bids, and where bids on goods are recorded in, and winners settled by, a smart contract; and 4. A GLN wallet to store LOOT and other meta tokens such as game credits and bids. © Game Loot Network 2018

29

4.The Promised Land GLN aims to entertain every member in its ecosystem with every interaction.

4

Over time, it’s goal is to include other digital entertainment products (such as movies, music) and remove itself as the administrator of the ecosystem and be replaced by a memberdriven decentralized autonomous organization that would be responsible for upgrades and management of the GLN platform.


30

5.Team 5.1 Organizational Structure

GLN believes that in addition to having the right people, a solid organizational structure must exist to coordinate and focus their talent. The GLN organizational structure is as follows:

5

CEO & Chairman Board of Advisors

Board of Directors

President (COO) Technology

General Counsel

Legal

Marketing

Chief Financial Officer

In House Counsel

Financial

Bookkeeper

VP of Investor Relations

ChiefMarketing Officer

Public Relations Manager

a/c Payable & Receivable

VP of Network Marketing

Developers

Quality Control

Gaming Division

Chief blockchain Officer (CBO)

Chief Strategy Officer, Gaming (CSO)

Content Director (Video Graphics) Crypto & Business Analyst

Virtual Currency Manager

Blockchain & Crypto

CFO NED1 NED2

Business

Chief Technology Officer

NED3

GLN Platform

Social Media

QA/QC

Copywriter

Unit Tests

Events Coordinator


31

5.2 Core Team

5 Lance Baker

Lance Baker is the founder, architect and President of GLN. His experiences as a serial entrepreneur have led him across Europe, the Middle East and around the world. During this time, he assembled an incredible team of talented developers and designers to serve as the backbone of the GLN vision. An early observer of the gaming explosion, Lance authored his first book, Game LOOT: Grab Your Piece of the Gaming Revolution, which taught fellow entrepreneurs to capitalize on the lucrative space. His vision to disrupt and innovate the multi-billion dollar gaming industry orients the team and promises future success.

President & Founder

Doug Kinney earned a Bachelor of Science degree in business administration with an emphasis in accounting from Central Missouri State University. Most recently, Doug served as the Presiding Manager & CEO of Vin Solutions, LLC. Through his determined leadership and market vision, he guided the company to prodigious growth which culminated in a monumental acquisition by AutoTrader.com of Atlanta, Georgia. He was responsible for managing the company’s business affairs, as well as directing its financial interests. Doug Kinney Chief Executive Officer

Pat Baggette II Chief Financial Officer and General Counsel

Currently, Doug owns several luxury automobile dealerships in the Greater Kansas City Metropolitan Area and is the Owner/ Founder of a successful investment firm. Pat Baggette earned a Bachelor of Science in accounting from Auburn University. He went on to earn his J.D. from the University of Missouri-Kansas City, School of Law. Pat was an early addition to the VinSolutions, LLC executive team and served as Chief Financial Officer and General Counsel.He was also named as a member of the governing board and led the efforts of the administrative team during the run up to acquisition by AutoTrader.com. In addition to his guidance at VinSolutions, LLC, Pat has been a member of three companies which have been recognized, several in succession, on the INC 500/5000 listing of Fastest Growing Companies.


32

5

L.Mack Khurram VP of Global Field Development

Mack Khurram graduated from Balochistan University with a Bachelor of Science degree, receiving honorable distinction. After university, he focused his business acumen towards network marketing, quickly becoming a worldwide leader in several US based companies. Mack uplifts all around him, encouraging colleagues to go “all the way up”. He continues to lead a massive army of strategists and marketers, ready to deploy at the hint of opportunity. Most recently, Mack co-founded Trade Optimize, a techsharpened online marketing and strategy firm. The company specializes in end to end business solutions, streamlining projects with operational excellence. As Vice President of Global Field Development for Game Loot Network, Mack brings a limitless network supported by his adept leadership. Mack’s unrivaled ability to rally passion and inspire growth promises to connect the GLN vision to every computer and device on the net.

Rick is a Senior Architect at bitHeads, VP and CTO, and has served as CTO of Natural Convergence, a bitHead’s, a company he co-founded, spinout.

Rick McMullin Chief Technical Officer

He has expertise in the architecture and development of large-scale server, middleware and cloud platforms for gaming, mobile and enterprise applications. He has 20 years of experience in Information Technology and served as a Software Architect on Bell-Northern Research’s Generic Services Framework project, the largest object-oriented project in the world at the time. Rick has worked for 3Com, Fulcrum, Nor- tel, ObjectTime, Bell Sygma, Rational and Telus and holds an Honours Bachelor of Computer Science from the University of Windsor.


33

Scott co-founded bitHeads, inc. in 1995 and serves as its President and CEO. He has over 25 years in Information Technology and has a wealth of experience in software development, computer security and telecommunications.

Scott Simpson Chief Strategy Officer

Since co-founding bitHeads, Scott has guided the company to become one of the most successful custom app and enterprise development companies in North America. Under his leadership, the company has developed a unique mix of capabilities spanning mobile, gaming, and IoT software.

Paul co-founded bitHeads in 1995 and has overall management responsibility for bitHeads gaming and entertainment products. Paul is also the CDO and co-founder of brainCloud, a backend-as-a-service platform for games, gamified apps and IoT applications. Paul holds a Bachelor of Science in Computer Science Degree (Honours) from the University of New Brunswick.

5

Paul Winterhalder Chief Development Officer

James Duchenne Chief Blockchain Officer

Paul has been leading application and gaming projects for over 20 years in the roles of senior architect, senior producer and project manager and is particularly interested in the space where technology and user experience meet–from building innovative new gaming experiences to creating elegant apps with robust cloud support. James holds degrees in Aeronautical Engineering & Law (Australia), graduate diplomas & certificates in applied finance & investments, digital currency, and carbon credit auditing & trading. He is also the co-founder of Sutton Stone, a leading blockchain advisory firm, former COO of Crowd Machine, a counsel at Rothmores Lawyers, serves on the board of 21 Capital, and also guides various companies as a strategic advisor. He has advised numerous ICOs and is also a government appointed Honorary Representative in the USA for blockchain and innovation for the Board of Investment – Republic of Mauritius. James is passionate about what he does and has worked in various fields, from bitcoin, blockchain and blockchain assets, technology, mineral mining, waste management, property, logistics, marketing, loyalty & engagement products. investments. © Game Loot Network 2018

34

Ben possesses 10+ years’ experience in sales, operations and management in various industries.

Ben Leff Director, Internal Communications

Prior to joining Game Loot Network, Ben was Director of Community at Crowd Machine Inc. and responsible for developing the Crowd Machine global community and empowering new users. He has a vast experience dealing with online cryptocurrency groups and ensuring that internal communications get to the right person at the right time.

5 Max is a Digital Marketing Expert with more than 11 Years of experience in a large range of projects from complex CRM and SAAS web applications to various apps and websites.

Max Bashmakov

Over the last few years Max has become interested in blockchain, advising on campaigns launched across the world. With his own entrepreneurial background and creative spirit he is bringing original and out of the box solutions and highlevel pixel perfect work.

Brand, Marketing & Creative Advisor

5.3 Advisors and Consultants

Charlie Shrem Blockchain Advisor

Charlie Shrem is a Bitcoin pioneer, social economist, digital currency trader and is currently the founder of Crypto.IQ. His work in this field is legendary. In 2011, at the dawn of the crypto era, he founded BitInstant, the first and largest Bitcoin company. In 2013, he founded the Bitcoin Foundation and served as its Vice Chairman. Since then, Charlie has advised more than a dozen digital currency companies, launched and managed numerous partnerships between crypto and noncrypto companies, and is the go-to guy for some of the world’s wealthiest entrepreneurs. He recently started Crypto.IQ, a premier advisory firm providing expert research, education and advice in the world of crypto assets.


35

4-time founder and CEO with breakthrough technology companies. Advisor and/or investor in Crowd Machine, Crown Thrown, Alt Lending, Ecomi, Propy and Cashbet.

Kurt Pfluger Business Advisor

5

During her year and a half in the blockchain industry, Marie has enjoyed success as a marketing & community engagement consultant for projects such as Pikciochain and Ecomi. Currently, Marie serves as Marketing Advisor to GoChain.io.

Marie Gonzalez Marketing Advisor

Prior to joining the cryptocurrency industry in early 2017, Marie successfully built a YouTube channel which achieved over 100,000 subscribers. Simultaneously, she built a career as a Hollywood special effects make-up artist, working with actors, NFL athletes, NASCAR drivers, Miss USA, and musicians while developing relationships in the entertainment industry. Dave is the Co-Founder and CEO of OAC Consulting, a strategy and marketing advisory firm for blockchain projects. He is a Co-Founder and Chief Compliance Officer of Paperstreet.vc, dubbed the “AngelList of Cryptocurrency.”

Dave C. Younts Marketing Advisor

Dave is a former US Army scout recon Officer cross-trained in high-tech signal intelligence systems; served in Afghanistan with US Army Special Forces, Navy SEALs, and Polish GROM (elite counterterrorism unit). He serves as Civil Affairs officer, providing advisory support to governments and is the liason between US Special Forces units and civil populations. Dave is a FINRA Registered Financial Advisor and has managed a portfolio of $300m in investible assets (mostly equities). He earned an MBA from Duke Univerity’s Fuqua School of Business after earning a BS in Mechanical Engineering and was awarded 2016 Sustainability Leadership Award by Mayor of Charlotte (1m+ citizens).


36

6. Token sale structure 6.1 At A Glance 30.7% (230,000,000 LOOT) Company Reserves

6

US$

7 mm

750,000,000 LOOT Fixed Supply

69.3% (520,000,000 LOOT) Tokens For Sale (Includes Private, Airdrops, and Other Sales)

Hard Cap

Figure 9: Token Distributiron

13.3% Daily Dash - Public (90,000,000 LOOT) Affiliate Program - Public (250,000,000 LOOT)

33.3%

10.7%

Figure 10: Hard Cap

GLN’s sale of LOOT is a private (SAFT only) sale. An amount of LOOT is reserved for a future equity sale as benefit to incoming equity investors. Other than company reserves, the balance of LOOT is offered to public purchasers directly via the GLN platform for consumption as a utility token or airdroped to affiliates when purchasing an affiliate marketing package. Hence, for the purposes of this sale, the hardcap is $7MM.

Company Inventory (230,000,000 LOOT) Equity Sale - Private (80,000,000 LOOT)

SAFT - Private Sale (100,000,000 LOOT)

30.7%

12%

Figure 11: Distribution Breakdown


37

Sale Timeline

May 2018

6

July 2018

August 2018

September 2018

October 2018

December 2018

Bounty Program opens (1,500,000 LOOT allocated)

Private sale offering opens for forward contract (SAFT) investors.

Private sale for the forward wholesale (SAFT) contract sale ends. First period of Affiliate LOOT airdrops is allocated.

GLN platform released in beta without LOOT and the BUILD portal.

LOOT available for use on the Platform. Second period of Affiliate LOOT airdops is allocated.

Complete GLN Ecosystem (including the BUILD portal goes Live). Start of the Daily Dash (public purchase). © Game Loot Network 2018

38

6.2 Private Sale Summary 6.2.1 Forward Contract; Simple Agreement For Future Tokens (SAFT)

The LOOT is a rewards currency used in the GLN gaming ecosystem. Investors can purchase a forward (wholesale) contract (also known as the Simple Agreement For Future Tokens or SAFT for short) for the future delivery of LOOT at discounted prices prior to August 31, 2018. The sale of the SAFT is not a fundraising exercise, but rather a sale of product. As such the relevance of a soft cap25 or hard cap26 is debatable as the funds received will be booked as a revenue item. However, in keeping with the cryptocurrency industry’s expectation, GLN considers that a soft cap of US$1MM and a hard cap of US$7MM is sufficient to create it’s robust ecosystem.

6

A total of 100,000,000 LOOT is available for purchase under the SAFT. Each LOOT is priced at US$0.07 and a harcap of US$7MM applies. This offer is only available to accredited or sophisticated investors and a minimum investment of US$25,000 applies. The large majority of the proceeds of sale will be focused on growing the GLN affiliate, influencer and player community and to manage the LOOT economy. Please contact [email protected] to request the accredited investor pack to receive additional information.

6.2.2 Future Equity Sale

GLN will reserve 80,000,000 LOOT only to be distributed as benefit for investors in a proposed future equity sale where it intends to sell Class C, non-voting shares of GLN Holdings Inc. Qualifying shareholders shall not be current GLN shareholders.

Typically, a soft cap is the minimum amount of funds that need to be raised for a project to be viable. This is generally required in an equity fundraising process. For operating businesses, the product is already viable and therefore soft caps are not as relevant .

25

A hard cap ensures that a project doesn’t have more money than is required for it to be successful. It is a maximum amount of funds that a project promoter will accept (even if investors want to invest more). For operating businesses providing a utility token, the token is itself a product and the goal of that business is to sell the maximum possible at the highest price possible. Therefore, in that instance, the hard cap is what the market is willing to provide in the normal course of commercial dealings. 26


39

6.3 Affiliate Marketing Program

Anyone27 can buy a promotional affiliate marketing pack at www.gamelootnetwork.com which allow affiliates to become eligile to earn additional LOOT bonuses (i.e., airdrops). A total of 230,000,000 LOOT is made available to affiliates over several promotional periods up until all allocated LOOT have been sold. The first promotion period ends on 31 August 2018. Structure of the Affiliate LOOT Bonus: 1. An affiliate’s qualified badge level on the last day of a promotional period determines the amount of the LOOT token bonus earned (the higher the status, the more LOOT).

6

For more information on affiliate status and LOOT bonuses, refer to the Appendix of this whitepaper.

!

Affiliates must have an active GLN account on the date the promotion ends (i.e., August 31, 2018 for the first promotional period) and must have earned the relevant badge level to qualify for LOOT bonuses.

An affiliate must be 18 years or older, and not be a citizen or resident of the following countries: (a) Iran, (b) North Korea, (c) Cuba, (d) Syria, (e) Lebanon, (f) Libya, (g) Sudan or (h) Somalia.

27


40

Bounty (Crypto Rewards) Program Participants

The GLN bounty program ended in May 2018. A total of 1,500,000 tokens are allocated for distribution. This allocation will come from the affiliate marketing program allocation of 250,000,000 LOOT.

6.4 Business Sustainability

There will not be a typical cryptocurrency sale (or pre-sale) of LOOT to the public. The maximum supply of LOOT is 750,000,0000 and no further LOOTs will be issued. Almost 70% percent of the LOOT will be made available for purchase and approximately 30% will be retained by GLN in inventory.

6

In December 2018, GLN will provide LOOT for sale from its platform directly to its members through a ‘Daily Dash” where a specific amount of tokens will be available for purchase over a set period of time (between 1 hour and 20 hours). Tokens will be distributed pro-rata based on a purchaser’s contribution to that of all contributions received for each Daily Dash period. GLN will use this market pricing methodology in the Daily Dash to price LOOT for sale from its platform for business sustainability reasons. It will not fix the price of LOOT for purchase as that may push participants to buy LOOT on secondary markets instead (e.g., if prices are cheaper there)28.

6.5 Token Metrics Breakdown 6.5.1 Use of proceeds

28

GLN is focused on engaging its community (players, affiliates, influencers, developers), in addition to catering for a robust management of the LOOT token. The proceeds segmentation shown on the next page is based on achieving an estimated soft cap of $1MM.

Secondary markets can form without without GLN approval. © Game Loot Network 2018

41

15% 30% Fund Management Advisors & Contractors

15%

Commissions & Reserves

Sponsored Events

5% 25%

6

Marketing

Provision For Taxation

10%

Figure 12: USe of Proceeds

Use of Funds Beyond Soft Cap

Raised funds beyond US$1MM will accelerate the development of the following: $

3mm:

(i) Adding new games to the games directory on the GLN platform; (ii) additional resources to manage the LOOT token, (iii) streamlining the GLN platform for the convertibility of LOOT to other virtual currencies. $

4mm:

Increased blitz influencer marketing in the following channels: (a) Gaming, (b) Affiliate Network and (c) Cryptocurrency Communities. $

6mm:

Three (3) GLN branded events per quarter (USA, Asia, Europe, South America) up until Q4 2019 (“LootCon”). $

7mm:

Marketing and strategic team expansion (operational expenditures), including cash reserves.


42

6.6 Token Releases

01

GLN will begin the distribution of LOOT on October 1, 2018 according to various schedules described below.

SAFT (Wholesale) Contract: Delivery of the LOOT is subject to a lockup and the following release schedule: Lock up until 31 December 2018;

6

On 31 December 2018

20% of LOOT purchased;

On the last day of each subsequent month

20% of LOOT purchased (for 4 months)

Advisors, Consultants and Experts:

02

Over 12 months, released every quarter, starting on 1 October 2018.

Team Bonuses:

03

Over 12 months, released every quarter, starting on 1 October 2018. Affiliates (promotion one) and Bounty Participants:

04

Affiliates from the first affiliate promotion and bounty participants will receive LOOT between 1 and 7 October 2018. Dates for distributions of subsequent promotions will be advertised over time. Daily Dash:

05

Post December 2018, a “Daily Dash” will be run at various intervals where members will be able to purchase LOOT.


43

6.7 Roadmap

31 July 2018

6

31 August 2018

October 31 2018

(i) Streamlined user interface built.

(i) Beta LOOT usage on the platform including security procedures testing; (ii) End of Private Sale; (iii) End of Affiliate Program (Promotion 1); (iv) Start Affiliate Events.

(i) Updated streamlined user interface, (ii) 2 Quality Games offered; (iii) Member onboarding and marketing program start; (iv) LOOT introduced into ecosystem; (ii) Alpha release of the build portal to a select group of people(developers).

2018

(i) opening of the LOOT sale directly from the GLN platform in auction and battle bidding formats; (ii) 8 quality games offered; (iii) Crowd Collaboration goes live (this allows game developers to submit their games and collaborate with members.)

December 31

(i) Launch of the Full platform of the GLN ecosystem; (ii) First LootCon.

November 30

2018


44

6

The GLN Affiliate Marketing Program Details (Appendix) follows. To participate as an affiliate join at www.gamelootnetwork.com For more information, contact us at [email protected]


45

7. Appendix 7.1 Rewards Snapshot Badge

Personally Referred

Personal Volume

Group Volume

Must be active with $100PV each$100PV each

7

Fast Start Bonuses

Launch Bonuses

Residual Bonuses

Must qualify within first 30 days

Tourist

-

-

-

-

-

-

Citizen

-

$10

-

-

-

-

Ambassador

-

$100

-

-

1 Level

1 Level

Bronze

2 Ambassadors

$100

-

$50

2 Levels

2 Levels

Silver

1 Bronze

$100

-

$100

3 Levels

3 Levels

Gold

2 Bronzes

$100

-

$150

4 Levels

4 Levels

Tech Baron

4 Bronzes

$100

$5,000

-

5 Levels

5 Levels

Master Envoy

4 Bronzes

$100

$10,000

-

5 Levels

6 Levels

Unity Shifter

4 Bronzes

$100

$20,000

-

5 Levels

7 Levels

Mountain Caller

6 Bronzes

$100

$40,000

-

5 Levels

8 Levels

Conqueror

6 Bronzes

$100

$80,000

-

5 Levels

9 Levels

Portal Bringer

6 Bronzes

$100

$160,000

-

5 Levels

10 Levels

Worldstomper

8 Bronzes

$100

$320,000

-

5 Levels

10 Levels **

Planet Crafter

8 Bronzes

$100

$640,000

-

5 Levels

10 Levels **

Matter Maker

8 Bronzes

$100

$1,280,000

-

5 Levels

10 Levels **

Time Bender

10 Bronzes

$100

$2,560,000

-

5 Levels

10 Levels **

The Architect

10 Bronzes

$100

$5,120,000

-

5 Levels

10 Levels **

Eternity King

10 Bronzes

$100

$10,240,000

-

5 Levels

10 Levels **

The Forever Force

12 Bronzes

$100

$20,480,000

-

5 Levels

10 Levels **

* Launch Bonuses and Residual Bonuses utilize Dynamic Compression when users qualify as a Master Envoy or higher ** Additional and separate 1% Infinity Bonuses are paid at the 11th level down to the next qualified badge when reaching the rank of Worldstomper. © Game Loot Network 2018

46

7.2 Three Payment Paths The referral system rewards 3 different ways. The program offers the potential for tremendous upfront commissions as well as long term residual bonuses. Whether you work part-time or fulltime, this plan allows you to grab your piece of the blockchain gaming revolution!

Fast Start Bonuses

ACTIVE Ambassadors may QUALIFY to EARN 3 separate Fast Start Bonuses within 30 days of becoming an Ambassador. Users earn bonuses at the following badge levels: Bronze

7

50 $ 100 $ 150 $

Silver Gold

Launch Bonuses

ACTIVE Ambassadors receive up to 5 levels of Launch Bonuses based on their qualified badge level. Launch Bonuses are paid on the sale of Launch Packs ONLY and are not paid on monthly subscriptions. After purchasing a $500 or more Launch Pack, for the length of time listed, Ambassadors receive the following levels of bonuses corresponding to their badge rank. At the end below time periods, the Ambassador must have earned the qualifying badge level to continue to receive bonuses:

Ambassador

Bronze

Silver

Gold

Tech Baron

Level

$125

$250

$500

$1,000

$2,000

Grandfather Period

-

30 days

60 days

90 days

180 days

1

20%

20%

20%

20%

20%

2

-

10%

10%

10%

10%

3

-

-

10%

10%

10%

4

-

-

-

10%

10%

5

-

-

-

-

20% © Game Loot Network 2018

47

Residual Bonuses

Enrolled users also receive up to 10 levels of Residual Bonuses based on their qualified badge. Each time an Ambassador qualifies for the next highest badge they receive an additional 1% bonus on the monthly subscriptions of all Group Volume (GV) for that level. For example, Ambassadors receive a 1% bonus on the volume of their personally referred (1st level) members. When they earn the next qualified badge, Bronze, they receive 2% bonuses on the volume of those who their personally referred members invited (2nd level). This happens each time an Ambassador acquires a higher ranked badge, up to 10 levels. The table below illustrates the % of rewards available on each level as Ambassadors qualify for badges.

Ambassador

Bronze

Silver

Gold

Tech Baron

Master Envoy

Unity Shifter

Mountain Caller

Conqueror

Portal Bringer

World Stomper

Planet Crafter

Matter Maker

Time Bender

The Architect

Eternity King

The Forever Force

1%

1%

1%

1%

1%

1%

%

1%

%

1%

1%

1%

1%

1%

1%

1%

1%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

3

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

4

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

4%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

6%

7%

7%

7%

7%

7%

7%

7%

7%

7%

7%

7%

7%

8%

8%

8%

8%

8%

8%

8%

8%

8%

8%

8%

9%

9%

9%

9%

9%

9%

9%

9%

9%

9%

10%

10%

10%

10%

10%

10%

10%

10%

10%

1%

1%

1%

1%

1%

1%

1%

1%

Level

7

1 2

5 6 7 8 9 10 * 11

* Beginning at the qualified badge level of Portal Bringer, Ambassadors earn up to 7 additional and separate 1% Infinity Bonuses beginning at the 11th level down to the next Ambassador with the same qualified badge level. © Game Loot Network 2018

48

7

7.3 Badges & Qualifications

Listed below are the qualifications to achieve and maintain each rank in the Game Loot Network compensation plan. These are subject to modification at any time. Game Loot Network will provides 30 days notification prior to implementing any changes.

Tourist (Free Gamer)

It is completely FREE to become a Tourist. Tourists are eligible to play games and compete against others. However, they cannot win tickets and prizes or earn rewards for referring others.

Citizen (Premium Gamer)

To become a Citizen you must purchase a $10 monthly subscription. Citizens are eligible to win tickets and prizes. They do not receive rewards for inviting others to the platform.

Ambassador (Affiliate)

To become an ACTIVE Ambassador you must have a $100 monthly Personal Volume (PV). Personal Volume (PV) is a combination of your personally referred Citizen’s purchases AND your own purchases. There is a one-time setup fee of $75 to become an Ambassador (Affiliate), but there are no other required purchases. You can become fully qualified to earn rewards with $100 of monthly Personal Volume (PV) by personally referring a minimum of 10 other ACTIVE Citizens. NOTE: Although it is OPTIONAL, you may purchase a monthly subscription for $125 a month, which includes $100 of Personal Volume (PV).

Bronze

Bronze must personally refer and maintain a minimum of 2 ACTIVE Ambassadors. If you receive this badge within 30 days of your enrollment as an Ambassador, you earn a $50 Fast Start Bonus PLUS the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.


49

Silver

To acquire the Silver badge you must personally refer and maintain 1 Bronze. If you earn this rank within 30 days of your enrollment as an Ambassador, you receive a $100 Fast Start Bonus PLUS the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Gold

Gold must personally refer and retain 2 Bronzes. If you acquire this badge within 30 days of your enrollment as an Ambassador, you earn a $150 Fast Start Bonus PLUS the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Tech Baron

To earn the Tech Baron badge you must personally refer and maintain 4 Bronzes and produce $5,000 in Group Volume (GV). When you achieve this rank you receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Unity Shifter

To acquire the Unity Shifter badge you must personally refer and maintain 4 Bronzes and generate $10,000 in Group Volume (GV). Master Envoys then receive their Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Mountain Caller

Mountain Callers must personally refer and maintain 6 Bronzes and produce $40,000 in Group Volume (GV). When you become a Mountain Caller you receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

7


50

Conqueror

To earn the Conqueror badge you must personally refer and retain 6 Bronzes and generate $80,000 in Group Volume (GV). Acquiring this rank triggers the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Portal Bringer

Portal Bringers must personally refer and maintain 6 Bronzes and create $160,000 in Group Volume (GV). Portal Bringers then receive their Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Worldstomper 7

To acquire the Worldstomper badge you must personally refer and retain 8 Bronzes and generate $320,000 in Group Volume (GV). Worldstompers then receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Planet Crafter

Planet Crafters must personally refer and maintain 8 Bronzes and create $640,000 in Group Volume (GV). When you acquire this badge you receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Matter Maker

To earn the Matter Maker rank you must personally refer and maintain 8 Bronzes and produce $1,280,000 in Group Volume (GV). Achieving this rank triggers the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Time Bender

To acquire the Time Bender badge you must personally refer and maintain 10 Bronzes and create $2,560,000 in Group Volume (GV). When you earn this badge you receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.


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The Architect

To become The Architect you must personally refer and maintain 10 Bronzes and produce $5,120,000 in Group Volume (GV). When you acquire this badge you receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

Eternity King

Eternity Kings must personally refer and retain 10 Bronzes and generate $10,240,000 in Group Volume (GV). Acquiring this badge triggers the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

The Forever Force

The Forever Force must personally refer and maintain 12 Bronzes and produce $20,480,000 in Group Volume (GV). When you earn this badge you receive the corresponding Launch and Residual Bonuses. Group Volume is subject to the “40% Rule” as outlined in the Glossary of Terms and Definitions.

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7.4 Glossary of Terms and Definitions

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Tourist

A Tourist can register and play for free, but they are not eligible to win tickets, prizes, or earn rewards. Tourists may make 1 time in-game purchases of credits at any time.

Citizen

A Citizen may purchase a $10 monthly subscription and win tokens and prizes. They cannot earn referral commissions. Citizens may make 1 time in-game purchases of credits at any time.

Ambassador

An ACTIVE Ambassador can earn tickets, win prizes, and receive rewards based on their badge level.

Personal Volume (PV)

Personal Volume (PV) is created by an Ambassador’s purchases and the purchases of their personally referred Groundbreakers.

Group Volume (GV)

Group Volume consists of the combined payments of Tourists, Citizens and Ambassadors in a user’s network.

Commissionable Volume (CV)

Commissionable Volume is the amount of volume assigned to a purchase that will count towards PV and/or GV.

Qualified

Qualified means an Ambassador has met the requirements to be paid through specific components of the Game Loot Network Rewards System.

Active

Active means the monthly Personal Volume (PV) requirements to maintain a badge have been met.


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Inactive

Inactive means you have not met the monthly Personal Volume (PV) requirements to maintain your badge. If you go INACTIVE for a period of 90 days or more, your position will be permanently removed from the structure.

Pay Periods

All reward bonuses are paid to your wallet within approximately one hour of a network transaction.

LOOT Tokens

LOOT Tokens are Game Loot Network’s premium digital currency exchangeable for CREDITS, BIDS, or PREMIUM BIDS. Members receive additional bonuses when trading LOOT for CREDITS, LOOT for BIDS, or LOOT for PREMIUM BIDS. LOOT can NOT be exchanged for cash within Game Loot Network’s ecosystem.

Credits

Credits are used to play games, purchase upgrades, challenge your friends head-to-head, and enter tournaments. Credits can also be converted into bids to compete against others in an attempt to win prizes through Battle Bids. Credits can NOT be exchanged for cash within Game Loot Network’s ecosystem.

Tickets

Users earn tickets in a variety of ways including playing games and beating someone in head-to-head gameplay. Tickets are redeemable for prizes at any time. Tickets can NOT be exchanged for cash within Game Loot Network’s ecosystem.

Bids

Bids are used to compete against others in an attempt to win prizes in the Earn portal. Bids can NOT be exchanged for cash within Game Loot Network’s ecosystem.

Premium Bids

Premium Bids are used to compete against others in an attempt to win prizes at the Earn portal. Premium Bids can be used to win bundles of LOOT and other premium prizes in the Battle Bidding Arena. Premium Bids can NOT be exchanged for cash within Game Loot Network’s ecosystem.

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Launch Packs

Launch Packs can be purchased at any time. These packs include additional bonuses in credits, bids, and other promotional items.

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