Dreams Quest Token Distribution Update (2023)

8 min readNov 5, 2021

Introduction

This article was put together in July 2023 to update the community on token minting and distribution in light of both legal considerations, OTC deals and Equity Fundraise opportunities. We have also revised vesting of team tokens by 2 years.

Total token supply

There is a Total Supply: 4,000,000,000 DREAMS (Minted over time + Pre-minted DREAMS).

Impact of OTC deals, Legal Considerations of Tokens in Mobile game, and Fundraising Round

It should be noted that our original distribution of tokens used for game was paused due to Legal considerations outlined below. While changes are required, the reasons for them are directly related to the following points.

Legal Considerations for Tokens in Game and Impact on Token Model

In regards to the originally published token model for token usage in gameplay, there have been a number of legal concerns raised to the team by lawyers in the US, Europe and Asia. In each instance it was seen that there are risks associated with the usage of tokens in a mobile game both in terms of their legal usage (not to be seen in any way as gambling), and also in terms of their impact on the terms and conditions of the various app stores. The legal reviews have also considered in particular how the SEC has been pursuing companies such as Sandbox and Polygon to such an extent that they expressed concern for our project being exposed in any way that would have legal implications for the team, company and community.

OTC Deals for Financing

In order to ensure longevity in the project in terms of financing and funding, the project has also engaged in some OTC deals with market makers and investors to raise some additional capital. The OTC deals were struck in early 2023 with 2 different firms. This is done through various transactions handled daily. These funds are being used to continue to support the longevity of the project and will only continue until such time that funds are raised through equity round and/or revenue which would enable us to discontinue these agreements. The total funds being raised is $1 million. These transactions started in 2023. The tokens are held in a vesting agreement and can not be sold for a period of time. This meanwhile ensures the project longevity and prevents any token sale events which would adversely affect the public.

Fundraising and Equity

The project also has commenced a fundraising round in equity. This is a positive step as the team has developed a multi-product strategy, and been developing a much longer roadmap and plan that goes beyond the game. Some of the equity round will require token warrants for equity investors which was not considered to be a factor or requirement when first launching the project. However this is a positive step forwards to be able to engage VCs to support us on the long term.

The multi-product strategy that we have been developing is positive for investors who appreciate a much deeper strategy than just making a game in a highly competitive market. The development of these products and direction is all tied back to the core lore and mythology that the team of writers and executive producer have been working on to enable us to develop a diverse suite of products. This will also enable us expand into many markets, verticals and directions based upon some the use of common mythology and story components. This strategy has led us to meet some incredible companies which take time to strengthen into signed agreements. This is the nature of working with corporate partnerships, Hollywood, and the general big, but slow companies. All of these developments along with our business plan, financial projections, lore/mythology, graphics and IP content are being used to actively pitch to investors to raise capital. Once this process completes we will naturally be sharing the updates to the public.

Token Summary

With regards to the 50.38% of tokens that were earmarked for gameplay, the pool of tokens that remains after such OTC deals and Equity warrants will therefore remain an open point of consideration, although other token utility models are under consideration linked exclusively to the website store and marketplace, in order to alleviate any concerns and to remain compliant with the laws. As the laws and acceptance of tokens evolves, the project will continue to evolve and look for ways to continue to enable our community to benefit through game asset sales (NFTs), usage of tokens through subscriptions, loot boxes and more.

Original Token Information from 2021

Token Distribution

The original token distribution pie chart below summarises the original intention, as per our pitch deck and light paper. There are however changes being implemented and required which are related to both legal considerations for tokens as well as OTC deals and Equity token warrants. These are all steps necessary and positive for the company to continue to develop the products we set out to do and will continue to do. While the model below is what was originally published, the 50.38% of tokens will partially be used for both OTC deals as well as token warrants for the Equity round. The remainder will continue to be held aside in consideration for changes in legal aspects that may allow us to reconsider how tokens can be earned in game. Otherwise other tokenomics utility models will be developed and shared once these have been determined and legally approved. We are also working with our token investors including people within Animoca, who have been guiding and working with us to help us determine the most appropriate and positive ways to provide token utility value to the community.

The original token distribution model from 2021 was:

Distribution of tokens was originally set out as follows:

Available to Seed Investors: 220,000,000 DREAMS (5.5% of total token supply)
Available to Private Investors: 440,000,000 DREAMS (11% of total token supply)
Available to Strategic Investors: 60,000,000 DREAMS (1.5%)
Available in Public Sale: 25,000,000 DREAMS (0.625% of total supply)
Allocated to Marketing, Development, Community and Partners: 480,000,000 DREAMS (12% of total supply)
Allocated to a Reserve: 120,000,000 DREAMS (3% of total supply)
Allocated to Market Making and LP: 60,000,000 DREAMS (1.50% of total token supply)
Team & Advisors: 580,000,000 (14.5% of total token supply)

Schedule for the minting of tokens at TGE

The following is a summary of our token minting in line with the above cumulative distribution:

5% of Marketing tokens at TGE, and thereafter monthly release of tokens for 1 year
5% of Dev tokens at TGE, and thereafter monthly release of tokens for 1 year
0% of the Reserve at TGE, 3 months cliff and then monthly for 6 months
100% of the Market Making and LP tokens to be minted at TGE; distribution for marketing making and liquidity pools as necessary. The remainder to be held in a team wallet
0% of Seed, Private and Strategic on TGE, and following the vesting schedule mentioned above
40% of the Public tokens to be immediately claimable, 30% claimable following 2 months

The breakdown of these numbers are as follows

Marketing and Tech: 24M tokens (5% of 480M tokens)
MM and LP: 60M tokens (100% of 60M tokens)
Public: 25M tokens (which we minted in full and distributed to Red Kite, GameFi and Duck Starter to distribute accordingly) (40% of 25M tokens)

Usage of development and marketing tokens

As original stated, the usage of marketing tokens held in reserve will continue to be used for the following aspects (and more):

New Exchange listings and trading competitions
Airdrops for coverage from KOLs and through AMAs to grow our community
Airdrops to exclusive trading groups to encourage more trading activity
Ambassador program
Discord moderators
Fees, bonuses and other rewards to dev and marketing resources
Bug Bounties
Early access gaming rewards — to be confirmed as per our legal advice
Discord and telegram competitions
Payments to various marketing partners for promotions, PR, advertising etc.

Cumulative Distribution of DREAMS, plan revision from 2 years just over 4 years.

Our initial plan for distribution for team and advisors was based upon a 2 year plan. However, as we had not anticipated such a long bear market, we did not feel it appropriate to distribute tokens to the team or advisors during that time and mutually agreed and decided to delay any token distributions for completion until end of 2024. This extension was seen as a commitment and to let community know that we are in no rush to take tokens but rather are willing to delay and focus on game build process instead.

We understand that people want full transparency so we have taken the above token distribution data and information as it relates to all of the token minting and provided a detailed cumulative breakdown of the token distribution.

Below you will find both the current Revised model as well as the Original 2 year plan for token distribution.

Revised (2023)

Original Model (2021)

Where we are heading

We have made great strides in developing a AAA open world RPG mobile game with integration from game to chain. We have onboarded some of the brightest and most talented people onto our team from companies like Ubisoft and Gameloft. We also have a multi-product product strategy which is slowly but steadily leading us to an exciting universe. And we have a promising future as we raise additional capital to grow the team, develop products faster, and deliver great products that we know have taken a long time to build, but will certainly have been worth the wait.

We will continue to showcase and share updates about the company and naturally about the game from in-game footage to the game mechanics we have built. And will continue to drop more content on both our website blog page as well as on our X (Twitter) channel.

We originally set out on this journey with the sole purpose of building both a beautiful and immersive gaming experience as well as one that will help to create a means of financial income or a reward for players hard work earned through gameplay and NFT collectible game items that can be upgraded, traded, haggled, swapped or sold. We have continued to build our game, our flagship product, and will continue doing so.

Thank you, for all of you who have started your journey with us and for becoming part of our growing community. We are here for the long term and welcome you to join us as you each partake in your own unique quests and adventures.

About Dreams Quest

Dreams Quest is a diversified media and entertainment company building fantasy and dream-like content and experiences. The mobile game is open-world, action adventure RPG. We are answering the call to those who are seeking a higher level of interconnection, purpose and awareness, to see the world differently, or as it really is…

⚔️ Start your first Quest today and join us on Discord.

Our lore and mythology can uniquely be found on Fandom.

⚔️Only use official links…robbers are everywhere, don’t get scammed