I imagine most of my readers have heard about Invennium's new platform, Arcade Colony.

For anyone who doesn't know, Invennium is the wholly-owned subsidiary of Splinterlands which operates the Genesis League Sports platform and the Goals game on it.

## Arcade Colony - Blending Web 2 and Web 3 Gaming Spaces

So, what is Arcade Colony? As the name suggests, it will be a platform for arcade and video games (except sports, which will remain on GLS), and it will have its own token economy, distinct from GLS.

There will be increasing levels of integration possible into the Arcade Colony:
* directory listing
* marketplace listing
* reward partner
* colony partner
* invenium partner

where "directory listing" is the lowest level of integration and "invenium partner" is the highest. Integration is gradual, meaning a higher level of integration supposes integration at the lower levels too.

Through the different levels of integration, Arcade Colony is designed to be suited for games from:
* Web 2 that want to remain in Web 2 but be promoted to another player base
* Web 2 that want to offer a Web 3 option to their players but also remain traditional games for the rest of their players
* Web 2 that want to make a full transition to Web 3
* new games of the above categories
* new full Web 3 games

The potential market for attracting various types of games on this platform is high. Will it be successful? Often success attracts success. They only need one major success on the platform to make a breakthrough. But that doesn't make it easy. It's a reason why of all their ventures, Splinterlands, their original game, remains the most successful one. Becoming successful is not easy.

## Tokenomics

The game economy will have two tokens, one volatile (COLONY) and another pegged to $1 (SCRIPT).

Minting new SCRIPT tokens (after the fork) can be done by burning the volatile token, COLONY.

Let's see how the distribution/release schedule happens:

https://images.hive.blog/0x0/https://files.peakd.com/file/peakd-hive/arcadecolony/23t8D6MYf9SX4PFwV1vvBXJ3QUi7MfStjstJmJtMr7tRiRYBTxKj93M73UUWmWMnhR6jW.png
*Image from the [whitepaper](https://peakd.com/arcadecolony/@arcadecolony/arcade-colony-white-paper).*

As others have remarked, 21bn is a very high max supply for COLONY. If you need a term of comparison, SPS has a max supply of 3bn (and is considered high), and GLX has a max supply of 2bn.

It's also a very long unlocking period for the full supply, 20 years, so that should be a counterbalance to the very high max supply.

Then, P2E rewards are about 57% of the whole, but only 50m of the 12bn (about 0.4%)  have been approved to be distributed to the first game that will be on Arcade Colony, Moon Karts (if the description is an indication of what the final product will be like, this game should be pretty fun, but not sure about the earning potential).

Further unlocks for other games will be approved by the DAO. If not all 12bn will be allocated and distributed within the 20-year schedule, the remaining COLONY will be sent to the DAO.

So, hard to know how this tokenomics will be received. We should keep in mind the distribution starts low and is gradual for a long period. Something else that will influence the tokenomics is the fork and airdrops, about which we will talk next.

## Fork and Airdrops

This is something new compared to previous airdrops we were used to from Splinterlands. The process was split into two phases, the fork, and the airdrops, and there are further interesting changes.

The **fork** part has a snapshot on February 26th at noon, eastern time.

It is destined for GLX stakers (min 10k staked) or liquidity providers (min 10k GLX in LP), and GLUSD holders or liquidity providers (min 100 GLUSD).

The catch is, if you have 5k GLX staked and 5k GLX in diesel pools, you won't receive the fork reward (which is COLONY tokens for GLX and SCRIPT for GLUSD). Same for GLUSD and holding it in-game or in diesel pools, compared to the 100 threshold. So, pay attention to the limits!

As far as I understood by reading the whitepaper, the limits apply to each diesel pool. So, if you have GLX in two diesel pools, 5k in each, that won't be counted as 10k and you won't receive the rewards for holding GLX in diesel pools.

The **airdrops** part happens after fork rewards have been distributed, and they involve SPS stakeholders for the first time as well.

The airdrops will be daily **for 5 years**, to both SPS and GLX stakeholders (50:50, provided the minimum thresholds are met: 5k SPS and 10k GLX staked, respectively). The other interesting part is that the airdrop amount will start low and grow in time, on an exponential curve. We will be provided with more details regarding the airdrop distribution in time.

## Final Words

If you are interested in the subject, I recommend that you read the [whitepaper](https://peakd.com/arcadecolony/@arcadecolony/arcade-colony-white-paper) yourself.  You might need time to prepare, and all details matter.

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### Want to check out my collection of posts?

#### It's a good way to [pick what interests you](https://inleo.io/@gadrian/my-collection-of-posts).

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