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DCROPS: My Financial Report and My Considerations

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Written by   34
2 months ago

Cover Image: Logo image owned by @dcrops - Edit by @libertycrypto27 - Font used is Open Source

I am convinced that the future of the video game industry will be dominated by blockchain-based games, it will take some more time, but the rise will happen.

That's why I look carefully at every new blockchain-based game but unfortunately, due to the limited time I have available, I can't try them all so I have to make choices.

Dcrops is one of the last games I decided to try and invest in.

Dcrops is a farming game based on Hive's blockchain.

It is an easy game to play and requires little time to play.

If this is the first time you're hearing about the game of Dcrops you can read a post I wrote earlier where:

- I wrote some tips for new players

- I explained some mechanisms of the game

- I showed my buying strategy related to the cards of the game.

***

Link: https://peakd.com/hive-131619/@libertycrypto27/dcrops-tips-for-begginers--my-dcrops-fall-strategy-la-mia-strategia-su-dcrops-autunno-engita

I love nature and this is one of the reasons why I decided to join Dcrops because in the game of Dcrops I play the role of a farmer.

On Dcrops, time is marked by seasons that are the same as in real life (spring, summer, autumn, winter) but last only 15 days.

The summer season has just ended and the autumn season has started and will end in just over 14 days.

My end of season report

In the game of Dcrops there are two reward mechanisms:

- Leaderboard

- Holding Rewards

The Leaderboard has a Reward Pool consisting of a certain amount of CROP tokens (the game's native tokens) that is divided based on the agricultural production obtained by players during each season of the game.

The Holding Rewards section is a ranking that rewards players based on the type and amount of game assets they own.

Until a few days ago, I had been focusing solely on in-game assets (SEED cards and LAND cards) and the rewards correlated to the Leaderboard section of the game.

During the summer season I invested in buying packs of cards to try and get rewards from the Holding Rewards section as well.

My Summer Rewards

The Dcrops game is a relatively young game and is still in an early development phase: the alpha phase.

I would like it if it were possible to review all of the previous season's game results such as ranking, but the History section is still under development.

I hope that the development team of @dcrops will complete this feature as well as I hope that the Quests feature will be made available soon, a feature that has been announced but not yet implemented.

During the summer season I used a total of 59 NFT:

- 18 LAND cards

- 41 SEED cards

From the sale of my farm products, I have earned a number of Shares points of just over 1000 points.

Thanks to the Shares points and my placement on the game's Leaderboard, I earned a reward of 1245 CROP tokens.

Just a few days ago, my CROP POWER score exceeded 20000 points.

A CROP POWER score above 20000 points allows you to receive Holding Rewards from the Dcrops game.

The rewards are daily and are in HIVE tokens.

I've only been over the CROP POWER score for two days and have only received two daily rewards so far.

These rewards will grow in the coming days because the CROP POWER score is an average value relative to 15 days and I purchased 20 packs of cards just a few days ago.

If you want to know what the CROP power is and how it is calculated you can read the following post: https://peakd.com/hive-146620/@libertycrypto27/dcrops-and-crops-power-dcrops-and-the-crop-power-engita

My investment on Dcrops

To date, I have invested in the game of Dcrops 156.56 HIVE:

- 66.18 HIVE: for the purchase of 34 packs of alpha cards (14 opened and 20 to be opened)

- 90.388 HIVE for purchasing cards from the Market section of Dcrops.

I consider all farming games to be primarily investments, so I like to analyze them from a financial perspective.

If I take into consideration only the total value of the rewards received in the last season, my end-of-season reward is equivalent to 1.539% of the invested capital.

A gain (ROI) of 1.539% in 15 days equates to an estimated annual return of just over 49%.

The estimated ROI value I calculated above is decreased from the value calculated in my previous report (72%).

Obviously the 36.94% ROI is an estimated value because it will vary based on:

- the future value of CROP tokens

- future value of HIVE tokens

- the amount of shares points produced by me in a year compared to the amount of shares points produced by other Dcrops players.

- the future value of my CROP POWER score in relation to the score of the other players and to the purchased game assests.

The break-even point

In all investments it is important to calculate the break-even point which is the point where costs and revenues have the same value.

In my strategy in Farming games like Dcrops, in calculating the break-even point I only consider as revenue the rewards obtained and not reinvested and I don't consider the value of the assets I own.

I do not consider the value of all the assets of the game because I want to have an additional margin of safety in relation to the risk factor that can have a farming game.

In this way when I reach the break-even point I will not have any risk associated with the investment and if I decide to abandon the game, in all probability, I can make a nice profit even in the worst case.

I have raised the budget of my investment on Dcrops several times and have decided to increase it further and set it at 200 HIVE.

Even if I'm under the budget that I have allocated to Dcrops I will not invest more HIVE in the immediate future because there are only a few days to the pre-sale of the new collection of cards of Splinterlands (October 18, 2021) and I want to save as much as possible to have a greater possibility of purchase of packs of cards from Splinterlands.

Getting back to the break-even point calculation, I'm still far from reaching it.

So far I've reinvested all the rewards from my gaming activity into buying cards and purchasing Dcrops card packs, so I have yet to accumulate 154.16 HIVE of value from in-game rewards and/or selling game assets.

This season (fall) I have been using all of my LAND card lands and have used a portion of the SEED cards in my possession.

In six days I will harvest my first crop and start earning Shares points.

This season I will have the opportunity to evaluate the gains obtained from the Holding Rewards leaderboard and in my next post I will make a comparison between the rewards of the two reward mechanisms present in the game of Dcrops (Leaderboard and Holding Rewards) to evaluate possible future optimizations and investment strategies.

I hope you liked this report and if you like it, follow me to read my future posts and reports on Dcrops ;)

Important Note:

Dcrops more than a game is an investment and mainly as such should be considered.

In every kind of investment there is always a risk factor to evaluate and consider.

I am not a financial advisor and my post does not want to be in any way an invitation to invest on Dcrops but it is just the analysis and sharing of my personal investment on Dcrops on September 27, 2021.

My advice is to always invest only what you can afford to lose with a light heart!

Unless otherwise indicated, the images in this post are screenshots taken from the sites:

https://www.dcrops.com/

https://hive-engine.com/

The font used in the images related to the calculations and in the images edited by me is Open Source

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