Gods of Asgard — Investor Update
As you all know, the Thor team is committed to transparency and keeping you all in the loop about our involvement as investors in Gods of Asgard. From day one, we saw what we thought was a great opportunity for our ecosystem and invested in the project through Thor’s Treasury. We provided $1M in funding for a 30% equity position in the game with the agreement that GoA will utilize $THOR as its governance token.
Over the past few weeks and after testing the demo, we realized that GoA will need substantially more funding and time — to the tune of $250,000+ and at least four months — to complete the development of the game and provide the level of gameplay representative of a true P2E experience.
Given what we have seen so far, and based on our conversations with GoA, we’ve lost confidence in the strategic direction of the game, and as a result, we have made the business decision to no longer directly contribute or provide funding to the game’s development. The deliverables provided by GoA over the past few months did not meet our expectations, and we expressed concerns several times to GoA about its strategy and treasury management and reinvestment model.
We feel strongly that a fixed percentage of equity should be returned to the game’s treasury for ongoing development and improvement, but in the current equity breakdown, the GoA treasury receives zero equity, which is a major concern for the future development and refinement of the game.
Additionally, the core members of the Thor team will be stepping back from their roles with GoA and letting the GoA team proceed in the way they feel is best. It’s true that a lot of blood, sweat, and tears went into this work, and we share your disappointment to be in this position. Despite our best efforts and intentions, this is not the outcome we wanted or expected, and we are frustrated with the overall lack of strategy behind the game’s development.
Before we decided to part ways we offered our governance token to aid the game in external funding after which they did not accept and we entered into several rounds of negotiations with GoA that included:
- An initial offer of $75,000 to fund extra development time, as we were informed by GoA that the game could be completed without another large investment from Thor.
- A secondary offer of $100,000 with stipulations that the founders and owners of GoA contribute their own funding and equity, which they have refused to do despite receiving significant returns from the project to date.
- A counter offer by GoA for Thor to take over development of the game, which we declined due to the current equity structure, as GoA would not increase our equity if we provided the required funding to complete the game.
Overall, as minority stakeholders at 30%, we did not feel it was justified for us to take on additional capital requirements while the owners, as majority stakeholders, refused to put equal skin in the game.
We know this will come as a shock to our community, and may raise doubts about the future of GoA and what this will mean for Thor. We want to make it clear that our decision to no longer fund the project was based on maintaining the health and well-being of the entire Thor ecosystem as we continue to refine our contracts, update the dapp UI, hire new talent, diversify our defi portfolios, and scale beyond NaaS into promising new verticals.
At the end of the day, this was always an investment. Therefore, we believe it is right for our investors to receive proceeds that we received from the NFT mints. We’ll be refunding those proceeds, which totals $400,000, in AVAX to holders, and are currently running metrics to determine how many mints each wallet made and will be refunding a base AVAX per mint.
We know you have questions, and we are here to answer them as best we can. We will be hosting an AMA on Wednesday, July 6 at 12 PM PST to provide more detail about what occurred between GoA and Thor, and what this means as we move forward.
The Thor Team