Eliminate Leaderboard and Wearable Rewards to Extend Runway and Cut Unproductive Costs

Background

BAG.WIN currently allocates approximately $4,000 per week to leaderboard rewards and wearable rewards, totaling $16,000 per month. These rewards were originally designed to incentivize early user engagement and retention.

However, the platform is now burning $100,000 per month with only $648,000 left in treasury funds, giving us a remaining runway of 6.48 months. In order to preserve capital and ensure sustainability, we must cut unproductive spending immediately.

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Proposal

• Permanently eliminate all leaderboard rewards and wearable rewards, saving $16,000 per month.
• Do not reallocate these funds—this proposal is solely aimed at reducing burn rate and extending runway.
• With this reduction, monthly burn would drop from $100,000 to $84,000, extending runway from 6.48 months to 7.71 months, giving the DAO 1.23 additional months of operations.

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Rationale

• DAO funds are currently rewarding users who contribute nothing to the platform. The majority of leaderboard and wearable rewards are being claimed by a small, concentrated group of users who:

  • Do not hold any BAG tokens
  • Do not generate profits for the project
  • Have no long-term alignment with the success of BAG.WIN

• This is a critical misallocation of capital. Rewards are flowing to users with zero skin in the game, while real BAG holders and contributors receive no benefit from this expenditure.

• Unproductive gambling volume: Wearable rewards are creating artificial gambling activity, which not only inflates platform metrics but also results in additional costs from game providers without corresponding revenue.

• Preserving runway is essential. Cutting these unproductive costs gives us more time to reach profitability without needing additional fundraising or emergency measures.

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Summary

This proposal:

• Cuts $16,000/month in unnecessary spending
• Extends runway by 1.23 months
• Eliminates rewards for users with no BAG holdings or value contribution
• Stops subsidizing fake volume that incurs additional provider costs
• Prioritizes long-term sustainability and alignment with real stakeholders