FunFair (FUN)

FunFair

Type	Token
Total supply	10.999.873.621
Website	https://funfair.io/

Basics

• Based in: London
• Started developing prototypes in Q3 of 2016. Went live with a closed beta on mainnet in 5-2018. And on 19-9-2018 launched the first FunFair powered Casino.
• FunFair Labs Runs casino’s. But most of the token supply has been sold to Freebitco.in (1-3-2021).

• From Messari (22-1-2020)

"FunFair will be a browser based online gaming platform utilizing HTML5 and WebGL standards on both mobile devices and desktop computers. Casinos will not control any players funds, instead player always control their funds and place bets directly from their wallet. This will allow players to cash out whenever they want and ensure that they always maintain complete control over their winnings."

History

• From CMC (22-1-2020):

"FunFair (FUN) was built on the Ethereum network by a team based in London with roots in computer gaming. Envisioning the decentralization of the concept behind casinos, FunFair harnesses peer-to-peer technology in combination with cryptography. Having game-creators, operators, and players each utilizing their FUN tokens for fees or revenues, the technology is meant to enable lower costs along with greater transparency in secure gaming experiences said to be fun, fast, and fair."

• The team made a sudden move (26-2-2021) by selling most of its tokens to a different project with a different use case (freebitco.in). It did so without prior notice towards the community. The founder claimed the team had not been able to find a product fit for the token and that this would be best for the token holders. Community members were of the assumption that the tokens that were sold were supposedly locked forever (1-3-2021) and were surprised, to say the least. Especially since the team had communicated (21-1-2021) it had a 6+ year runway.

Token

Launch

• From Messari (22-1-2020):

"FunFair Private Ltd. raised more than $26 million through a token sale in June 2017. Of the total raised, $10 million was in ether (ETH) and more than $15 million was in bitcoin (BTC) which was received from individuals and institutional funds including BlockTower Capital, Kryptonite1, and Pantera Capital."

Token Allocation

• From Messari (22-1-2020):

"Contributions surpassed the ICO hard cap, but as outlined in the FunFair whitepaper these contributions were still allowed. This resulted in the generation of just over 17.17 billion FUN tokens. The public accounted for 21.3% of all total FUN tokens (3.65 billion) while the remaining tokens were distributed to the founders (13.4% or 2.30 billion), Advisors (1.0% or 184.8 million), and the FunFair Foundation Trust (64.3% or 11.04 billion). Tokens distributed to the founders are subject to an 18-month vesting schedule ending in Dec. 2018. The FunFair Foundation Trust is responsible for the ongoing phase two of the token sale and plans to distribute the remaining tokens at undefined later dates using a Dutch auction model. FunFair has stated the sale of FUN tokens will not exceed one billion FUN tokens annually, with FunFair reserving the option to burn any or all of the unsold tokens. The FunFair Foundation Trust has already burned just over 6 billion FUN tokens, diminishing the max supply to 11 billion FUN tokens. FunFair has previously stated on their website that tokens unsold in phase two auctions will be issued to phase one token holders on a pro rata basis.

Outstanding Supply: 17,173,696,075.72

Founders & Project: 78.72%

Investors: 21.28%"

Utility

• From Messari (22-1-2020)

"FunFair (FUN) tokens power the entire FunFair platform. Players are required to use FUN to place bets and any winnings are paid out in FUN tokens by casinos. FUN tokens will be utilized to incentivize game developers, pay affiliate license fees, white label fees, game transaction fees, and any other platform services.

While FunFair is currently testing their beta version and providing demo versions of their games on the FunFair website, some of their demo games are currently testable on the Ethereum test network."

• Since the OTC deal (1-3-2021) with Freebitco.in, the token FUN will have a new life within their ecosystem, mainly loyalty points.

Coin Distribution

• According to Etherscan it has 82235 holders and the largest account holds 34%. The two follow up accounts are Binance, with 13.7 and 11.8%. The fourth largest holder has 6.3% of the total supply.
• The team made a sudden move (26-2-2021) by selling most of its tokens to a different project with a different use case (freebitco.in). It did so without prior notice towards the community. Freebitco.in now (1-3-2021) is the largest holder of FUN: "We have sold 3.75bn FUN tokens from cold storage."

Technology

• Whitepaper can be read here (9-2018).
• Code can be viewed [insert here].

Implementations

• Built on: Ethereum, xDai proof of concept (26-3-2021)

How it works

• From Messari (22-1-2020)

"Despite operating on a public network, the underlying technology is not open source, except for what is needed to make the games provably fair. FunFair plans to create value through their intellectual property, including their platform, games, and other proprietary technology while eventually making most of their project open-source without revealing the intellectual property that gives them a competitive advantage. The firm’s business model focuses on selling access to their platform through white label casino operators and licenses to affiliates that market or refer players to casinos. FunFair Technologies will not mandate third party game developers to open source their designs, except for the parts necessary to ensure provably fair gaming.

FunFair focuses on provably fair gaming by pre-committing encrypted entropy (measure of true randomness) to the blockchain and revealing it after a game has completed, proving the fairness of the random number generator.

Using this process along with game rules coded into smart contracts the team believes games, and their outcomes, can be proven to be fair. FUN tokens are used to power the smart contracts which run the platform and FunFair’s unique random number generator. The team believes that their unique approach to random number generators can allow for a wider range of games on the platform compared to oracle or block hash models. FunFair is developing a proprietary innovation called “fate channels”, which are a modified version of state channels. Fate channels will commit partial seeds from a random number generator to the blockchain before the start of a gaming session. Funds are committed and locked in a smart contract in advance, and all transactions between parties are progressively signed. The final state is sent back to the Ethereum blockchain and verified so that all parties agree on the outcome, thereby allowing the respective parties to withdraw their funds.

Fate channels are based on the work done by state channels, similar to Bitcoin’s lightning network, allowing participants to engage in a rapid back-and-forth countersigning of updated “claims” on escrowed funds. Fate channels can enable a fast, low-cost method for random number generation, starting and ending gaming sessions and finally settling sessions with smart contracts on the blockchain. Because only the final state is added to the Ethereum blockchain this scheme can reduce transaction fees (gas) and ensure that both parties involved in a game session behave fairly by requiring co-signing state transitions. Interactions between a casino and the players will predominantly be off-chain, including execution of the smart contracts, unless there is a dispute which will then require execution being sent on-chain to the Ethereum blockchain."

Scaling

• FunFair Labs is thinking of trying out different games and technology on L2, mentioning xDai. The founder has made clear it does not think FUN will be a big aspect of these plans (11-3-2021).

Compliance

• The founder has said they had a lot of issues with regulation (11-3-2021):

"There were many problems and headwinds along the way. The gas cost was the nail in the coffin, but we had more than our fair share of problems even before that.

1. First off, we had the requirement to do KYC, AML and limit the countries that were allowed to play, which originally our lawyers had told us wouldn’t be necessary (because of smart contract powered gaming without gaming servers), but then became enforced on us by the regulators.
2. Then, not getting a UK gaming license was a big concern. we were totally legit and deserved a gaming license, but being denied it because we were 'in blockchain' was a killer blow
3. Then we had potential partner after partner tell us they didn’t want to risk holding any bankroll in FUN tokens because it had floating value and they didn’t know if it would go up or down... which meant we were on our own and had to fund the bankroll ourselves.
4. Then we had lawyers tell us our dream of burning transaction fees wouldn’t fly because it risked making the token a security, so all of a sudden, we were not able to deflate the token supply. our 'singe' address was a way to partly mitigate that, but not completely solve it.
5. Our goal of doing everything non-custodially meant we had significant problems with bonusing and retaining players, and a lot of player fraud to deal with. We thought our principle of being completely non-custodial made it the safest and most legit casino in the world. but it wasn’t having the effect we wanted and became a thorn in our side. Conventional casinos hold the player's funds to ransom and offer them bonuses every time they try and leave. We couldn’t do that because we never held any player funds, the players funds remained in the players own account at all times.
6. Finally, The raison d'etre of having a Guaranteed Fair casino just didn’t resonate with players. That was a huge issue. it meant that our main value add, wasn’t adding any value."

Governance

• As of 1-2020 has no (plans of) on-chain governance or decentralized treasury.
• Although FunFair Labs sold most of the FUN tokens, it did not sell its IP (1-3-2021):

"Q12: What access does Free Bitcoin have to FunFair IP other than the tokens: Oliver. None"

• Questions (22-3-2021) around the admin key situation were redirected towards the Discord of Freebitcoin. As one community member mentioned:

"if you look at the history of the owner address, the earliest date is from 2nd March. So maybe this address belongs not to Funfair. So I'm not sure who is the current owner of the FUN token"

• From Reddit (23-3-2021):

"The Fun Token team have taken ownership of the Token and 3.75bn FUN tokens. This includes the private keys that manage the token contracts."

Roadmap

• Seems their website has no further (as of 22-1-2020) roadmap published for after Q4 of 2019.

Audits

• Bug bounty program can be found [insert here].

Usage

• According to their website (1-2020) there are 20 games live on the platform:

"These consist of highly visual, well-crafted titles that range across different genres, such as slots, table games, crypto-favourites and instant wins. We also have a third-party titles live in partnership with Spike Games, with more coming from Big Wave Gaming. You can play these games for real FUN now at CasinoFair and CryptoCasino."

• FunFair Labs sold most of its FUN tokens to Freebitco.in, which started using FUN from January on, saying: "FBC’s number of customers (40m+) dwarfs the few thousand of FunFair’s own customers."

Pros and Cons

Cons

• The team made a sudden move (26-2-2021) by selling most of its tokens to a different project with a different use case (freebitco.in). It did so without prior notice towards the community. The founder claimed the team had not been able to find a product fit for the token and that this would be best for the token holders. Community members were of the assumption that the tokens that were sold were supposedly locked forever (1-3-2021) and were surprised, to say the least. Especially since the team had communicated (21-1-2021) it had a 6+ year runway.

• From the founder:

"It’s frustrating as hell because the tech worked, and the over 30 games we developed were good. We accomplished a lot and worked very hard, to no avail. The reality is that it just didn’t work, after four years of trying, is extremely frustrating and painful.

We still have the wallet project, which has zero revenue and is all cost right now. we're giving it away free to other developers, and we haven’t a clue how we're going to make any revenue from it, as yet. it may never happen. but we're giving it a try. This doesn’t benefit the FUN token or holders of course."

Team, Funding, Partnerships, etc.

Team

• Whole FunFair Labs team can be viewed here
• Jez San Obe; Funfair Group Chairman
• Jeremy Longley; founder
• Oliver Hopton; CEO & CTO
• Freebitco.in holds most of the tokens since the end of February 2021.

Funding

• From Messari (22-1-2020).
• Pantera Capital, KR1, Asymmetry Asset Management and BlockTower Capital

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