Mocaverse Research Report: Infrastructure Layer for Encrypted Consumer Applications

Mocaverse is positioned as a Web3 access portal, empowered by digital identity and user reputation. With an ecosystem of games and consumer applications, and over 700 million addressable users, the project plans to change digital ownership and community participation in the Web3 space.

Mocaverse was created by Animoca Brands, which is involved in blockchain games, NFTs, metaverses, and social blockchain applications. The company unifies its ecosystem of over 540 Web3 projects through a common access point. Mocaverse projects are building blockchain-powered Web2 experiences that enable users to create digital identities, accumulate reputation, earn and spend loyalty points, and unlock rewards in Mocaverse and its partner ecosystems through interoperable identities and reputations.

The Mocaverse ecosystem is relatively new but growing rapidly. In a few months, nearly 2 million MOCA IDs have been minted and the platform has over 700,000 monthly active users. The team is committed to improving and innovating the crypto user experience, and thanks to a mature technology stack tailored for consumer-facing applications, many high-quality new projects will continue to join the ecosystem.

Animoca has over 700 million users across its top 30 portfolio companies and subsidiaries, putting it close to platforms like Telegram (900 million messaging users) and Binance (1.7 billion transacting users).

Leadership Team

Yat Siu, founder of Mocaverse and Animoca Brands

• Yat is the co-founder and executive chairman of Animoca Brands, a digital entertainment and blockchain technology company. Animoca has advanced digital property rights through games like The Sandbox and has been a driving force for innovation in Web3 gaming.

• Yat started his career at Atari Germany before moving to Hong Kong in 1996, where he founded Cybercity, Asia’s first free web and email provider. He later founded Outblaze, a technology group specializing in cloud gaming and smartphone software, which he partially sold to IBM in 2009.

• Under his leadership, Animoca Brands grew to a multi-billion dollar market capitalization.

Alan Lau, Mocaverse founding team member and Animoca Brands chief commercial officer

• Alan is an experienced executive who leads all Animoca Brands strategic investments and empowers over 540 portfolio companies.

• Alan plays a strategic role in identifying strategic opportunities and driving alignment of over 540 portfolio companies with Mocaverse to maximize the network effects and growth of the Mocaverse ecosystem.

• Alan is the former CEO of Tencent’s insurance division and has over 15 years of Internet/TMT experience.

Kenneth Shek, Mocaverse founding team member and project leader

• Kenneth Shek is a venture builder and startup founder in the fields of artificial intelligence, e-commerce, and renewable energy, with corporate experience in management consulting and consumer businesses.

• He founded a consumer forecasting startup that processed terabytes of data per day, and built businesses in renewable energy and high-growth e-commerce.

• At Accenture, Kenneth spearheaded innovation on Web3 projects with Fortune 500 companies such as hotel chains and consumer brands, and led the regional data and AI practice for consumer enterprises.

• Kenneth leads the Mocaverse team within Animoca Brands.

Caleb Ho, Head of Engineering at Mocaverse

• Seasoned technology leader with extensive experience in fintech and e-commerce.

• He has held several key positions, including Engineering Director of a virtual banking startup acquired by Rapyd, Engineering Manager of Znap (a mobile payment startup that successfully exited with $75 million), Engineering Director of Grana (e-commerce that received $10 million in funding from Alibaba), Core Engineer at Microsoft, and Co-Founder and CTO of a furniture fintech startup.

• Skilled in building teams from scratch and driving zero-to-one product development while scaling operations and fostering innovation.

Prakhar Agarwal, Product Head, Mocaverse

• Prakhar was Kyber Network’s first product hire and Head of Product, where he drove over 10x user growth at one of the top DeFi protocols.

• With over a decade of experience in blockchain, gaming (Ubisoft), and fintech, Prakhar has a proven track record of building innovative and high-impact products.

Kyle Chiu, Head of Marketing, Mocaverse

• Kyle is an experienced marketing professional specializing in brand marketing, performance marketing and growth, and community management.

• Prior to joining Mocaverse, Kyle served as CMO at an NFT marketplace and was the head of brand and growth for a crypto exchange.

• Prior to joining Web3, Kyle worked in advertising agencies for many years and led the Asia Pacific digital marketing team at Deutsche Bank Asset Management.

Olivia Song, Head of Business Development, Asia

• Olivia joins Mocaverse to drive business growth in Asia, starting with Korea and Japan.

• She is employee number 6 at Avalanche and has played a key role in expanding Avalanche’s presence in Korea over the past 4+ years.

Simon Doherty, Head of Capital Markets, Animoca Brands and Mocaverse

• Simon Doherty joined Animoca Brands in 2022 to focus on corporate finance and strategic initiatives.

• Prior to joining Animoca, Simon worked as a Senior Associate in Corporate Finance at Taylor Collison, BBY and PricewaterhouseCoopers.

• Simons expertise spans corporate finance, investment banking, capital markets, financial analysis and mergers and acquisitions, making him a key figure in driving the growth and strategic direction of Animoca Brands.

Project Background

Founded in 2014, Animoca Brands has a portfolio of video games, digital media brands, intellectual property (IP), and blockchain infrastructure technology, focusing on enabling users to truly own their digital assets. Animoca develops mobile games and subscription products, and introduces internationally renowned IPs such as Marvel, NBA, Hello Kitty, etc. Through its portfolio of assets, Animoca has created a collectibles platform and virtual world where users can purchase unique NFTs and use them for games, collections, or secondary transactions.

In addition, Animoca has acquired and invested in multiple digital asset brands, including Axie Infinity, The Sandbox, Decentraland, and Dapper Labs (creator of CryptoKitties and NBA Top Shot). It also holds shares in OpenSea and Flow, a Layer 1 blockchain focused on scalable and efficient NFTs.

Animoca has built a large collection of web3 companies focused on culture and entertainment, covering a portfolio of more than 540 companies with more than 700 million web2 and web3 users. Animoca now plans to bring these assets and their large user base together through its new project Mocaverse and MOCA tokens. Mocaverse will become an exploration center for digital culture and entertainment, helping users experience rich interactions and identity management in the web3 world.

The Mocaverse project is building web3 native tools that enable users to create digital identities, accumulate reputation, earn and use loyalty points, and access the Mocaverse ecosystem.

MOCAVERSE Ecosystem

Although the Mocaverse project will only be launched in 2023, nearly 2 million MOCA IDs have been minted so far, and the ecosystem has more than 700,000 monthly active users. In Animoca Brands project portfolio, there is about a new TGE every week, and the potential applications within the Mocaverse ecosystem are constantly expanding.

Technology Stack

Mocaverse defines itself as a network, not another Layer 1 or Layer 2 solution, but a collection of technologies that bring different applications together. Importantly, Mocaverse does not try to lock users into a specific chain, but seeks to integrate with each chain and expand the crypto user base.

The entry point to Mocaverse is the Realm wallet, which was built by the Animoca team and is part of the Realm SDK. From a technical perspective, the Realm wallet is designed to natively support account abstraction (AA). AA is a relatively new concept that aims to improve the crypto user experience. Traditional crypto wallets are controlled by private keys and used to initiate transactions, while AA wallets allow smart contracts to manage accounts, making the wallet experience more flexible and user-friendly. For example, traditional wallets require users to manage mnemonics and manually sign each transaction, while with AA wallets such as the Realm wallet, wallet import can be achieved through social recovery, and recurring transactions can be automated and batched.

Another advantage of AA (account abstraction) wallets is that they improve the user experience when paying gas fees. Traditionally, gas fees on networks such as Ethereum must be paid in ETH, which can be confusing for new users, especially as they may not understand the gas fee model and do not necessarily own ETH. With account abstraction, smart contracts can allow gas fees to be paid with other tokens, or even for applications to pay gas fees on behalf of users. This lowers the barrier to entry for new users. In the Mocaverse scenario, the MOCA tokens in the users Realm Wallet will be deposited into a paymaster contract, which will pay the gas fees for the user without the user having to understand how gas fees work.

In addition to being a wallet that supports account abstraction, Realm Wallet can also interoperate with other products in the Realm SDK, such as Realm ID, Realm Points, and Realm Reputation. This interoperability means that wallet credentials can be used across different applications and ecosystems. For example, users can seamlessly switch between gaming ecosystems and social platforms while maintaining their identity and reputation across these platforms. This consistency between applications, and the cross-application use of points and reputation, helps improve user engagement and retention.

In terms of Mocaverses technology stack, the team developed the Realm SDK and branded it separately from Mocaverse, which was a deliberate and highly strategic choice. By creating a neutral technology stack, the Realm SDK becomes a toolkit that is easier for partners and potential partners to adopt without Realm tokens or user lock-in. The seamless integration of the technology stack with Mocaverse is an advantage for partners, but it is not mandatory. In the long run, this approach will become a highly attractive technology stack built for consumer applications, and can also obtain broader distribution channels through the Mocaverse platform.

MOCA ID

MOCA ID is a decentralized identity system and the entry point to all activities in Mocaverse. It aims to provide users with a unified digital identity that can be used in various web3 applications, similar to Apple ID, which allows Apple users to download applications and have user accounts in games and applications in the Apple App Store. MOCA ID allows users to authenticate, interact with DApps, and participate in the Mocaverse ecosystem through a single, interoperable identity authentication.

Interoperability is a core concept of MOCA ID, which is what distinguishes it from systems like Apple ID. While Apple ID is limited to use within the Apple App Store ecosystem, MOCA ID is integrated with crypto wallets to manage user reputation across apps. The simplest way for apps to integrate with MOCA ID is to connect through the MOCA ID API, so that apps can access user data and contribute reputation points for user activities in the app. Users can use reputation points to unlock unique features and rewards, such as Mocaverses token Launchpad, NFT Launchpad, staking pools, and more. Apps can also reward users for their attention and interaction through a reputation points system.

Potential outcomes of MOCA ID

• Short term: MOCA ID improves the user experience on web3 platforms by simplifying identity authentication and providing ecosystem-unique features. This can drive early adoption and increase user engagement within the Mocaverse ecosystem. For example, Mocaverse has launched a gamification feature called Mocana that allows users to earn rewards associated with their MOCA ID through Mocana Quests.

• Medium term: MOCA ID will be widely used outside of web3 and even integrated with web2 platforms with a large number of users, allowing users to interact seamlessly, build a strong on-chain reputation and identity, and be generally accepted throughout the network. For web2 applications, MOCA ID integration can replace centralized services, improve online compliance and KYC processes, and increase the security of online identity management. In addition, it can also bring financial opportunities by associating crypto wallets with login credentials.

• Long term: MOCA ID may develop into a key digital identity system for accessing various digital services such as finance, social platforms, and governance. It may be integrated into various aspects of daily life, such as medical services, voting, or managing digital assets such as stocks, crypto assets, and art collections, thus becoming an indispensable tool in personal and professional identity management.

MOCA Tokens and their Distribution

MOCA tokens are a core component of the Mocaverse ecosystem for use by consumers and applications. For consumers, the simplest use is as a medium of exchange for applications within the ecosystem. Instead of holding multiple tokens for different games and applications, users can hold MOCA tokens and use MOCA to purchase digital items and experiences. The conversion to the native token of each application or game will be completed in the background. MOCA can also be used to pay for gas fees for transactions, simplifying the experience for new users.

In addition to being used as a currency and gas token, MOCA is also designed to be used for various activities in the Mocaverse, such as staking, governance, and rewarding user participation. Users can stake MOCA tokens to gain staking power, which in turn gives them access to unique experiences and rewards. MOCA stakers can also receive token rewards through projects within the ecosystem.

On the application side, applications can use MOCA tokens to enhance their distribution and simplify the user experience. For example, MyAnimeList, the worlds largest anime and comics community website, is working with Mocaverse to create new experiences for fans, creators, studios, and IP holders. MyAnimeList pays gas fees for users and purchases MOCA tokens as a result.

Additionally, partners like MyAnimeList will want to engage with a large number of Mocaverse users. In order to advertise in the Mocaverse ecosystem, apps need to stake MOCA tokens. Staking MOCA can improve the distribution and coverage of apps on the platform, similar to the SaaS model. The more MOCA staked, the wider the range of services Mocaverse provides. In the most recent game release, the Mocaverse distribution engine attracted more than 90,000 users to try the BlockLords game within a week.

The distribution of MOCA tokens is designed to balance short-term needs with long-term growth and sustainability. The specific distribution is as follows:

• Network Incentives (31.5%): used to promote community interaction and incentivize users to participate in the ecosystem.

• Ecosystem and Treasury (20%): Reserved for scaling projects and supporting overall ecosystem development.

• Strategic Partners (13%): Allocated to strategic partners related to network growth.

• Team (12%): Support the Mocaverse team’s efforts to develop and maintain the network.

• Liquidity (10%): Provide liquidity for tokens and ensure market stability.

• Operating expenses (5%): used to cover the operational costs of running and managing the network.

• Early Contributors and Advisors (7%): Rewards contributors and advisors who have supported the project since its launch.

• Community Sale (1.5%): Promote community participation through public sale of tokens to community members.

SWOT Analysis

Advantages:

• Uniquely Large Ecosystem: Animoca Brands owns the world’s largest portfolio of web3 gaming and crypto cultural assets. Animoca’s extensive partnerships uniquely position it to build the distribution and identity layers that integrate these projects.

• Partnerships: Mocaverse does not compete with existing L1 and L2 blockchain protocols, but encourages chain agnosticism, interoperability, and inclusiveness, attracting more web3 gaming and crypto communities to collaborate.

• Experienced Leadership Team: Yat Siu and his team have successfully built a multi-billion dollar company, Animoca Brands.

Disadvantages:

• Complexity of getting started: Although the Realm SDK aims to simplify the user experience, it is still challenging for non-crypto users to get started.

• Regulatory uncertainty: The complex global regulatory environment may affect the promotion of digital identities and wallets.

• Unproven business model: The scaled profit model of the web3 digital identity system is still unclear.

Chance:

• Web3 game explosion: A large number of new web3 games will be released in the next 12 months, and Mocaverse may become the main distribution channel for these games.

• Financialization of online communities: Mocaverse may evolve into a new type of social platform that integrates digital identity and financial capabilities.

• Flywheel effect: More users and applications enter the platform, forming positive feedback and attracting more projects and users.

threaten:

• Competition from web2 and web3: Apple and Google Play Store may launch crypto integration services.

• Technical challenges: Integration with multiple blockchains may pose a technical burden in the short term.

• Timing uncertainty: web3 gaming and the metaverse are still in their early days and may take longer to achieve mass adoption.

Valuation

The MOCA token was recently listed on major exchanges such as KuCoin, Gate and Bitget, with an initial trading price of $0.088, reaching a high of $0.143 (+63%), and currently falling back to around $0.09.

in conclusion

Mocaverse is expected to become the backbone of the new digital society by integrating financial services, social interactions and personal identity.