YAY White Paper v2.2

YAY White Paper v2.2
01

Introduction

1

02

Project Details

2

2.1 About Yay!

2

2.2 Yay!’s Key Features3

2.2.1 Timeline3

2.2.2 Group Calls3

2.2.3 Circle

4

03

04

Purpose5

3.1Yay! as a Gateway to the Mass Adoption of Crypto Assets

5

3.2 Creating a Sustainable Token Economy

6

3.3 Crypto’s Biggest Utility: The Metaverse

7

3.4 Building a World Where People Can Interact Just as They Are

8Tokenomics

9

4.1 Tokenomics Overview

94.1.1 YAY

12

4.1.2 EMPLE

12

4.1.3 Genesis

13

4.1.4 Pal

14

4.1.5 Tokenomics From the User’s Perspective

15

4.1.6 Pal Design17

4.1.7 Role of Genesis

18

4.1.8 Genesis Design20

4.1.9 How to Contribute to the Community

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YAY White Paper v2.2
04

05

06

0

7

4.1.10 Pal Battles

22

4.1.11 Difference in Expected Rewards Between Marketplace
and Pool

23

4.1.12 How Value is Returned to YAY

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4.1.13 Legal Tender Revenue: Advertising and VIP Fees, etc.

25

4.1.14 Pal Purchases as the Driver of Tokenomics

25

4.1.15 Other Utilities for EMPL

26

4.1.16 The Reason Why Yay! Tokenomics Can Be Sustainable

27

4.2 Differences Between Token Possession Within and Outside of
the Platform

28

4.2.1 Off-Chain Tokens

28

4.2.2 On-Chain Tokens

29

Token Allocation

30

5.1 Distribution for YAY Holders

30

5.1.1 Distribution of YAY

30

5.1.2 YAY Lockup and Unlocking

32

5.1.3 Staking

33

5.1.4 YAY’s Market Supply and Fluctuation

33

5.2 Distribution for EMPL Holders

34

5.2.1 Distribution of EMPL

34

Operating Policy & Roadmap

35

6.1 Operating Policy

35

6.2 Roadmap

35

Our Team36

01 Introduction

01 Introduction
Yay! is a virtual world that came into being in January 2020. Its 8 million+ users havecreated over 90,000 communities where they can chat and play games with each otherthrough group calls.

Yay! aims to become a virtual space that makes all people feel at home, a place where
people value diversity, accept each other and feel free to be themselves. Yay!’s virtual
community is exactly what the metaverse is all about.

In recent years, the crypto assets market has expanded rapidly to more than 165 trillion
yen as of August 2023. Despite this market growth, there are still many psychologicalhurdles to getting involved in crypto assets and using apps designed for them.

Yay! is accordingly planning to launch a token economy that exists both in- and out-ofapp and is based on different groups of users. It will introduce incentives for all—fromadvanced users of Decentralized Finance (hereinafter, “DeFi”) to users who have nevertouched crypto assets before—to contribute to the platform’s community, thereby
making Yay! a gateway to crypto assets for everyday users.

Tokens will enhance the autonomy of our service’s users and enable Yay! to continue tobe a place where everyone can belong. Our goal is to create connections transcending
gender, age, and location, that enable people to feel free to be themselves and respect
others for doing likewise.

1

02 Project Details

02 Project Details
2.1 About Yay!
Yay! is the virtual world where people can connect with each other based on theirshared interests. As of September 2023, the app has accrued over 8 million registeredusers who have in turn created 90,000 communities—“Circles” in Yay!

The Yay! community differentiates itself from other social media by having all of its users

help maintain a flat structure that is open to anyone who wants to join. It is a truly
welcoming social space that recognizes all users’ diverse backgrounds and interests.

Moving forward, we will build a token economy within this community and create a

growing and sustainable web3 virtual world where everyone can be themselves.

2

02 Project Details

2.2 Yay!’s Primary Features
Overview of Yay!

Timeline

Group Calling

Circle2.2.1 Timeline
Yay! offers two timeline views—one that shows users who they are following, and onethat shows users of similar age groups and hobbies—allowing for flexible use based oneach user’s desired purpose.

By changing privacy settings, users can make sure that only people they trust cansee their posts and post about their daily lives without any pressure.

2.2.2 Group CallingMultiple people can join the same call and voice chat in real time. This could be justrandom chatting, seeking advice, or gaming together while on calls. The app also comeswith voice changing feature and background music function, bringing users closer foreven more enjoyable calls.

32.2 Yay!’s Primary Features

2.2.3 Circle
Users can create their own original communities, which is called “Circle” in Yay!, based onshared interests such as video games and anime. Those who create these communities
can become the moderators and operate their Circles by themselves, or they can hand
the reins over to other Circle members.

4

03 Purpose

03 Purpose
3.1 Yay! as a Gateway to the Mass Adoptionof Crypto Assets
We believe that it won’t be long before people will carry digital wallets and makeexchanges with tokens on the Internet as readily as they send emails.

Growing the number of crypto users by having ordinary users get involved with crypto
assets on a daily basis requires an app with excellent usability and a sizable community
to support it.

Yay! will enable crypto asset newcomers to participate in its tokenomics without firstincurring costs or needing to open a separate wallet or exchange. Community members
will also be able to participate according to their backgrounds (social, gaming, and/or
financial interests) and share information, allowing them to deepen their knowledge
based on their needs and experiences.

The more people become involved, the more the Yay! community will gravitate towards
naturally using tokens on the day-to-day.

5

03 Purpose

3.2 Creating a Sustainable Token
EconomyYay!'s tokenomics will be a supportive environment for both advanced users andbeginners to DeFi and will help them participate based on their backgrounds.

The token economy will comprise non-fungible tokens (NFTs) and fungible tokens (FTs),
and will be designed to become more sustainable with time through its smooth andcontinuous inclusion of all of its participants.

Yay! will return to its community not only revenue from tokens but also non-crypto
revenue from its business operations. This will in turn fulfill our goal of creating a service
that combines the world's first sustainable Social Finance (hereinafter, “SocialFi”) token
economy with a Play to Earn service.

6

03 Purpose

3.3 Crypto’s Biggest Utility: The Metaverse
We believe that the ultimate place for crypto assets is the metaverse.

The metaverse is often associated with VR spaces and graphics that look like the realworld, but these elements are only tools. The essence of the metaverse is actually in its
community.

The metaverse is not just a single service—it is a community of multiple organizations
with similar purposes that seamlessly connect with one another in a shared space.
People find places they feel at home in, find work, and lead their daily lives within these
services, meaning the metaverse can be seen as its own world.

The majority of Yay! users are from the start attracted to the experience offered by theplatform itself, and gather daily in many different communities even without economic
incentives now. By creating a token economy to life within Yay!, all of its participants will
be able to experience the world of web3 just by logging in to the app.

Yay! is aimed to be a gateway to involve other communities in shaping the metaverse
together through seamless integration with games, DeFi, and more.

7

03 Purpose

3.4 Building a World Where People Can
Interact Just as They Are
Yay!’s mission is to “provide a place where everyone can belong” by sciencing to optimizesocial interactions. We want our service to build connections that transcend gender, age,and location and allow people to be themselves and be respected for doing so.

Our token economy will be built by attributing value to our users’ contributions to the
Yay! community. From the user’s perspective, connecting and interacting with people
they like is already a valuable experience in and of itself, but on top of that they will beable to obtain financial rewards from their interactions. In addition, users who holdgovernance tokens will be able to directly participate in important decision-making
regarding Yay!’s economy.

By adding value to community contributions in these ways, Yay! will create a new worldin which users can interact with others just as they are and are better able to makevaluable connections.

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04 Tokenomics

04 Tokenomics
4.1 Tokenomics Overview
The following tokens will exist in our platform: “YAY” and “EMPLE” as FTs, and “Yay!
Genesis” and “Yay! Pal” as NFTs. The role of each token is described below
YAY: governance token; issued on Ethereum; 10 billion issue limi
EMPLE (EMPL): utility token; issued on Arbitrum; unlimited issue
Yay! Genesis (Genesis): NFT giving the right to mint Pals; issued on Ethereum; 5,000
issue limi
Yay! Pal (Pal): NFT for play-to-earn activity; issued on Arbitrum; unlimited issues

There are the following two types of tokenomics within the service
Marketplace: users participate by purchasing Pals
Pool: users participate by acquiring Pals for free.

Participants perform different roles according to their literacy and attributes
Genesis holders: expected to be people who are very familiar with crypto assets andDeFi, community operators, and key opinion leaders (KOLs) whose role will be toboost Yay! recognitio
Pal purchasers: expected to be users familiar with GameFi or who have alreadyacquired Pals for free and have a little first-hand experience of Yay!’s tokenomic
Users who have acquired Pals for free: expected to be users who have never been
exposed to NFTs or other tokens, or users who have engaged in GameFi, etc. in thepast but may feel uneasy about purchasing NFTs

A different persona is ascribed to each user role, with rewards earned and level ofdifficulty differing accordingly, but all Yay! users can participate in tokenomics byunderstanding of the risks and returns involved.

The value of the project is ultimately consolidated in YAY in a way that is designed tomatch the interests of all stakeholders.

94.1 Tokenomics Overview

Overview of Marketplace Tokenomics
Users can participate in our tokenomics by purchasing Pals. Marketplace transactions aredesigned so that purchased Pals will be able to earn a higher amount of EMPL than Pals
acquired from the pool.
Marketplace“Contribute to Earn” Platform
Exchange EMPL for YAY to withdraw

Exchange

Purchase Pals with ETH

Pal Holder(Yay! Users)

Procure ETH

Contribute to Community

Receive 

EMPL 

rewards

Use EMPL for Pal-related utilities

Use ETH reserves to purchase YAY ️

Secondary distribution  
ETH returns

Secondary distribution  
ETH returns

Pal Marketplace

Use ETH to mint Pals

Sell Genesis

Purchase Genesis

Sell Pals to earn ETH sales returns

Genesis Holder
SocialFi Platform

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4.1 Tokenomics Overview

Overview of Pool Tokenomics
Users can acquire Pals for free and participate in Yay!’s tokenomics via the pool. Unlike
transactions in the marketplace, those in the pool do not require underlying funds forpurchase. Until users wish to sell any EMPL they have obtained, there will be no need forthem to set up a wallet or deal with crypto exchanges. This means that most Pal-related
activity can be completed off-chain, making participation in the token economy easy
even for crypto asset novices.
Pool“Contribute to Earn” Platform

Exchange EMPL for YAY to withdraw

Acquire Pals from the pool

Pal Holder(Yay! Users)

Exchange

Contribute to community

Use EMPL for Pal-related utilities

Receive 

EMPL 

rewards

Use ETH reserves to purchase YAY ️

Secondary Distribution ETH returns

Pal Pool

Acquire YAY

Use ETH to mint Pals

Sell Genesis

Purchase Genesis

Supply Pals to the pool

Genesis Holder
SocialFi Platform

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4.1 Tokenomics Overview

4.1.1 YAY
Ticker symbol = YA
Issued as an FT on the Ethereum blockchain under ERC-20; issuing limit of 10 billion
tokensGovernance token holding important decision-making rights with regard to Yay!’s
ecosystem
Users can withdraw EMPL by converting it to YAY at market price
YAY can be acquired on exchanges, or as rewards for meeting certain conditions,
including staking, amount of Pals purchased, or amount of Pals minted as a Genesis
owner.

4.1.2 EMPLE
Ticker symbol = EMP
Issued as an FT on the Arbitrum blockchain under ERC-20; no issuing limit
Utility token, newly issued as reward for contributions to the community anddistributed according to the outcomes of Pal battle
Rewards will be separated into EMPL and locked EMPLBoth EMPL and locked EMPL will be used and treated as the same within the service,with locked EMPL being used first. Locked EMPL cannot be withdrawn outside of theservice, but EMPL can be withdrawn outside the service by exchanging them for YAY
at market price.

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4.1 Tokenomics Overview

4.1.3 Genesis
Characterized by detailed designs and angel motif
Issued as an NFT on the Ethereum blockchain under ERC-721a; issuing limit of 5,000
tokensThis limit may change in the future depending on progress with multiple-chain
support
It is also planned to hold sales of small amounts of Genesis in conjunction with the
supply and demand of Pals
Genesis can be issued through the dashboard, where holders can mint Pals by
exchanging ETH
Genesis holders will be able to supply Pals to the pool, or they can sell them on themarketplace
If Genesis holders supply Pals to the pool, they will receive a fixed amount of YAY over
120 days, and if they sell their Pals on the marketplace, they will receive an immediate
profit on the sales
Genesis holders can also hold their Pals they mint themselves
There will be a fixed cooldown time after minting Pals
There will be no maximum limit for minting Pals with Genesis; as long as the service
continues, Genesis holders will always be able to mint Pals.

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4.1 Tokenomics Overview

4.1.4 Pal
Characterized by cute “digital pet” designs
Issued as an NFT on the Arbitrum blockchain under ERC-721a with future multi-chain
support; no token issuing limit
Yay! users holding Pals will be able to participate in battles after contributing to the
Yay! community. After battles, users will obtain EMPL and locked EMPL as a reward
All Pals have their own life span. They will live for a certain, guaranteed period of time,after which the chance that they will die increases by a small percentage each day.
Life span and dying rate will be determined by the rarity of each Pal
Even after Pals die, special utilities may still be available
After Pals die, users will no longer be able to receive rewards for their community
contributions through those Pals
Pals can be obtained free of charge from the pool, but rewards will be less than if theuser purchases Pals from the marketplace (further details below)
Pals can be sold on the marketplace with their price depending on supply anddemand.

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4.1 Tokenomics Overview

4.1.5 Tokenomics From the User’s Perspective
When Yay! users hold Pals, contribute to the community, and participate in battles, they
will be able to receive EMPL and locked EMPL as a reward. Since Yay! comes completewith wallet and Pal marketplace access within the app, users can easily acquire Pals
using the following steps, and will not need to use additional apps.

Purchasing Pals from the Marketplace
Yay! users send ETH to their in-app individual wallets. (Credit card payments will also
be supported moving forward.
Using those ETH or a credit card transactions, Yay! users can then purchase Pals fromthe app’s Pal marketplace
Once Yay! users hold Pals and complete community contributions, they will be able toparticipate in battles
Yay! users receive EMPL and locked EMPL commensurate with the value of theircontributions and battle outcomes
Users can use EMPL rewards on Yay! to raise Pals, or can exchange EMPL for YAY to
withdraw money. (Note: Locked EMPL can only be used in-app.)“Contribute to Earn” Platform
Exchange EMPL for YAY to withdraw

Exchange

Purchase Pals with ETH

Pal Holder(Yay! Users)

Procure ETH

Contribute to community

Receive 

EMPL Rewards

Use EMPL for Pal-related utilities

Pal Marketplace154.1 Tokenomics Overview

Obtaining Pals from the Pool
Yay! users obtain Pals from the in-app poolOnce Yay! users hold a Pal and complete community contributions, they will be able
to participate in battles
Yay! users receive EMPL and locked EMPL commensurate with the value of theircontributions and battle outcomes
Users can use EMPL rewards on Yay! to raise Pals, or can exchange EMPL for YAY to
withdraw money. (Note: Locked EMPL can only be used in-app.)“Contribute to Earn” Platform

Exchange EMPL for YAY to withdraw

Acquire Pals from the Pool

Pal Holder(Yay! Users)

Exchange

Contribute to community

Receive 

EMPL 
rewards

Use EMPL for Pal-related utilities

Pal Pool

164.1 Tokenomics Overview

4.1.6 Pal Design
Because Pals have limited life spans, the period of time in which they can earn
rewards is also limited
Yay! users who purchase Pals on the marketplace can earn more than the ones who
acquire them from the pool
Pals have various parameters that affect their rarity and ability to fight in battle
Unlike other GameFi services, new Pals cannot be minted by combining two Pals. The
minting of new Pals is the job of users holding Genesis
Yay! users can receive YAY as a reward depending on how many Pals they purchase.

174.1 Tokenomics Overview

4.1.7 Role of Genesis
Genesis holders will play the role of Pal market suppliers in the Yay! ecosystem. They cansell their Pals at a competitive price on the marketplace and earn profits, or they can
supply Pals to the pool and get YAY as a reward. The steps for doing so are described
below.

Selling Pals on the Marketplace
Genesis can be acquired by participating in sale events or by purchasing it with ETH
on a secondary marketplace such as OpenSea
Genesis holders mint Pals using ETH tokens
Pals can then be sold on Yay!’s in-app Pal marketplace. If the sale price on the Pal
marketplace is higher than the mint price, the Genesis holder will receive a profit on
the Pal sale
By also selling Genesis, Genesis holders can earn a profit if the Genesis sale price ishigher than the purchase price.

Pal Marketplace

Use ETH to mint Pals

Sell Genesis

Purchase Genesis

Sell Pals to earn ETH sales returns

Genesis Holder
SocialFi Platform

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4.1 Tokenomics Overview

Supplying Pals to the Pool
Genesis can be acquired by participating in sale events or by purchasing them with
ETH on a secondary marketplace such as OpenSea
Genesis holders mint Pals using ETH tokens
Minted Pals can then be added to the pool
Genesis holders can receive YAY over 120 days in accordance with the rarity of each
Pal they add to the pool.

Pal Pool

Acquire YAY

Use ETH to mint Pals

Sell Genesis

Purchase Genesis

Supply Pals to the pool

Genesis Holder
SocialFi Platform

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4.1 Tokenomics Overview

4.1.8 Genesis Design
Genesis are designed to be held by people who are very familiar with crypto assets
and DeFi, community managers, and key opinion leaders (KOLs) responsible forenhancing Yay! recognition
Genesis will mint Pals and then either supplied to the pool or sold on the marketplace
There is no limit to the number of Pal that can be minted by Genesis holders; there
will be a cooldown period in accordance with each Pal’s rarity (e.g., 72 hours for
Common Pals), but Genesis holders will be able to mint an unlimited number of Pals aslong as Yay! remains in service
When a Genesis holder supplies Pals to the pool, they can receive YAY rewards over a
period of 120 days
Since the selling price of Pals can be set by Genesis holders in the marketplace, they
monitor market conditions and decide the rarity of the Pals
If the demand for Pals is strong, arbitrage is feasible, but in the long run we can expect
prices to be reasonable in line with market principles. If the selling price is too low, theprofit on sales will be low; if the selling price is too high, Yay! users will not makepurchases
The more Pals that Genesis holders mint, the more YAY they will receive as a reward
Genesis holders play a role similar to L1 chain validators, and are the most valuablestakeholders in the Yay! ecosystem. They aim to raise the demand for Pals by
increasing the number of Yay! users. The more demand there is for Pals, the greater
the reward acquired
We define Genesis-based finance as “SocialFi”to distinguish it from “GameFi,” because
it provides liquidity to the entire Yay! ecosystem.

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4.1 Tokenomics Overview

4.1.9 How to Contribute to the Community
When users’ contributions to the community are recognized within the service, they
will become able to participate in battles and receive EMPL and locked EMPL as areward after the battles
Accounts that spam or use bots and other such tools will not be able to participate inbattles and they may also be penalized.
There will be two main indicators of contributions to the community: an algorithmicallycalculated trust score and quantifiable acts of community contribution. The number ofposts and chats will not be used to measure community contributions, in order toprevent spam and insincere activity.
Trust Score

Algorithm for Trust score will be disclosed at when the timing is right, but in principle we are
adopting metrics that will give higher ratings to users who engage with and stimulate thecommunity, are considerate of others, and continuously create a place where everyone feels
comfortable.
Quantifiable Acts of Community Contribution

Specific examples of quantifiable acts of community contribution are as follows
Monthly subscription (VIP membership
Sending and receiving gift
Friend invitation
Other deeds that raise awareness and interest in the community

Users who meet the above criteria will be able to enter battles more easily.

Furthermore, even if the users do not meet the above criteria, continuous use of the service
will help the users fulfill the requirements more easily as community contributions.

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4.1 Tokenomics Overview

4.1.10 Pal Battles
Users can participate in battles after making community contributions. Battles will
follow very simple rules and will be designed for easy participation
A Pal allows users to participate in one battle per day. In each battle, three opponents
with hidden profiles and abilities will be displayed, and the user chooses one of themto battle
Each Pal has parameters and attributes that will become relevant in the battle.
Rewards will be calculated and distributed based on the results of the battle, thelevels of the Pals, and the number of Pals in one’s possession
Pal battles serve as an incentive to think strategically and make users raise Pals.
Battle With Each Pal Once a Day
Choose 1 opponent to battle

Make community
contributions to Earn theright to battle
Start battle after choosing opponent

Choose Opponent

Earn EMPL Based on Battle Results
The reward amount is calculated based on the battle outcome, the number of Pals,
and the Pal levels

Battle

WIN

LOSE

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4.1 Tokenomics Overview

4.1.11 Difference in Expected Rewards Between Marketplace andPool
When Genesis holders supply Pals, they can choose whether to sell Pals on the in-app
marketplace or supply them to the pool
The price at which Pals are sold on the marketplace will be affected by market supply
and demand, but ultimately Genesis holders can set the Pal sale price themselves.
However, the risk that Genesis holders face is being left with an oversupply of Pals ifthey are unable to sell them
Genesis holders can hedge the above risk by supplying Pals to the pool instead andreceiving YAY rewards over 120 days
In either case, users who continue to mint Pals acquire more YAY rewards. There is afinancial incentive to keep minting Pals in both cases, since doing so results inadditional YAY rewards based on the number of times Pals are minted.

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4.1 Tokenomics Overview

4.1.12 How Value is Focused to YAY
ETH acquired from Pal minting, NFT trading royalties, etc. accumulate in the treasury
ETH in the treasury that are not slated for use in the short term may be used forstaking, delta hedging, or other such means of growing funds for future initiatives orboosting stability
The ETH reserve is used to fund purchase of YAY through the exchange when users
withdraw funds by exchanging EMPL for YAY
When users exchange EMPL for YAY, they will be charged a withdrawal exchange fee(initially set at 15%), but when Yay! purchases YAY, it purchases the total amount,
including the withdrawal fee as well as the amount withdrawn by the userIf, for example, a user withdraws about $1000 worth of EMPL, $850 worth of YAY willbe transferred to the user's wallet. Yay! will purchase YAY on the exchange using$1,000 worth of treasury funds to maintain YAY inventory. In this example, comparing
buy and sell, the buy pressure of $150 as a charge for withdrawal exchange fee iscalculated
The more users withdraw funds, the greater the YAY buy pressure generated, creating
a synthetic long position. The system is designed in such a way that even if all YAY
that an individual holds are sold in the exchange, buying pressure exceeds the sellingpressure due to the withdrawal exchange fees.

EMPL
Send EMPL Withdrawal Request

Buy YAY with ETH

Client Wallet

Send YAY excluding commission fee (15%)

Acquire YAY

YAY

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Treasury ETH

4.1 Tokenomics Overview

4.1.13 Legal Tender Revenue: Advertising and VIP Fees, etc.
Yay! receives legal tender as payment for displaying advertisements between
contents in the app and offering VIP subscriptions
All legal tender revenue, with the exception of some development resources, will be
used for token value enhancement measures, as will ETH revenue
Our top priority is to operate Yay! in a way that ensures our tokenomics is sustainable
and equipped with multiple safety nets.

4.1.14 Pal Purchases as the Driver of Tokenomics
The most important aspect of Yay!’s tokenomics is how much demand for Pals can begenerated by Yay! users. The following four factors are critical to this objective
Increasing the number of Yay! users
Being able to experience cost-effectiveness by holding Pals and acquiring EMP
Ensuring simple procedures for any experienc
Providing attractive Yay! services, and ensuring users feel the connections they makeare of value
As Pal demand grows, we expect to see synergy between stakeholders driving favorable
outcomes as follows
Pal holders will contribute to the community and receive rewards
Genesis holders will earn income by maintaining liquidity by supplying pals to thepool and selling on the marketplace
Yay! will generate revenue from advertising and other billed components, generating
further returns for the community.
Ensuring that our token economy functions smoothly depends more than anything elseon the creation of a place where users enjoy and feel like contributing to the Yay!
community—a place where users understand how Pals work and the risks associatedwith them, and purchase Pals and earn from their contributions to make the community
an even better place for everyone.
As such, all stakeholders involved in Yay!’s tokenomics need to view the improvement of
Pal holders’ experiences—in other words, the quality of the Yay! platform itself—as theirbiggest priority, and work together in an all-out effort to enhance services from the user
perspective.
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4.1 Tokenomics Overview

4.1.15 Other Utilities for EMPLEMPL utilities beyond Pal-related functions are planned to be developed such as Gift andCircle features in the future. If new utilities are going to be developed within the service,users may be able to use EMPL.
Gift
Gift is a Yay! feature that allows users to send Gift to specific individuals through Calls andCircles
Gift can be purchased using fiat currency, Locked EMPL, or EMPL, and they can be sent toothersGift is counted as community contribution
Received Gift can be exchanged for EMPL at a certain redemption rate.
CircleDefault setting for Circle feature allows access by any users, but restrictions such as
making them private or permission-based can be set by the administrators.
In the future, it is planned to implement a feature in the Circle that will allow only users
with certain NFTs to participate
The price of the NFT fluctuates based on supply and demand, and it can be bought andsold using EMPL
Trading of the NFT will be charged an indirect fees, which can be withdrawn by circle
administrators and used as capital for the long-term operation of the circle.

26

4.1 Tokenomics Overview

4.1.16 The Reason Why Yay! Tokenomics Can Be Sustainable
The common scenarios of collapse in GameFi can be summarized into the following five
​Price collapse due to oversupply of NFT
Deterioration in capital efficiency as utility tokens become a one-sided sal
No external revenue and the operator collects fees from tokenomic
Not enough users of the service and only the tokens stand alon
Neglect of liquidity for external traders
Yay!'s tokenomics will be designed to prevent a vicious cycle and create a sustainabletokenomics
Having a limited life span for Pal will create demand for Pal by new users as well as
existing user
Selling pressure for utility token is limited due to appropriate in-service utility
consumption design and conversion structure to YAY on withdrawal
Yay! operation is run by external revenue through advertising and paid subscribefeatures and will increase the revenue along with the users growth. In addition, all of
the treasury ETH is used to sustain the token economy, including purchasing YAY at
the time of withdrawal for EMPL
Currently, a large number of highly enthusiastic users use the service on a daily basis
even without incentives
The design of the service is designed to create constant buying pressure wheneverusers withdraw EMPL. This makes it easier for traders to handle the service because
the experience and liquidity of the service are the same.

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04 Tokenomics

4.2 Differences Between Token Possession
Within and Outside of the Platform
With regard to EMPL, two types of tokens are used in the service to realize the highest
usability: “off-chain,” circulated within the service, and “on-chain,” circulated outside of
the service. 

Off-chain tokens will be used for EMPL within the service to comply with Japanese law.
Off-chain tokens can also be converted to on-chain tokens of equal value for use outside
the app.

Comparison of the two token types:
Off-Chain

On-Chain

Legal Classification

free points

crypto-currency

Role of Token

within-app circulationexchange for money; staking

Token Standard-

ERC-204.2.1 Off-Chain Tokens
Features of off-chain tokens include:• Issued for free
• Can be used within the app• High usability due to no service fees
• Cannot be exchanged directly for legal tender• Can be exchanged to on-chain tokens and withdrawn outside of the app by going
through the procedures28

4.2 Differences Between Token Possession Within and Outside of the Platform

4.2.2 On-Chain Tokens
Features of on-chain tokens include:• FTs on public blockchains• Circulated outside of the app• Can be exchanged for legal tender and other crypto-currencies through exchanges

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05 Token Allocation

05 Token Allocation
5.1 Distribution for YAY Holders
5.1.1 Distribution of YAY
During token sales, all YAY will be issued at once and distributed according to thepercentages below. Details regarding lockup and unlocking are provided in Section 5.1.2(below). Note that fluctuations may occur in each allotment depending on changing
conditions.
300,000,000 YAY (3%): IEO Sales
Sold to investors for conducting IEOs.
400,000,000 YAY (4%): Airdrop
Distributed prior to token listing in conjunction with community contributions.
5,000,000,000 YAY (50%): Ecosystem
Used for rewarding users/Genesis holders who contribute to the Yay! ecosystem, and forstaking rewards. This allotment will be used as capital for measures aimed at expanding
the Yay! ecosystem.
1,800,000,000 YAY (18%): Ecosystem Reserve Funds
Used flexibly as an allocation for improving the Yay! ecosystem, including for reserve
funds, marketing, funding for operations and development, and a liquidity supply on
exchanges, etc. A 5% portion will be allotted without lockup and without being
immediately released into the market. Lockups may be set at appropriate times inaccordance with the use of the funds.

2,000,000,000 YAY (20%): Team

Distributed as an incentive for the team members and stockholders involved in thisproject.
500,000,000 YAY (5%): Partners and Advisors
Distributed as an incentive for all partners and advisors involved in this project.
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5.1 Distribution for YAY Holders

3% IEO Sales
4% Airdrop
5% Partners and Advisors

18% Ecosystem Reserve

Distribution 
of YAY

20% Team

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50% Ecosystem

5.1 Distribution for YAY Holders

5.１.2 YAY Lockup and Unlocking
For each token allotment category, we have set up individual lockup and vesting periods.
During the lockup periods, YAY trading will be restricted. During the vesting periods, afixed amount of YAY will be unlocked each month.

Adjustments may be made for the lockup and vesting periods of the ecosystem, since
they depend on progress made in the app development, market conditions and otherfactors.
Allotment Category

Lockup Period

Vesting Period

IEO Sales

To be determinedwith the exchange

To be determinedwith the exchange

Airdrop--

Ecosystem-

72 months--

24 months

24 months

Team

24 months

36 months

Partners & Advisory

24 months

24 months

Ecosystem  Reserve Funds（5％）
Ecosystem  Reserve Funds（13％）

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5.1 Distribution for YAY Holders

5.1.3 Staking
We will implement staking with ecosystem allocations as the source of funding
The amount of staking reward obtainable is determined by the amount of YAY staked
and the lockup period. The more YAY staked and the longer the lockup period, thehigher the obtainable reward.

5.1.4 YAY’s Market Supply and Fluctuation
In typical projects, the amount of tokens in circulation increases when lockup periods
end, thereby lowering the value of the projects’ tokens
However, in Yay!’s ecosystem, we buy back and burn YAY continuously, thereby
maintaining the supply levels to the market even after lockup periods end.

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5.2 Distribution for YAY Holders

5.2 Distribution for EMPL Holders
5.2.1 Distribution of EMPL
There will not be token sale for EMPL. 100% of the allocation of EMPLs issued will be
distributed to users as a reward for contributing to the ecosystem, with the exception of
tokens used for initial liquidity.

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06 Operating Policy & Roadmap

06 Operating Policy & Roadmap
6.1 Operating Policy
Initially Yay!’s operating company, nanameue, Inc., will regularly check the complex
interplay of parameters of this project and make adjustments in a flexible manner
All adjustments will be made to avoid short-term disruptions and to benefit all
ecosystem stakeholders moving forward
When any big changes are made, we will endeavor to ensure fairness to all by beingtransparent and disclosing our actions
Once the project has reached a stable level of operation, we plan to switch over tocommunity-based management, with holders of governance tokens making allparameter adjustments.

6.2 Roadmap
Given the speed with which the cryptocurrency market is developing, the ability to adapt
promptly to external change and trends is crucial. As priorities may need to be switchedin response to changing conditions, we have not set dates for implementation of thefollowing tasks.

Roadmap
Testnet launc
Genesis minting guidance launc
Airdrop campaign
IEO and token issuanc
Listing of EMP
Service integration
Staking feature launc
Expansion of crypto-currency exchanges that handle Yay!'s token
Expansion of token ecosyste
Expansion of partnerships and collaboration
Multi-chain support
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07 Our Team

07 Our Team
About nanameue, Inc.
nanameue, Inc. is responsible for the planning, development, and operations of thevirtual world Yay!. With offices in Japan and Thailand, we have set our company language
as English and are building a development structure designed to drive our global
expansion.

Project Executives
Takahiro Ishihama, CEO, nanameue, Inc.
Founded nanameue, Inc. in May 2013, and has been engaged insocial media ever since with a focus on “building community with
science.” Launched the virtual world of Yay! in January 2020.

Jesdakorn Samittiauttakorn, CTO, nanameue, Inc.
Over 10 years of professional experience in comprehensive technology
data management, especially AI and ML development, data security,and network/data privacy. Became the CTO of nanameue in February
2015, and is currently responsible for developing Yay! as a blockchain
strategist.
Kazuki Yokokura, CFO, nanameue, Inc
Joined Merrill Lynch Japan Securities Co. (now BofA Securities) in 2016
after graduating from university in the U.K. and working for Japaneseand British securities firms . Joined nanameue, Inc. as the CFO in
August 2021, and is currently responsible for nanameue’s businessstrategy, financial planning, and legal affairs.

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