Last Update: March 23rd, 2023

ECONOMY
LITE PAPER

TABLE OF CONTENTSPAGE

SECTION

TITLE

1

GUIDING PRINCIPLES AND DISCLAIMER

042

SILK REWARDS

05

2.1

Replacement Allowance

05

2.1.1

NFT Players

06

2.1.2

F2P Players

06

2.2

Non-Replacement Allowance

06

2.2.1

Planetary Node Operators

07

2.2.1.1

Node Queue07

2.2.1.2

Node Depot

07

2.2.2

Map Owners

08

2.2.3

Gala and Gamedia

08

2.2.4

Founder Nodes

08

3

SPENDING SILK

09

3.1

Arachnium09

3.2

Upgrades

10

3.2.1

Upgrade Level

11

3.2.2

Rerolls

12

3.3

Supercharge

12

3.4

Purchase Tanks in Store with SILK

12

3.5

Other Uses

13

4

VICTORY POINT-TO-SILK RATIO

14

4.1

Overview

14

4.2

Detailed Descriptions

15

4.2.1

NFT Player Victory Point-to-SILK

15

4.2.2

Planetary Node Operator Point-TO-SILK

16

4.2.3

Map Owners Victory Point-to-SILK

16

5

PILOT PROGRAM

17

2

TABLE OF CONTENTSSECTION

TITLE

PAGE

6

Honor System

18

7‘DYNAMIC SUPPLY’ MECHANISM

19

7.1

POINT-TO-SILK Ratio

19

7.2

Component Price

19

8

DROPSHIPS

20

9

UNDER CONSTRUCTION

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1. GUIDING PRINCIPLES AND DISCLAIMER
The Spider Tanks economy is player driven, and participants who
win Spider Tanks matches may receive Victory Points that can besubmitted for game token reward distribution.
The game token of this ecosystem is SILK**, which is a fungible token on both the Ethereum
Network as well as Gala’s proprietary L1 blockchain, currently referred to as Project GYRI.
On Ethereum, SILK is an ERC-20 Token governed by contract
0xb045f7f363fe4949954811b113bd56d208c67b23
This contract address governs SILK on the Ethereum network only. Tokens on Project GYRI
have different contract addresses and will be accessible through different indexers released
at a future date. An official bridge between blockchains is provided within a user’s Gala
Games account.
SILK is acquired by involving oneself in the Spider Tanks ecosystem through playing andwinning games, as well as by operating nodes and other products in the ecosystem. This
document provides a quick overview of these systems - how players can be rewarded withand use SILK, what governs its issuance, etc.

NOTE

Please note that this document is subject to change at any time. In particular,
the numbers provided here, unless otherwise specified, are for comparative
purposes only.
All items may be subject to change as the game service and tokenomics
evolve. In particular, items marked with an asterisk (*) are still in active
development and may be removed or adjusted substantially prior to release** Gala Games makes no predictions, promises or speculations about the value of SILK. All SILK rewarded throughplaying shall be unminted in a player’s treasure chest. As such, in order to transfer, list, buy or sell, users must firstactively mint the token.

42. SILK REWARDS
Any given participant in the Spider Tanks ecosystem receives Victory
Points for participating in the Spider Tanks ecosystem. The participant
may submit those Victory Points at the end of a day to receive SILK
distributions from one of two sources:
the Daily Replacement New Mint Allowance (Replacement Allowance) and the Daily NonReplacement New Mint Allowance (Non-Replacement Allowance).
The Replacement Allowance is a direct function of the short-term system’s demand. When
players spend SILK (for more on spending SILK, see Section 3. Spending SILK), it is sent
directly by the user into the burn wallet. A given day’s burn is tracked to determine the size ofthe following day’s SILK Replacement Allowance mint allocation.
The Non-Replacement Allowance, on the other hand, is a function of the circulating supply of
SILK relative to its soft cap. As such, the Non-Replacement allowance is implicitly governedby the total burn (and therefore total spend) of the ecosystem, in so far as that value informs
the circulating supply. As the circulating supply of SILK approaches the soft cap, the size of
the Non-Replacement Allowance will decrease.
Both the Replacement and Non-Replacement Allowance are explained in more depth in
Section 4. Victory Point-to-SILK Ratio.

2.1 Replacement Allowance
The Replacement Allowance of SILK informs the SILK distribution to the following
participants: NFT Players and F2P Players.

52.1.1 NFT Player
If a participant owns an NFT - namely a Tank Body, Tank Weapon or a Hero Tank consistingof the combination of the two - they are rewarded with Victory Points by playing and winningin the game, which can then be submitted for SILK distribution. To be more specific, every
time they win a match, the specific number of Victory Points rewarded is based on the level
and rarity of their NFT(s) used. The reward distribution follows a diminishing returns curve
for a given day, and is such that they should be able to receive the majority of their daily
distribution of Victory Points (~90%) within the first 10 victories**, although they will continue
to be rewarded for every match they win.
At the end of the day (00:05 UTC), those Victory Points will be totalled and the SILK
Replacement Allowance distributed based on the Player Victory Point-to-SILK ratio for thatday***, with the appropriate amount of SILK placed in a player’s Treasure Chest.
Note that in the future, Victory Points and other possible rewards per win may be generated
with an additional layer of complexity, as those who contribute more to the match will receive
more than those who contributed less.
**

For more information, see the description of the Energy mechanic at 3.3***

See Section 4.1 NFT Player Victory Point-to-SILK

2.1.2 F2P Players
Even if a player does not own a Tank NFT they may still participate in the Spider Tanks
ecosystem by playing through the Pilot Program (see section 5. Pilot Program for moredetails).

2.2 Non-Replacement Allowance
The Non-Replacement Allowance of SILK informs the SILK distribution to the following
participants: Planetary Node Operators, Map Owners, Gala and Gamedia, Founder Nodes.

62.2.1 Planetary Node Operators
Planetary Node operators, intended as the backbone of the Spider Tanks ecosystem, and may
receive rewards for their availability and efforts. The Victory Points Node Operators receive
will depend on the amount of matches they help facilitate daily. More uptime potentially leads
to more cycles through the Node queue, thus more Victory Point rewards.
Node operators may also attach their Tank Body, Tank Weapon, or Map NFTs to their
Node Depot; when those NFTs receive rewards as described above, the Planetary Nodeoperator will in turn receive additional rewards - see 2.2.1.2 Node Depot. Planetary Nodes,
and the activities connected to them (e.g. Maps), will be the sole source of constant NonReplacement Allowance SILK in the Ecosystem.

2.2.1.1 Node Queue
For every Spider Tanks match, a Planetary Node and a player-owned map are paired together.
They enable a given match to take place. Planetary Nodes wait in a Node Queue to be pairedwith a Map NFT for an upcoming match. Similarly, Map NFTs wait in a Map Queue to bepaired with a Planetary Node for an upcoming match. Each time a match concludes, thepaired Planetary Node and Map NFT separate and return to their respective queues. Map
owners and Node operators will receive rewards for each match they host in this way. The
Planetary Node operators distribution will account for 33% of the daily Non-Replacement
Allowance.

2.2.1.2 Node Depot
Planetary Node operators can opt to attach their Tank Body, Tank Weapon, or Map NFTs totheir nodes. Each node will have a limited number of spaces to place NFTs. Based on theamount the Victory points received through normal usage as described above, the Nodeoperator will receive an additional reward.
Each node will have a number of spaces in the depot to place NFTs. These slots will entitle
the Node owner to additional Non-Replacement Allowance allocation based on how many
VPs the placed NFT received on that day. The Node Depot distribution will account for roughly
20% of the daily Non-Replacement Allowance.

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NOTE

In order to receive rewards via NFTs in the Node Depot, the node must be
online when that NFT is being used. If a node drops offline, operators will notreceive rewards from their Node Depot.

2.2.2 Map Owners
Map owners will receive Victory Points for allowing matches to be played on their Maps.
Map owners will have their Map NFT linked to a Planetary Node, which will allow matches
to be played on their Map. The Map owner’s reward from a single match is equivalent to apercentage of the Victory Points given to the victorious team in that match. The numberof matches that can be played on a given Map for a given time period is determined by thelevel and rarity of that Map - see section 3.5 Map Upgrades for more details. At the endof the day, Map owners may redeem their rewards to submit for daily Non-Replacement
Allowance allocation. The Map distribution will account for 15% of the daily Non-Replacement
Allowance.

2.2.3 Gala and Gamedia
Gala and GAMEDIA - the publisher and the developer of Spider Tanks respectively - receive a
combined total of roughly 30% of the daily Non-Replacement Allowance.

2.2.4 Founder Nodes
Active Founder Nodes are distributed 2% of the daily Non-Replacement Allowance each day.

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3. SPENDING SILKSILK can also be spent in a number of ways, the chief of which ispurchasing upgrades for a Tank Item NFT. Spent SILK is sent directly
into the burn wallet. On a given day, the total daily spend determines
the size of the following day’s SILK Daily Replacement Allowance mint
allocation.
3.1 Arachnium
Arachnium is the in-game non-token currency of Spider Tanks, which can be obtained in two
ways. It can be purchased in the Store with SILK.
Arachnium, in turn, can be used to purchase:Supercharge
UpgradesUpgrade Rerolls
Purchase Tank Parts
Once Arachnium is bought in the store (or claimed after a game) it cannot be exchanged for
SILK and can only be used in game to purchase non-token products
Arachnium is non-token currency, as it allows users to make purchases and conduct routine
transactions without initiating a blockchain transaction.

93.2 Upgrades
To upgrade a Tank Weapon or Body, an NFT Owner will currently need to purchase theappropriate amount of Components and Arachnium, priced according to their rarity (later on,these items will become available in-game via the Factory mechanic)* - a potential breakdownof component prices would look like this:Common (“Bolt”) : 0.01 SILK
Uncommon (“Scrap Metal”) : 0.02 SILK
Rare (“Chips”) : 0.05 SILK
Epic (“Hydraulics”) : 0.10 SILK
Legendary (“Engine”) : 0.20 SILK
Ancient (“Energy Core”) : 0.50 SILK
To upgrade an item of a given rarity, one will only need components of up to that rarity
inclusively. For example, to upgrade a Common Weapon from level 0 to 1 a player will need tospend a fairly small amount of SILK, distributed between Arachnium and Bolts. To upgrade an
Ancient Weapon from level 28 to 29, however, they will need to spend a much larger amountof SILK, divided between Arachnium, Bolts, Scrap Metal, Chips, Hydraulics, Engines, andEnergy Cores.

103.2.1 Upgrade Level
Upgrading a Tank Part serves a number of purposes. It directly increases the Victory
Points reward potential of that item. The maximum number of Victory Points awarded to a
Level 30 Common Weapon for a victory will be several times larger than that of a Level 0.
Upgrading also, as the name suggests, increases the stats of an item and its effectiveness ingameplay. Each Part has multiple stats associated with it that will increase when upgradedindependently within a range.

113.2.2 Rerolls
To account for the fact that upgrade quality - how large the increase in stats is - is variable
between Decent and Perfect, players have a chance to increase the quality of their upgrades
prior to applying it. This is done by rerolling the upgrade for a cost equal to ~15% of the full
upgrade to the next level. Note that rerolling does not guarantee a higher quality of upgrade- if a player has a Good upgrade, for example, there is no guarantee that, on rerolling, it will
become Excellent rather than Decent. At the same time, the number of rerolls a player canapply to a given upgrade is not limited. Please note that re-rolls will be restricted to specificgeographic regions only.

3.3 Supercharge
As a player wins matches during a 24 hour period (12am GMT), they receive diminishing
Victory Point rewards for each win. Supercharge is a mechanic that allows players to fix
a certain Part’s VP potential at 5x its normal value for the first win. This continues for 5
matches, after which, the Part continues to provide diminishing returns as if the Supercharged
matches never happened.
Supercharge only lasts for five matches, regardless of whether a player wins or loses.
Supercharge currently cannot be used in the team queue.
Supercharge is purchasable with Arachnium individually by Tank Part through the in-gamegarage. The price for each Part is variable based on the factors that influence its potential VP(rarity, level, etc) as well as the VP:SILK ratio from the previous day’s replacement allowance.

3.4 Purchase Tanks in Store with SILK
Players are able to use the SILK they have received to purchase Tank items; including Bodies,
Weapons, Skins, Props and Hero Tanks.
Sales of Tanks in SILK will occur at limited times, and the quantity of NFTs is likely to be evenmore constrained than for usual sales.

123.5 Other Uses
As more and more elements are added into the game, players will be able to purchase otheritems in SILK as well.. See section 9 for more detailed information on upcoming updates.

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4. VICTORY POINT-TO-SILK RATIO
4.1 Overview
The distribution of SILK at the end of a day is governed by the Victory Point-to-SILK ratio forthat day, in turn informed by the amount of Victory Points accumulated by each participant
at the end of the day, as well as the current supply and demand for SILK. This mechanism
is introduced in order to implement a soft cap on the amount of SILK circulating both in theSpider Tanks economy and beyond. The magnitude of the soft cap is determined by the
expenditure into the Spider Tanks ecosystem.
SILK will always be the only currency of the Spider Tanks ecosystem, and as that ecosystem
grows in size, supply will not increase in-kind. SILK output is thus designed to become more
scarce over time.
In broad terms, the Victory Point-to-SILK ratio for any given day is determined by the following
parameters: the current cumulative mint as well as the total burn up to that day. The longterm relationship between the Victory Point-to-SILK ratio and the circulating supply is
described by the chart below:

Victory Point-to-SILK Ratio

Victory Point-to-SILK Ratio

0

20

40

60

80

100

Circulating Supply (M SILK)14

As a long-term trend, as the amount of cumulative mint increases, the amount of SILK
rewarded per Victory Point tends to decrease. At the same time, rather than accepting SILK
spent in our store as revenue, all SILK received for purchases in the store will be sent to thenull address and therefore burned. As a counterbalance to the decrease of the Victory Pointto-SILK ratio, as the total burn increases, so does the Victory Point-to-SILK ratio. As thecirculating supply of SILK tends towards the soft cap of 100M, the Victory Point-to-SILK ratio
approaches 0, meaning at some point in the future, rewards will tend towards 0 as well, if
there is no SILK spent in the game.

4.2 Detailed Descriptions
Circulating supply will not be the sole determinant of the Victory Point-to-SILK ratio for any
given participant. Despite circulating supply acting as the ultimate limiting factor for SILK
issuance, the underlying mechanism is slightly more complex.
As such, there will be a different Victory Point-to-SILK ratio for a participant depending on
which Allowance - the Replacement Allowance or the Non-Replacement Allowance - is used
when determining their distribution.

4.2.1 NFT Player Victory Point-to-SILK
SILK Issuance to Tank NFT Owners and captains will be based on the Replacement Allowance(see section 2). Players who want to use their Victory Points for SILK distribution will receive
SILK from that Replacement Allowance allocation.
This means that the Victory Points-to-SILK ratio for players is somewhat variable, anddependent on the total burn (and therefore total spend) from the previous day.
Given that the Victory Points-to-SILK Ratio can only go as high as 1, there will be potential
SILK ‘left over’ to be distributed in the future. This potential SILK will be gradually added to themint allocation in order to maintain SILK availability based on the system’s demand. The useof this ‘left over’ SILK allows for more consistency in the NFT Players’ Victory Points-to-SILK
Ratio on a day-to-day basis.
In addition, temporary Non-Replacement Allowance may be added to the NFT Player SILK
issuance at the sole discretion of Gala and GAMEDIA.

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4.2.2 Planetary Node Operator Point-to-SILK
Planetary Nodes will be the backbone of the Spider Tanks Ecosystem. They will provide
the essential workload to ensure the whole system works properly by hosting matches andservers.
As such, Planetary Node Operators rewards will come from the SILK Non-Replacement
Allowance (as opposed to players’ Replacement Allowance), determined as a function of
how many matches were hosted on that given day, and therefore the magnitude of thetotal workload. The amount each Operator will, in turn, receive from the Total Daily NonReplacement Allowance, will be a function of the workload they have individually contributedon that given day. (see 2.3 Planetary Nodes). The higher the level of the Planetary Node, thelarger the workload that it can perform.
Note that the rate of Non-Replacement Allowance allocation of SILK will decrease in the longrun if mint allocation amount is greater than total burn and therefore the circulating supply of
SILK approaches the soft cap.

4.2.3 Map Owners Victory Point-to-SILK
SILK distribution for Maps will be a function of how many games the Maps have hosted. As
such Map rewards will be governed by the size of the daily Non-Replacement Allowance andthe total number of Victory Points issued on that day.

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5. PILOT PROGRAM
In order to allow players to utilize all of their items more effectively, the Pilot Program is amechanic by which the owners of Tanks (Captains) can allow other players (Pilots) to playwith their Tank. Whether a player owns an NFT Tank or not, anyone can play with a Captain’s
Tank and receive a portion of the Victory Points that would have been available to the Captainhad the Captain used it themself.
When a Captain participates in the Pilot Program, they may submit only one Tank into theProgram every 24 hours for each Drop Pod in their account. The Tank will be locked into theProgram for that time period and will be returned to the Captain automatically at the end of
it. The Captain must resubmit that Tank - or any other - if they want to participate in the Pilot
Program again. As the timer approaches zero on any given Drop Pod, an option will appear toextend the timer, allowing the Captain to reset the time for the included Tank Part to 12 more
hours in the Drop Pod.
When the Captain’s Tank is used by a Pilot, the Captain will receive a portion of the Victory
Points from the matches won with their Tank.
From the Pilot’s perspective, the initial launch of the Pilot Program will take the form of arandom assignment of Tanks from the available pool. A player, regardless of whether theyown a Tank, can participate in the Pilot Program so long as there are Tanks available in the
Pilot Program, and temporarily receive a random Tank from that Tank pool.
In the event of victory, they will split the Victory Point rewards with the Captain, while the Tank
may be recalled by its owner. Currently, a Pilot can go through a diverse array of Tanks to pilot
over the course of several matches, varying in rarity and level. As the game grows, the Pilot
Program will become more complex with a more robust correlation between the experienceof the Pilot and the quality of the Tank they will be assigned.

17

6. Honor System
The Honor system was created to keep players incentivized to engage
in the Spider Tanks ecosystem, and therefore improve the game
experience for those participating in the game and its underlying
tokenomic structure.
The Honor system aims to achieve this goal by directly affecting the rewarded Victory
Points of players who act against the fundamentals instilled into the game ecosystem. It is
important to note that the current iteration is not the final state of the Honor system - we havedesigned it through listening to our community and its suggestions and will continue to refine
it over time.
In simple terms, everyone who participates in this game has a potential to receive Victory
Points based on their successes in the game (as outlined in this paper). While the potential
to receive Victory Points in a day is unlimited, a player’s ability to receive their maximum
available Victory Points possible per win is limited by that player’s Honor score.
All new accounts begin with 300 Honor score, and the maximum attainable score is 1200.
Negative actions, such as transferring SILK to another account or bridging out from GYRI to
ETH, reduce Honor score relative to what percentage of total SILK in a player’s account wastransferred. Positive actions, such as bridging SILK into GYRI from ETH or daily play, increasea player’s Honor score up to a maximum of 1200.
When a player receives VP, the total they receive will be multiplied by their percentage total
score out of maximum 1200 Honor. This means a player with 600 Honor would receive half
the Victory Points of a player with 1200 and the exact same potential, etc.

18

7. ‘DYNAMIC SUPPLY’ MECHANISM
Under the Dynamic Supply Mechanism, Gala Games and GAMEDIA
will maintain ability and access to a few controls to use at their own
discretion. In the beginning, these are the controls that Gala Games and
GAMEDIA foresee possibly using:
7.1 POINT-TO-SILK Ratio
In addition to the straightforward dynamic of the Victory Point-to-SILK ratio outlined in P.4,
Gala Games and GAMEDIA may increase or decrease the Victory Point-to-SILK ratio.

7.2 Component Price
Components (data-base items) - priced in SILK directly, not US Dollar equivalent - may also
see their prices adjusted to reflect changes in rate of issuance.

198. DROPSHIPS
Dropships are a game feature that will enable players to remotelycommand their armada of Tanks.
Every player will have access to the Dropship feature. All Dropships will start with one Drop
Pod, in which a player can place one Tank. This Tank will be placed into the Pilot Programand be made available to other players. Players will be able to purchase upgrades to add
additional Drop Pods to their Dropship, which increases the number of Tanks a player canplace into the Pilot Program at once. (See 5. Pilot Program for more details).
As the Dropships feature continues to improve, players may be able to further upgrade theirDropship to place their Tank into the AI Program - where it could potentially be run by acustomizable and upgradable AI Pilot.

20

9. UNDER CONSTRUCTION
As the web of the Spider Tanks ecosystems becomes more robust, we
will be introducing new elements to the economy, gradually increasing
its complexity and the number of ways players can interact with it.
Please see an incomplete list of the updates we are looking to introduce below, and notethat it will be updated with dates and more details as we move closer to implementing thesemechanics.
Consumables to provide in-game buffs and benefits during play,
Cosmetics to allow players to make their Tank truly stand apart from the rest,
A fully integrated Land and Factories system that would allow players to receive
components in-game, to be detailed fully at a later date,
A mechanic to allow players to engage in uncapped reward generation at thehighest level of play.
And more…

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NOTE

PLEASE READ THE ENTIRETY OF THIS “ DISCLAIMER” SECTION
CAREFULLY.
The information set out herein is only conceptual, and describes the
future development goals for the SpiderTanks protocol to be developed. In
particular, the project roadmap in the Litepaper is being shared in order tooutline some of the plans of the SpiderTanks team, and is provided solely
for INFORMATIONAL PURPOSES and does not constitute any binding
commitment. Please do not rely on this information in making purchasing
decisions because ultimately, the development, release, and timing of any
products, features or functionality remains at the sole discretion of theCompany, the Distributor or their respective affiliates, and is subject tochange. Certain statements, estimates and financial information featured
in this Litepaper are forward-looking statements that are based on and take
into consideration certain known and unknown contingencies and risks
which in eventuality may cause the estimated results or may differ factuallyand substantially from the featured estimates or results extrapolated
or expressed in such forward-looking statements herewith. Further, theLitepaper or the Website may be amended or replaced from time to time.
There are no obligations to update the Litepaper or the Website, or to provide
recipients with access to any information beyond what is provided herein.

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