Token

Minimum Initial Invest

A minimum investment is the smallest token or money quantity a new player can purchase when investing in a GameFi. Axie Infinity, for example, may require that their player deposit at least 3 Axies to play. Or, StepN may require at least a pair of shoes to be invested. This is the minimum investment required for GameFi to manage their players’ money.

ROI (Return on Investment)

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of a Gamefi or compare the efficiency of a number of different games. ROI tries to directly measure the amount of return when joining a particular GameFi, relative to the investment’s cost.

How can Sentry calculate ROI? The benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

Payback Period

The term payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, it is the length of time an investment reaches a breakeven point. Players mainly invest their money into GameFi to get paid back, which is why the payback period is so important. In essence, the shorter the investment's payback, the more attractive it becomes. Determining the payback period is useful for players and can be done by dividing the initial investment by the average income.

Sentry figures out the payback period by using the following formula:

Payback Period = Cost of Investment ÷ Average Annual Income.

Seniority Distribution

The token seniority distribution dashboard shows the number of tokens and the number of addresses in percentage holding on to tokens for various time periods.

Generally, the higher the amount of token held for longer periods of time signals positive perception and conviction towards the value of the token as people are seeing it for its long-term potential. If the percentage of addresses holding it for longer periods is also high, it signals that more people agree with the token's long-term potential.

Of course, there are many other factors as to why people are more likely to hold the tokens for longer periods of time, which could be tied to certain vesting schedules, staking or holding rewards, other utility, etc.

Unique Holder

Unique holder shows how many holders or different wallets have at least 1 NFT from a particular collection. This number is shown on Opensea as the number of “owners”. This is one of the most important metrics for an NFT project.

There are two reasons why we should care about Unique Holder. First of all, The more unique holders a gamefi project has, the bigger the community is, at least in theory. This means the potential reach the project can have will be higher. More holders means more people with a vested interest in spreading the message for a project.

Secondly, A GameFi project with a more spread of distribution can help protect smaller holders from drastic price changes due to a large holder dumping a big chunk of their NFTs. If a few people hold a large percentage of the NFTs in a collection, those people could potentially kill the momentum a project has by dumping all of their NFTs. If the project doesn’t have a lot of volume trading, where people would come in to buy the dump, it could even be a death blow for the project.