Web3Port Foundation: Why We Invested in Balance.fun
2025-01-14 14:00
Web3Port Foundation
2025-01-14 14:00
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The Web3Port Foundation recently announced the successful completion of a new round of investment in Balance.fun, which attracted participation from several prominent institutions, including Animoca Brands, Amber Group, GSR Markets, MarbleX, Mask Network, MetaBlast Group, Bing Ventures, and Nonagon Capital. This marks another significant step for Web3Port in its strategic efforts to explore how Web3 and blockchain technologies can empower innovative business models.

Balance.fun, developed by the team behind E-PAL, the world’s largest game companion platform, is a Web3 social and gaming platform that integrates blockchain and AI technologies. By redefining the social and gaming experience, Balance.fun aims to serve as a vital bridge connecting Web2 and Web3 users.

Background

The game companion industry has experienced rapid growth in recent years, evolving from a niche gaming service into a global industry. By offering personalized gaming interactions and deep social connections, game companion platforms have successfully attracted millions of players, becoming an integral part of the modern gaming ecosystem.

However, traditional game companion models face several fundamental challenges, including Low user retention rates and limited long-term engagement. Inconsistent service quality, which affects user experience. Insufficient recognition of companion players’ labor value, leaving their contributions underappreciated.

With the rise of blockchain and Web3 technologies, this industry is on the cusp of a major transformation:

Token-Driven Ecosystem

Web3 platforms leverage blockchain technology to introduce token incentive models, providing economic rewards for both users and companions. This not only attracts more participants but also enhances platform activity and user loyalty. Furthermore, companions can issue fan tokens to establish personal economic systems, enabling loyal users to engage with their long-term growth and share in their revenue.

Decentralized Identity and Trust Mechanisms

By utilizing on-chain NFTs and Decentralized Identifiers (DIDs), companions’ skills, achievements, and service records can be transparently displayed. Transactions, ratings, and service histories are immutably recorded on the blockchain, significantly boosting trust and transparency while ensuring fairness in payments and service delivery.

Global Market Expansion

Web3 technology eliminates geographical and ecosystem barriers, providing the game companion industry with new pathways for global development. Platforms can serve Web2 gaming users while leveraging Web3 technology to overcome cross-border payment and language obstacles, enabling users worldwide to easily access services.

E-PAL’s Transformation to Web3

As the world’s largest game companion platform, E-PAL has accumulated a vast user base and an extensive companion network through years of operation. Under the Web2 model, E-PAL primarily relied on commissions and service fees for revenue.

To address the limitations of traditional models, E-PAL is undergoing a comprehensive transformation to Web3. By integrating blockchain technology, the company has launched the Balance platform, which builds infrastructure centered around a tokenized economy and fan-based protocols. This transformation combines E-PAL’s Web2 traffic advantages with the innovative potential of Web3, creating a new decentralized gaming platform that redefines how users and companions interact and thrive.

Balance.fun: Comprehensive Solutions for a Decentralized Future

Balance.fun, developed by the team behind the world’s largest game companion platform E-PAL, aims to integrate AI-driven models, decentralized tools, and blockchain frameworks. Its mission is to provide seamless interactions and experiences for developers, creators, and users in the decentralized world. While developers benefit from robust blockchain and AI tools to create and promote games and applications, users enjoy a more personalized, diverse, and interactive experience, accelerating the global adoption of Web3 technologies.

To deliver a scalable Web3 user experience infrastructure, Balance.fun introduces a five-layer interconnected Web3 architecture, with each layer enhancing the platform’s capabilities:

  1. Application Layer: The Application Layer focuses on creating engaging, user-centric services: Human EPALs, AI EPALs, AI-powered Battle Reports, Score-sharing SBTs (Soulbound Tokens), and Game NFT Passes
  2. Platform Layer: This layer bridges Web2 and Web3 gaming ecosystems: Web2 and Web3 Game Support: Hosting curated third-party games and in-house developed games; NFT Launchpad: Enables projects to issue and sell NFTs. NFT Marketplace: Facilitates NFT trading, collecting platform fees for sustainability.
  3. Protocol Layer: A suite of tools empowering creators and enhancing token economics: EPAL Fans Token Launchpad: Allows companions to launch fan tokens; EPAL Fans Protocol: Supports trading of fan tokens using the platform token EPT; EPAL FT Trading Protocol: Enables seamless fan token trading.
  4. Infrastructure Layer: Critical services ensuring stability and scalability: Balance ID System, Balance Chain, Balance Stablecoin: Provides economic stability and Balance Node System: Supports decentralized operations.
  5. Token Layer: Incentivizing user engagement and ecosystem growth: EPT Tokens and EPT Fans Tokens: Platform tokens for transactions and rewards. Fan tokens foster deeper connections between users and companions.

By leveraging its five-layer architecture, Balance.fun perfectly integrates Web2 and Web3 gaming experiences: Simplified User Onboarding, Fans Protocol, and AI-Driven Personalization. With AI-powered systems at its core, Balance.fun redefines how users interact with games and companions, ensuring a richer, more immersive experience. By combining the traffic advantages of Web2 with the innovations of Web3, Balance.fun positions itself as the ultimate bridge between traditional gaming and the decentralized future, paving the way for a more inclusive and engaging ecosystem.

Product and Ecosystem Progress

Web2 Gaming Companion Platform: E-PAL

Launched in March 2020, E-PAL has become the world’s largest gaming companion platform, with over 5 million users and 450,000 EPALs (companion users). Today, “E-PAL” is synonymous with global gaming companionship.

Industry Collaborations: E-PAL has supported the launch of games from multiple prominent Web2 gaming publishers, achieving significant success. It has established long-term partnerships with top-tier Web2 gaming companies, including Riot Games, Ubisoft, Bandai Namco, Blizzard, and EA.

Mobile App Performance: Google Play: Over 500,000 downloads. App Store: Over 2,000 user reviews with an average rating of 4.6+.

Web3 Gaming Platform: Balance.fun

Balance.fun is live and has already rolled out some social and gaming features. Currently, it has partnered with over 80 Web3 gaming companies and is the only platform serving both Web2 and Web3 gaming companies, supporting more than 180 games across the Web2 and Web3 spectrum. During its Beta testing phase, the combined E-PAL/Balance.fun platforms registered millions of new blockchain addresses and completed nearly 10 million on-chain interactions, with the majority of users coming from the Web2 user base.

Web3 Node Sales:

Key Nodes serve as the cornerstone of the Balance.fun ecosystem, playing a critical role in supporting decentralized applications (dApps) and services, including Web3 Gaming Rewards, Decentralized Data Processing and Storage, AI Training Networks, DeFi Applications and NFT Minting/Distribution, and DAO Governance and Voting. Node holders actively contribute to network operations while earning potential revenue, token rewards (25% of the total $EPT supply), and long-term benefits.

Initial Price: $599 per node, with a total of 100,000 nodes available. Since sales began in November 2024, over 30,000 nodes have been sold, generating total sales exceeding $18 million.

Team and Funding

Team Background

Balance.fun was founded by the E-PAL Labs team, comprising seasoned professionals with exceptional track records: Brian Xiong: Founder of the visual novel platform Wuxia Dreams, acquired by Tencent. Norris Wang: Founder of several successful projects, including Oasis Pastoral (smart farms), UCI Group, and Central Estate (real estate ventures). Adam Chang: A seasoned Web3 entrepreneur with extensive blockchain project management experience across GameFi, DeFi, and short video platforms. Lucas Lee: A private equity investor and managing partner at META_W Capital, serving on the boards of multiple publicly listed US companies. The team comprises approximately 40 members, most of whom are technical professionals based in Los Angeles, with expertise in game development, internet marketing, community management, and business development.

Funding Overview

E-PAL has successfully completed two funding rounds, raising a total of $43 million, demonstrating strong investor confidence in the E-PAL and Balance.fun ecosystems.

  • September 2024: Raised $33 million in two rounds (Seed Round + Venture Round), led by Andreessen Horowitz (a16z) and Galaxy Interactive. Additional backing from notable investors, including Animoca Brands, K5, CLF Partners, MBK Capital, New Heights Fund, Amber, MarbleX, Sky Mantra, Aptos Labs, and individuals like Steve Chen (YouTube co-founder) and Michael Kives (K5/Former CAA).
  • November 2024: Secured $10 million through institutional investment in node sales, with participation from Animoca Brands, Amber Group, GSR Markets, MarbleX, Mask Network, MetaBlast Group, Web3Port Foundation, Bing Venture, and Nonagon Capital.

Tokenomics

The Token for the Balance.fun ecosystem consists of two types, the $EPT Governance Token and the E-Pal Fans Token. Through the combination of $EPT and EPAL Fans tokens, the E-Pal platform is redefining the creator economy in Web3, empowering EPAL and the fan community to build a vibrant decentralized ecosystem together. As the Balance ecosystem thrives, both the E-Pal platform and its users will benefit from the strong utility of $EPT, creating a mutually beneficial situation.

$EPT Token

$EPT is the governance and utility token driving the Balance ecosystem, with a total supply of 10 billion tokens. Its primary function is to incentivize ecosystem activities such as transactions, liquidity provision, and application development. $EPT establishes a comprehensive incentive mechanism between traders, creators, and the marketplace, ensuring that all participants are encouraged to engage in and benefit from network activities.

Utility and Applications of $EPT:

1. Gaming Companion Payment Token: The primary payment method for gaming companion services on the E-PAL platform, enabling seamless transactions between users and EPALs.

2. Fan Token Protocol Currency: Used for minting and trading fan tokens, supporting the broader fan token economy within the ecosystem.

3. Governance Token: Grants voting rights for platform upgrades and protocol changes. Token holders can stake $EPT to submit proposals and participate in governance decisions.

4. Platform Service Token: Facilitates access to advanced platform features and services across the Balance platform.

5. Gas Token for the Balance Chain: Powers transactions and interactions within the Balance ecosystem.

6. Balance ID Operations: Required for creating and updating Balance IDs, as well as accessing premium features and services associated with Balance IDs.

E-Pal Fans Token

The E-Pal Fans Token is a fan-driven token specifically designed for individual EPALs on the platform, allowing each EPAL to issue their own community-backed currency.

In traditional Web2 models, EPALs primarily create value for the platform in transactional relationships that resemble a service provider-customer dynamic. With E-Pal Fans Tokens, this shifts to a creator-fan relationship model. The tokens enable EPALs to interact more deeply with their most loyal supporters, fostering long-term value creation and sharing.

Token Features: Issued via a Bonding Curve Model, employing dynamic pricing strategies directly linked to the market value of the fan token. Fans can use these tokens to access exclusive services offered by their favorite EPALs and participate in the EPAL’s long-term value growth.

Roadmap and Development Plan

Key Milestones:

2020: Founded in March, E-PAL secured investment from a16z and Galaxy Interactive, gaining popularity in North America and Europe. Established collaborations with globally renowned games like League of Legends (LOL) and Call of Duty (COD).

2024: January: Became the world’s largest gaming companion platform with 4.2 million users and 450,000 EPALs. February: Transitioned focus to AI and blockchain, launching Balance.fun to enhance user experience with AI while integrating blockchain and supporting fan tokens through the Bonding Curve Model.

Q3-Q4: Introduced Web3 tools to enhance Web2 user experiences. Launched the Balance platform, supporting over 150 games across Web2 and Web3. Built next-generation infrastructure, including five interconnected layers (application, platform, protocol, infrastructure, and token layers), enabling AI-driven tools, NFT features, and integrated blockchain solutions. Marketing campaigns with Binance and OKX Wallet featured pioneer badge minting activities, attracting a significant Web3 user base. November: Launched the node system and began node sales.

2025: Q1: Listed $EPT on centralized exchanges (CEX). Announced a token buyback program. Released Fan Token Product V3, leveraging fan economies for traffic growth.

Q2-Q3: Expanded product features with new AI capabilities, Telegram mini-games, and the Balance ID System. Entered new marketing partnerships with Web2 industry leaders and unveiled a brand upgrade strategy.

Balance’s roadmap demonstrates a clear and effective strategy for transitioning from Web2 to Web3, supported by solid execution in technology, product development, marketing, funding, and community building. The project is well-positioned to establish a comprehensive Web3 ecosystem.

Conclusion

By integrating blockchain with AI technologies, Balance.fun delivers a transformative experience for gamers and gaming companions. As a key investment project of the Web3Port Foundation, Balance.fun showcases strong potential in market scalability, technical innovation, and team execution.

With the TGE (Token Generation Event) and $EPT token listing on CEXs, the launch of fan tokens, and the continued enhancement of AI features, Balance.fun is poised to become a flagship project in the Web3 gaming space. We look forward to its continued breakthroughs and development within the industry.

【免责声明】市场有风险,投资需谨慎。本文不构成投资建议,用户应考虑本文中的任何意见、观点或结论是否符合其特定状况。据此投资,责任自负。

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