Threats

There is no market with looming uncertainties threatening its existence, and the Web3 gaming space is not excluded. Particularly, Charis is not prone to these threats.

The team believes so much in transparency. As a result, we want to effectively carry along our investors, users, and community on the risks that the project is managing.

This is important for an efficient SWOT analysis of the entire Charis business model. Foremost, we must emphasize that we have overcome some threats simply by the design of the protocol itself, which has checkmated some possible market turbulence.

1. Regulation

Some governments place strict regulations on some Web2 games based on taxes, censorship, and general compliance. In turn, most—if not all—Web3 games adhered to these regulations.

However, the entire blockchain industry is not as regulated as others, and governments are interested in taming it by way of regulations, whereas it is a much more dynamic market.

Notably, Charis and other Web3 games are not clearly against regulations because they are understandable from a national or municipal governance point of view.

However, Web3 games are hesitant or rather resolute on not censoring and exposing their users’ details. At its core, blockchain technology is founded on anonymity and censorship resistance. As a result, Web3 games such as Charis must also uphold this tenet.

1. Traditional Gaming Market

The traditional gaming market is currently worth much more than the valuation of the Web3 gaming industry. Therefore, the latter is still at the verge of defying odds, while the former is already established.

Meanwhile, market taste can be transient; users who seem to prefer Web3 games might not hold the same view in the future, thus leading to a potential and gradual decline of Web3 games.

This threat is the inspiration behind why Zodium is bullish on community building. We believe if the community is vibrant, we will build a product that has hit product-market fit; once PMF is achieved, user retention is certain.

1. Smart Contract Exploitation

Charis itself runs on the blockchain, as are games built on it. The games are built with smart contracts - programs to build on-chain applications.

Just like any other codebase or program, unethical hackers can break into smart contracts and drain it. Several Web3 programs have died a natural death this way.

The Zodium team did not shy away from this possibility. Hence, we have taken—and are planning to take—actions to tighten our security. This includes multiple audits, audit contests, and bug bounties. Read more on this under Security Considerations.