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1 A Blockchain Based Video-Game Ecosystem that Rewards Gamers with a Competitive-Proof-of-Stake Consensus Model. Version Last Updated By. Robert Han

2 Abstract A fair and decentralized blockchain based video-game ecosystem that implements the first Competitive-Proof-of-Stake consensus model. The Costume Ecosystem is a self-sustaining digital world, with the ideals of equal opportunity and the fair distribution of wealth. CPOS makes it possible to reward skilled gamers, and average users in a economically sustainable infinite-loop, thereby creating a world of play-driven harmony.

3 Introduction 5 What Problem Are We Solving? 5 What is the Solution? 5 Who is the Target Audience? 5 Access Token, and Currency Coin 6 Costume Token (COST) 6 Costume Coin (COIN) 7 Blockchain 7 Consensus Model 8 Why is CPOS better than the rest? 9 Proof of Grind 9 Proof of Contribution 10 Game Mechanics 11 Battle System 11 Characters / Avatars 12 Creatures 15 Community Platform 18 Democracy and Voting 18 Tournaments & Leaderboard 18 Calendars for Meetups & Events 18 Token Arcades 18 Pop-up Events 19 Private & Public Meetups 19 Marketplace 19 Marketplace Marketplace Digital Wallet 19 Exchange 19 Token Details 20 Token Crowdsale 20 Coin Details 21 Roadmap 21

4 Introduction Costume is the first blockchain to utilize the microcosm of video games to implement a fair and self-sustainable economic system, with a safe and valuable digital asset exchange. Video games, like most forms of art, emulate life, but unlike a painting on the wall, a video game captures all the senses, and like the real world, video games can create an all-encompassing experience - an alternate life that serves as both a testing ground and a highly imaginative form of existence. What Problem Are We Solving? There is corruption in most economic systems, and a lack of foundational incentives for community building, and a fair distribution of wealth. Capitalistic systems are flawed, because they incentivise a dog-eat-dog mentality, and a never-enough approach to wealth accumulation. Corporations hoard large sums of money, while making the rise of their stock price the sole driver of success. And while crypto-currencies are a step in the right direction, we believe that most consensus-models are incomplete, having inherited a clear set of identifiable flaws. PoW being subject to centralization and a high cost to the environment. PoS favoring a rich-get-richer system of control. DPoS implementing a pay-for-votes rule of law that requires too much faith and trust to operate. What is the Solution? The solution is a fair and decentralized world with built in sustainability and economic balance. We believe that the next step in solving that problem is a Blockchain based MMO Video Game built with a CPOS consensus model. Why a Video Game? Video games are new worlds - a way to test new forms of governance, and put simply, they re fun. What is CPOS? CPOS is a Competitive-Proof-of-Stake consensus model that utilizes the breakthroughs of Proof-of-Stake, but eliminates the rich-get-richer aspect of it, while introducing game mechanics as a tool to reward effort and skill. Who is the Target Audience? The Costume Blockchain and Video Game will appeal to four types of people. The first is the skilled and experienced gamer, the person looking to gain income for his/her talents. The second is the person looking to invest some money to secure a node and

5 earn some money in return, financially savvy individuals will see this as an opportunity. The third is the average / casual gamer looking to play-to-earn, unlike other video games, and most Blochains, Costume has built in mechanics that fuel mass adoption, making it possible for everyone to be incentivised-to-play. The fourth is the idealist, the person that sees the truth and potential in what we re building, the person that sees decentralized systems as the future. Access Token, and Currency Coin Costume will have one tradable token, and one tradable coin. The token serving as a membership/access key, and the coin as a currency. Costume Token (COST) The first will be the Costume Token, which is an ERC-20 token, and used both as a means to raise funds, and as a membership key. Users will be required to stake at least 10 tokens in order to play the game and participate in the Costume Ecosystem. Additionally, users interested in helping to secure the network, can choose to run masternodes, by staking a minimum of 10,000 tokens. Costume tokens are capped at 120 million, thereby increasing the demand. This model is deflationary in nature, and seeks to maintain a baseline stability for investors.

6 Costume Coin (COIN) The Costume Coin will be issued by the Costume Blockchain through in-game rewards and block rewards. Costume coin will be capped at 200 Million, with an annual distribution rate of 1-5%, until the total supply has been issued. Blockchain The Costume Blockchain and ecosystem is designed to be a self-sustaining economically incentivized loop. Each component feeding the other, indefinitely. This is made possible by the CPOS consensus model, which prioritizes rank, as a gamers proof-of-grind and contribution, as a signers proof-of-contribution - thereby fueling the economic loop, see below:

7 Consensus Model CPOS - Competitive-Proof-of-Stake: nodes that secure the blockchain are required to meet a set of requirements which add up to a node/signer s score. Block signers are selected randomly from the top 101 highest scoring active nodes. A block signer is required to first meet a minimum staking requirement, acknowledging that any misconduct will result in 100% forfeiture of the staked amount. Subsequently a signer must secure a rank, by sponsoring a team of four gamers who have fulfilled a proof-of-grind rank, and if desired, make a contribution to the community fund which adds a multiplier to the signers overall score and continues to fuel user-growth incentives. Also known as the work loop, see below:

8 Why is CPOS better than the rest? Proof of Grind Proof-of-Grind is designed to reward the most skilled players, and to be a means of coming up with a ranking system. Grind equals effort and skill translated into in-game achievements over time, resulting in a rank, and a tactical advantage over new and average users.

9 Proof of Contribution Designed to incentivised whales, and active nodes to keep the community afloat. Community funds are initially filled with a supply of 20 Million COST Coins. Unlike Proof-of-Grind, which favors skilled gamers, Proof-of-Contribution is designed to incentivise new and average users with a play-to-earn model.

10 Game Mechanics Battle System The in-game battle system is a free-form tactical match between two teams of four players. Characters choose among their avatars, with further strategy being derived from their choice of creature, and item enhancements. Each character is equipped with specialized combos and attacks, each designed with strengths and weaknesses - favorable in one scenario, but not in others. A player s battle equipment selection increases the level of strategy necessary to win. Battle mechanics are designed to resist current level AI enhanced bots by increasing the level of strategy necessary for repeatable victory.

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14 Creatures Collectable Creatures enhance gameplay by offering unique experiences, plot twists and tactical advantages. Made to be unique, each creature offers something special. Users discover creatures within the game through their in-game grind. Each creature can be exchanged, bought or sold for COST Coins. The blockchain ensures a fast, and secure means for this exchange.

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17 Community Platform Community is essential to the Costume ecosystem, which is why we re placing a high priority on building a Community Platform that fosters the ideals we re striving for, namely democratic decision making and transparency of vision and process. We d like our community to have a central location where exchange, decisions, support and communication to take place. Democracy and Voting Token holders will have the option to vote on development, product and character decisions. All voting will be conducted within the community platform. Tournaments & Leaderboard Daily leaderboards and monthly tournaments will fuel continuous engagement and interest. This will be an additional way for gamers to win coins, and have unique experiences. Content packages, new levels, new items and new characters will further lead interest, with tailored competitions that will strategically be released. Tournaments and leaderboards will adjust according to release dates and circumstances, and community interest. While a high score is the first type of leaderboard we could run, there are many that will focus on other achievements, like leveling up, finding hidden easter eggs, team battles, or completely exploring a level. Calendars for Meetups & Events There will be a huge emphasis placed on being around people, and building the community through engagement, gamification and fun. The community platform will include easy access to calendars, and notifications to keep up-to-date with all the Costume events. Token Arcades Rare events, where gamers could come together and play Costume on classic-style arcades. Coin holders will be able to use their coins to play.

18 Pop-up Events Pop-up events will happen as a surprise, with the purpose of gamifying the occasion, which will seek to hype current enthusiasts and entice new ones. Private & Public Meetups We will strategically hold private meetups for coin-holders. While public meetups will be used as a means to expand the community and spread the world. Marketplace The marketplace will be where everyone could pick up their favorite Costume merchandise. All merchandise can be purchased with either Costume Coins, or Rare Digital Assets, depending on the seller's preference. Marketplace 1.0 The first marketplace will focus on opening purchase orders for products made by the development team. Products could include - t-shirts, manga, figurines, keychains, stickers, etc. Marketplace 2.0 The second marketplace will be an open market, where token and coin holders could make and sell their own custom Costume merchandise. From shirts, to art, to toys - the brand will be open to the creativity of the community artists. Sellers will pay a low transaction fee in order to maintain the platform, the rest will go into their wallets. Digital Wallet Costume is a coin-centric ecosystem, which is why there will be an enormous focus on ensuring ease-of-use around purchasing, holding and exchanging coins and other digital assets. Exchange Digital Assets are the future, and the security of those assets are paramount to the success of that future. For gamers, digital asset exchange isn t a new concept, in fact, gamers have been exchanging assets for decades already. Unfortunately most of those systems are flawed. The Costume Blockchain provides a fair means of exchange, and

19 Costume Creatures and Items provide a new form of Commerce. Savvy users will see this as an opportunity by buying and selling their gems in a financially profitable way. The Costume Ecosystem encourages such behavior, giving full ownership to those who have discovered their creatures through work, or who have bought them with their earnings. Token Details The Costume Token is an ERC-20 token, used as an access/membership token. Total Supply 120 Million (originally 200,000,000) Crowdsale Reserved Founders Tokens Burned 40% - 80 Million 10% - 20 Million 10% - 20 Million 40% - 80 Million Token Crowdsale Official Crowdsale Start Date Accepted currencies Rate Tier #1 Rate (Cap at 20 Million Tokens) Tier #2 Rate (Cap at 40 Million Tokens) Tier #3 Rate (Cap at 60 Million Tokens) Tier #4 Rate (Cap at 80 Million Tokens) Minimum goal for current roadmap (roadmap will be adjusted if minimum goal is not met) Ether Per 1 Ether 3400 COST 3200 COST 3000 COST 2800 COST 10,000,000 USD

20 Unsold Token Policy Transferred to Development and Marketing Budget Coin Details The Costume Coin is the currency, used to fuel the in-game economy. Coins will be distributed by the Costume Blockchain, and only through active participation with the Costume ecosystem. Total Supply Community Fund Block Rewards 200 Million 30% - 60 Million 70% Million Roadmap Q1 (January - March) Q2 (April - June) Q3 (July - September) Q4 (October - December) Character Development Gameplay Design Level Design and Animation Plot Structure and Writing White-Paper Add Team Members Prototype Development Website Launch and Crowdsale Q1 (January - March) Q2 (April - June) Pegged ERC-20 Token tradable on Exchanges Web Platform Voting for Coin Holders Q3 Community Outreach

21 (July - September) Q4 (October - December) Web Based Merchandise Store Blockchain Testnet MMO Demo Game Q1 (January - March) Q2 (April - June) Q3 (July - September) Costume MMO Alpha Testing Group Costume MMO Beta Testing Costume MMO V.1 Blockchain Mainnet Costume Coin (Coin) Tradable on Exchanges Q4 (October - December) Enhancements New Roadmap