The Web3Port Foundation recently announced the completion of a new round of investment in Balance.fun. This financing attracted participation from several well-known institutions, including industry leaders such as Animoca Brands, Amber Group, GSR Markets, MarbleX, Mask Network, MetaBlast Group, Bing Venture, and Nonagon Capital. This marks another important move by Web3Port in exploring new business models empowered by Web3 and blockchain technology.

Balance.fun, developed by E-PAL, the world's largest gaming companion platform, is a Web3 social and gaming platform that combines blockchain and AI technology. By redefining social and gaming experiences, Balance.fun aims to become a key bridge connecting Web2 and Web3 users.

Background

The gaming companion industry has experienced rapid growth in recent years, gradually expanding from a niche gaming service into a global industry. By providing personalized gaming interaction experiences and deep social connections, gaming companion platforms have successfully attracted millions of players, becoming an essential part of the modern gaming ecosystem.

However, traditional gaming companion models also face some fundamental issues, including: low user retention rates and lack of long-term appeal; difficulty in ensuring service quality, which affects user experience; and the undervaluation of the labor of companions.

With the rise of blockchain and Web3 technologies, this industry is undergoing a significant transformation:

• Tokenized economy-driven ecosystem: With blockchain technology, Web3 platforms can provide economic rewards to users and companions through token incentive models, attracting more users and enhancing platform activity and user engagement. At the same time, companions can establish personal economic systems by issuing fan tokens, attracting loyal users to participate in the long-term development and revenue growth of companions through tokens.
• Decentralized identity and trust mechanisms: Utilizing on-chain NFTs and DID technology, companions' skills, achievements, and service records can be transparently displayed. All transactions, evaluations, and service records are publicly recorded on the blockchain, greatly enhancing trust and transparency, ensuring fairness in user payments and service delivery.
• Global market expansion: Web3 technology breaks down geographical and ecological barriers, providing a new global development path for the gaming companion industry. Companion platforms can serve Web2 gaming users while eliminating cross-border payment and language barriers through Web3 technology, allowing global users to easily join and enjoy services.

As the world's largest gaming companion platform, E-PAL has accumulated a vast user base and companion network over years of operation. Under the Web2 model, E-PAL primarily relies on commissions and service fees for profit. To address the limitations of traditional models, E-PAL is fully transforming to Web3 by introducing blockchain technology to launch the Balance platform, building an infrastructure centered around token economy and fan agreements, combining the traffic advantages of Web2 with the innovative potential of Web3 to create a new decentralized gaming platform.

Balance.fun Solution

Balance.fun, developed by the E-PAL team, aims to provide easy interaction and experiences for developers, creators, and users in a decentralized world by integrating AI-driven models, decentralized tools, and blockchain frameworks. Developers can easily build and promote games and applications using powerful blockchain and AI tools, while users can enjoy a more personalized, diverse, and interactive experience, driving the global mass adoption of Web3 technology.

To achieve a Web3 user experience infrastructure aimed at mass adoption, Balance.fun has launched a Web3 infrastructure composed of five interconnected layers, each enhancing the platform's functionality:

• Application Layer: Includes Human EPALs, AI EPALs, AI-driven battle report systems, score-sharing SBTs, game NFT passes, etc.
• Platform Layer: Supports both Web2 and Web3 games, including a selection of high-quality third-party games and a few self-developed games. The platform also integrates an NFT Launchpad and NFT Marketplace, supporting project parties in issuing and selling project NFTs, and providing an NFT trading market while charging platform fees.
• Protocol Layer: Provides tools such as the EPAL Fans token Launchpad, EPAL Fans protocol, and EPAL FT trading protocol. The EPAL Fans protocol supports gaming companions in issuing fan tokens on the EPAL Fans Launchpad, which can be traded using the platform token EPT. The EPAL FT trading protocol allows for the free trading of fan tokens.
• Infrastructure Layer: Includes key services such as the Balance ID system, Balance chain, Balance stablecoin, and Balance node system, supporting a stable ecosystem.
• Token Layer: Includes EPT tokens and EPT Fans tokens, used to incentivize users, early adopters, investors, and companions through tokens and digital collectibles.

Based on this five-layer internet architecture, Balance.fun perfectly integrates Web2 and Web3 games, simplifying user registration, game access, and game asset trading and purchasing processes through NFT and DID identity systems. The Fans Protocol helps companions issue fan tokens to establish personal economic systems, enhancing social connections with players and long-term development. By introducing AI-driven systems as core elements, users can create personalized AI virtual companions that can participate in gaming, learning, entertainment, and even productivity tasks, adapting to individual preferences, behaviors, and needs, thereby significantly enhancing user experience and playability.

Product and Ecosystem Progress

Web2 Companion Platform E-PAL:

Launched in March 2020, E-PAL is the world's largest gaming companion platform, boasting over 5 million users and 450,000 Epals (companion users). "E-PAL" has now become the preferred term for gaming companions globally.

E-PAL has supported the launch of games from several well-known Web2 game publishers, achieving great success and establishing long-term partnerships with top Web2 gaming companies such as Riot Games, Ubisoft, Bandai Namco, Blizzard, and EA.

The mobile app of E-PAL has over 500K+ downloads on Google Play and more than 2K+ users on the App Store, with a rating of over 4.6+.

Web3 Gaming Platform Balance.fun:

Balance.fun has launched and currently offers some social and gaming features. Balance.fun has partnered with over 80 Web3 gaming companies and is the only platform serving both Web2 and Web3 gaming companies, supporting over 180 games across Web2 and Web3. During its Beta testing phase, the Epal/Balance.fun dual platform added millions of new addresses and completed nearly ten million on-chain interactions, with most users coming from the Web2 user base.

Web3 Node Sales:

Key Nodes are the backbone of the Balance.fun ecosystem, playing an important role in supporting decentralized applications (dApps) and services, including Web3 gaming reward distribution, decentralized data processing and storage, AI training networks, DeFi applications, NFT minting and distribution, DAO governance and voting, etc. Node holders will actively participate in network operations while receiving potential returns, token rewards (25% of the total supply of $EPT), and long-term rights.

The initial price of Balance.fun nodes is $599, with a total of 100,000 nodes. Since sales began in November 2024, over 30,000 Key Nodes have been sold, with total sales exceeding $18 million.

Team and Financing

Team Background

Balance.fun was founded by the E-PAL Labs team, whose founders have impressive backgrounds. Brian Xiong previously founded the visual novel platform Wuxia Dreams, which was acquired by Tencent; Norris Wang has founded multiple projects, including Oasis Pastoral (smart farming), UCI Group (real estate), and Central Estate (real estate); Adam Chang is a seasoned Web3 entrepreneur with extensive experience in blockchain project management, including GameFi, DeFi, and short video platforms, driving the rapid development and success of multiple projects; Lucas Lee has served as a private equity investor and managing partner of META_W Capital, and has been a director of several publicly listed companies in the U.S. The team currently has about 40 employees, most of whom are technical personnel, based in LA, with team members having rich experience in game development, internet market operations, community management, and business development.

Financing Situation

In terms of financing, E-PAL has successfully completed two rounds of financing, raising a total of $43 million, reflecting the recognition of investment institutions in the E-PAL and Balance.fun ecosystem.

• In September 2024, E-PAL successfully completed two rounds of financing (Seed Round + Venture Round) led by Andreessen Horowitz (a16z) and Galaxy Interactive, raising a total of $33 million. The financing also received support from other investment institutions, including Animoca Brands, K5, CLF Partners, MBK Capital, New Heights Fund, AMBER, MarbleX, Sky Mantra, Tuna, Aptos Labs, IOBC, Leland, Halcyon Capital, Uphonest, Taisu Ventures, Gate Labs, DWF Ventures, BING, WAGMI, Steve Chen (YouTube co-founder), Michael Kives (K5 / former CAA), Gracy Chen (Bitget CEO), etc.
• In November 2024, Balance.fun raised over $10 million from institutional investments in node sales, including Animoca Brands, Amber Group, GSR Markets, MarbleX, Mask Network, MetaBlast Group, Web3port Foundation, Bing Venture, and Nonagon Capital.

Tokenomics

The tokens in the Balance.fun ecosystem include two types: the $EPT governance token and the E-Pal Fans token. By combining $EPT and EPAL Fans tokens, the E-Pal platform is redefining the creator economy in Web3, empowering the EPAL and fan community to jointly build a vibrant decentralized ecosystem. As the Balance ecosystem flourishes, both the E-Pal platform and users can benefit from the strong utility of $EPT, achieving a win-win situation.

EPT Token:

$EPT is the governance and utility token driving the Balance ecosystem, with a total supply of 10 billion tokens. Its main function is to incentivize various activities within the ecosystem, such as trading, liquidity provision, and application development. $EPT establishes an incentive mechanism among traders, creators, and the market, ensuring that all participants are encouraged to engage in network activities and benefit from them.

The utility and application scenarios of $EPT include:

• Gaming Companion Payment Token: The primary payment method for all gaming companion services on the E-PAL platform, enabling seamless transactions between users and companions.
• Fan Protocol Currency: Used for minting and trading fan tokens for companions, supporting the entire fan token economy within the ecosystem.
• Governance Token: Voting rights for platform upgrades and protocol changes, allowing proposals to be submitted and voting rights to be obtained through staking tokens.
• Platform Service Token: The payment method for all services on the Balance platform, used to access premium platform features.
• Gas Token for Balance Chain
• Balance ID Operations: Tokens required to create and update Balance IDs, used to pay for premium features and service fees of Balance ID.

E-Pal Fans Token:

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

In the traditional Web2 model, many EPALs create value for the platform, but their relationship with users is more transactional, resembling that of service providers and customers. Through the E-Pal Fans token, this relationship can be transformed into a model more akin to that of creators and fan communities. The E-Pal Fans token provides EPALs with the opportunity to deeply engage with their most loyal supporters and share the long-term value they co-create.

E-Pal Fans tokens are issued through a Bonding Curve model, employing a dynamic pricing strategy directly linked to the market value of their fan tokens. Fans can use these tokens to access exclusive services provided by their favorite EPALs while participating in the long-term value growth of EPALs.

Roadmap and Planning

E-PAL was established in March 2020, with investments from a16z and Galaxy Interactive, gaining popularity in North America and Europe, and beginning collaborations with some of the world's most popular games such as League of Legends (LOL) and Call of Duty (COD). By January 2024, it became the largest gaming companion platform globally, with 4.2 million users and 450,000 Epals.

In February 2024, the E-PAL team shifted its focus to artificial intelligence and blockchain, launching Balance.fun to enhance user experience and reduce costs using AI, while integrating blockchain to support fan tokens through the Bonding Curve model.

In Q3 --- Q4 of 2024, the focus will be on enhancing Web2 user experiences using Web3 tools. The Balance platform product will launch, supporting both Web2 and Web3 games, providing services for over 150 games. Technically, a new generation of infrastructure will be developed (including five interconnected layers: application layer, platform layer, protocol layer, infrastructure layer, and token layer), providing users with AI-driven tools, NFT features, and integrated blockchain solutions. In marketing, partnerships with Binance, OKX Wallet, etc., will be established to launch pioneering badge minting activities, attracting a large number of Web3 users to participate. The node system and sales plan will be launched in November.

In Q1 of 2025, Balance will list the EPT token on CEX and announce a token buyback plan. At the same time, the fan token product V3 will be launched, leveraging fan economy to focus on traffic.

In Q2 --- Q3 of 2025, efforts will be made in product functionality and marketing collaborations, reaching new partnerships with Web2 giants and announcing brand upgrade strategies; new AI features, Telegram mini-games, and the Balance ID system will be introduced.

From the overall roadmap of Balance, the project's path is quite clear, successfully transitioning from Web2 to Web3, with effective strategies and execution in technology, product and marketing, financing, and community building to achieve the goal of making Balance a comprehensive Web3 ecosystem.

Conclusion

Balance.fun, through the deep integration of blockchain and AI technology, brings a new experience to gamers and companions. As a key investment project of the Web3Port Foundation, Balance.fun demonstrates strong advantages in market potential, technological innovation, and team execution.

In the future, with the TGE of the $EPT token and its listing on CEX exchanges, the launch of fan tokens, and further improvements in AI features, Balance.fun is expected to become a benchmark in the Web3 gaming field. We look forward to its continued breakthroughs and developments in the industry.