CHIC Cosmonaut

Two weeks have flown by quickly. We've conducted numerous tests. Development is never entirely smooth sailing; failures and encountering various problems are the norm. Although we've faced obstacles in developing certain MVP features these past two weeks, remember that a prototype is essentially "a practical concept validation of certain functionalities." Despite this, our team's consensus has grown even stronger. Our whitepaper has also seen significant updates during these two weeks (I often joke that this is a technical document and a tech company). Perhaps that's exactly what we are. CHIC remains optimistic in the face of 4IR's uncertainties. This is an extremely challenging track, and although I've said it many times, I want to reiterate my respect and gratitude to my founding team. You are absolutely the best. Let's be like the highest-ranked hunters in Monster Hunter, challenge Zinogre, and emerge victorious!

Since entering the stealth startup and MVP development phase, our posts have significantly decreased. However, today is a day worth posting about. CHIC has always been an explorer and disruptor. Although today marks just a small milestone in our development, it excites us greatly. CHIC is moving towards the completion of one-tenth (Maybe? Or five?) of the AI prototype. Despite becoming a stealth startup midway, our followers know that CHIC’s track is the rare Autonomous World (AW). The development of AW, along with AI, is exceptionally variable and lacks a concrete and clear definition. If you have been studying, you would know that it feels like studying philosophy. For a non-technical founder, seeing one-tenth is extremely exciting. It symbolizes our effort and resilience. Let’s keep waiting; I believe we will see everyone soon.

We're excited to enter the MVP R&D phase. We believe that investing time and resources in R&D will lay a solid foundation for the future. We are experiencing an unprecedented technological revolution, where Web3 games and AI are destined to merge. Our entire team is ready to tackle the most profound and even philosophical challenge in the crypto space: the Autonomous World. Thinking outside the box is not easy; it’s like needing to know that you don’t know what you don’t know. Similarly, we can't fully explain the details of what we're doing. We're very much looking forward to recruiting early users later. Our approach is similar to that of traditional tech startups. It’s not quite like a typical Web3 company. However, given the current regulatory environment, this might be the most appropriate approach. In any case, we're excited to meet everyone. OMG, our preparation period has been as long as a dinosaur fossil!

The Japanese government has announced the "Web3 White Paper 2024 - Towards an Era where New Technologies Become Social Infrastructure (Summary)" and the "AI White Paper 2024", and we are very pleased about it. Previously, when we contacted the Cabinet Office's sandbox team and the Financial Services Agency, we experienced the professionalism of Japan's public institutions. This white paper and summary demonstrate Japan's determination to become one of the leaders in the Fourth Industrial Revolution, as well as its excellent balance between innovation and regulation. As entrepreneurs in the Web3 space, we inevitably touch upon many sensitive areas, including finance and the increasing presence of AI. While it is certain that there will be regulations in the future, I believe in the Japanese government's slogan of being the "world's most AI-friendly country." I am confident in Japan's rigor in terms of policy and risk management, which is crucial. In today's increasingly blurred boundary between the real and virtual worlds, innovators need to carefully consider whether their designs and technologies are beneficial. In the case of gaming, the most important thing is to avoid "addiction" and "speculation." As a project that values regulations, we do not agree with maintaining speculative aspects in cryptographic games. Instead, we focus on how to maintain a balance between centralization and decentralization. The key to Web3 is community, and what DAOs mean for governments is important to consider. Regardless of where we are, we need to reassess whether communities in cryptographic projects are advantageous or disadvantageous. I believe this will be the "starting point" that everyone will think about in 2024.

We have decided to adopt a stealth startup in the early stage as a prudent and sincere startup project. This is one of the reasons why it has taken long to make announcement. Given that FinTech has become the industry standard, this approach is aimed at safeguarding innovative assets and ensuring stable development. While it became evident in the initial announcement that this project is a "game," no confidential information has actually been disclosed. Moving forward, external disclosures will be handled with greater caution. Your understanding is greatly appreciated. This does not mean that CHIC is not welcoming external parties. Anyone, especially collaborators from the gaming and technology web3 industries who are keen to learn more about this project, is welcome. Thank you!

CHIC recognizes the challenge of linking PAE (Play and Earn) with fiat currency as it globalizes. The team aims to transition earnings from cash to virtual assets. People may need to get accustomed to the idea that the future value lies in digital ownership, not just financial gains for players, as the latter can be unhealthy and illegal. Therefore, the team prioritizes the development of the game's virtual economy over token economics. This aims to exclude the financial value of tokens and instead focus on enhancing token scalability, game applications, and social aspects on the blockchain. Treating tokens as coins, similar to players using game coins to purchase items, is not the optimal solution given the innovation and adaptability of Web3. Furthermore, because players are accustomed to the luxury brought by the P2E model, they might consider reverting to Web2. Hence, game developers play a crucial role amid the power dynamics between governments and the blockchain community. Given the strictness of financial regulations in various countries, CHIC is confident in adhering to the game rules set by governments and financial institutions. This is essential. The founders take a conservative approach to forming the virtual economy, as no one dares to try bold experiments. In the current crypto landscape, registering a company is synonymous with centralization. Therefore, the team believes that, whether decentralized or not, they must first align with government directives to pursue the "earnings" demanded by Web3. Subsequently, they will need to collaborate with governments and other stakeholders to discuss how to operate the "play and earn" model within a legal framework. This may be difficult for many players and communities to accept, but the P2E model remains legal in some countries. However, as startup companies are demanded to expand globally, and many countries begin investigating whether Web3 games facilitate money laundering or illegal activities, legality is the team's top priority. Therefore, CHIC's virtual economy currently cannot bring earnings to players, but Web3 game players need to gradually understand that it may not be allowed in the current financial environment.

Happy Lunar New Year! CHIC achieved many milestones last year and solidified the foundation of the project. Shifted focus from the US to Japan, achieved compliance with the project, stabilized the global team, entered the prototype development stage, became an AI + NFT project, concretized the project, abandoned the P2E and transitioned to a traditional model focused on gameplay. These milestones were all significant decisions and surprised many people as they were achieved without funding from accelerators or VCs. This proves that CHIC's innovative concept has truly reshaped the word "game" in both business model and gameplay aspects. As the full-time founder, I'm satisfied with the results of last year's project, but CHIC also faced many challenges in past: Continual movement of the team, regulatory issues, time cost issues. CHIC was like a baby in early 2023, but by the end of the year, it had grown into a different giant. The team expects this game project not only to pave the way for new storytelling in NFTs but also to solve the negative image associated with Web3 games, such as Ponzi schemes, fraud, and short-term management, that have plagued the industry. We're taking this project seriously and not just focusing on establishing a company. CHIC recently contacted the Japanese government to obtain compliance documents. The team prioritizes compliance with financial and crypto regulations over concealment. However, centralization inevitably sacrifices the element of "earn" that Web3 players have preferred in the past. Nevertheless, it's clear from any perspective that the industry is beginning to cleanse itself, and we believe that we can only operate within a "framework." Regardless of the model, we welcome feedback from everyone when CHIC is launched. The new year is going to be an explosive one!

This month marks significant changes for CHIC.  Our team has always prioritized compliance above all else, absolutely. However, due to varying global government policies regarding GameFi, the team believes that as a Web3 project, we should no longer focus on Play-to-Earn (P2E). Understanding that this shift may not be universally welcomed, especially from the perspective of native Web3 players, but the team recognizes the importance of a more globalized approach in the year 2024, irrespective of the nature of the project. The team is now aligning with A16z's idea of Play-and-Earn (PAE), emphasizing the token's applicability and the game's playability, social aspects, innovation, and more. This shift is seen as the future for Web3 games in response to governmental regulations. Although the team acknowledges the potential challenges of games that do not allow players to earn, they believe that Web3 games need to involve more collaboration with traditional gaming companies. Such collaboration should be based on compliance, with joint planning for a blockchain game virtual economy acceptable to all "3 parties." Despite feeling uneasy, the team remains committed to prioritizing "security," and they hope that if you are a player, you can understand that the current landscape is not the explosive period of 2021-2022. Everything now needs to prioritize "legal" considerations. CHIC absolutely forbids any malicious use of virtual assets in the game, and they will implement KYC & AML as the fundamental measures.

CHIC recognizes the necessity of optimizing as a game amid the rapid evolution of AI. The traditional format of main quests is discarded, reclaiming control. The team acknowledges that utilizing in-house MUD game engine is more reliable than depending on external platforms. Even though we initially removed the 'virtual space' provided by the 'virtual office,' adding AI-NPCs is a remarkable feat. The CHIC worldview is constructed based on the founder's movie script. Now, players can truly converse with these characters, undertake missions, and feel the personalities of the characters. We aim for 'psychological immersion' rather than 'visual immersion.' AI-NPCs have the potential to become your confidant, mentor, and gaming companion within the confines of your mobile device. All of these advancements are owed to the comprehensive development brought about by AI companies in games and the metaverse. The progress of CHIC is poised to be disruptive.

Approaching the end of 2023, In the realm of Web3 projects, challenges have surfaced within a month, yet we've adeptly resolved them. Throughout the year, CHIC has metaphorically soared over obstacles, much like Mario overcoming piranha plants. Reflecting as a founder, it resembled a nightmarish journey. However, overcoming these extraordinary challenges has deeply fortified CHIC's foundation, a testament to the leadership team's accomplishments. Looking forward to 2024, we eagerly anticipate CHIC, guided by a global team, sparking a revolution reminiscent of the protagonist Cloud Strife in Final Fantasy VII. Our strategy involves establishing a base in Japan as we set our sights on the world. We express gratitude to everyone, the solid trust within the team, and the encouragement from our legal advisors. Together, we've solidified the business landscape for CHIC's Web3 business expansion.