Echelon Prime Describes Itself As

Echelon Prime is a Web3 gaming ecosystem leveraging blockchain technology to develop innovative gaming models and economies. Founded in January 2022, the ecosystem operates on the Ethereum and Base blockchains, supporting robust mechanics for player engagement and asset management. Its primary projects include the sci-fi trading card game Parallel TCG (currently in open beta) and Parallel Colony (a simulation game in active development). The ecosystem's native utility token, PRIME, enables in-game transactions, governance, and engagement incentives across the platform.

Project Function

Echelon Prime’s ecosystem fosters player-driven gaming economies powered by blockchain technology, offering enhanced opportunities for player engagement and asset ownership.

Parallel TCG: A sci-fi NFT trading card game where strategy meets blockchain. Players are able to compete in ranked matches, earn PRIME, acquire unique NFTs, and more.

Parallel Colony: A simulation game under active development, where players partner with AI avatars to navigate a mining colony. Each avatar controls a 6551 wallet, allowing ownership of digital possessions, including ERC-1155 tokens and PRIME. Avatars interact with semi-autonomous agents, enabling dynamic trade and gameplay strategies.

Prime Sinks

PRIME Sinks are token-gated products, services, and experiences designed to incentivize engagement while reducing the circulating supply of PRIME. Spending in Sinks redistributes tokens across the ecosystem via the Sink Schedule, which includes allocations to:

• Gameplay Pool: Replenishes tokens used as gameplay rewards.
• Sink Creators: Developers, such as Parallel Studios.
• Echelon Foundation Reserve: Supports ongoing operations.
• Prime Drives & ParaSets: Community initiatives.

Over a 36-month period (beginning July 2023), the allocation to ParaSets will decrease while the Gameplay Pool allocation increases, reflecting a long-term commitment to rewarding active participants.

Upcoming PRIME Sinks include various utility-focused offerings like card lending, equipment, and physical cards, in addition to existing products like Terminals, Avatars, Artigraphs, and more. 

Token Utility

PRIME serves as the native utility token for the Echelon ecosystem, powering transactions, governance, and access to token-gated features. Its supply is capped at 111,111,111 tokens, with the live circulating supply available for tracking on echelon.io/prime.

Distribution: PRIME is earned through gameplay rewards and redistributed via Sink mechanisms. Governance: PRIME holders influence the ecosystem through governance proposals and the election of Emissary Primes (EPs).

Governance

The Echelon ecosystem prioritizes community-led governance, supported by the structured involvement of Emissary Primes. Key elements include:

• Governance Proposals: PRIME holders submit proposals (costing 2 PRIME) for ecosystem changes, which are vetted for feasibility and alignment with community interests.
• Emissary Primes (EPs): Elected representatives responsible for pre-screening and refining proposals before community voting. EP decisions require unanimous consensus and are conducted via Snapshot.
• Voting Mechanics: Proposals require an 11% quorum of circulating PRIME for validity, promoting active community participation.

About the Founders 

Toronto-based Parallel Studios founded the Echelon Prime Foundation, seeking to bring together traditional gaming expertise with blockchain technology. Key figures include founder Sascha Darius Mojtahedi, who leads development of the free-to-play TCG game, and co-founder Kohji Nagata. 

In March 2024, Parallel Studios secured a funding round of $35 million from investors including Distributed Global Ventures, OSS Capital, VanEck, Coinbase Ventures, and the Solana Foundation. Some of these entities had contributed to previous fund raising initiatives by Parallel Studios. 

Risks of PRIME

Like an investment in other crypto assets, there are some general risks to investing in PRIME. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in PRIME is subject to the following specific risks:

• Any potential success associated with PRIME is dependent on its rate of adoption by users. Investors should be aware a number of competing blockchain gaming projects have entered the field since 2017.
• Any potential success associated with PRIME is dependent on a number of external factors, such as the growth and increased adoption of the metaverse economy, and the continued popularity of NFTs as digital collectibles.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with PRIME. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The PRIME community and Parallel Studios are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of PRIME have no recourse to the PRIME community, Parallel Studios,or Uphold if PRIME declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing PRIME on the Uphold Platform, Uphold performed due diligence on PRIME and determined that PRIME is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of PRIME, including ensuring the source code being open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of PRIME.
• Marketing materials put forward by the PRIME social team including, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with PRIME, including any code defects, security breaches and other threats concerning PRIME and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with PRIME, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of PRIME.