As a company, Veloce has been in the competitive racing market for over a decade. However, in recent years it has taken an interest in gaming, esports, and web3 technology. Although it has not lost its roots and continues to manage racecar drivers and teams through Veloce Racing, the company has capitalized on the ballooning public appreciation for virtual content.
Through this transformation, Veloce Racing and Esports have become brands under the umbrella of the Veloce Media Group (VMG). VMG helps guide the company’s enterprises and coordinates several content creators. It has worked on branding opportunities with boxer Manny Pacquiao, Formula One driver Lando Norris, and game maker EA in various partnerships.
In 2023, VMG announced that it would be a community-owned project, using the VEXT token as a way for its users to govern and direct the company’s activities, and built on Ethereum’s Polygon sidechain.
How was Veloce developed?
In its original form, Veloce Sports was founded in 2015 as a driver management company, supporting real-life racecar drivers. However, after 2018 the company broadened its concentration to virtual racing and online content creation, officially launching Veloce Esports.
In April 2018, Veloce Esports signed its first team: Alfa Romero Racing. Further partnerships with McLaren and Mercedes followed in the next few years. While the virtual racing arm of Veloce built its esports empire, Veloce Racing was sponsoring real-world drivers. It partnered with W Series repeat winner Jamie Chadwick, and in 2023 the Veloce team claimed its first victory at the Extreme E electric vehicle off-road series. Finally, as its two main brands (Esports and Racing) focused on drivers—both virtual and physical—the overarching Veloce Media Group (VMG) additionally worked with content creators, attracting over 600 million monthly views by January 2023.
Operating out of London, VMG is led by CEO Rupert Svendsen-Cook, who has his own history as a car racing driver and has been with the company since its inception. Starting in 2022, he also served as the director of the Singapore-based VEXT Foundation.
Gaming-focused venture capital group Animoca Brands was revealed as a backer of Veloce in 2021. In mid-2023, VMG announced an investment partnership with digital asset-focused firm GEM Digital Limited, a deal worth up to $50 million through an agreement surrounding VEXT tokens.
How does Veloce work?
There are three components to Veloce’s operations, each with a slightly different emphasis in the larger ecosystem. Veloce Media Group (VMG) handles these brands and coordinates their efforts.
- Veloce Esports is the professional gaming/esports arm of the company that operates virtual teams for Ferrari, Mercedes, and McLaren. It also participates in non-racing game competitions including those for Fortnight and Halo.
- Veloce Racing is Veloce’s physical racing outfit. They compete in real-world races like Extreme E, which is an electric off-road racing series.
- Veloce Media Network is a collection of channels that produce esports, racing, and gaming content through platforms like YouTube.
VMG aims to achieve community-driven decentralization through governance using the VEXT token. The company chose to build on the Polygon blockchain because of its scalability, so the ECR-20 token is primarily used on Ethereum’s biggest sidechain.
Using the governance token, users can make and vote for proposals to guide the ecosystem. In order to guard against unequal weighting, VMG uses the Penrose method which calculates voting power using a square root of users’ VEXT holdings, leveling the playing field for smaller holders.
How is the VEXT token used?
VEXT is an ERC-20 token compatible with the Ethereum and Polygon chains. It is used for multiple functions in the VMG ecosystem—primarily as a means of membership. Holders can use VEXT to vote on the direction of the brand, access certain events/experiences/benefits, and interact with online games. Access to perks is stratified in VMG’s “race clubs,” which require locking up incremental numbers of VEXT tokens. Each level—silver, gold, and platinum—gives users increasing access to token rewards and other prizes.
Token economics and distribution
There is a maximum total supply of 300 million VEXT. Approximately 67% of these are dedicated to 1) rewards for those who lock up their tokens through race clubs, and 2) distributions from a treasury fund to support growth of the ecosystem through liquidity provision and other means. About 27% of tokens were reserved for developers, investors, and business partners. The remaining VEXT were provided to the market at launch for early liquidity.
Conclusion
- Veloce is a community-minded company that focuses on racing, esports, and gaming.
- The Veloce Media Group (VMG) supports the Racing, Esports, and Media Network brands by coordinating their efforts and unifying the company’s vision.
- VEXT is Veloce’s Ethereum- and Polygon-based token that enables community governance and a three-tiered loyalty program.