Hamster Kombat (HMSTR) Promises to Revive Its Ecosystem With The Introduction of a Decentralized Autonomous Organization (DAO)

Play-to-Earn (P2E) Telegram-based game Hamster Kombat has announced the debut of a new phase, The DAO. This could boost Hamster Coin.

Hamster Kombat, the Play-to-Earn (P2E) Telegram-based game, has announced a new phase called The DAO. This move is likely to boost Hamster Coin.

The name suggests that the new era will involve a Decentralized Autonomous Organization (DAO), marking the introduction of a new utility for the viral Telegram-based project.

Hamster Kombat rose to fame a few months ago amid the surge in popularity of Tap-2-Earn (T2E) games on Telegram.

Now, according to the announcement on X, the DAO will enable holders of the game’s native token, HMSTR, to make decisions pertaining to the project.

This means they can vote on proposals for the Hamster Kombat project and determine the ecosystem’s future direction. HMSTR holders will participate in day-to-day governance and have decision-making power in the blockchain project.

Apart from these few details, no other information concerning the DAO has been released.

However, this potential decentralization shift can notably reinstate investors’ interest in Hamster Kombat following the drastic price fall it experienced earlier.

The Hamster Kombat game was launched earlier this year after the community expressed dissatisfaction with the delay in the project.

Several players were left fuming when it finally had its HMSTR airdrop due to the small allocation they received. Following its launch in September, the Hamster coin hit an all-time high (ATH) of $0.01004.

However, it has since crashed by a total of 67.42% from the ATH, trading at $0.00318 at the time of writing.

Compared to November, when the token hit its all-time low (ATL) of $0.0025, analysts consider the current price level a modest recovery. It is now 48.73% higher than the ATL but has crashed more than 23% this past week and by 36.81% in the last 30 days.

A look through daily on-chain charts by TradingView confirms the series of crashes that HMSTR has survived this season.

Its Relative Strength Index (RSI) shows a value below 40. This suggests that the bears are in charge, hinting at a likely rebound in the future.

Hamster Kombat promised to provide life-changing returns to its holders but has yet to fulfill that promise.

Many players have vowed not to participate in Season 2, scheduled for Summer 2025. It is, therefore, not surprising that interest in the Telegram-based game has dipped significantly.

Insights obtained from Google trend suggests that the hype on the project is gradually dwindling.

The DAO may be Hamster Kombat’s chance to revive its ecosystem. Although the digital asset community is disappointed in Hamster Kombat operators for allegedly scamming their users, there is still a chance for redemption.

The project initially informed players of a high token allocation rate for context. However, investors ended up with a small fraction of the distributed tokens when it launched.

In Nigeria, for instance, the game’s players received between $1 to $4 worth of HMSTR as payouts for months of engagement with the application. The same thing happened in other countries.

Judging by these discrepancies, the crash in HMSTR price was not surprising.