The 21 Tiered Red-Flag System
Defined by Sean Sandoval in Chapter 3 of The P2E Bible (p. 50–55 & p. 211).
Print Companion Directory — Continuously Verified
As promised on p. 218 of The P2E Bible("Current updates and new red flags as they emerge: p2ebible.com/redflags"), this living directory monitors live GameFi launches, proxy admin key changes, and contract exploit patterns in real time.
Tier 1: Walk Away Immediately (9 Items)
Rule: One hit = done. No exceptions, no rationalizations.
Undoxxed / Anonymous Team with Treasury Control
Founders retain control of contract keys or treasury without public identity or multisig.
Guaranteed Daily ROI / Fixed APY Promises
Promising fixed yield percentages regardless of market dynamics or player growth.
No Token Sinks (Pure Faucet Architecture)
Tokens are minted for gameplay with zero mechanisms to burn or consume them.
Unaudited Contracts with Mint Functions
Smart contracts allow arbitrary token minting without public audit or timelock.
Paid Shilling & Bot-Dominated Socials
Discord or Twitter populated primarily by automated giveaway bots and paid influencers.
Pay-to-Win Gated Progress with No Free Loop
Core progression requires purchasing high-cost NFTs before accessing gameplay.
Centralized Single-Key Treasury Control
Single private key can drain project liquidity or alter contract parameters.
Sink Efficiency Ratio (η) < 0.60
Daily token creation outpaces consumption by over 40%; death spiral imminent.
Short Team Vesting (< 12 Month Cliff)
Team tokens unlock in full within 12 months of token launch.
Tier 2: Serious Concerns (6 Items)
Rule: Three or more Tier 2 flags carry the exact same weight as a single Walk Away flag.
No Prior Shipped Game or Software Track Record
Team has never built or shipped commercial software or Web3 applications.
Browser-Based Idle Clicker with Zero Mechanics
Lack of real gameplay loop; relies entirely on timer countdowns and click rewards.
High Mercenary Guild Concentration (> 60%)
Player base dominated by scholar guilds extracting yield without reinvestment.
Dual-Token System with Deprecating Utility
Reward token utility drops as player count scales, accelerating inflation.
Custom Unaudited Bridge Infrastructure
Cross-chain bridge created in-house without battle-tested security audits.
Sink Efficiency Ratio (η) Between 0.60 and 0.80
Mild to severe token leak; requires monthly monitoring.
Tier 3: Monitor Closely (6 Items)
Rule: These are yellow flags, not disqualifiers — document them and revisit monthly.
High Initial NFT Entry Barrier (> $500)
Cap requirement limits organic player acquisition during market downturns.
Negative Founder Response to Diligence Questions
Team bans or censors users asking standard tokenomics or audit questions.
Closed-Source Game Server Logic
Server-side drop rates and reward calculations cannot be independently verified.
High Transaction Gas Costs Relative to Earnings
On-chain actions consume > 25% of gross session earnings.
Frequent Roadmap Pivots without Delivery
Project changes core genres or chains multiple times without completing goals.
No Bug Bounty Program Established
Lacks formalized vulnerability reporting process for white-hat security researchers.
Run the Math on Any Web3 Game
Input any project parameters into the 5-Pillar Project Evaluator to check for automatic disqualifications.
Open 5-Pillar Scorecard