GameFi's narrative logic lies in two points: first, the main push of chain games in the old era is "players' ownership of in-game assets"; second, "Play2Earn".
In-depth articles ·
· · Now GameFi has become an independent sector in the crypto market, and they tend to go out of the independent market without changing with the mainstream market. If we look closely, the market movements of each GameFi are also different. This is often related to the economic model and Token Economics built by GameFi. At the same time, the trend of independence also means that GameFi has achieved success in a certain sense.
It is difficult for us to perfectly restore the reasons behind the success of a thing, but we can always find some key factors. These factors will help us to see and understand the development of GameFi more clearly, and not miss the opportunities in the future encryption industry and GameFi track.
Post-pandemic era
In the past ten years, COVID-19 has become the largest black swan event in the global market. Its impact is far-reaching, changing the life and destiny of every resident of the world.
The most intuitive impact of COVID-19 is "maintaining social distance". People's "long time at home" has spawned the rapid expansion of industries such as encryption, games, and live broadcasting. Especially when the new crown epidemic has not yet been solved, people's desire for real experience is gradually decreasing, and the demand and imagination for the virtual world are gradually increasing, and the virtual world can also bring more novel experiences to ordinary people.
Therefore, the narrative structure developed by the combination of games and encryption arouses people's thinking about the future world. The narrative logic of the game industry lies in "entertainment" and "social interaction", while the narrative logic of the crypto industry lies in "Web 3.0" and "decentralization" and "assets controlled by oneself".
The resulting narrative logic of GameFi lies in two points:
First, the main push of chain games in the old era is "players' ownership of in-game assets".
The "definition" of game assets by major manufacturers such as Tencent is also strengthening players' desire to own "game assets". The deletion of the previous Tencent game "MOONLIGHT BLADE" is the proof. A certain player's account of "MOONLIGHT BLADE" appeared in the account of a player that was released in the next version. After the incident, many players who spent a lot of money in the game deleted their accounts to protest. And "MOONLIGHT BLADE" will backhand the deleted account and respond: What the player has is the "use right" of the game account, not the "ownership".
ChainGame hopes to solve this problem, and the GameFi protocol that appeared later also practiced this.
The second is "Play2Earn".
Due to the impact of the epidemic, the number of jobs in various countries has dropped to a large extent, and the increase in the number of unemployed has further contributed to the development of the game industry, and the "Play2Earn" model created by Axie Infinity is undoubtedly a revolutionary innovation.
The Covid-19 backdrop and Play2Earn's complementation have fueled GameFi's rise. This is also the reason behind the explosion of GameFi protocols such as Axie Infinity.
A documentary on Youtube called "Play-to-Earn" really shows us how AxieInfinity can change people's lives and become something ordinary Filipinos rely on. These ordinary people include single mothers, college graduates who can't find a job, and elderly couples who run small convenience stores.
The Rise of the Gold-Making Studio
In addition to the GameFi protocol mentioned above, the rise of Gold Studio has maintained the momentum and popularity of GameFi's rise.
As of the end of September, YGG had 62,545 community members on Discord, a 16.4% increase from August 2021, according to a September report from Yield Guild Games, the most prominent GameFi gold trade union. Since its launch at the end of July, 14,161 members of the YGG community have officially become guild members by minting their YGG guild badges.
At the same time as the rapid growth of community members, Yield Guild Games is also participating in the investment of some potential game NFT assets and other NFT assets through its increasing financial strength and influence, and at the same time making use of the profits of these assets and realizing the growth of the number of community members and the spread of community culture.
In addition to Yield Guild Games, some influential gold-making studios include Merit Circle, MetaGame Guild, GuildFi, etc. They all help community members in the early stage, including providing game NFT assets and game teaching, etc., to retain community users, so as to achieve the development of the community. While the community has grown, so has the GameFi marketplace.
At the same time, the ability of the gold-making studio and the community to make money in the virtual world has driven the Fomo sentiment of many groups, and many people outside the blockchain industry have also begun to learn encryption knowledge and participate in it. This is also one of the reasons why GameFi can achieve an independent market - participants outside the circle only participate in "Play2Earn" GameFi products, and hope to achieve continuous revenue, but have little interest in other Cryptocurrency.
Sustainability of game economic systems
While praising "Play2Earn", we also need to think about some problems with "Play2Earn".
The essence of GameFi gold is to add liquidity to the second pool. The rapid development of liquidity will bring rich returns to the participants, but the withdrawal of liquidity and the decline of Token Price can easily cause stampede events, triggering a series of chain events. reaction.
This type of event has already happened once in the GameFi protocol Cryptomines.
With market optimism and Fomo sentiment, the price of $ETERNAL (Cryptomines Token) has soared, reaching as high as $800 at one point. But just a few days ago, panic selling in the market caused $ETERNAL to quickly drop from a high to a low of $47.
Although Cryptomines has already done enough in the sustainability of the economic system. In addition to providing channels for Staking $ETERNAL, charging a 15% handling fee for market transactions and returning to the prize pool, Cryptomines has also increased the withdrawal handling fee - players need to pay a 30% handling fee when withdrawing game profits, if the player wants to Fully reaping their gains, then they need to wait 15 days - which reduces the selling pressure on $ETERNAL somewhat. But they still can't stop the current decline of $ETERNAL.
And this is related to the unsustainability of "Play2Earn". The investment institution IOSG Ventures pointed out in the research report:
P2E is a great marketing tool, but it is definitely not the core driving force behind the rapid development of Chain Games. Gameplay and P2E are incompatible to a certain extent, and P2E will greatly reduce the marginal effect of gameplay. Therefore, those projects that are overly fantasizing about gameplay and playing and earning are likely to face the dilemma that the transaction volume cannot outpace the mining game, and the user volume cannot match that of traditional games. At the same time, P2E is clearly not sustainable from an economic point of view.
The lack of gameplay is also a problem that the GameFi protocol cannot bypass now. As far as PUGG is concerned, the game itself has no entertainment. As the entrance to the metaverse, in addition to setting up city and bar scenes for encrypted socializing and picking up girls, all nft assets in your own home can be visualized, and can also be understood as a visualized digital wallet,
including galleries supporting cross-chain transactions of lear2, using a citizen ID card to ride a bicycle to power the city and issue the token ¥calit. In fact, there are only two operations in the game process: "staking mining" and "encrypted social networking". After finishing the operation, you can get the reward of game Token after stepping on the bicycle.
And the gameplay of RadioCaca's Metamon Island, endorsed by the richest man Musk's mother, is also an issue - the game content is just a few simple mouse clicks and leveling up the Metamon. Not to mention traditional games, the gameplay of these GameFi is not even comparable to mobile games.
Pubg PC uses UE4 Unreal 4 world's top game production software. The picture quality is very good. In order to better develop the Southeast Asian market, the mobile game terminal adopts Unity's top mobile game production software, so that you can get started better.
To a certain extent, this confirms the lack of high-quality games in the market and the lack of high-quality game talents.
Rich gameplay is crucial if GameFi is to thrive in the long term. If we just rely on the "Fomo mood" brought by concepts such as "Play2Earn" and the Metaverse, GameFi cannot achieve longer development. And how a sustainable economic system should be achieved is currently unknown.
However, we can also imagine what GameFi will look like in the future:
High playability, driving player behavior with gameplay;
Player stickiness is high, and players are willing to spend time playing games;
With paying players, players are willing to pay for some content in the game, such as accessories and skins;
There is room for profit;
Different types of players have different game routes to choose from, game players can enjoy the game content, and the gold trade union can make money by moving bricks;
In-depth articles ·
· · Now GameFi has become an independent sector in the crypto market, and they tend to go out of the independent market without changing with the mainstream market. If we look closely, the market movements of each GameFi are also different. This is often related to the economic model and Token Economics built by GameFi. At the same time, the trend of independence also means that GameFi has achieved success in a certain sense.
It is difficult for us to perfectly restore the reasons behind the success of a thing, but we can always find some key factors. These factors will help us to see and understand the development of GameFi more clearly, and not miss the opportunities in the future encryption industry and GameFi track.
Post-pandemic era
In the past ten years, COVID-19 has become the largest black swan event in the global market. Its impact is far-reaching, changing the life and destiny of every resident of the world.
The most intuitive impact of COVID-19 is "maintaining social distance". People's "long time at home" has spawned the rapid expansion of industries such as encryption, games, and live broadcasting. Especially when the new crown epidemic has not yet been solved, people's desire for real experience is gradually decreasing, and the demand and imagination for the virtual world are gradually increasing, and the virtual world can also bring more novel experiences to ordinary people.
Therefore, the narrative structure developed by the combination of games and encryption arouses people's thinking about the future world. The narrative logic of the game industry lies in "entertainment" and "social interaction", while the narrative logic of the crypto industry lies in "Web 3.0" and "decentralization" and "assets controlled by oneself".
The resulting narrative logic of GameFi lies in two points:
First, the main push of chain games in the old era is "players' ownership of in-game assets".
The "definition" of game assets by major manufacturers such as Tencent is also strengthening players' desire to own "game assets". The deletion of the previous Tencent game "MOONLIGHT BLADE" is the proof. A certain player's account of "MOONLIGHT BLADE" appeared in the account of a player that was released in the next version. After the incident, many players who spent a lot of money in the game deleted their accounts to protest. And "MOONLIGHT BLADE" will backhand the deleted account and respond: What the player has is the "use right" of the game account, not the "ownership".
ChainGame hopes to solve this problem, and the GameFi protocol that appeared later also practiced this.
The second is "Play2Earn".
Due to the impact of the epidemic, the number of jobs in various countries has dropped to a large extent, and the increase in the number of unemployed has further contributed to the development of the game industry, and the "Play2Earn" model created by Axie Infinity is undoubtedly a revolutionary innovation.
The Covid-19 backdrop and Play2Earn's complementation have fueled GameFi's rise. This is also the reason behind the explosion of GameFi protocols such as Axie Infinity.
A documentary on Youtube called "Play-to-Earn" really shows us how AxieInfinity can change people's lives and become something ordinary Filipinos rely on. These ordinary people include single mothers, college graduates who can't find a job, and elderly couples who run small convenience stores.
The Rise of the Gold-Making Studio
In addition to the GameFi protocol mentioned above, the rise of Gold Studio has maintained the momentum and popularity of GameFi's rise.
As of the end of September, YGG had 62,545 community members on Discord, a 16.4% increase from August 2021, according to a September report from Yield Guild Games, the most prominent GameFi gold trade union. Since its launch at the end of July, 14,161 members of the YGG community have officially become guild members by minting their YGG guild badges.
At the same time as the rapid growth of community members, Yield Guild Games is also participating in the investment of some potential game NFT assets and other NFT assets through its increasing financial strength and influence, and at the same time making use of the profits of these assets and realizing the growth of the number of community members and the spread of community culture.
In addition to Yield Guild Games, some influential gold-making studios include Merit Circle, MetaGame Guild, GuildFi, etc. They all help community members in the early stage, including providing game NFT assets and game teaching, etc., to retain community users, so as to achieve the development of the community. While the community has grown, so has the GameFi marketplace.
At the same time, the ability of the gold-making studio and the community to make money in the virtual world has driven the Fomo sentiment of many groups, and many people outside the blockchain industry have also begun to learn encryption knowledge and participate in it. This is also one of the reasons why GameFi can achieve an independent market - participants outside the circle only participate in "Play2Earn" GameFi products, and hope to achieve continuous revenue, but have little interest in other Cryptocurrency.
Sustainability of game economic systems
While praising "Play2Earn", we also need to think about some problems with "Play2Earn".
The essence of GameFi gold is to add liquidity to the second pool. The rapid development of liquidity will bring rich returns to the participants, but the withdrawal of liquidity and the decline of Token Price can easily cause stampede events, triggering a series of chain events. reaction.
This type of event has already happened once in the GameFi protocol Cryptomines.
With market optimism and Fomo sentiment, the price of $ETERNAL (Cryptomines Token) has soared, reaching as high as $800 at one point. But just a few days ago, panic selling in the market caused $ETERNAL to quickly drop from a high to a low of $47.
Although Cryptomines has already done enough in the sustainability of the economic system. In addition to providing channels for Staking $ETERNAL, charging a 15% handling fee for market transactions and returning to the prize pool, Cryptomines has also increased the withdrawal handling fee - players need to pay a 30% handling fee when withdrawing game profits, if the player wants to Fully reaping their gains, then they need to wait 15 days - which reduces the selling pressure on $ETERNAL somewhat. But they still can't stop the current decline of $ETERNAL.
And this is related to the unsustainability of "Play2Earn". The investment institution IOSG Ventures pointed out in the research report:
P2E is a great marketing tool, but it is definitely not the core driving force behind the rapid development of Chain Games. Gameplay and P2E are incompatible to a certain extent, and P2E will greatly reduce the marginal effect of gameplay. Therefore, those projects that are overly fantasizing about gameplay and playing and earning are likely to face the dilemma that the transaction volume cannot outpace the mining game, and the user volume cannot match that of traditional games. At the same time, P2E is clearly not sustainable from an economic point of view.
The lack of gameplay is also a problem that the GameFi protocol cannot bypass now. As far as PUGG is concerned, the game itself has no entertainment. As the entrance to the metaverse, in addition to setting up city and bar scenes for encrypted socializing and picking up girls, all nft assets in your own home can be visualized, and can also be understood as a visualized digital wallet,
including galleries supporting cross-chain transactions of lear2, using a citizen ID card to ride a bicycle to power the city and issue the token ¥calit. In fact, there are only two operations in the game process: "staking mining" and "encrypted social networking". After finishing the operation, you can get the reward of game Token after stepping on the bicycle.
And the gameplay of RadioCaca's Metamon Island, endorsed by the richest man Musk's mother, is also an issue - the game content is just a few simple mouse clicks and leveling up the Metamon. Not to mention traditional games, the gameplay of these GameFi is not even comparable to mobile games.
Pubg PC uses UE4 Unreal 4 world's top game production software. The picture quality is very good. In order to better develop the Southeast Asian market, the mobile game terminal adopts Unity's top mobile game production software, so that you can get started better.
To a certain extent, this confirms the lack of high-quality games in the market and the lack of high-quality game talents.
Rich gameplay is crucial if GameFi is to thrive in the long term. If we just rely on the "Fomo mood" brought by concepts such as "Play2Earn" and the Metaverse, GameFi cannot achieve longer development. And how a sustainable economic system should be achieved is currently unknown.
However, we can also imagine what GameFi will look like in the future:
High playability, driving player behavior with gameplay;
Player stickiness is high, and players are willing to spend time playing games;
With paying players, players are willing to pay for some content in the game, such as accessories and skins;
There is room for profit;
Different types of players have different game routes to choose from, game players can enjoy the game content, and the gold trade union can make money by moving bricks;
