🎮 What will the future GameFi model look like? 🎮
STATISTICS DURING THE DEVELOPMENT OF GAMEFI 1.0
Between 70% and 80% of GameFi projects on the market are inactive, with an average of 200 users per day for 5 consecutive days. Although 80% or more of the projects launched in 2022 were active within 30 days of launch, the data shows that they do not last long.
➡️ Most Games go from launch to active quickly but stay idle for long periods of time. An easier way to understand is “Soon to bloom and fade away”
GameFi 1.0’s structural problem
GameFi 1.0, a genre that Axie Infinity has dominated for a long time, revolves around Play-to-Earn.
Despite the difference in gameplay (e.g. Staking, Tower PVE, Card Duel PVP) or Tokenomics (Single Token, Dual Token, Token + NFT, etc.) New players invest, and new players continue to pay interest and short-term profits to old players.
All Tokens minted by the old player need to be consumed by the new player or else the player will continue to sell. This will lead to a sell-off crisis like in the past.
➡️ As a result, most GameFi 1.0 projects only have one cycle, and once a crisis begins, they cannot be revived.
GameFi 1.0 Tokenomics Issues
- Axie Infinity
Axie Infinity, as a P2E initiator, has great resources and a community of players in the early stages of the Bull market. Therefore, it can sustain a few months of upside with just the basic dual Token model and breeding system. However, it faced decline when it entered after that but managed to retain some loyal users.
- BinaryX
BinaryX attracted many users in its early stages because it pays a lot of APY and ROI to early players very quickly. Once there is not enough revenue, it will immediately go into a big phase and the number of users will decrease rapidly.
However, with the exchange and project control over BNX, the price of the Token has risen again, but there are still very few users.
THINGS GAMEFI 2.0 CAN IMPROVE IN THE FUTURE
Good product content
Games with high quality and development costs such as: BigTime, Illuvium, StarTerra,… these games will use interesting gameplay and content to attract users to experience the game and enjoy the games. Unique features enabled by blockchain.
Building a sustainable financial model
It is important to note that the NFT marketplace must be project-specific, so that at least fee or tax revenue is the main source of income for the project at this stage, rather than relying entirely on the money of later players. .
Enrich the game’s ecosystem and extend the game’s lifecycle. When the intrinsic circulating power of the game itself is large enough, it can come out of the brink of crisis.
➡️ In short, the future of GameFi needs to find a way to improve the content, gameplay and tokenommics
#DGG_NETWORK
