How Can We Make GameFi Projects Sustainable in 2024
Ensuring Quality Game Designs, Rewards Systems, Asset Utility and Community Governance.
The GameFi sector, a fusion of gaming and finance, has seen rapid growth in recent years. However, sustainability remains a major challenge as mentioned in our previous articles about Why P2E Games Fail and How We Can Save GameFi. As we enter 2024, it’s crucial to explore strategies to make GameFi projects more sustainable, ensuring longevity and player engagement. In this article, we cover the four key strategies that can help achieve this goal of sustainable GameFi.
1. Prioritise Game Design and Engagement
The heart of any successful GameFi project lies in its gameplay. The key is to create a game that players want to play for its own sake, not just for financial rewards. This means focusing on engaging mechanics, compelling narratives, and stunning visuals. The game should be enjoyable and captivating, offering a rich experience that players return to out of genuine interest. A game with strong design and engagement can maintain a loyal player base, which is essential for long-term sustainability.
In the realm of GameFi, games like Axie Infinity have set a precedent in emphasising engaging game design. Axie Infinity combines adorable creatures, tactical battles, and a robust community, making the gameplay enjoyable beyond its earning potential. However, new projects must learn from the challenges faced by such pioneers. For example, maintaining a balance between new player acquisition and the game economy has been a critical issue for Axie Infinity. Future GameFi projects should take note of these challenges and strive to create a game-first approach where the financial aspects do not overshadow the gaming experience.
2. Balance Rewards with Enjoyment
GameFi’s unique proposition is the blending of gaming with financial incentives. However, it’s crucial that these financial rewards do not overshadow the intrinsic enjoyment of the game. Rewards should feel like a natural part of the game’s ecosystem, enhancing the experience rather than being the sole reason to play. This balance ensures that the game remains enjoyable for its own sake, while also providing the added bonus of financial incentives.
A prime example of balancing rewards with enjoyment can be seen in The Sandbox. This virtual world empowers players to create and monetise their gaming experiences on the Ethereum blockchain. The game rewards players with tokens for participating in various in-game activities. However, it also places a strong emphasis on creativity and user-generated content, offering intrinsic value that goes beyond mere financial incentives. The success of The Sandbox shows that a well-balanced approach between rewards and gameplay can lead to a more engaged and sustainable player base.
3. Embrace Diverse Revenue Streams
Relying solely on in-game tokenomics can be risky. To build a more robust and sustainable financial foundation, GameFi projects should look at diversifying their revenue streams. This can include subscriptions, sales of cosmetic items, and creating marketplaces for user-generated content. Diversification not only provides additional revenue, but also helps mitigate risks associated with token value fluctuations, ensuring a more stable financial environment for the game.
Dapper Labs’ NBA Top Shot showcases the potential of diverse revenue streams in GameFi. By selling NFTs (Non-Fungible Tokens) of NBA highlights, they’ve created a new revenue model that doesn’t solely rely on traditional in-game purchases or tokenomics. This approach not only appeals to traditional gamers but also attracts sports enthusiasts and collectors, broadening the project’s audience. The success of NBA Top Shot underlines the importance of innovation in revenue models for GameFi sustainability.
4. Foster Community Governance
Empowering players through community governance models can significantly contribute to the sustainability of GameFi projects. When players feel a sense of ownership and are involved in decision-making, they are more likely to be engaged and invested in the game’s success. This approach can lead to more sustainable tokenomics and align the interests of developers and players, creating a cohesive and supportive ecosystem.
Decentraland serves as a leading example of community governance in action. In this virtual world, users have a say in the governance decisions through the Decentraland DAO (Decentralised Autonomous Organisation). This model allows players to directly influence the development and policies of the game, fostering a strong sense of community and ownership. Such governance models can lead to more aligned incentives between the developers and the player base, contributing to the long-term viability of GameFi projects.
Start Building your Sustainable GameFi project today
Creating a sustainable GameFi project in 2024 requires a multi-faceted approach that focuses on strong game design, balanced rewards, diverse revenue streams, and community governance. By prioritising these aspects, GameFi can evolve into a sustainable and thriving sector that appeals to a wide range of players, ensuring its longevity and success in the gaming industry. aelf adopts the same stance towards building sustainable Web3 games and with our aelevate Gaming Grant Program that provides grants of up to US$150k per project, technical resources, and expert guidance, we’re ready to fuel the development of new games and nurturing a more sustainable and robust Web3 gaming ecosystem.
About aelf
aelf, a high-performance Layer 1 featuring multi-sidechain technology for unlimited scalability. aelf blockchain is designed to power the development of Web3 and support its continuous advancement into the future. Founded in 2017 with its global hub based in Singapore, aelf is one of the pioneers of the mainchain-sidechain architecture concept. Incorporating key foundational components, including AEDPoS, aelf’s variation of a Delegated Proof-of-Stake (DPoS) consensus protocol; parallel processing; peer-to-peer (P2P) network communication; cross-chain bridges, and a dynamic side chain indexing mechanism, aelf delivers a highly efficient, safe, and modular ecosystem with high throughput, scalability, and interoperability.
aelf facilitates the building, integrating, and deploying of smart contracts and decentralised apps (dApps) on its blockchain with its native C# software development kit (SDK) and SDKs in other languages, including Java, JS, Python, and Go. aelf’s ecosystem also houses a range of dApps to support a flourishing blockchain network. aelf is committed to fostering innovation within its ecosystem and remains dedicated to driving the development of Web3 and the adoption of blockchain technology.
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