New Attempt for Sustainable P2E
Nowadays, many P2E and M2E projects have been presented while getting massive interest from many investors and users in the beginning, but in the end, most of them show similar downwards price action and user depletion.
These cases gave the Trouble Punk team a lot to think about. Unfortunately, most P2Es have come to a similar downtrend conclusion. This model will encounter ugly conclusions from either the hard-working team’s or the token holders’ perspective. We want to talk about why we think P2Es follow the exact sparkling debut and downwards process and our strategy to continue with sustainable growth.
1. Structure of Earning in Current P2E
- Eddie wants to participate in this game by purchasing a specific NFT.
- Eddie checks the price of the game reward tokens.
- The price of A token, the game reward token, is $100.
- Eddie starts with calculation. Since the NFT price has a value of $1,000, If Eddie participates in P2E, he will be able to gain back his investment in 10 days as long as the A token price does not collapse.
- All tokens generated after then will be additional revenue from Eddie; even if the price of NFTs went up, it would be a higher profit.
The mentioned process above will continue as tens of thousands of different ‘Eddie’s estimate and calculate the token price and their profit repeatably. In this process, depending on the game’s token economy structure, there may be some buying demand for more profits in the game ecosystem. However, as the ecosystem grows, it is difficult for buying amounts to go beyond selling. The reason is that buying over selling means that users give up their profits and invest their assets in the game without conditions.
Even if there is a slight chance of purchase due to the influx of new users who thought like Eddie later, an increase in the users will turn into a decrease as the number of ecosystem participants is limited. The users joined the market for a profit with A tokens, so the selling pressure of A tokens will continuously increase. However, since most P2E reward tokens have an unlimited supply or the limited supply with a high inflation rate, the amount of A tokens released in the market increases indefinitely. As a result, the A token’s value will inevitably decrease, and the price of the governance token of this game, where the rewards are not effective, will also decrease. After confirming that they are no longer profitable, users escape in search of new money-making P2E games.
2. Next Step for P2E
In order to innovate P2E, the project design must be innovative. Following a successful project’s format as it is is what keeps P2E old-fashioned. P2E is not moving forward because there has been no ‘new attempt’, regardless of the method. We believe that only new attempts can propel P2E forward. Trouble Punk team hopes the P2E market will grow further with new attempts. Here are some things to consider that could be one of the ways to a more robust market.
A. P2E should be a combination of ‘Earn’ and ‘Play’.
Most of the conversations in the P2E community focus on ‘How can I make more money?’ Since users’ attention is focused on the act of ‘Earn’ rather than ‘Play’, it is natural that the act of selling is done continuously. Let us take a look at the existing Web 2.0 games. A typical conversation in the community is, ‘How do you play the game? How can I develop my character well? How can I win?’ When developers try to build a game where users not only focus on earning but also on playing, they can build more sustainable gaming communities.
B. If the reward generated through ‘Play’ becomes a long-term selling pressure, the token’s value will inevitably decline.
‘Unlimited token issuance’ or ‘high inflationary token’ generally means the possibility of a continuous decline in token value. However, there may be some exceptions. Let us take Ethereum as an example. Although Ethereum has an unlimited supply, its market supply is somewhat managed by controlling the difficulty of mining and the speed of coin issuance by burning the gas fee used within the ecosystem. In addition, it digests the selling pressure by imprinting on people the premise that ‘the larger ecosystem gets, the more Ethereum is needed’. These conditions must be satisfied to ensure that the price does not collapse due to inflation, even with an unlimited total supply of reward tokens. Having a limited cap on the reward token in the first place can also be an option because most of the reward tokens will supply to the market with a fixed issuance without any token lockup release. In this case, there is no potential risk due to the increase of circulating supply, so it can primarily erode people’s ‘anxiety’. Although most tokens have a fixed issuance amount, the price declines during the lockup release schedule because that point is when the token inflation occurs.
C. Providing users with immediate feedback and short-term and long-term goals is necessary.
Most P2Es do not present a goal to the users. Let us take P2E game B as an example. Users are often unaware of the benefits of investing in game B. That means user feedback is often unclear. Therefore, selling tokens for ‘Earn’ is the only quick feedback from the user. Users need to get feedback on what they can do through ‘Play’, whether they win or lose in the game. The team needs to encourage users to set short-term and long-term goals using this. ‘Quick feedback’ on the user’s behavior makes the game much more interesting (Ogawa, S. et al., 2018), which is present in existing games and not in most P2E games.
D. Game is E-Sports.
The attractiveness of sports lies in the participants having similar conditions in sports competitions, regardless of conditions such as age, gender, wealth, nationality, etc. But what about today’s P2Es? In most P2E games, regardless of the users’ gaming skills, victory, loss, or ‘Earn’ is determined by the level of your assets. That is why it cannot be called ‘Sports’. Nevertheless, ‘Game’ is E-Sports. Therefore, if P2E is to be counted as a game, it must satisfy the spirit of sports.
3. The Structure of Trouble Punk
No one knows if the structure of Trouble Punk will be the answer for P2E 2.0. However, Trouble Punk will try to break the challenges of the existing P2Es, and the other ones that most projects may not try so far.
Trouble Punk is a fighting action game with a battle royale genre where users win by earning points. The points will be dropped in the game.
- Because P2E is on the blockchain, user onboarding may be more complex than existing Web2.0 games. Therefore, the Trouble Punk team tried to design to reduce users’ learning curve. We aimed to achieve an onboarding time maximum of 5 minutes when users start the game. In addition, we aimed the game to be ‘Easy to Learn’ and ‘Hard to Master’.
- We support F2P intending to gather as many users as possible. The more users enjoy, the happier we all are! Even if the users know nothing about blockchain and have never installed a Web3.0 wallet, they can still enjoy Trouble Punk.
- Each user’s skill is the most critical factor in playing our game. Users must focus on controlling the game characters and developing suitable strategies to win.
Trouble Punk’s reward token $TROB starts with the entire release at the time of TGE.
- Unlike the model in which the lockup is gradually released with the increase of token supply, $TROB starts with all quantities released except for the team vesting. This structure is possible because of $TROB’s unique reward model.
- Users participating in P2E play with assets(NFT, TROB, etc.) will join the league. They will play a total of 10 games with those who have similar gaming skills. As a result of the league, 80% of users will get withdrawable rewards, and 20% of users will get in-game redeemable rewards. Please refer to the white paper for a detailed explanation.
- Due to the conditions above, the buying and selling pressure of $TROB is always constant when the number of users is maintained. We also tried to minimize the change in the token scarcity caused by tokenomics. Therefore, as the number of users increases, more people will seek $TROB, but there will be no inflation due to the increased number of users.
Trouble Punk has a rank system, and we plan to create a professional league.
- We consider it the best value for all users to compete fairly. Therefore, in Trouble Punk, a vast investment does not guarantee users’ victory. Sam Bankman-Fried, Changpeng Zhao, and Vitalik Buterin are the same users as any in Trouble Punk.
- We will respect users with the best skills and create a professional league for them to guarantee high rewards.
- The ‘Jury Trial Session’ is designed for a fair match, another innovation in P2E. Numerous gamers suffer damage from malicious play, such as trolling, abusing, and cheating. Nevertheless, it is hard to get compensated in Web3.0. Trouble Punk is trying to solve this problem using blockchain and DAO. Through Jury Trials, we will punish abusive behavior and make it a source of revenue and another means of profit for good users.
In addition to this, Trouble Punk contains attempts to improve the problems of existing P2E. The Trouble Punk team hopes that users can continue to enjoy fun games without worrying about the inflation of reward tokens through our game. We hope Trouble Punk can be one of the avenues toward P2E 2.0.
Ogawa, S., Fujiwara, K., Yamakawa, T., Abe, E., & Kano, M. (2018, January). Design of false heart rate feedback system for improving game experience. In 2018 IEEE International Conference on Consumer Electronics (ICCE) (pp. 1–4). IEEE.