Evolutionary Solutions for Web3 Gaming Mass Adoption

Introduction

The SEC’s historic approval of a Bitcoin Spot ETF marks a turning point in Bitcoin’s journey, officially recognizing it as a legitimate asset class. This event signals a shift in public perception and increasing acceptance of blockchain technology. Just as the widespread adoption of the internet led to the explosive growth of the online gaming industry, the mass adoption of blockchain is expected to trigger a rapid expansion of the WEB3 gaming market.

Iskra is a project that has been proactively preparing for this upcoming era of WEB3 gaming mass adoption since 2022. With the experience and expertise gained from discovering and nurturing various WEB3 games alongside our community, we are confident in becoming one of the biggest beneficiaries of the impending mass adoption. However, our ambition goes beyond simply being a beneficiary. Iskra aims to take the lead in driving the widespread adoption of WEB3 gaming.

Nevertheless, critical challenges must be addressed for the mass adoption of WEB3 gaming to truly take off. The most significant hurdle is the inconvenient user experience (UX) caused by the complexity of blockchain technology and its fragmented structure. This issue affects not only beginners but also experienced WEB3 users and game developers alike. Poor UX hinders the acquisition of a sufficient user base, which in turn makes it difficult to provide high-quality game services, creating a vicious cycle.

To break this cycle and create a virtuous one, we need to build a platform that can attract more WEB3 users to enjoy games and promote the inflow of new gamers, thereby expanding the user pool. Only when a sufficient user base is secured around this platform can more high-quality games be stably serviced, which will then attract even more users, leading to a positive feedback loop. Establishing this virtuous cycle is the true starting point for the widespread adoption of WEB3 gaming.

To tackle this challenge and evolve into a platform that can create a virtuous cycle for WEB3 gaming mass adoption, Iskra proposes two solutions:

1. Build an integrated ecosystem called ‘Omni-chain Gaming Hub’ where anyone can easily and conveniently enjoy WEB3 games.
2. Introduce the ‘Activity Finance’ system, which provides attractive incentives to encourage more users to participate in this Gaming Hub.

In the following sections, we will delve into how these two innovative solutions can contribute to the mass adoption of WEB3 gaming and the grand vision Iskra has in store.

Two Approaches to Drive Web3 Game Mass Adoption

Chainless UX: Omni-Chain Gaming Hub

Problem

Improving UX for the widespread adoption of WEB3 gaming can be approached from various angles. For instance, enhancing the user experience of applications like wallets can be an important task. However, the most pressing issue stems from a more fundamental level: the coexistence of multiple blockchains.

Today, WEB3 games are scattered across various blockchains such as Base, Solana, and opBNB, each for their own reasons. When users play games within a single chain, they don’t face significant inconveniences, similar to handling all transactions with a single bank account. However, when users need to navigate across multiple blockchains to play games, the user experience is greatly hampered because different blockchains cannot inherently interact with each other. It can be compared to managing multiple bank accounts that are not interoperable for various types of transactions. Just like withdrawing cash from each account for payments, assets need to be converted into a base asset (e.g., ETH) and go through a bridge (a cross-chain solution) before starting transactions on another chain. In the DeFi space, this problem is known as liquidity fragmentation. From the perspective of WEB3 gaming, we define this as the game ecosystem fragmentation problem.

Game ecosystem fragmentation goes beyond the simple phenomenon of games being dispersed across multiple chains. It fundamentally means that gamers, games, related assets, and activities are all segmented due to this dispersion. We believe this is the biggest obstacle to the widespread adoption of WEB3 gaming.

For mass adoption, a virtuous cycle where more users and games come together and actively interact is essential. However, fragmentation hinders this by dispersing participants, assets, and user experiences across the board. Under this structure, not only is it difficult to attract new mainstream users, but even existing WEB3 users find it challenging to smoothly participate in games. Resolving the game ecosystem fragmentation problem is the first step towards the widespread adoption of WEB3 gaming.

Solution

To address this issue, Iskra proposes a solution called ‘Omni-chain Gaming Hub’. It is a platform that allows users to conveniently access and play games scattered across different blockchains as if they were on a single chain. In this hub, gamers and game companies can manage assets and enjoy gameplay with a user experience equivalent to using a single chain, regardless of the game’s actual location.

The ‘Chainless UX’ provided by the Omni-chain Gaming Hub will drastically improve the user experience of traversing multiple games. Furthermore, it will serve as a space where all parties interested in WEB3 gaming can gather, communicate, and collaborate, while also lowering the entry barrier for beginners who are unfamiliar with the cross-chain environment.

Implementation

Successfully implementing the Omni-chain Gaming Hub requires two foundations:

1. Selecting the blockchain that will serve as the hub platform’s center.
2. Securing a connection solution that links different blockchains together. To this end, Iskra has formed strategic partnerships with Base Chain and LayerZero.

Base Chain is known for promoting the entry of Web2 users into Web3 in collaboration with Coinbase and has achieved remarkable results in the SocialFi sector, where on-chain users interact. By building the Gaming Hub on Base Chain, Iskra expects to effectively attract not only existing WEB3 users but also potential Web2 gamers to the platform.

Adding LayerZero’s technological prowess, we plan to connect various blockchain ecosystems, such as Optimism, Arbitrum, Worldchain, and Degenchain, with Base at the center. This means creating a foundation that encompasses the individuality and strengths of each blockchain ecosystem while providing a place where all WEB3 gaming entities can gather.

Our Omni-chain Gaming Hub will be a solution that resolves the game ecosystem fragmentation problem, enabling numerous gamers and game companies to freely interact and create greater network effects.

Strong Incentive System: Activity Finance (ActFi)

Problem

While improving the user experience (UX) of WEB3 gaming is crucial, it is realistically challenging to enhance it to the level of Web2 in a short period due to the characteristics of blockchain. So, how can we encourage more people to enjoy WEB3 games despite the relatively inconvenient UX? The answer lies in providing sufficient motivation.

WEB3 users are people who have jumped into this ecosystem despite the inconvenient user experience, chasing the incentive of crypto assets. The fact that they will endure inconveniences or grinding if given enough incentives has been proven multiple times. So, why are many WEB3 game projects failing to attract users today? The fundamental reason is not simply the inconvenient UX. Rather, the core problem lies in their inability to provide incentives that meet users’ expectations.

This stems from projects failing to properly assess user value. Not all WEB3 gamers hold the same value. Some have high purchasing power, while others are passionate about their activities. These valuable gamers expect rewards commensurate with their worth, but most projects fail to meet these expectations.

Of course, it’s not entirely the projects’ fault. The abusive behavior of users operating multiple accounts to exploit token incentive pools is also prevalent. As a result, projects conservatively allocate incentive budgets, which leads to a vicious cycle of valuable users leaving. In this structure where incentives exist but fail to motivate genuine value creators, it is difficult for WEB3 games to get on the right track.

Solution

Iskra proposes Activity Finance (ActFi) to solve this problem. ActFi is a service that links the valuable activities of WEB3 game users to monetary rewards.

ActFi is a system that quantifies on-chain user activities to assess their value. Users perform various activities on the Iskra platform, such as KYC, completing quests, trading assets, and playing games, based on which Iskra calculates user value. Game companies can evaluate user value according to their own criteria based on the scores provided by Iskra.

This allows game companies to prevent malicious abuse and design rewards that align with user value. Valuable users will receive incentives that match their expectations, leading them to participate in more WEB3 games. Through the ActFi system, the overall size of incentives on the platform grows, which in turn attracts more high-value users, creating a virtuous cycle.

Implementation

The successful implementation of Activity Finance relies on two key elements:

1. A scoring system that can fairly and transparently evaluate user value.
2. A sufficiently large incentive pool to encourage the participation of valuable users. To this end, Iskra has prepared two measures: the Activity Point system and the creation of a large-scale incentive pool.

Activity Point is a user activity value evaluation system that has evolved the existing Contribution Point system to the next level. Iskra has been accumulating know-how in assessing users’ on-chain activities through the operation of the Community System Beta. Based on this experience, we plan to introduce the Activity Point system, which quantifies all on-chain and off-chain user activities within the platform. This will enable game projects to more effectively identify and target valuable users.

For the virtuous cycle intended by ActFi to function smoothly, it is crucial that many WEB3 users gather on the Iskra platform and actively engage in accumulating Activity Points. To achieve this, Iskra plans to significantly expand the Community Reward pool by utilizing various resources such as platform revenue, our governance token ISK, and tokens secured from game companies. The aim is to increase rewards for value-creating activities to promote user participation.

If the Activity Finance system is stably established around these two axes, the influx of valuable users into the Iskra ecosystem will increase, which will then lead to the participation of more game projects and the expansion of the incentive pool, creating a virtuous cycle. Through this, Iskra expects to position itself as the platform where the most WEB3 games and gamers gather, continuously growing the entire ecosystem.

Tokenomics Upgrade

Necessity of Tokenomics Upgrade

For Iskra to successfully implement the two innovative solutions of ‘Omni-chain Gaming Hub’ and ‘Activity Finance’ and lead the mass adoption of WEB3 gaming, the current tokenomics must also be upgraded.

To this end, Iskra is planning not only minor upgrades that add new functions and utilities to the existing tokenomics but also major upgrades for more significant structural changes. Especially for major upgrades, as decision-making will be made through community governance voting, forming a consensus among stakeholders regarding the advancement of tokenomics will be of utmost importance.

The tokenomics upgrade will support the vision that Iskra’s two innovative solutions aim to realize while serving as the foundation for the virtuous cycle and sustainable growth of the ecosystem. Furthermore, it can be said to be a crucial element for Iskra to solve the challenge of WEB3 gaming mass adoption.

Now, let’s take a closer look at the main contents and expected effects of minor and major upgrades.

Minor Upgrade

ISK Upgrade

Token Contract Upgrade

• To support a seamless omni-chain experience, the external contracts will be upgraded to LayerZero’s OFT Contract, centered around the original ISK Token Contract deployed on Ethereum.
• During the upgrade process, it will be necessary to change the token contracts already deployed on BASE and KLAYTN, excluding Ethereum, to new contracts. This procedure will be supported through CEX and the Iskra platform.

Utility Enhancement

• Liquidity Currency of the Omni-chain Ecosystem — ISK will become the key means of connecting all assets in the Omni-chain Gaming Hub. Assets located on different chains will be paired with ISK liquidity on the Hub platform, and all assets can only be traded through ISK.
• Fee Payment Method — ISK will be used as the Tx Fee payment method for the Iskra chain (L3). Game companies onboarded to the Iskra platform will pay B2B fees in ISK.
• Means of Acquiring Activity Points — Activity Points can be earned by freely depositing ISK into the governance staking pool. Activity Points can be additionally boosted by re-staking sISK in the event pool for a fixed period.

P-NFT Upgrade

Iskra Chain

Node License

• With the launch of the Iskra Chain, which can use ISK as the transaction fee, the Pioneer Stage of staking PNFT will end, and the Settler Stage utilizing SNFT (Settler NFT) will begin.
• Unstaking PNFT from the PNFT Staking Contract will burn the Pioneer NFT and issue the Settler NFT.
• Settler NFT serves as a means to operate nodes on the Iskra chain. As compensation for node operation, it will distribute the ISK allocated in the tokenomics and the transaction fee margin generated from the Iskra chain.

Utility Enhancement

• Means of Acquiring Activity Points — Settler NFT holders will have the right to create a guild group of up to 1,111 members and can earn Activity Points proportional to the Activity Points earned by their guild members.

Major Upgrade

Please refer to our blog here.

Conclusion

For Iskra to grow into a platform that leads the mass adoption of WEB3 gaming, it is crucial to have an infrastructure where a sufficient number of games, gamers, and their assets can come together. To achieve this, Iskra aims to integrate gamers and their assets, which are currently scattered across multiple blockchains, by building the Omni-chain Gaming Hub. Through this, we will be able to leverage a larger user pool and Total Value Locked (TVL).

Furthermore, to effectively attract existing users and lower the entry barrier for new users, we aim to establish a robust incentive system. Iskra’s Activity Finance will create a virtuous cycle that promotes interaction between gamers and game companies and continuously expands the reward pool within the ecosystem. This is expected to strengthen the existing user base while accelerating the influx of new users.

Iskra’s ultimate goal is to attract more participants to the platform. Our strategy to achieve this can be summarized in two points:

1. Create an easily accessible and convenient space for anyone to join.
2. Provide clear incentives for stakeholders to participate in the space we have created.

Iskra plans to steadily build the foundation for the widespread adoption of WEB3 gaming based on this strategy. We believe that our efforts will contribute to expanding the entire WEB3 gaming ecosystem, beyond the growth of the Iskra platform alone. We ask for the active participation and support of our community in this journey to shape the future of WEB3 gaming together.

About Iskra

Iskra is a single-destination Web3 game platform for developers and players that rewards them for their contribution and participation through a unique community system on the blockchain. This allows stakeholders to take a major part in building the platform for future growth.

Current services include a wallet, DEX, marketplace, NFT Mission Card (daily reward), governance staking and voting, and soon-to-launch Web3 casual and hyper-casual games.

Backed by some of the biggest technology and video game companies in South Korea, Iskra ranks in the top categories for gaming in DappRadar for unique active wallets per day and engagement.

Explore the future of play!

Twitter | Discord | Telegram | LinkedIn | Youtube

Originally published at https://news.iskra.world on April 30, 2024.