GameFi Terms you need to know
GameFi has captured investors’ attention this year, and that’s something we cannot ignore. According to DappRadar, games and metaverse projects raised a whopping $2.5 billion in the first quarter of this year.
If you’ve chosen to enter the GameFi sector and want to master the jargon, you’ve come to the right spot. This guide will familiarise you with the most often used terms in the GameFi industry. Let’s begin:
Avatar: Avatar is a player’s persona in the virtual gaming world. It is a 3D depiction of the user with distinguishing features such as hairstyle, apparel, accessories, etc. Avatars can also be in-game NFTs required to begin playing P2E games.
Axie Infinity: Axie Infinity is a well-known blockchain-based game that became a pandemic Saviour overnight for many South Asian gamers with its Play-to-earn model. Axie Infinity became a source of money for gamers who lost their jobs in covid times. In the game, players buy creatures — called Axies — and use them to battle and earn SLP tokens, which they can then swap for FIAT money at an exchange.
Axie: Axies are NFTs that look like creatures that gamers must buy to play the famed Play-to-earn game Axie Infinity. To begin playing, players must purchase three Axies.
Blockchain games: Also known as NFT games or crypto games, they operate on top of a blockchain and use token-based economics.
Community: A robust community is required for the long-term success of a GameFi project. Members of the community will back the project if the creators remain dedicated and have a long-term vision. In the GameFi market, the community may either make or break a project.
DAO: Stands for Decentralised Autonomous Organisation; organizations managed and owned by its community members. DAOs significantly influence how gaming organizations run, generate funds, form communities, and create new games.
Dual-chain game: Dual chain games are gaming projects launched on two blockchains to assure the games’ sustainability and scalability. Monsterra is the first dual-chain P2E game on the BSC and Terra chains.
Fan token: Fan tokens are created for sports fans to connect with their favorite athletes. It is a type of cryptocurrency that provides users with a range of fan-related perks and benefits such as voting on club activities, incentives, merchandise designs, and more.
Guild: Guilds in the Web3 space are focused on creating P2E gaming communities. Their goal is to make p2e games more accessible to newbie gamers without requiring them to pay a hefty initial investment. In exchange for helping players gain access to NFTs for a specific game, guilds receive a portion of each player’s game earnings.
In-game tokens: The in-game currency used to purchase items such as characters, weapons, and accessories. These tokens are either earned as part of a game or purchased through an exchange in which they are listed. The value of these tokens is lower than real money.
In-game assets: Game assets are the NFTs such as weapons, clothes, vehicle, props etc. required to play the game
IGO: Initial Game Offering is a technique for raising funds for early-stage blockchain gaming start-ups. It gives investors early access to gaming assets and tokens before they are made accessible to the public.
Launchpad: Platforms for launching and minting new GameFi projects in order to raise liquidity and capital. Launchpad provides all the necessary tools and resources to help start-ups launch their IGO successfully.
Marketplace: A marketplace is a site where you can purchase, sell, rent, or trade game assets
Metaverse: The Metaverse is a virtual environment that blends augmented reality (AR), virtual reality (VR), blockchain, and concept of digital media to create an immersive experience for users where they can virtually communicate, socialize, shop, and conduct a variety of other activities.
Move-to-earn: M2E apps enable users to earn passive revenue while engaging in everyday physical activities. They combine key components of both GameFi and fitness applications to give players an incentive to perform physical activities such as walking, jogging, running etc.
MMORPG: Acronym for Massively Multiplayer Online Role-Playing Games; allow players to win in-game rewards by defeating other players, performing in-game tasks, and progressing through different game levels.
NFT: We’ve used the term “NFT” the most in this guide since we presume, you’re familiar with it, but just in case you aren’t. NFT is an acronym for non-fungible token, which is a unique digital data recorded on a blockchain. In GameFi, NFT represent all game assets.
Play-to-earn: Play-to-earn is a revolutionary business model in which gamers are rewarded with tokens for playing games. Players in P2E games obtain in-game assets. The more players participate, the more assets they may accumulate and the more valuable these assets become. Players may move their assets to the real world and sell them on their own terms for real money.
RPG Games: Role-playing games in the crypto world are similar to regular RPG games, except that they run on NFTs and blockchain technology.
Studio: A studio provides complete game development services.
Scholars: Scholars are new gamers who join gaming guilds and spend their time and skills contributing to a P2E game in return for in-game NFTs and rewards.
Scholarship: Scholarships allow scholars to explore the world of GameFi. Axie Infinity introduced the scholarship idea, in which players who wish to play the game but lack the necessary funds are given access to in-game characters to begin their gaming adventure. A manager oversees the NFT deployment and rewards for the scholars.
Tournaments: P2E offers scholar-to-scholar and guild-to-guild tournaments in which players compete for rewards, much like any other game tournament.
Wallet: A wallet is built on blockchain to manage cryptocurrencies and perform transfers. Gamers must have a digital wallet in order to connect with the gaming platform and purchase in-game NFTs to begin playing.
That’s all, folks! GameFi covers a wide range of terms, so in one list, it is impossible to cover them all. Tell us if we missed any important terms that should have been included in the list.
Lastly, WAGMI! We all gonna make it.
