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Tackling Challenges and Innovations in the Blockchain Gaming Ecosystem

Abstract

The rise of blockchain gaming has ushered in a new era of “Play to Earn” experiences, offering players economic incentives and developers fair compensation. However, this paradigm shift brings its own set of challenges. While tokenization has empowered players, it has also shifted focus towards profit, potentially detracting from the core gaming experience. Moreover, the reliance on blockchain layers has introduced volatility and scalability issues, hindering sustained growth.

To address these challenges, this research proposes a novel approach: tokenizing not just in-game items but also game rules, thereby democratizing game development and fostering diverse economies. The Tabi Chain is presented as a solution, offering an interoperable infrastructure and innovative tokenomics centered around veTabi and Captain Nodes. These mechanisms aim to align the interests of users, developers, and game chains, creating a self-sustaining ecosystem where revenue generation benefits all stakeholders. By tokenizing game rules and leveraging unique node structures, Tabi Chain seeks to revolutionize the blockchain gaming landscape, paving the way for a more inclusive and vibrant gaming future.

Challenges in the Blockchain Gaming Ecosystem

During the past bull market, we have witnessed the potential of “Play to Earn” blockchain games such as Axie Infinity and StepN. The crypto gaming industry has carved out a $10 billion market and shown exponential growth with over 10 million players participating. Critics may argue that the surge in token prices is a temporary phenomenon, but we must not overlook the intrinsic aspects.

The ‘Earn’ aspect of blockchain games has delivered outcomes previously unattainable within the confines of the Web 2 gaming market’s stringent regulations. Notably, it has empowered players to receive economic rewards for their time and efforts. While Web 2 games primarily offered enjoyment through gameplay alone, blockchain games have introduced an additional layer of engagement through the ‘Earn’ element. Consequently, developers have transitioned away from systems burdened with high fees, embracing an environment where they are fairly compensated for their contributions. Moreover, developers have also been able to establish their own self-sustaining economic systems, emphasizing the ‘Earn’ feature, enabling users to engage in free transactions amongst themselves. This shift ensures developers receive equitable compensation for their efforts while fostering a more vibrant and sustainable gaming ecosystem.

While acknowledging the positives, there have been unintended consequences. Blockchain games have attempted a one-dimensional approach by tokenizing in-game items into NFTs. This simplistic application of blockchain technology to existing games has led players to focus more on ‘Earn,’ i.e., profit, rather than the essence of the game.

While the increase in item prices served as a strong incentive to sustain player interest, price declines have triggered player attrition and rapid content consumption. In simple terms, the resulting disengagement from games due to lack of profitability has led to a mercenary approach.

Another side effect is that blockchain games operate on Layer 1 and Layer 2 network bases. The decline in token prices on these layers has fueled player attrition within individual games in the ecosystem and diminished the valuation of games. This has created an environment where game studios struggle to sustain ongoing development and operations.

Price Trends of JEWEL/AVAX in DeFi Kingdoms on the Avalanche Network

Given the distinctive blend of ‘Earn’ features and integration with blockchain networks in blockchain games, what steps can we take to address the unintended negative outcomes that have emerged?

Tokenization of Game Rules: A New Paradigm in Blockchain Gaming

Tokenization in blockchain games should transcend ownership and transactions of in-game items to encompass the “game rules.” Here, “game rules” refer to individual players’ decisions affecting the outcomes for other players. A prime example of this is seen in:

1. Strategy/Casino Games: Games like Blackjack, accommodating 2 to 8 players, where individual players’ decisions impact the outcomes for others. If participants collaborate effectively, they can achieve high win rates against the casino; however, if one player starts to deviate, the likelihood of collective defeat increases. Consequently, players seek to join tables with strong unity and are willing to pay a premium to secure a seat. Tokenizing player seats would introduce more diverse variables as individual players could influence the “game rules.”
2. MMORPG/Sandbox: Objects in the game economy that can influence gameplay, such as NPC merchants selling items, banks lending game tokens against game assets, or mines for mining ore, can be tokenized to enable users to establish new economic systems.

Tokenizing game rules entails entrusting the role of game development to users. This could lead to the creation of diverse game economies. Diversified game economies would create more complex game rules, and discovering these rules could provide players with fresh enjoyment as part of the gameplay. The envisioned definition of a complete blockchain game could involve defining the tokenization of existing in-game items and game rules, without necessarily executing all game logic on-chain. This initiative would significantly enhance the longevity of games by providing players with the opportunity to experience “Earn” incentives and engage in continuous content creation, thereby enriching their gaming experience.

To develop blockchain games tokenizing “game rules,” a chain with fast transaction processing speed and high security is essential. Additionally, the tokens on the chain should be minimally impacted by price volatility. To achieve this, the participants’ “interests” in participating in the game must align.

Essential Infrastructure for Game Rule Tokenization: Tabi

Tabi, providing an Omni Modular Chain solution, is a chain capable of handling complex blockchain operations, potentially serving as an alternative for on-chain gamification. This is due to its ability to establish a rapid processing speed and sustainable ecosystem, as previously mentioned.

Up to now, games have recorded and traded in-game assets only on the blockchain. Due to their simple structure, these operations have been functional within current gaming layers. However, a more robust technological infrastructure is necessary to facilitate the tokenization of what we conceptualize as ‘game rules.’

1. Compatibility Issues in Development Languages: Migration to different chains has been challenging due to the differing development language processing models such as EVM, SVM, and Move VM across individual chains. The confinement of games to one chain has limited the scale of in-game economies.
2. Scalability Limitations: Tokenizing ‘game rules’ within existing blockchain networks poses difficulties due to high costs associated with sequential processing and block space storage. This restricts scalability and imposes limitations on game genres and the maximum number of users.
3. Constraints on Integrating Existing Games: Web2 game developers find it difficult to develop games supporting blockchain technology. This is because there is currently no engine in the blockchain game infrastructure, like Unity, capable of implementing cross-platform functionalities simultaneously across iOS, Android, and desktop environments. It requires significant time investment, and transferring existing games to the blockchain requires redesigning game structures from scratch.

Due to the lack of chains specifically tailored for blockchain games, there are limitations to the growth of game projects. Tabi aims to address the technical challenges in the blockchain game market by constructing an interoperable execution layer. This is achieved through the Polymorphism VM, which can reciprocally operate the VM development environments of all chains.

• VM Development Environment Compatibility: Polymorphism VM enables adaptation to various blockchain VM development environments. Developers can now create games based on their preferred development environment, without being restricted to the VM environment of the mainnet project.

• Easy Web2 Game Migration: Polymorphism VM allows web2 developers to seamlessly transfer developed games to the blockchain without configuring a separate blockchain environment. For instance, transferring Minecraft to the Tabi Chain involves distinguishing off-chain data (server, backend logic) from on-chain data, loading them onto the Polymorphism VM, and then running a web2.5 version of Minecraft on the Tabi Chain.

• Layer for Game-Specific App Chains: On the Tabi Chain, individual app chains can be created for each game. Each app chain can be built based on optimized specifications required for each game genre. Due to varying requirements across genres, app chains can be tailored accordingly. To ensure the security of block states produced by each app chain for interoperability between games, Supervisor nodes verify block states between app chains for malicious attacks. Supervisor nodes conduct verification based on high economic security using staking protocols such as Eigen Layer and Babylon.

• Shared State Compatibility: Tabi Chain, fundamentally developed as a game infrastructure using the Cosmos SDK, deploys app chains similarly using the Cosmos SDK. This compatibility arises from deploying app chains based on the Cosmos SDK, allowing for the sharing of the same state. Users can experience the same user experience as the EVM mainnet, even with app chains operating on different VMs.

Until now, there hasn’t been a game chain capable of developing and realizing a complete on-chain game. Transferring web2 games to the blockchain has been extremely difficult; consequently, only simple items were tokenized as NFTs. Consequently, only a few services limited to certain genres have been released.

Tabi endeavors not only to tackle the scalability challenges in gaming but also to pioneer a new genre of ‘complete on-chain games’ by tokenizing ‘game rules’, akin to DeFi interoperability.

However, the persistent issue in blockchain game chains, caused by market price volatility cycles, where users and developers exit due to low rewards and incentives, remains.

Existing game chains cannot fulfill the desires of users and developers when the inherent value of the chain is compromised through one-time grants or reward forms managed by foundations. Having explored the intricate infrastructure prerequisites for game rule tokenization and the ensuing challenges impeding blockchain gaming’s evolution, the subsequent discussion shifts to the pivotal role of veTabi in cultivating a more equitable gaming ecosystem.

This transition underscores veTabi’s concerted efforts, alongside the innovative Captain Nodes model, to rectify the prevailing imbalances among game chains. By orchestrating a harmonious alignment of incentives for users, developers, and game chains, Tabi endeavors to inaugurate a new paradigm in sustainable gaming. Through its distinctive tokenomics framework and emphasis on community-driven decision-making, Tabi aspires to forge a path toward a future where all stakeholders mutually benefit.

veTabi, Empowering the Gaming Ecosystem

In recognizing the paramount importance of aligning with the aspirations of both players and developers, the blockchain game chain foundation underscores a central tenet: revenue. Players aspire to monetize their gaming experiences, while developers prioritize sustaining their investments and generating revenue streams.

Regrettably, prevailing game chains often prioritize foundation profits at the expense of player and developer needs. This imbalance is evident in the foundation’s control over game selection, where substantial resources and token grants are directed towards game sourcing.

A notable case study is the recent announcement by the Arbitrum Foundation of a $250 million incentive program for its gaming ecosystem. Closer scrutiny reveals flaws in this initiative, as incentives are allocated to discontinued games based on ambiguous performance metrics. Such practices, dictated by the foundation rather than community consensus, can lead to misallocation of resources and undermine the ecosystem’s sustainability.

Moreover, grant allocation decisions skewed towards unpopular games contribute to a cycle of diminishing user engagement and profitability, rendering the model unsustainable. Presently, most native token holders remain disengaged from gaming activities, resulting in a lack of meaningful voting power and an inactive gaming ecosystem that fails to meet user and developer expectations.

Transitioning towards a User-Centric Gaming Ecosystem

The evolution towards a self-sustaining gaming model hinges on fostering robust user engagement and diverse asset ecosystems, thereby enhancing the intrinsic value of native tokens. This alignment among gaming chains, games, and users is pivotal for driving sustained revenue generation and token appreciation.

Tabi’s $veTABI tokenomics epitomize this alignment. Through a seamless conversion mechanism from $TABI to $veTABI, holders gain weighted accumulation over time, enabling active participation in revenue distribution, game onboarding, and strategic decisions within the Tabi ecosystem. Notably, $veTABI holders wield significant voting power, up to tenfold greater than regular $TABI holders, akin to Curve Finance’s proven ‘voting power’ system within DeFi.

By empowering stakeholders to select and fund games, Tabi ensures that revenue streams directly benefit $veTABI holders through chain fees, NFT marketplace transactions, and token inflation. This democratized approach obviates the need for one-time grants, fostering sustainable revenue models for developers within the Tabi ecosystem.

Furthermore, the Captain Node model incentivizes initial genuine users to anchor themselves within the Tabi ecosystem, critical for its circular economic model to thrive. As the gaming landscape evolves, Tabi stands as a beacon of innovation, championing a user-centric paradigm that harmonizes the interests of players, developers, and game chains.

Captain Nodes

Captain Nodes play a vital role contributing to actions such as validation, transaction processing, and voting within the public chain network. With a total of 200,000 nodes, the utility and distinctive features of Captain Nodes compared to existing node structures are outlined below:

Node Utility

1. Election of Validators and Supervisory Nodes: As part of the dPoS consensus, Captain Nodes elect other key network roles.
2. Activation of Shared Security in EigenLayer and Babylon: Captain Nodes monitor malicious activities of service validators and share evidence of malicious actions with the shared security protocol to penalize malicious validators.
3. AI-based Omni Processing Layer: Web2 developers utilize AI to review game code, and AI automatically analyzes data to verify states needed for conversion into required content in Tabi Chain’s Omni Execution Layer.
4. veTabi Reward Voting: Captain Nodes engage key contributors to Tabi Chain and reward them in the form of veTabi. veTabi received as rewards can be used for voting within the Tabi Chain ecosystem and potentially earn airdrop rewards from ecosystem game projects.

Tabi Chain nodes participate to maintain the consensus algorithm and security of the Omni Execution Layer, and in the future, they will assume a critical role as the execution layer for on-chain AI games within the network.

Resolving Reward Imbalance Due to Pricing Models

Traditional node models follow a structure where latecomers face higher costs and diminishing rewards. Such a model significantly increases the likelihood of latecomers incurring losses and ultimately leads to a higher frequency of network attrition over the long term. To prevent the attrition of key contributors, Tabi Chain has implemented Captain Nodes, which utilize characteristics akin to PoW mining rigs.

Existing PoW nodes have consistently upgraded their performance with each new version, thereby increasing hash power. Without investing in new mining rigs, it’s impossible to achieve higher profitability than those with superior performance. Referring to the table below, under the assumption of 50% node activation and a token FDV of 600M, one can calculate the profitability of typical nodes that are equally distributed. Cheaper nodes experience diminishing rewards over time.

Tabi’s Captain Nodes have departed from conventional structures, introducing a unique node framework. These unique nodes ensure consistent profitability within a certain range, allocating rewards commensurate with node costs regardless of when participation occurs. This means that on the Tabi Chain, strategic node purchases can yield rewards depending on token prices and community sentiment in the market.

On the other hand, Tabi nodes allocate rewards that match the node cost at any point of participation, ensuring profitability remains within a certain range. This means that Tabi Chain users can strategically purchase nodes in the market based on token prices and community sentiment to earn rewards.

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In the existing model, latecomers face reduced rewards, diminishing their incentive to participate in the network. Given the paramount importance of network security, Tabi has enhanced the node reward distribution model based on the network’s sustainability, ensuring accessibility for both early adopters and latecomers at any given time.

Captain Node Level Mechanism: Preventing Node Value Dilution

As projects integrate nodes into their tokenomics, it becomes imperative to attract new node contributors to sustain the network’s growth. To attract new node operators, projects need to issue new nodes. The issue arises when existing nodes experience continual dilution of their stake and consequently receive reduced rewards due to the purchase of new nodes. This can lead to dissatisfaction and conflict within the fervent community initially composed of early nodes and may undermine the project’s credibility.

To tackle this challenge, Tabi Chain has implemented a node-level mechanism. Nodes are categorized into five levels, each providing unique mining capabilities and advantages. Early-entry nodes at lower levels are priced and powered accordingly. Conversely, nodes at higher levels, entered at a later stage, command a higher acquisition cost but offer increased veTABI mining rewards and supplementary ecosystem airdrop incentives compared to their lower-level counterparts.

High Node Reward Allocation

Currently, game node projects offer approximately 20% of the total token supply to node purchasers. In contrast, the rewards allocated to Tabi Captain Nodes account for 40% of the total supply. With generous reward allocation, even with the release of Level 2 to Level 5 nodes in the future, both early adopters and latecomers can obtain rewards corresponding to their node levels.

In the gaming industry, it’s widely acknowledged that a small number of high-value users, often referred to as “whales,” provide the backbone of the entire gaming ecosystem. Tabi Chain sets itself apart with a vast network of 200,000 Captain Node contributors, embodying crucial “whale users” and fostering ecosystem alignment within the Tabi gaming sphere. Unlike counterparts on other chains, Tabi Chain streamlines the challenge of attracting “whale users” by optimizing time and cost through innovative tokenomics and the Captain Node structure. Beyond serving as a mere gaming infrastructure provider, Tabi Chain’s tokenomics establishes a comprehensive gaming platform capable of directly engaging with the crypto community.

veTabi and Game Rules Tokenization

veTabi has created a space where game users can seamlessly interact with tokens by tokenizing the “game rules” of the chain. For instance, guilds exclusively investing in on-chain games can pool Captain Nodes’ veTabi to focus their investments on specific genres, and only holders of 1 million veTabi can establish the specialized Tabi Whale DAO for Earn strategy participation. This provides new opportunities for participation in the blockchain gaming community.

In our vision, crypto games represent a pioneering frontier in on-chain gaming, where the very essence of “game rules” is tokenized, promising transformative impact across the gaming landscape. While innovations typically begin modestly, Tabi aspires to carve a prominent niche in the blockchain gaming sphere, leveraging these groundbreaking concepts to address prevailing challenges. Our mission is to foster synergy among game chains, developers, and players, cultivating a mutually beneficial ecosystem conducive to the everlasting creation of diverse game genres.

Tabi, Towards an Equitable and Sustainable Future in Blockchain Gaming

In conclusion, the journey through the landscape of blockchain gaming has illuminated both the immense potential and the significant challenges inherent in this evolving industry. The advent of “Play to Earn” experiences has reshaped traditional gaming paradigms, offering players unprecedented economic incentives while granting developers equitable compensation for their contributions. Yet, alongside these advancements come complexities that demand innovative solutions.

At the heart of the concept of tokenizing not just in-game items, but the very rules that govern gameplay. By democratizing game development and fostering diverse economies, Tabi envisions a future where blockchain gaming transcends mere profit-seeking to embrace the essence of immersive gameplay. The Tabi Chain stands as a beacon of this vision, offering an interoperable infrastructure and pioneering tokenomics through veTabi and Captain Nodes.

The critical challenges facing the blockchain gaming ecosystem was defined throughout the article. The reliance on blockchain layers has introduced volatility and scalability issues, while the singular focus on tokenizing in-game items has veered attention away from the core gaming experience. However, by tokenizing game rules, Tabi opens doors to a new era of gaming innovation, where players actively shape the dynamics of gameplay and developers are empowered to create vibrant, sustainable ecosystems.

The implementation of veTabi and the Captain Nodes model represents a tangible step towards addressing these challenges. By aligning the interests of users, developers, and game chains, Tabi endeavors to foster a more equitable and vibrant gaming ecosystem. Through innovative tokenomics and community-driven decision-making, Tabi aims to forge a path towards a future where all stakeholders mutually benefit.

In essence, our journey through the realms of blockchain gaming has been one of discovery and transformation. As Tabi stands on the cusp of a new era, Tabi is reminded of the immense potential that lies within our grasp. By embracing innovation and collaboration, Tabi has the opportunity to redefine the very fabric of gaming, creating a landscape that is inclusive, sustainable, and endlessly enriching. The future of blockchain gaming beckons, and it is ours to shape.