[Insight] Road to P2O: Tokenomics Fundamentals — 1. GGR

XPLA was founded with a mission to create a fairer and more enjoyable platform through Play to Own. Beyond pioneering technology, our focus is on identifying and implementing a successful creator-focused web3 entertainment system. Our commitment is to provide a reliable platform where gamers, customers, ecosystem participants, and holders can thrive and enjoy.

Over the past two years of launching 10+ games in our ecosystem, we’ve discovered key principles of sustainable Tokenomics. We are eager to share these insights and inspire other builders to implement similar strategies, adapt them based on gameplay, and share their findings. By sharing our findings, we aim to establish a tried-and-true formula for web3 gaming economy design together.

In this three-series article, we will elaborate on the three fundamental rules for the sustainable token economy in Web3 gaming:

1. Identify authentic gamers among extractors, reward them upon contribution: Gameplay-Gated-Rewards (GGR)
2. Adjust the quantity of rewards distributed as the game scales: Dynamic-Reward-Allocation-System (DRAS)
3. Adjust the number of in-game items to be converted from tokens as the token price fluctuates: Dynamic-Token-Conversion-System (DTCS)

Rewarding the supporters, not extractors

Web3 games, through the use of blockchain technology, naturally distribute more benefits to players than traditional Web2 games. This technology grants individuals full ownership through code. However, the emphasis on play-to-earn in Web3 games has led users to focus primarily on financial gains, such as calculating the break-even point or the return on investment, rather than enjoying the game content.

Yet, the benefits of Web3 games shouldn’t be solely equated to ‘earning’ potential under the Play-to-Own principles. Game designers can shift users’ focus towards entertainment rather than earning by closely linking high-value gameplay to the rewards distributed by the game.

This is the rationale behind the first tokenomics rule that we’ve developed: Gameplay-gated-rewards. The aim is to reward genuine players and supporters of the game first. Consequently, the game will attract users interested in the fun experience, not just the earning component.

How to design Gameplay-Gated-Rewards in your game

While it may seem simple, the Gameplay-Gated-Rewards* (GGR) principle dictates that the distribution of game rewards should prioritize rewarding gameplay. Before implementation, game designers must first clearly define meaningful gameplay. The concept of gameplay varies from game to game as there are several layers of engagement between players and the game. To design a successful in-game economy where rewards are appropriately allocated, it’s essential to distinguish between ‘engagement’ and ‘core gameplay’.

The core gameplay can be defined by the following elements:

1. Enhance enjoyment for players by fully utilizing the in-game contents: This include guild/community events and PvP participation etc.
2. Actively participating in the game and Web3 economy: This include creating, transforming, and utilizing game items, and engaging with Web3 components such as utilizing convert pools and marketplaces
3. Boost revenue for game designers and developers: This involve item purchases and the number of Ads viewed.

Rewarding core gameplay with the above elements ensures the game’s sustainability. Key items, which can lead to financial gain, are distributed only when the players also contribute to the game’s entertainment asset, user base or revenue growth. Players highly engaged in core gameplay are rewarded with higher-value items as they enjoy the main game content. This naturally encourages gamers to become core players, creating a beneficial loop, and eventually forming a loyal community.

Lastly, avoid rushing to distribute rewards until you can confirm that the user is not exploiting the system. This doesn’t mean that the initial hour of gameplay should be devoid of rewards. You can still provide simple rewards designed to enhance gameplay and improve engagement, instead of the rewards that lead to instant monetary returns.

Gameplay-Gated-Rewards on XPLA GAMES

Below are some examples of how GGR is implemented in the games of the XPLA ecosystem.

GGR in Mini Game Party

• Mini Game Party is a hyper-casual game designed to reward users the more they play. As users accumulate more playtime and play more rounds, they earn increasing rewards. Users can acquire Gold Medals, which can be converted into Sun Chips, and ultimately into $XPLA. Gold Medals can be won through the Medal Battle, a competition based on individual play records. Since the Medal Battle can only be played five times per day, it encourages daily play by rewarding returning players. Other ways to earn Gold Medals include the Medal Quest, which requires purchasing Starpass (once a day is free)and often entails watching Ads, and the Medal Drop, which distributes medals randomly during gameplay.

GGR in Summoners’ War: Chronicles

• Summoners’ War: Chronicles is a multiplayer role-playing-game, where we encourage users to continuously progress through quests to fully enjoy the storyline and concept. Rahild, the core item which can be converted into Mileage and then eventually into $XPLA, can be obtained through completing daily events and weekly challenges, or interacting with the Exchange center, where players can sell their usable in-game items obtained during the gameplay.

GGR in Walking Dead: All Stars

• Walking Dead: All Stars is an Idle Collection RPG. As the game’s Idle RPG, the key rewards: Unknown Coin are designed to be provided only after users reach Chapter 4–1. Users can acquire Unknown Coin by playing the game, watching ads, or purchasing ‘Skip video’ which supports game developers’ revenue. Reward acquisition also gets easier alongside the users’ game progress (VIP Level and chapter progress) to reward the users who fully enjoy the game contents.

GGR as a First Step towards Sustainable Web3 Game

Play to Own not only emphasizes user ownership of game assets and items, but also the time and effort invested in the game. GGR differentiates genuine players from reward-seeking opportunists by setting specific conditions to earn rewards. This strategy keeps authentic players engaged, thereby supporting the long-term sustainability of the game token economy.

GGR focuses on ‘who’ to reward, but game economy design involves much more. Two additional, more technical rules — the Dynamic Reward Allocation System (DRAS) and the Dynamic Token Conversion System (DTCS) — can further enhance this through basic rules for allocating rewards and converting tokens within games. This article is the first in a trilogy that explains our P2O Tokenomics fundamentals. We welcome your feedback and are eager to learn from the experiences of other tokenomics designers.

*Gameplay-Gated-Rewards: The reward referred here is the key component that leads to earning. It can be in-game items that eventually can be converted into tokens where gamers can cash out or use as a key currency for the most essential items in the game.

About XPLA

XPLA is a Tendermint-based Layer 1 blockchain that serves as a hub for digital media content. Based on the idea of ‘Explore and Play’, XPLA encompasses a wide range of digital content with a leading blockchain gaming infrastructure empowered by a sustainable ecosystem. As a universal content powerhouse, XPLA provides a sublime creative experience for all with its significant size game infrastructure.

With ‘Play to Own’ values at its core, XPLA fosters an environment where gamers’ ownership and efforts are respected for a sustainable blockchain gaming ecosystem. Having recently onboarded top-notch IPs such as The Walking Dead: All-Stars, Summoners War: Chronicles, MiniGame Party, and Ace Fishing: Crew, including the first cross-chain game, Idle Ninja Online, XPLA is not merely progressing, but propelling ahead as a pivotal, content-driven blockchain, exhibiting an impressive spectrum of services.

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