Today, GameFi has become an independent segment of the encryption market, often moving out of its own market, not in line with the mainstream market.If we look closely, the market for each GameFi also varies.This is often related to the economic model and token economics that corresponds to the implementation of GameFi.At the same time, independent trends mean that GameFi has been successful in a sense.

It is difficult to fully restore the reasons behind a thing's success, but some key factors can be identified.These factors will help us see and understand the pace of GameFi's evolution more clearly, without missing out on opportunities for the future encryption industry and GameFi circuitry.

the post-epidemic era In the last decade, the novel coronavirus infection has become the world's largest black swan event, with far-reaching consequences that have changed the lives and destinies of every resident of the world.

The most intuitive impact of the new coronavirus infection is "social distancing," and people's "long stay at home" has led to the fast expansion of the encryption, gaming, and live broadcasting industries.In particular, the desire to experience reality is decreasing in the face of the novel coronavirus infection disease, and the desire and imagination for the virtual world are increasing, and the virtual world can provide new experiences for ordinary people.

Thus, the narrative structure of the game's combination with encryption evokes thinking about the future world.The game industry's narrative logic lies in "entertainment" and "socialization," while the encryption industry's narrative logic lies in "Web 3.0," "decentralization," and "self-control."

The resulting narrative logic of GameFi is twofold:

First, in the old days, chainwriters pushed for "the player's ownership of the property in the game."

And Tencent and other big companies' "definition" of game capital is also strengthening players' desire to own game capital.This is evidenced by the deletion of the Tencent game "A Bright Moon Knife in the Sky."A new version of the item was posted on one of the players' accounts of "A Bright Moon Knife," and after the incident broke out, several players who spent a lot of money on the game protested by deleting it.The backhand of "The Moon Knife of Heaven" will be deleted from the account and replied, "What the player has is the "right to use" of the game account."", not "ownership."

Chain Games hoped to address this issue, and subsequent GameFi protocols followed suit.

The second is Play2Earn.

As a result of the epidemic, the number of jobs has declined considerably, and the increase in unemployment has further contributed to the development of the game industry, and the Play2Earn model initiated by Axie Infinity has been revolutionary.

The background of the COVID-19 incident and the coexistence of Play2Earn led to the rise of GameFi.This is why GameFi protocols such as Axie Infinity have exploded. YouTube's last video, "Play-to-Earn," shows us how AxieInfinity has changed people's lives and become the support of some ordinary Filipinos.These ordinary people include single mothers, college graduates who cannot find jobs, and elderly couples who run small convenience stores.

The Rise of Goldsmiths In addition to the GameFi protocol mentioned above, the rise of HitWork has sustained the rise and popularity of GameFi.

YGG had 62,545 community members on Discord as of the end of September, up 16.4 percent from August 2021, according to a September report by Yield Guild Games, the most famous GameFi beating union.Since its launch in late July, 14,161 members of the YGG community have become union members by casting their YGG Guild badges.。

While community membership is growing fast, Yield Guild Games is also investing in promising game NFT and other NFTs, using their profits to grow and spread community membership and culture.

Other influential hit studios besides Yield Guild Games include Merit Circle, MetaGameGuild, and GuildFi.They are all developed by retaining community users by giving help to community members early on, including providing game NFT properties and game instruction.As the community grew, the GameFi market grew.

At the same time, the ability of gold-making studios and communities to make money in the virtual world has driven Fomo sentiment among many groups, and many outside the blockchain industry are learning and participating in encryption.This is one of the reasons why GameFi is able to make its own market – outside participants are only interested in Play2Earn's GameFi products and want to achieve sustainable revenue, with little interest in other Cryptocurrency.

Sustainability of Game Economy System While praising Play2Earn, we also need to think about some of the problems that Play2Earn has.

The essence of GameFi gold is to add liquidity to the second pool, where the fast pace of liquidity will yield substantial returns to participants, but the withdrawal of liquidity and the fall in Token Price can easily trigger a series of reactions.

This type of event has already occurred once in the GameFi protocol Cryptomines.

The price of $ETERNAL (Cryptomines Token) soared to $800, driven by market optimism and Fomo sentiment.But just a few days ago, panic selling in the market caused the $ETERNAL to plunge from its peak to its lowest point of $47.

Although Cryptomines have done enough to sustain the economic system.In addition to providing a channel for Stake $ETERNAL and a 15% commission for market transactions and returning it to the pool, Cryptomines added a cash withdrawal fee—a fee that players have to pay 30% to cash in on their game revenues. God—this reduces the throwing pressure of $ETERNAL to some extent.But they are still unable to stop the current decline in $ETERNAL.

This is related to the unsustainable nature of Play2Earn.IOSG Ventures, an investment firm, points out in its research:

P2E is a great marketing tool, but it's definitely not the core driver of the chain's growth.Gameability and P2E are somewhat incompatible, and P2E greatly reduces the marginal effect of gameability.As a result, over-fantasy gaming and profit-making projects are likely to face the difficulties of trading beyond Minecraft, with fewer users than traditional games.At the same time, P2E is clearly unsustainable from an economic perspective.

The lack of gameability is also an issue that cannot be sidetracked by the GameFi protocol now.Consider Cryptomines, the game itself is not entertaining at all.In fact, apart from building ships and workers in the early days of Cryptomines, there were only two operations in the game: "Select Fleet" and "Select Planet."When finished, victory is rewarded by the game token, and failure is only partially experienced.Once a day.

The gameability of RadioCaca's Metamon Island, represented by the richest mother of Musk, is also a problem – with a few simple mouse clicks and an upgrade to Metamon.Not to mention traditional games, these GameFi games are not even as fun as mobile games.

This partly attests to the lack of high-quality games in the marketplace and the lack of high-quality game talent.

For GameFi to develop over the long term, gameplay is critical.If you rely solely on the "Fomo emotions" created by concepts such as "Play2Earn" and "Metaworld," GameFi will not be able to develop for much longer.How a sustainable economic system should be achieved is unknown.

However, we can also imagine what GameFi will look like in the future:

Highly playable, game-driven player behavior;

Players are sticky and willing to spend time playing games.

With paid players, the player is willing to pay for some of the game's content, such as accessories, skin, etc.

There is room for profit;

Different types of gamers have different courses of play, gamers can enjoy the content, and goldsmiths can earn money by moving bricks. ……