Creators Will Not Rely on Platforms for a Living

In the past 2 decades, the internet has been divided into several pieces that belong to those big companies. They organize the contents, show them to the users and charge the ad provider for the traffic.

But as blockchain technology emerges and develops, the contents now are owned by the creators. And this will change this industry in a dramatic way. The creators will never rely on these platforms for a living.

They can choose anywhere to write, to show and any way they want to be subscribed and rewarded. They are now totally free but much easier to create to live. Their fans can follow them by ENS or other dapps, support them by donating crypto currencies, purchasing NFTs or even spreading the words. They are now united by the common belief, interest or vision instead of organized by a specific platform.

The Internet Will be Split into Tons of Pieces

In a word, the internet will be split into tons of pieces. And each piece will be maintained by its community. The new generation of Dapps may be the organizers of work by creators, but they would never be the owner. And this transfer of ownership will change the way content is organized, shown, distributed and paid.

Compared to such a self-governing mechanism, will creators keep staying on the centralized platforms?

No way!

The Distribution of Info Will Become Decentralized

10 years ago, the intermediary of content was shifting from paper to the internet.

Now, the distribution of contents will become more and more decentralized and eventually peer to peer.

We are already on our way.

As the branches of DeFi gradually improved, NFT entered the crypto community . From crypto art collection to game prop assetization, even copyright, e-commerce and major IPs have entered the NFT market. And NFT, as a way to introduce alternative assets, became a topic of conversation throughout the market at that time.

But just as there are millions of FTs (fungible token) with their own different problem orientations and solutions, there are many different scenarios for NFT. The initial explosion of NFT was kicked off by the sky-high prices of crypto art. However, this phenomenon did not last long. Soon, crypto art returned to the niche market of art, and NFT was quiet again.

That is, until Axie came along. Axie was actually in development back in early 2018, but it wasn’t until 2021 that it really became known to the crypto community, and at the same time made many people realize that the on-chain game could open up a new market for the blockchain world. So we can’t help but wonder: what exactly has Gamefi done to transform the industry? Will it become the next DeFi-level phenomenon or will it be a flash in the pan?

What exactly has GameFi changed?

The convenience of asset identification, trading and cross-project circulation brought by the assetization of game props

In the game, the role of props has always been pivotal, and whether you can win or not depends largely on props. In order to get the thrill of winning, Kryptonian players would not hesitate to buy game props at high cost. However, the loss of game props in centralized servers is one of the FAQ of almost every game.

As an important asset in the game, if the ownership is not protected, it is as unacceptable as our assets in the physical world are not protected. But blockchain can solve this problem very well. After the assetization of props, each prop is an asset belonging to the address, and the ins and outs of this asset will be clearly presented to all.

At the same time, the game prop trading market is also the immediate need of players. In the chain game, props will exist as assets in the form of NFT, so many trading markets around NFT or various financial games around assets (lending and mining, etc.) will greatly enrich the use scenarios of these game props.

The global de-trust collaboration brought by the separation of assets and games

In addition to prop trading, game coaching is also a common profession in the industry, where they earn income by playing game upgrades for others. But such business has never had a platform of scale. And the private agreement, and often there are all kinds of rip-off events.

But blockchain can realize the separation of games and assets, thus easily solving this pain point. You can take my account to play the game, but you can’t take the props in my wallet. And all the game proceeds will also go to the wallet corresponding to that account.

Game time as a new proof of workload mechanism, play and get revenue at the same time

In addition to the above improvements to the game industry, the gold coins earned in the game before are turned into real assets in the on-chain games with good liquidity. This is the most unique advantage that the financial property of blockchain brings to on-chain games, and the most important foundation for the game to expand its territory for the decentralized world. Recently, in many Southeast Asian countries, playing games is not only the hippest profession, but also one of the most profitable ones.

What factors do the success of GameFi projects depend on?

Although blockchain games add a lot of new attributes compared to traditional games, not all chain games are successful. Throughout the current on-chain game market, the following factors are the most talked about.

Game hardware such as visual style, storyline, worldview, and playability

On-chain game, as an extension of the game, does not escape the players’ requirements for the game itself. Pleasant visual style, immersive experience, and strong playability are the keys to retaining users. Especially UI, as the first impression when players open the game interface, the watershed between a shoddy project and a sincere game is still very clear. Whether it is Axie’s cute pets, Alien World’s sci-fi futuristic, Alice’s fresh idyllic, or LoserChick’s American stormy style, the unified visual style is the first key to attract users to know more about the game.

In addition to UI, the plot of the current on-chain game is a little less complicated compared with traditional games, with turn-based games being the majority. However, because of the addition of its financial attributes, people’s requirements for the plot have decreased.

Economic model, distribution method and other attributes unique to crypto communities

In the chain game field, do users enter the game more for the game part, or the financial part? Everyone may have a different answer to this question, but on the contrary, the economic model is undoubtedly the most crucial to the success of the games that have come into the public’s view.

Take Axie for example, in Axie the main game activity is battle and reproduction. The main assets are tokens SLP, tokens AXS and NFT, which can be won by winning battles, while breeding requires SLP and AXS. The multiple assets of dual tokens + NFT combine the game plots organically while allowing the assets to be used as scenarios for each other.

The more players play the game against each other, the higher the output of SLP, and the price will drop, when the cost of reproduction drops (requiring SLP and AXS), players increase reproduction, the demand for SLP increases, and the price of SLP increases, which in turn will constrain the rate of reproduction, and the growth rate of pokemon NFT. Thus, each asset in this ecosystem can be very well value captured, and ultimately the increase in asset prices is in turn attracting a large influx of players.

Is dual tokens + NFT the most likely successful economic model for onchain games?

Looking at the current on-chain game market, the same token economy model is used in the on-chain game LoserChick on Ploygon, where the main game activities are egg catching (similar to claw crane machine) and egg cracking(NFT minting). Each time an egg is caught, a CHICK will be burned, and each time an egg is cracked (NFT minted), it will be burned. as the game progresses, the number of CHICKs and EGGs will become smaller and the price will become higher, thus increasing the cost of NFT minting and limiting the growth rate of NFT. The decrease of NFT growth rate will make individual NFT mining more efficient (mining CHICK), when CHICK output is higher, the price will decrease, the cost of catching eggs will decrease, stimulating players to increase the frequency of catching eggs as well as cracking eggs, increasing the number of NFT. So on and so forth.

Comparing the above two cases, it is easy to find that the closed loop of token usage scenario is undoubtedly the most critical factor for the success of the project, whether it is reproduction consumption or burning consumption.

Can a good economic model break the status quo of the short life cycle of on-chain games? Can the rise of on-chain games recreate the whole game industry? Will the game become the second piece of industry puzzle in the decentralized world? Let’s wait and see.