wp-plugin-hostgator domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114ol-scrapes domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2022\/07\/30\/gaming-veteran-gamefi-blockchain-web3\/<\/a><\/br> The runaway success<\/span> of Axie Infinity<\/a> and StepN<\/a> has convinced a flurry of entrepreneurs that web3 gaming, where the ownership of in-game assets is in the hands of users via blockchain adoption rather than a centralized platform, is the future.<\/p>\n Some of the biggest hits in the space to date reward users with tokens that can be cashed out in what\u2019s known as the \u201cplay-to-earn\u201d model. While P2E games have attracted millions of players and billions of dollars from investors, veterans of the gaming industry argue that they are fundamentally unsustainable.<\/p>\n These games are the brainchild of financial engineers aiming to get rich quickly rather than experienced developers building time-honored works, they say.<\/p>\n Axie Inifity\u2019s dramatic rise and fall is telling. After peaking at $754 million in November<\/a> when bitcoin hit all-time high, the game\u2019s monthly sales volume plummeted to $4.5 million in July.<\/p>\n \u201cMost gameFi developers are not game developers,\u201d says Maciej Burno, who\u2019s spearheading the new metaverse business of Polish gaming studio Reality.<\/p>\n Burno is among a spate of blockchain-believing gaming veterans around the world trying to take blockchain games to the mainstream. Their vision is to counter the public impression that web3 games, popularized by P2E, are all scammy and trashy. Instead, they want to build games that are both fun and sustainable, while introducing cryptocurrencies\u00a0as a novel way to incentivize gamers as well as creators.<\/p>\n The problem with P2E, as seen by See Wan Toong, a former senior technical director at Electronic Arts and CTO of web3 gaming startup Red Door Digital, is that users have to spend money upfront to start playing.<\/p>\n In Axie Infinity, users buy and breed cute blob-like creatures called Axies in the form of non-fungible tokens that are authenticated on the blockchain. Sales from the NFTs then go toward funding rewards for those who earn tokens by playing, and the tokens, the game\u2019s native cryptocurrency, can in turn be cashed out.<\/p>\n That means for the game to be sustainable, it must have a constant influx of new users or it loses its financing source. That\u2019s why critics compare P2E games to pyramid schemes.<\/p>\n Many of the P2E titles aren\u2019t really games by strict definition, Toong argues. They are more akin to decentralized finance, or DeFi, products with gamified features. Hardcore gamers dismiss Axie Infinity as \u201csimple\u201d or even \u201cboring,\u201d not unlike the free-to-play, mindless mobile games that they have opposed for years.<\/p>\n But for those living in developing countries, the prospect of making several hundred dollars<\/a> per month by clicking on a computer screen can be tempting. That\u2019s largely why Axie Infinity took off in countries like the Philippines during the pandemic when many people lost jobs. To them, the game is more like work than fun.<\/p>\n \u201cI think there is a bit of elitism in it,\u201d Simon Davis, CEO of Mighty Bear Games, a Singapore-based web3 gaming studio that just raised $10 million in a token sale, says of Axie Infinity critics.<\/p>\n \u201cThere is a tendency in Western countries to dismiss things that are popular in other parts of the world and not be as respectful as you should be. If you look especially in Southeast Asia and Latin America, and countries where incomes are probably less high, people don\u2019t buy high-end gaming rigs and consoles. It\u2019s interesting to provide people not just with entertainment but also with potential economic upside.\u201d<\/p>\n \u201cI don\u2019t like the term play to earn,\u201d continues Davis, formerly a design manager at Ubisoft. \u201cI don\u2019t think it should be a primary motivation because you\u2019re playing a game to have fun. But someone can then decide they don\u2019t want to play the game anymore and get some of their investment back then. I don\u2019t see how that\u2019s a bad thing.\u201d<\/p>\n While Davis recognizes the value of P2E, like many other experienced game developers entering web3, he\u2019s pouring resources into perfecting the gameplay first and foremost. His studio had been producing conventional games, like an official Disney and Pixar game and Butter Royale, a hit on Apple Arcade, before turning to blockchain. It will soon be launching its first web3 title, a multiplayer third-person battle royale<\/a> that incorporates the token economy.<\/p>\n Games can be both fun to play and<\/em> lucrative, some blockchain game developers argue. It\u2019s not news that gamers are motivated to make money \u2014 even in more developed parts of the world.<\/p>\n \u201cRemember World of Warcraft? There is already a group of players in the MMO [massively multiplayer online] game who hire tons of people in Vietnam and Indonesia to farm gold,\u201d observes Toong.<\/p>\n \u201cWhen you look at a traditional game, people are putting millions or billions of dollars into the gateway, but it\u2019s on the other extreme. They don\u2019t get any value back,\u201d adds Toong.<\/p>\n Burno agrees. \u201cPeople want to play for fun and they are willing to spend money that makes them feel happy, but there are also those who want to invest, so you can give them a tool to invest.\u201d<\/p>\n Developers are also promised greater rewards from blockchain-integrated games. In free-to-play games, a common monetization model of today, developers earn income by pushing an update every \u201csix to eight weeks,\u201d observes Davis. \u201cUsers get annoyed that you\u2019re trying to squeeze money out of them every two months.\u201d<\/p>\n In web3 games, in contrast, developers get a small percentage of every in-game transaction, which is recorded on the blockchain. \u201cSo the only thing you have to worry about is creating a game that people want to keep playing for a very long time and creating value for those assets of the players who want to trade between themselves,\u201d says Davis.<\/p>\n To make a blockchain game sustainable, Toong\u2019s Red Door Digital is taking a different approach from Axie Infinity. Users don\u2019t need to buy the platform\u2019s tokens in order to start playing \u2014 unless they want to start earning or have real value in their assets.<\/p>\n When a game sustains a recurring user base, the value of the game will increase and external investors will join, reckons Toong. \u201cAll this increase in value then goes to the people who are playing to get financial returns.\u201d<\/p>\n Like many web3 games, Red Door Digital\u2019s platform offers utility tokens, which are used like in-game currencies for purchasing skins, items, and so on, as well as governance tokens. Users who contribute to the game will get governance tokens and be able to vote on critical project decisions. The utility tokens can be traded, while the governance tokens have no liquidity to strip them of any speculative value.<\/p>\n While developers are still working to optimize their token economy, investors are already plowing big money into their nascent ventures. Blockchain games attracted a whopping $2.5 billion in funding in Q2, according to DappRadar<\/a>, a data company that tracks decentralized apps. In H1, blockchain games accounted for about 30% of all the capital raised by private gaming companies, a report<\/a> by investment bank Drake Star shows.<\/p>\n Despite the torrent of VC money floating into web3 games, some legacy studios and publishers seem to err on the side of caution. Tencent, the world\u2019s largest gaming company, has no development plans for web3 games that are of public knowledge.<\/p>\n \u201cReputation is a big thing for the corporate, so if anyone who creates this initiative fails, it\u2019s the end of their career. They will have to answer the board,\u201d says Toong. \u201cSo the only way is for them to invest in a crypto company or two to see how it goes.\u201d<\/p>\n
\nGaming vets promise to make blockchain games fun and sustainable<\/br>
\n2023-01-20 22:24:40<\/br><\/p>\nIs it a game?<\/h2>\n
Play and earn<\/h2>\n
Tokenomics<\/h2>\n