In terms of web 3 gaming, what we have today doesn’t work. Play to earn doesn’t work and can’t play to earn and/or play to earn. On top of that, traditional players view non-fungible tokens (NFTs) with skepticism. They’ve stun precious monkeys and suspect that big game publishers will use the lipstick of NFTs for extra revenue.
No one knows what a successful Web3 game looks like. To get there, we need more developers to experiment with more models. We need an infrastructure that lowers the barriers to Web3 game development and makes it easier for developers to experiment. That is why it is important to invest in developing basic infrastructure instead of getting carried away by speculations.
Web3 gaming infrastructure can be divided into two levels:
- Pre-release: Infrastructure for pre-game launch
- Post Release: Infrastructure for post-game launch.
In both stages of development, the Web3 game requires technical infrastructure (blockchains, analytics and tools), financial infrastructure (marketplaces and launchpads), and a third category that requires both types of infrastructure, such as dynamic platforms and guilds.
Exploring Mint in pre-release development
Game developers have a wide range of options to choose from when deciding where and how to choose the game’s NFTs. Exclusive game blocks like ImmutableX and Klaytn offer low-to-no gas fees and high volume.
Many games are developing their own blockchains to enjoy greater flexibility and elasticity. Axie Infinity launched the Ronin sidechain, and DeFi Kingdoms has an Avalanche subnet called the DFK Chain. However, starting an independent chain is technically not easy.
New players like Saga are trying to capture this new demand by offering a simpler experience for developers looking to start their own chains.
In the future, in addition to building their own chain, Web3 game developers will easily opt for a simpler experience with full-fledged Web2.5 integrators that provide SDK and API tools. Forte, Stardust, and Particle Network are examples of full-stack infrastructure providers that complement the developer experience.
Inflation Tokinomics is on the way out.
Web3 Games has the option to finance initial development by pre-selling in-game tokens and game assets. We have seen the rise and fall of the inflation token economic model.
Going forward, tokens and selling gaming assets, especially those with equity-like management and ownership features, will become more preferred. Projects define or prioritize buyers, such as content creators, infrastructure providers, and community managers, who are players or meaningful contributors.
Social networking methods should be increased
The game development and engagement infrastructure for Web3 is in a difficult chicken-and-egg situation because traction is still relatively low, due to the lack of compelling games.
But after a few Web3 games hit critical mass, the network effects from identity data allow these platforms to rapidly load and co-innovate.
Related: GameFi developers can face huge fines and hard times.
In addition to the lack of compelling games, common features such as reviews and social features are missing from Web3 games. There is a lot of room for competition and innovation as users can easily send new revenue streams without losing their assets.
Asset unlocking (NFT) utility
Web3 Games share values with their players and the community as a whole. Instead of buying everything from game creators, players can earn or buy in-game assets and currency, creating a player economy.
For mature web3 gaming economies, productive digital assets become an attractive source of income through rent, loan or equity. In fact, successful games like Axie Infinity’s marketplace or StepN’s new decentralized exchange may decide to create in-house successors to cover their own finances, given how profitable it can be.
Guilds and metaverse forums
Finally, there are teams and metaverse platforms that provide funding, integration and partnerships for the games. As major publishers and distributors of traditional games, they are well positioned to be the focal point for Web3 games. The crucial difference is that the players and creators have significant stakes and are able to contribute through governance through decentralized autonomous organizations.
Sandbox and Decentraland are leading Metaverse platforms. But both developers require the purchase of land up front, so a lot of land is sold to speculators who do not provide anything useful for the environment. Taking a different approach is Mona, which is free to creators until the space is snapped up and sold.
Related: Get ready for the feds to start prosecuting NFT traders
Meanwhile, Web3 game guilds like Yield Guild Games and Merit Circle have put in thousands of players to support upcoming games, most notably Axie Infinity.
As the association grows in competition, they are forced to distinguish themselves. Snack Club, for example, taps into Loud, Brazil’s largest esports and gaming lifestyle group with 300 million followers. Jumbo is building an African super-app that includes telco services and decentralized finance alongside gaming.
Games play a vital role in our lives and have long been the frontier of human experimentation. What we’ve seen so far in Web3 Games is part of that experiment. Undoubtedly, there are many pitfalls.
Most iterations of web3 game economics today are problematic because everyone thinks they can make money playing games. That’s not how the economy works. So, don’t confuse the dynamic and volatile buzz with real adoption and retention.
Shi Khai Wai He is the General Partner and Chief Operating Officer of LongHash Ventures, a venture fund and accelerator focused on Web3. In the year In 2021, Shi Khai was recognized for his achievements by Forbes 30 Under 30. He was previously a management consultant at McKinsey & Company, focusing on digital transformation and analytics in the financial and telecommunications sectors in Southeast Asia.
Saga, Particle Network, Mona and Jumbo – mentioned in this piece – are Longhash’s portfolio companies. This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.