GameFi 1.0 - a summary
What did we learn from the first wave of GameFi?

Challenges with P2E

  • Very few 'games' were made - They were mainly WebGL builds whose purpose was to support yield farming and staking mechanisms for crypto traders and speculators. What happened to the basic principle of game design and making entertaining games that players love?!
  • Wallets are not built for Web2 "normies" and not native to mobile games. Even for some crypto natives, bridging chains and swapping tokens can be a complex, frustrating and time consuming activity.
  • The distribution model was decentralised and local - Guilds did a great job bringing together early players for blockchain games but this adds a service layers, friction and challenging onboarding that you don't get with distribution via mobile games.
  • For mobile games studios there are steep technical barriers - engaging with blockchains, new programming languages and smart contracts.
  • Financial barriers - building up social media and community presence in advance of game launches leading initial NFT drops is not a native skills to Unity developers. Let alone undertaking this financial commitment with any indicators of success vs mobile game development where you test prototypes heavily early in terms of CPI/ARPDAU to determine scalability of the project
  • Tokenomics - bar a couple of examples where teams did a phenomenal job building community, Guild and scholar support that in turn drove very successful NFT drop and token events allow them to deploy liquidity for token buy backs, the vast majority of P2E games failed after the hype. Its simply impossible to sustain a game economy on 1-3k players running on near zero token prices and no net new revenue outside of constant NFT drops.
  • No new revenue channels - the 2 revenue sources were NFT's/MINTS or IDO's - PFP collection, P2E games, gaming guilds are all searching for new sustainable revenue channels to bring into web3 games
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