GameFi: All you Need to Know
GameFi’s Soaring Popularity, and its working Mechanics.
GameFi?is the newest craze in the?gaming industry?nowadays, and many aren’t quite familiar with how it works and what exactly it means. GameFi offers the old thrill of winning prizes by?playing?games?with an infusion of?cryptocurrency?and?NFTs.
Game-Fi?players?have the liberty to rent, lend, or even?trade?their prizes for?real money.
GameFi and its Basics
GameFi?uses?DeFi, a?decentralized?financial system used to?record?token-based?transactions, lending, and borrowing. The transactions
are recorded on?blockchain-based?ledgers?similar to how?Bitcoin?works. To make it more easily understandable, GameFi is a decentralized?application?having?economic?incentives.
GameFi Working Mechanics
Let’s take the example of?Axie Infinity?as it is the most successful GameFi around. The?game’s?economy?depends on two?tokens?and?NFT’s;?AXS, and SLP.
These are earned by winning battles and finishing quests. Moreover, the game also has the option to breed blob-like monsters and the offspring can be sold. In addition, the AXS token can also be staked to?earn?interest.
However, the upfront to start playing the game is $700. This is where?gaming?guilds?and game scholarships come into?play, which helps those players?who?can’t afford such an amount buy monsters.
Traditional Game Tokens and GameFi, the Difference
The tokens and?in-game?currencies exist in?video games?for quite some time like?Robux?and V-Bucks. However, the difference lies in the limitation of?ownership?and usage of the tokens.
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Traditional gaming tokens can’t be sold easily or legally outside of the token’s game. Whereas, Game-Fi offers a lot more freedom and ownership as the tokens in Game-Fi act as?crypto-currencies.
GameFi Studios Economic Incentives
The?developers?are given tokens for their work on the game, so the more players play and trade tokens in the game, the more the token’s price increases in the?market.
Moreover, some games also charge?commission?on transactions.
GameFi promises a lot and shows massive?potential?in them, but many regard it as just another way of?publishers?to milk?consumers?for more money.
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Every day the latest?video game news?about the gaming industry.?Video games news?on NFTs (non-fungible tokens, NFT,?NFT’s) ,?Play to Earn?(P2E/Play-to-Earn),?crypto games?and crypto currencies,?gaming guilds,?Metaverse,?VR,?AR,?AI,?Virtual?Worlds,?Avatars,?Digital?Assets,?In-game digital currencies,?Web3?development, Blockchain based?video?games and its transactions and payments in the games.
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Development Manager @ Helen ???AI, Data & Digital twins
2 年I love the idea of freedom and macroeconomy in games, as long as the pricing is kept sane. The example of AXIE infinity with 700$ starting cost is IMO definitely a direction that should be avoided at all costs. The idea of guilds is wonderful, but when players are FORCED to join a guild so they can afford to play games, that's when the freedom of economics is becoming means of segregation. There is definitely an interesting concept here that transcends the disgusting trends of loot boxes and is more geared towards a mutual benefit and player freedom over the digital assets and medium they consume. With development, this can become a booming business that does not rely on greedy exploitation but is powered by what games are really supposed to be about; FUN, and money is just happening on the side.
Co-Founder PolyDoge | Creator of POLYCON | Creator of LI Baby Yoda RIP 01/17/2020 | Go Giver
2 年There are still several pain points that need ironed out on the P2E side but innovative teams are creating avenues to onboard the next surge of adopters with hybrid P2E/F2P models to let players have access to a slice of the games economy before going all in. Great write up!
Marketer, Content Creator & Videographer | WBS 2017
2 年Very informative.
Sustainable Transformation | HHL |?VC & Web3 Enthusiast
2 年Subscribed! Just for the sake of correctness: Slight change/addition - since the new Season 20, you cannot earn SLP in Axie Infinity with quests, only by ranking in PvP.