GameFi Has Come To The Point Of Change For Survival?

It only appeared in a short time, but GameFi has become a trend that cannot be ignored in the investor community. However, investment cash flow had shown signs of withdrawing from this nascent field quickly after the boom period, when most users decided to quit the game when they reached their desired income level.

GameFi – when games become a financial instrument.

The word GameFi itself includes 2 elements: game and finance. When we play traditional games, we can find entertainment elements. At the same time, playing games on Blockchain, people also participate in a financial market closely related to game design – equipment design in the game.

Everything is very new, but the focus on Blockchain, Blockchain game is “terrible” a lot of eyes are on. Many teams that have succeeded with traditional games are interested in the Blockchain game industry, making product products with a lot of time, effort, and even capital to test.

Gradually, the issue of “can you do it or not” will change to “how well do you do it” – how to play games on Blockchain must feel good, feel the role-playing element world in it.

“In the next few years, there will be a bigger and bigger shift, the standard will get higher and higher, and the teams that have started with Blockchain games are required to follow this standard.”

Nguyen Thanh Trung, Co-founder and CEO of Axie Infinity, shared at FPT Techday 2021 comment.

Currently, the financial factor is a severe issue. It is also the main reason users decide to give up the game because they do not achieve the desired income.

Change toward the future

Stop applying the speculative thinking from the NFT market to GameFi

The influence of the NFT on the market is too great when there are NFTs with prices in millions of dollars. That’s why game creators have added NFTs to their projects as a fee to join the typical example game Axie Infinity.

However, this price level increases the risk for investors and puts pressure on the in-game economy. Because once you have to spend thousands of dollars to join the GameFi, the player’s mentality will want to recover capital as quickly as possible. Massively implemented in-game resource mining (token/NFT asset) operations can push the in-game economy into inflation, requiring the game to attract many new players to balance supply and demand.

On the investor’s side, the tremendous pressure of capital input also makes them sweat in calculations, making it difficult to enjoy the game. Some investors may object that the Play-to-Earn Gaming Guild was created to fix that. But if you look at the root of the problem, GameFi was born with the idea of ​​allowing players to own their in-game assets fully. 

So the NFT “rental” solution of the Guilds made that idea meaningless.

Stop copying “Ponzi” models at the DeFi ecosystem

If you are a little observant, investors may have recognized that the first play-to-earn titles were a combination of the characteristics of the NFT market and the DeFi model. While many investors accept to buy NFT in-game at a high price and hope to resell it at a higher price, others buy game tokens and want to earn more passive income through the staking pool they need to play.

Applying promotional models learned from the DeFi ecosystem has helped many crypto games attract early players easily and hurt the in-game economy itself in the long run.

The current staking model in the GameFi array is applied in 2 main ways: staking governance tokens to receive more governance tokens or receiving part of the revenue in the game.

In essence, both models promote speculation, making it easier for large capital investors to make more profits without playing games. In other words, it does not give real meaning to the sustainable development of the game. On the contrary, the first model can even cause severe governance token inflation, increasing the risk of a price crash.

Eliminate the expectation of big profits from GameFi

As explained above, most players expect to make huge profits when they come to crypto gaming recently. However, there is no play-to-earn game that can bring attractive returns to players without experiencing severe inflation.

Therefore, to go a long way, crypto gaming needs to change the expectations of players, from participating to making quick money to playing entertainment is the main and can get back a part of the profit from their time dropped in.

GameFi needs to change their operational goals from play-to-earn to play-and-earn first before they can think about sustainability.

Build a “real game”

Most of the crypto games released in recent times have very sketchy gameplay, and all players need to do is click and breed. Therefore, the ability to retain players of these games when profitability is problematic is almost zero. No user is willing to continue playing without making a profit, and they leave quickly as soon as they see signs of a decline in profits.

Worse, many GameFi have suffered when some individuals or gaming guilds spend a lot of capital to buy NFT assets, mass breeding, and then release them on the market.

So, the next step towards the sustainable development of crypto games is to build “real games” that can bring joy and attract players instead of just clicking to make money.

In general, not only the GameFi sector but also the crypto space has been in a difficult position in recent months. Many games were wiped out when players ran out of capital to leave. However, this is also a necessary pause for the market to reflect on outstanding problems and find solutions to overcome this sector so that this field can develop more stably in the future.
This is the author’s opinion, what about you? Let us know more about your opinion in the comments section to improve the article.

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