Thread by @PlayToEarnGames

🔥The connection between GameFi and the Ponzi scheme.

👉Let's dig into the problem GameFi is currently facing and come up with a solution.👇

#P2E #P2Egaming #GameFi #Metaverse #PlayToEarn #NFTGame

1. Components of a GameFi

1.1/ Gameplay

It's defined as the method the game is played, which includes the rules, plot, objectives, and how to achieve them, as well as a player's overall experience, which is one of the most essential aspects of gaming and helps decide the game's success

A GameFi that focuses on gameplay will attract a large number of Players. They enjoy the game and are willing to play it at a monetary deficit in exchange for enjoyment.

1.2/ Earning

This is the amount of profit that the users get from GameFi. This profit comes from selling in-game NFT items such as gear and consumables. Users of Axie Infinity, for example, can make money by selling SLP (in-game currency), breeding rare Axies, or staking AXS.

If a GameFi focused on the earning factor, it will attract the bulk of Earners who play the game or are active in the game's ecosystem to earn profits, and their enjoyment of the game will be deemed secondary.

2. Most current P2E games prioritize "earn" over "play"

It's not uncommon for developers in this field to focus on producing the most profitable game for Earners, attracting more Earners to their game, and demonstrating the highest ROI.

Gradually, more and more games are created just for the purpose of making money, it is no longer fun and entertaining. Of course, when the game no longer maintains a high ROI, no one will want to play it anymore.

Furthermore, this creates a situation in which Earners who joined the game earlier are the ones who profit the most from future earners, and future earners spend in the hopes of profiting from those who join after them. This is the legendary Ponzi scheme.

You heard right, for all GameFi projects. If the earning factor tends to be much higher than the gameplay factor, it's easy to morph into a Ponzi scheme and crash if no new users join.

3. Light in the end of tunnel 

Based on the examples above, the best way to assist P2E games thrive in the long run and sustain their player base is to emphasize "Play" rather than "Earn".

That implies game developers must create a game that focuses on increasing the number of Players and keeping them engaged. Only then, the game can maintain stability and profits for Earners.

At the moment, we have been seeing new projects that put a lot of heart into gameplay, such as @Starbots_game, @CyBallOfficial, @CCASHCitizen. We can confidently anticipate a future of GameFi 2.0 in which gameplay takes precedence, attracting an increasing number of players.