Thread by @JACL_e9

Change how you view #P2E now or lose everything!

I have spent 400+ hours researching P2E projects during a bear market & this is what I found.

Project founders, gamers, & investors all need to understand where the market is going.

👇🏻👇🏻👇🏻

P2E is dying but #blockchaingaming is still the future.

The problem is that most projects are pushing the wrong narrative.

What I mean by this is…

There is currently something horribly wrong w/ the P2E meta.

Play to Earn is not fun.

Play to Earn is not a game.

Play to Earn is a job.

Games like Axie filled Guild’s pockets with…

Millions earned from SEA sweatshops.

It wasn’t the thrill of the game that attracted scholars.

It was the fact that it helped pay their rent.

Wen you stop being able to make money from these games they…

Inevitably die.

Spot this & sell your assets before the crash.

You’re one of the lucky ones.

But there is always going to be a bigger fool left holding the bag.

I don’t wanna hate on…

Anyones hustle.

Get in, get out. Make your money.

Shit, I’ll probably be there right next to you.

But this is not sustainable & it certainly isn’t gaming.

It is the main reason why…

Most gamers hate blockchain.

They see it as one big Ponzi & I don’t blame them.

Those early to the party reap the majority of the profits.

What gamers really want is…

An escape from reality.

Why was the gaming market valued at just under $200bil in 2021?

Why did GTA5 gross $6bil?

Why, after 11 yrs, are there 100mil+ active users playing Minecraft?

The concept is…

Rather simple, you pay an upfront fee w/ no other expectations other than to have fun.

Enter the Premium model…Things were simpler back then.

There are still great games being released bt the capital/time required is huge.

So people had to get…

Creative w/ it.

How would you like to play for free?

Enter Freemium. Draw you in & suck your wallet dry.

Turns out a lot of people are quite happy spending $ when having fun.

This is where…

F2P mobile changed the game.

Remember that $200bil I mentioned before, 50% of that is mobile gaming purchases.

That’s right, 50%!

Ad revenues, although not small, pale in comparison to In-App Purchases (IAP).

The ones spending the most are…

Whales who make up ~50% of the total mobile spend.

Despite only representing ~5% of players.

Mobile freemium games have their own controversy.

Players are overwhelmingly against…

Any & all P2W mechanics.

As the market gets more saturated, companies need to spend more to capture the mindshare of gamers.

This is very costly.

So as mobile game devs are looking for new revenue models…

Along comes blockchain gaming.

Enter the P2E meta.

I can play games & make crazy ROI at the same time!?

A new gold rush emerges & people are making millions.

The only problem is…

The early movers didn’t pay too much attention to their tokenomics.

Why would they, they had other things on their mind.

But at the end of the day, supply/demand rules all.

The subsequent crash of…

Early P2E projects left a bad taste in the mouth of gamers.

Lessoned learnt.

Tokenomic structures are getting better.

Projects are slowly learning the importance of token sinks.

@_calmdonut does a gud explanation:

The dream of P2E is still alive but…

https://twitter.com/_calmdonut/status/1512029293781876737

It is not the future of gaming.

The meta is changing.

How can projects attract & retain millions of players?

How will we get to a trillion $ blockchain gaming market?

The future is in…

Play 2 Own (Play & Own just doesn’t have a nice ring to it).

Simply put, think of you all-time fav games.

GTA, Skyrim, Fortnite etc.

The difference is that players can own/trade their in-game assets.

The best projects have…

Teams that know how to build fun games.

Whether it be hyper-casual or huge MMORPGs.

The game has to be fun & suck players into it.

The revolutionary part is…

That instead of just grinding for hours/spending stupid money for the best loot.

You can grind for hours/spend stupid money for the best loot & it is actually yours.

Trade it.
Rent it out.

Eventually, you will even be able to…

Bridge it over to other games.

This is a game-changer.

The one thing that will actually win over the gaming community at large.

There is still a lot of value in…

How blockchain can build communities via a DAO.

Or peace of mind w/ trustless interactions.

But P2O is what will spark the fire that fuels growth across the industry.

Big $ will still be made by…

Some players bt it won’t be the sole purpose anymore.

Player retention will come from fun gameplay loops.

It will come from strong communities.

It is vital that you know…

How to spot a successful project.

Gamers -> don’t invest, wait for the game to release.
- If it is fun go get stuck in.

Investors -> look at teams w/ experience & a track record.
- Do they have enough funding?
- Will gamers actually want to play the game?

Games devs need to…

Fully understand what they are getting into.

Games take a lot of time & a lot of money to create.

Can you raise the funding?

Have you found the right team?
Web2
Web3
Tokenomics
Marketing

Can you keep the…

Stakeholders satisfied long-term?

Attention economy is everything in early web3.

Capturing mindshare will help to raise funding/get people talking about the project -> higher adoption.

@cobie highlights this well.
cobie.substack.com/p/tokens-in-th…

Overall I am still bullish on blockchain gaming.

I just think we need to change the narrative & focus on quality.

This is just the beginning, expect the space to look v different in 6-12month time.

I try to highlight some of the better projects regularly so throw me a follow if you want some alpha.

If you found this thread useful, help support by giving it a RT.

I appreciate it a lot 🤍