One of the greatest takeaways for crypto natives from the bull market of 2021 is that the next million crypto users will be onboarded through “consumerism”, not DeFi,
2- Meaning the stuff which are consumed, used regularly, that the average person in the street can understand it; unlike finance.
So there will be a generational opportunity to participate in this paradigm shift, for those who pay close attention.
Here are some thoughts
3- The state of crypto gaming | What does crypto gaming look like today?
*the player point of view (POV);
-P2E for now is just yield farming with extra steps.
-Gaming Guilds resemble factories hiring laborers to perform small tasks
*Game POV;
-Asset A is used to farm Token X
4-
-For new entrants to farm Token X, they first purchase Asset A from existing players.
-The rest of the steps involved in “playing” these games are just extra steps to earn reward tokens and generate positive ROI on the purchase cost of Asset A
5- *Sector POV;
-Crypto games in their current form are initial version for more sophisticated crypto-laced gameplay in the future
-Today, crypto games market themselves as P2E Cuz without incentives these games would probably have 0 users. As with testing MVPs in any business
6- Where is GameFi headed? l What might crypto gaming look like tomorrow?
-As with all farms, the key factor which determines longevity of a farm is the price of Token X being farmed,
So game devs now must play the role of economists.
-Crypto games will evolve beyond farming,
7- The future of crypto gaming will financialize gaming. The difference is where emphasis is placed — ‘finance’ or ‘gaming’.
-I think that projects which prioritize gaming over finance will win because only then can there be sustainable incentives for players to return.
8-
-Farmers’ revenue stream will come from genuine players spending for consumption rather than new entrants spending for investment. This makes farmers’ ROI sustainable.
So, we need high ratio of genuine players to farmers.
more explanation here:
9- Over time crypto gaming should improve in:
*Building quality games
*Gameplay complexity: More “fun” games, adding multiple layers/modes (look for LOL for example)
*Luck- and skill-based currency sinks: Strong sinks keeps games challenging for power users.
10- Critical points to focus on if you’re building a crypto game:
1.Onboarding experience: how easy is it for first-time users to start playing?
2.Gameplay loops: what will keep users coming back?
3.Currency sinks: what can users do with the in-game currency they earn?
11- The first 2 points are critical because, unlike DeFi, community vibes and player-to-player interactions often form a part of the product.
Lastly, tokenomics make or break projects in crypto, and games are no exception. Designing effective currency sinks to control inflation-
12- is crucial in make a successful sustainable game.
Conclusion;
I am optimistic about the future of crypto gaming. I believe we will see forms of gaming and use cases of crypto in games that we can’t yet think of today.
#Week_3: #P2E, Day 2: Level 2: Game Monetization, The Promise of Play-And-Earn by @0xRyze
A glance into Game Monetization & how to keep games running
@AxieInfinity has been making headlines in the news for variety of reasons: its token’s price action, how it creates work-
2- For people globally and its incredible profit surge, surpassing the revenue of big projects (84.9 million USD in funds for its treasury! as of jul 2021)
Games as Products, server costs, the cost of hiring engineers and developers to build them, etc.
3- Keeping a (Game’s) Engine Running;
Game developers have a choice of how to monetize and fund their games. They must find ways to (1) fund initial development, (2) make revenue from the game that outstrips expenses.
Breaking down different incentives to monetize it;
#Week_2: #DeFi Day 5: Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets by @chainomics part 2
*Smart Contract-Based Reserve Aggregation.
Here: The smart contract will compare prices from all liquidity providers, accept the best offer -
2- on behalf of the user, and execute the trade. It acts as a gateway between users and liquidity providers, ensuring best execution and atomic settlement.
*Peer-to-Peer Protocols: It is an alternative to exchanges or liquidity pools, also called over-the-counter (OTC) protocol
3- They mostly rely on a two-step approach, where participants can query the network for counterparties who would like to trade pair of crypto and then negotiate the exchange rate bilaterally. Once the two parties agree on a price, Trade is executed on-chain via a smart contract
#Week_2: #DeFi Day 4: Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets by @chainomics, will break it into 2 parts
A very good read coming from an academic professor!
This article highlights opportunities and potential risks of the DeFi ecosystem.
2- DeFi uses smart contracts on top of blockchains to create open protocols that replicate existing financial services in a permissionless, interoperable, and transparent way,
Agreements are enforced by code (no middleman) transactions are executed in a secure and verifiable way.
3- So the adv here: unprecedented transparency, equal access rights, and little need for custodians, central clearing houses, or escrow services, as most of these roles can be assumed by "smart contracts."
So The backbone of all DeFi protocols and applications is smart contracts
Actually it has a lot in common with yesterday's article, so i will try to focus on the new angels.
Crypto promises to make money and payments universally accessible, no matter where they are in the world.
2-DeFi takes that promise a step further. Imagine a global, open alternative to every financial service you use today -savings, loans, trading, insurance and more- accessible to anyone in the world with a smartphone and internet connection.
This is now possible by smart contracts
3- Smart contracts are programs running on the blockchain that can execute automatically when certain conditions are met. Not only that, it has the composability function: meaning we can build on top of it, more sophisticated products, which is called: decentralized apps or dapps
terms repeated in the previous summaries: Mcap: price multiplied by the amount of tokens that are currently in circulation.
FDV: price multiplied by the total amount of tokens that will ever exist
2- Smth interesting here, we can consider Market Cap as a measure of public $ buying= demand, while FDV is a measure of supply.
As demand increases for unlocked coins= market cap UP, FDV increases proportionally, even though demand for the locked ones didn't necessarily increase
3- let's introduce a new term: Bullish unlock?
if unlocks increase supply but not demand, how does a bullish unlock happens?
locked tokens can have an active market of their own, ppl buy or sell locked coins with a discount to the market price, Consider it OTC for an allocation,