Thread by @polkastarter

The MCap of top 8 gaming companies was worth ~$200 billion in May 2022.
6 of them are establishing their #web3 teams. The opportunities are real. And we're very early.

So, in the coming days, how should you evaluate a #gamefi project?

Learn this concept: GameFi Trilemma 🧵👇

The #GameFi trilemma is composed of ● playability
● profitability
● accessibility.

The problem arises when games only can optimize two components at any given time.

Eg.

Web 2.0 games give up profitability for players.

Most Web 3.0 games have given up accessibility by charging a hefty price for NFTs.

And for each component in the trilemma, there are existing problems and we'd like to highlight some potential solutions. 💡

#1 Playability: the ease by which the game can be played
// the quantity or duration that a game can be played.

It’s a common measure of gameplay quality. 🎮

Playability challenge #1: Game content quality

i.e, not many games can fully harness #blockchain beyond #NFT & #tokenomics

Spoiler: This is not the formula for #web3games.

Games should factor in various players for sustainability –

free-to-play // value-minded (pay enuff to enjoy or win) // pay-to-win // investors.

Very few players think like this, so don’t build the game only for them:

Playability challenge #2: Developer blindspots

When it comes to developing games, there are certain areas in which devs are being tested for the 1st time.

✅ Solution: Stress-test game economies using tools like @machinationsio.

machinations.io

@machinationsio Moreover, games should empower players to jointly develop the game (user-generated content) !!!

And eliminate any developer blind spots, building moats for the ecosystem.

[Smash a 💖 here if you agree @PolkastarterGG ]

@machinationsio @PolkastarterGG Playability challenge #3: NFT overload

To substantiate the intrinsic value of NFTs, many games #NFTs are programmed to be overpowering

As a result, non-pay2win players won't have a decent gaming experience & generates zombie players who do not seek to make progress in the game.

@machinationsio @PolkastarterGG Solution: Try to weaken the power & presence of NFTs:

• NFTs are burned when a character dies
• Introduce 'durability' attributes like @ThetanArena , and limit the number of times the owner may use it in the PvP arena 👋

@machinationsio @PolkastarterGG @ThetanArena Accessibility: The ability to access game content & gaming assets. There are two main barriers to entry: cost and technology.

Challenge #1: Cost barrier-to-entry
Oftentimes, GameFi NFTs are the in-game requirement to be entitled to P2E rewards.

#Solution below 🔥Don't drop here

@machinationsio @PolkastarterGG @ThetanArena Solution: Consider implementing two potential models: Free-to-Play #F2P and #freemium models as they are the only feasible pathway to mass adoption and a vibrant community.

You must have tried some before!

#Tag the games which had successful models in your opinion ;)

@machinationsio @PolkastarterGG @ThetanArena Accessibility challenge #2: Technological barriers

The setup & mgmt of a compatible #crypto wallet can be daunting to Web 2 gamers who just want to PLAY.

Luckily, there're remedies like @Venly_io @Web3Auth & Ethereum sign-in which are here to bridge the gap between Web2 & Web3.

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth Profitability💰🪙💰: the ability of all stakeholders - in Web 2, whereby ONLY game developers & game studios’ investors are entitled to the gains.

In #Web3, gamers, project teams, and investors also have skins in the game. It's relatively hard to achieve the balance.

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth Profitability challenge #1: Scaling

The present P2E model is not scale-effective for a GameFi project with a down-trending native token’s value.

For example, #AxieInfinity’s income stream for its gamers has fallen >95% from its peak.

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth The way to address this is by putting game content and quality first.

The evolution of the gaming model to Play-and-earn from Play2Earn.

More on #P2E to #PlayAndEarn bit.ly/3xXWo9a

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth Profitability challenge #2: Aligning #investor & #team interests

The project team & investors do not hold in-game NFTs and secondary tokens hence they are not incentivized to improve their asset value i.e. the interests of gamers & the project team and investors are not aligned.

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth 2️⃣ solutions:

1. Weaken the in-game NFTs (discussed above)

2. Increase incentives to spend assets in-game to evolve. Eg. Only the🔝TOP leaderboard players will get rewards, and players will be incentivized to spend assets to stay at the top & upgrade of weapons to compete ⚔️

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth Profitability challenge #3: Native token tokenomics

In most #GameFi #tokenomics, the native token is not viable in the long run due to its deflationary model & poor flexibility

Here's a rather new inflationary token model: utilizing a bonding mechanism introduced by @OlympusDAO

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth @OlympusDAO In short:

1) Attaching the token value to its treasury value

2) Accruing value in the treasury

3) Manage demand & supply dynamics depending on market condition

Then, improvise new revenue streams to accrue treasury further & incentivize token holders to ensure scalability 🔚

@machinationsio @PolkastarterGG @ThetanArena @Venly_io @Web3Auth @OlympusDAO It's a long thread. 💨🙏

All-in-one blog available here: bit.ly/3tEcMcj

Smash a like / retweet 👇 if you prefer a video with the @polkastarter research team! 😁

& type below and tell us what else would you love to learn 👊