Thread by @_0xWolf

The Reciprocity between #gaming & #Tokenomics 🎮

Good economy design & Tokenomics are the basis for any successful game (#Web2/#Web3)

Taking time to understand how these function in a game will give us a significant edge while conducting proper research.

A mega thread! 🧵

Economy deals w/ the interplay b/w a player's experience & the impact the in-game economy has on that experience.

It's mainly focused on buying/earning mechanics, but also covers aspects of the player's experience such as time taken/no. of actions needed to complete a task etc..

For any game to be successful, the in-game economy has to be feasible.

The stakes are even high in Blockchain games coz real money plays a part here. The economy has to be stable, self-sustaining & profitable for gamers/investors so it needs good tokenomics to attract more of em

Tokenomics of any blockchain game basically has 2 funtions :

- It makes game more economically interesting for players & attract new ones

- It also means to further balance to avoid that players are exposed to risks & overtime the system collapses due to lack of sustainability!

A well designed tokenomics therefore means a fun game, which increases value & profits.

Contrarily, bad tokenomics can lead to rapid devaluation, a not so funny game w/ unsuitable reward structure, progressive loss of players & can lead to collapse of the entire game's finance.

Tokenomics is typically based on a Virtuous cycle, giving players the opportunity not only to earn through gameplay but also pay w/ what they earned, which will motivate them to play better & earn more

Apart from the player, the devs & investors shud also find similar motivation

Players :

#MMORPGs have been on the rise since the end of 1990s & a new class of players emerged who seek to earn a living by playing games.

Due to the fact of owning resources in #Web3 gaming, if the resources increase in value irl, their owner(player) gains money!

The more the player enjoys the game & it's rewards, the more he spreads the good word about the game.. As they say, your users are your best marketers

There is also #Create2Earn which earns players by creating new content like skins, levels, maps, streaming content, podcasts etc

Developers :

Devs are always eager to improve/expand the #gaming experience for the player which could be new features, bug fixes, expansion of the game ecosystem, including resource tracking, market makers etc etc..

Among the trinity of Gamers, Developers & Investors, we can

find the investors to be most into the game as they create, test & they genuinely care about that certain game even if everyone abandons it coz it's their result of hardwork so one can expect them to fine-tune the economy models & everything to sustain the game in the longterm!

Devs try to understand the psychology of players beyond simple motivation, they recognize players come to a game with their own personality types seeking different kinds of enjoyment It’s important to recognize this & create experiences that allow every player to enjoy their game

Investors :

The thing w/ investors is completely transparent. Gamers & Devs might have different motivations but investors are motivated by money!

Of course they take the risk by investing in a project/team, theyre betting on the odds of success by trusting the devs & the team

There are investors, speculators, VCs, DAOs & Guilds, all w/ different motivations to gain from the project. They mostly invest in gov. tokens to speculate, NFTs & other scarce assets to create demand & to make money.

The thing is players & devs can become investors too..

If they believe in the project & want to support the game development process. Their motivation, though is pretty easy to understand-they expect to get profit & increase their capital

The economic layers behind blockchain games are a key to sustainability of the system overtime.

The tokenomics should be designed to create core token dynamics in the ways for players to get tokens & spend them.

If there are a lot of tokens in the market & no way to spend them, the token rapidly loses its value as there will be no reason to hold it & vice versa.

Tokenomics is therefore important to motivate all categories to support the game & two things are evident to all :

- Games will become increasingly important in many industries & many games will try to enter Web3

- For all these games, creating economic sustainability is the 🔑

It is essential to express what only #Web3 games can do in a UI that anyone can understand.

For this purpose, just incorporating tokens into existing games or ignoring traditional games & creating entirely new mechanisms will not work!

In the long-run, good games w/ strong economic layer & product market fit & intrinsic views with freedom & transparency as sound, lies the social value & winning opportunity of Web3 games.

In this way, we find the true value of the Web3 games!

Tagging some ppl who might be interested in this thread & for visibility

@paytkaleiwahea @RealJonahBlake @Web3_Memento @apixtwts @brycent_ @SpikeReacts_ @kevinlambert @VaderResearch @JACL_e9

Thanks for reading..

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