The Gamefi Value

Nowadays, the intrinsic value in the financial games is based on incentives. Unlike the dollar, for example, in which its value lies in the "guarantee" that the American government gives and in the need to trust that the rulers will maintain a healthy economic system, cryptocurrencies achieve their value in decentralization and in the non-necessity of trusting in a central entity, individuals are the cause and the product of the system. Contrary to what some maximalist fiats think, once a group believes in and uses a system as a bargaining chip, it will have intrinsic value - just as shells were legitimate bargaining chips in Pacifical islands villages - ,as long as it meets requirements such as fungibility, security in not being tampered with, being somewhat scarce etc. With this in mind, it can be understood that a tokenomics (the token economy) is of great value to a game from the moment it proposes interesting incentives to its players and create the token’s value.

Tokenomics and the incentive

As approached by Skinner - behavioral psychologist -, the psychological theory of incentive portrays human behavior insofar as rewards encourage the user to respect the "laws" of the network (in this case the blockchain) and reinforces to spend more time using the product (in this case the game developed). Thus, a good tokennomics is directly linked to providing the player with rewards as he uses the protocol in an organic way. The incentive can be diverse, from giving to the token holder the power to decide on network policies, to using the token as a necessary currency to join the game.

Factors that guarantee significant stability to the protocol

1- Token distribution that manage to reach a minimum amount of users at launch makes the game more democratic and reduces the effect of whales

2- Price stability guaranteed by oracles and a moderate inflation that accompanies gaming incentives

3 - Token duality are generally used in already established projects (such as Axie infinity) and in companies that aim to produce several games connected by interoperability in a future metaverse. To this goal, two tokens are used, one for the governance (decisions and voting in the protocol universe) and one for the each game (ensuring gameplay and in-game encouragement).

4 - Consensus algorithm as PoS (used in many gamefies) are important to the protocol in the way that encourages users to lock their tokens into validators for transaction verify. Staking tokens improve the demand and, consequently, the value of new tokens, ensuring the network stability in an economic view.

5 - Community engagement is a main factor in the longitude of a project: rewarding users as they do certain tasks in and out of the game increases economic credibility, as well as being a great means of organic marketing.

Game for fun

One thing is certain and it must be understood beforehand to assemble tokenomics. As a simple math, for a gamefi to be lasting in the long run, it must be "fun" to play. If most of the community just jumps into the protocol as a way to make quick and easy money, the value of the token will drain in a few months. Counter-strike GO is an example of a game that moves thousands of dollars (game skins) in which the absolute majority of its players are play for fun, along with an e-sports community. By creating a community that plays for fun and, as a result, still manages to earn economic rewards, the network will be protected from early pump and dumps. So, "play-to-earn" turns into "play-and-earn".

Zero-sum game

Zero-sum gamefies follow the mathmatical rule that for one player to win, another player must lose. games like this manage to survive as they don't create an illusion that everyone will get rich with the game (as if it were possible to create value from the void), but rather generate a sense of competition between players - do you think you have the skills to win the tokens ? then compete with other players. “Arc8” is a example zero-sum game, you must put your tokens in game for the possibility of enriching. Arc8 has a lot of mini-games where you fight with players for the total tokens amount, its funny and extremely addictive, in addition to creating fair tokenomics in which the best win. This style of play decreases the amount of whales, as it is not only necessary to have money to earn money, but also to understand the game and be skillful.

Furthermore, the creation of guilds and teams between players materializes the idea of ​​a self-managed game in which the users themselves fought their battles to conquer the server (as in the game Mir4). Along with that, raking systems are desirable to increase competitiveness.

Game Accessories and land interoperability

Creating a network of accessories within the game (such as weapons, clothes, skills, lands) that can interact with other games of the same protocol, in addition to allowing a complexity of combinations and study of genomes (as in axie infinity) generates a capacity of the players to study the game and evolve competitively. Giving the user the possibility to manage their own land is interesting to increase the possibility of a self-managed economy. Furthermore, a tool for combining items (in which a new item is created from two previous ones) enables organic token burning and increases study time to master the game and its infinite combinations and its genetic algorithms

DAO governance

Designing Kino's metaverse as a future DAO where players can make decisions that directly impact within the game adds extreme community value. Giving the power of choice goes along with the ideas of decentralization and directly contributes to the game's longitude

E-sport

Just as Axie infinity intends to introduce itself into the esports universe, building games in the Kino’s metaverse in which one of the goals is to create tournaments and championships between games and players elevates the "play-to-earn" state into "compete-to-earn".

Axie’s economy: