Looking back at the past, we can see that only a few games were widely adopted worldwide in Web2. But, the games that did - managed to become timeless classics.
The big problem
One of the most significant drawbacks is that almost every game on Web2 or Web3 loses players over time, which causes a downward trend for the in-game economy.
Under a ZPG (zero population growth) scenario, in-game supply & demand becomes highly volatile and unstable. When demand drastically falls, the game economy collapses.
Such collapse might look similar to a Ponzi structure, more or less. The instabilities that came along with the failure are detrimental to users regarding faith and trustworthiness.
The possible solution: profits
Profits are earned during the trading cycle of the game. Usually, such gains can be recognized in a fiat currency issued directly by governments. The harmonious balance of recreational development and the financial incentive is critical for a positive feedback loop within a game. In-game supply and demand are therefore well-defined without any bubbles.
However, sometimes the reality is disappointing. In many cases, projects in the GameFi space are not considered "Fun-to-Play"; on the contrary, what predominates is "profit." As a result, players try to mint, withdraw, sell, and replicate the same cycle with multiple portfolios attempting to maximize profit.
As a result, the token market price will plummet due to continuous dumping over time. Hence, the dumping pressure will be further exaggerated due to the falling token price, eventually entering a death spiral.
The balance between earn and play
Great in-game economy systems have a perfectly balanced Earn-Play ratio determined. Implementing an Earn-Play mechanism enables the game to inject energy and passion into the players. Therefore, as long as the game is fun and profitable, the positive feedback loop can attract more players.
Achieving such a balance is a bilateral benefit that allows for harmonious operation. Undoubtedly, earning is a monetary satisfaction for the player, but satisfaction means more. For instance, enjoyment can also come from winning the game - becoming a winner makes players feel like they are in a higher dimension because they can experience spiritual satisfaction from winning. Such spiritual satisfaction is so powerful that it is even more sustainable than monetary achievement. For that reason, the player has to be able to enjoy the game before making a profit from it.
The profit margin varies over time, but the passion lives on.
WorldofWarcraft (WoW): A case for balance
Based on multiple observations, it has become evident that WoW players can be classified in three different ways:
- Play for Fun (PFF): this type of player usually does not play for a specific purpose, to have fun and participate.
- Play for Utopia (PFU): This type of player relies heavily on spiritual satisfaction in the game; therefore, they are considered superior beings in the gaming community.
- Play for Gold (PFG): This type of player exists in the game solely for profit, usually a small group of professional "P2E" players or a studio.
The fact is that successful games like WoW often have ALL these types of players evenly spread in their ecosystem.
The future belongs to Web3 gaming platforms
Gamefi was born to solve many problems in the web2 gaming space, such as privacy, security, and centralization. As a result, users can experience true ownership and top-level security and privacy brought by decentralization; game assets can be freely exchanged with transparency.
However, gamefi 2.0 will not prevail without a robust platform that integrates resources, incubates great talents, faces the users, and upholds the sacred order. P12 exists to tackle it all.
P12's vision
P12 aimed to offer a one-stop solution for developers and a one-for-all platform experience for gamers. Developers can create incredible games using our game editor, maximizing creativity and never compromising for less. Likewise, gamers will see themselves in a gigantic metaverse arena provided by P12, where seamless interaction meets sustainability.
Together, we shall prevail.
Credit: Discord Member @Leeloe, @wanngthegang