Success and Failure of Blockchain Game in the Past Twelve Months

According to CoinMarketCap, AXS, the token powering P2E (play-to-earn) crypto game Axie Infinity, has dropped nearly 45% in the past month. Last November, AXS hit a high of over $160, and recent prices indicate a drop of more than 88% since then. Alongside AXS, the value of Love Potion (SLP), another type of token that can be earned in the game, is also dropping rapidly. It is currently trading at a little over $0.005 and has been down around 75% over the past three months. As one of the necessities to "mate" and create Axies, the SLP token becomes the core of the game structure, whose continuous decline will lead to the significant shrink of Axies' value.

As we all know, Axie Infinity is currently one of the largest blockchain games and the rapid depreciation of its token also suggests that the game is haemorrhaging users at an alarming rate. Worse still, Axie Infinity is not alone - many crypto games like CryptoMines and Splinterlands are also undergoing a hard time as the values of their tokens have fallen off a cliff in the past 12 months.

So, what happened? What are the reasons behind the struggles of these "highly-promising" projects?

The reasons are myriad but can be linked to the lack of a sustainable tokenomic design. To be more specific, these early crypto games only focused on P2E without focusing on sustainable environment and utility, which are, to a large extent, decided by whether people are truly having fun in the games. If game developers assert that players get interested in crypto games only because there are chances to earn money, they may easily get trapped in the hole where tokenomic is the only priority. This model may work within a short period of time but it cannot keep the project running in the long term. This is because tokens are not able to reproduce on themselves and when the project run out of the tokens, the game crashes down as well. More importantly, this model also betrays what games are originally created for - entertainment. After all, there are still numerous games, though not promising players earnings, staying alive for decades.

Here, we can draw a conclusion that crypto games should focus on entertainment first with P2E as a bonus. Based on this, P12 suggests a new model of "play-with-earn" - games must be fun, and we must find a way to create value for gamers. In order to establish an environment that is both sustainable and safe, tokens need to come from somewhere, and NFTs need to have utility outside just play to earn.

That's exactly what we are working on - P12 intends to provide an open platform where sustainability, user experience, and governance are significantly stressed. On the P12 platform, all rewards and punishments will be based on meritocracy so as to boost high-quality content to the largest extent. In addition, the platform will also guarantee the liquidity that deprives developers of slashing their game or manipulating the NFT marketplace, for which, developers are able to list their assets in the marketplace to monetize their own content.

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