We read the "GameFi: Can Blockchain-based gaming redefine the industry" @Cointelegraph research report, so you don't have to.
SUMMARY 🧵
1/ What is GameFi?
#gamefi is a combination of games with financial incentives. GameFi provides opportunities for players to earn more.
Simply put, you get PAID for playing games.
2/ Players earn currencies and materials by completing tasks or grooming their characters.
They can sell rare items earned in the games to other players in and outside the game.
3/ GameFi creates maximum value for players instead of extracting value from "customers."
The connection between the Real world and the "Virtual World" becomes stronger when game materials retain utility outside the game.
4/ History of GameFi
Games have been played since the beginning of time.
There was a market for video game items before the advent of blockchain technology.
Examples - Second Life, World of Warcraft.
5/ Economics of Play to Earn (p2e)
The basic principle of #p2e is that players now have the opportunity to convert the time, money, and effort that they invest in games into money.
All in-game materials are NFTs using Ethereum’s ERC-721 standard.
6/ GameFi combined with #DEFI includes staking, liquidity mining, NFT trading, and NFT fractionalization.
Players can do various activities inside the game to earn rewards and then make money by selling them on the NFT marketplace.
7/ Axie Infinity is an #NFT game inspired by Pokémon and Tamagotchi.
Players earn by breeding, racing, battling, and trading cute Axie creatures in @AxieInfinity.
8/ Below is the comparison of the Top 5 Blockchain Games.
1. @AlienWorlds
2. @AxieInfinity
3. @BombCryptoGame
4. @DefiKingdoms
5. @splinterlands
9/ What's not to like about GameFi?
The current state of GameFi prices out the new entrants.
Players need to purchase three Axies from the marketplace, and in January 2022, these cost a minimum of $75 — i.e., too much for low-income players.
10/ “Start early, play hard, cash out!” was the mantra of many early adopters and left games with anemic growth after an initial run.
GameFi has not escaped the all-seeing eyes of regulators, and most transactions in P2E could be taxable events.
11/ Outlook and Conclusion
GameFi has shifted focus from Value extraction to Value Creation.
The potential for GameFi, in the words of an infamous American politician, is "yuuuge".
These are early days.
EXPECT GREATNESS.