Briefly describe the four major GameFi modes and their characteristics

1. Overview of GameFi

GameFi has become one of the hottest tracks in the crypto industry. According to Newszoo’s 2021 annual game industry report, the entire game industry contributed $180.3 billion in revenue, an increase of nearly 1.4% compared to 2020; but at the same time, GameFi projects and games that make money through P2E are subverting the traditional game industry.Starting in July 2021, the success of Axie Infinity has piqued the interest of traditional game companies – giants like Ubisoft are entering the GameFi market.


According to the chart above, Axie’s market volume was still $4.2 billion in mid-March this year. Unsurprisingly, the reason for GameFi’s rapid popularity is that players can make money by spending their time and effort. After all, who doesn’t like the idea of ​​having fun while making money? For users who are not familiar with chain games, it is extremely risky to enter at a loss when the market is very hot.

Therefore, this article will start from the historical development of GameFi, in-depth discussion of the mode and gameplay of chain games, the economic system that may be formed in the game, the influence of the guild DAO, and the future development direction of GameFi.

This article will also analyze the following points:

  1. P2E : A game that promotes player participation from the point of view of revenue
  2. Chain-modified games : games that use traditional games and traditional models to realize blockchain transformation through asset chaining
  3. 3A masterpieces : Developed on the blockchain, the world view, narrative, playability, and economic system are large and complex, and require a long development time.
  4. Games or IPs that contain creative NFTs : The definition of creative will be explained later

2. Briefly describe the development of chain games

At the Wuzhen World Blockchain Conference in November 2019, the founder of blockchain game publishing platform MixMarvel talked about how cryptocurrencies can revolutionize the video game industry, whereby GameFi also started its journey in China.

For Western readers, the term first appeared in a tweet in September 2020, when Andre Cronje, co-founder of, believed that future DeFi monetary policy would be biased toward gamification, and that user-staking funds could become Gear in the DeFi game. At present, the industry is still imitating Tradfi, and it may enter Gamefi, which is biased towards gamification in the future.


While GameFi only became popular last year, its history can be traced back to the king of cryptocurrencies, Bitcoin.Integrate BTC on early Minecraft servers, in 2013, games like Bombermine.

And p2p services that allow players to monetize mainstream games through BTC can be considered some of the earliest efforts in the GameFi space. Later, projects like Huntercoin also used blockchain technology to enable players to mine cryptocurrencies to earn money, not just pay.


In 2015, the advent of Ethereum opened up new possibilities for video game developers, and the crypto industry has since ushered in an era in which applications can be developed on-chain through smart contracts, including blockchain games like CryptoKitties.

It utilizes the newly defined erc-721 standard form of non-fungible tokens (NFTs) to represent in-game assets. NFTs inspired huge innovations in the crypto gaming industry, and since then blockchain gaming has grown wildly.

3. Detailed explanation of GameFi classification


Traditional online games make money by selling equipment/props, marketing and advertising in the app, but as a gamer, you need to spend money to buy items in the game to get a better experience and the joy of winning, of course These expenses all flow directly to the wallets of game operators.

Aside from the experience that the time and effort you spend playing the game brings, the items you buy don’t bring you any other financial benefit. In general, P2E (play-to-earn) is a game that promotes player participation from the point of view of revenue, which has created an era of new game economy. Its features are:

  1. The degree of circulation within the economic model determines how long the system is maintained.
  2. Scalability determines the upper limit. Expansion includes the expansion of the game (the possibility of the economic system going to the outer loop) and the expansion of the participants.
  3. Playability stabilized the lower limit.

▶️ Take Axie Infinity as an example

There are two ERC-20 tokens included in the game:

$AXS (native governance token)

$SLP (Game breeding fuel, the total amount is unlimited)

1. Internal cycle of economic model



According to the time marked in the figure above, the first wave of market quotations came from the launch of the Ronin chain, which reduced the cost of interaction:

  • On July 1st, the breeding cost was adjusted, the $AXS cost per breeding behavior was increased from 2 to 4, and the $SLP needed to be consumed increased
  • On August 9th, the breeding cost was adjusted, $AXS was reduced from 4 to 2, and $SLP was doubled. And adjusted the gold output of Axie to be halved
  • On September 23, the breeding cost was adjusted, $AXS was reduced from 2 to 1, and $SLP was doubled
  • On November 4th, Axie launched Katana, a decentralized exchange on the Ronin side chain, which can exchange gold income for $ETH within the Ronin chain

2. Life cycle

According to Axie Token Inflation Analysis:

  • When the game is in an early stage or with low inflation, the token price is quickly raised by adjusting a certain parameter in the economic model (because the in-game supply and demand balance is disrupted). At the same time, players will also influx wildly, and the game has entered a stage of rapid development. However, although the flow has accumulated, due to the influx of large amounts of funds, the investment return cycle has gradually shortened, and the seeds of high inflation have also been planted .
  • When the game gradually declines from the apex, the rationality of the initial economic model design determines the effectiveness of the adjustment, that is, the speed of the decline from the apex. **Axie’s economic model failed to a certain extent. Neither the adjustment of the gold amount nor the adjustment of the reproduction cost has saved the price of the circulating token SLP. As a result, the game has also entered a period of decline. The flow continues to accumulate, but the capital flows out.

The multi-breeding elves are regarded as the banker and capital accumulation chips, and the banker’s chips gradually increase, pulling up the currency price. As there are fewer elves that breed more, this means that either retail investors speed up to take over, or the dealer is not breeding and is ready to retreat. In any case, it means that the game is starting to go downhill.


  • From September 23rd to November 4th, the price of the currency remained stable despite high inflation. More AXS started pledge mining, and the expectations for the scalability of the project were generated.
  • After November 4th, the Ronin side chain launched the first DEX Katana on the chain to support the exchange of various assets generated by applications on the chain, deposit the game’s traffic value into the Ronin chain, and turn the bubble of slp inflation to Ronin.

According to Axie holder (user) data analysis:


  • May-July is the initial stage, the growth of users is slow, the bubble is consumed in the form of breeding elves, the supply of production materials exceeds the demand, and the supply and demand of gold tokens are roughly balanced.
  • From July to September, the guild intervened in large-scale promotion, the growth rate of users became faster, the development of the game accelerated, and new producers began to take over the consumers of the previous stage, which promoted the rise of the currency price. However, a large number of new producers entered the market to form a large-scale selling pressure, the trend of oversupply of gold tokens gradually intensified, and the currency price began to decline after reaching its peak.
  • From September to November, the game entered the end stage, the growth rate of users slowed down, the threshold consumption of new producers was not enough to catch the selling of early producers, the oversupply continued, the game collapsed, and the currency price fell.
  • From November to today, the rate of user growth has slowed down again. But the new story absorbed the bubble of the stock producers, and the currency price began to stabilize. Go to the next stage again after the new mode appears.

Observation Metrics:

  1. Gold Token Inflation
  2. Funding entry
  3. Growth rate of NFT (means of production) holders
  4. New story landing

3. Extensibility

  • Extensibility of the game itself

“web3 games have built economic systems of different sizes through their token economic incentive mechanism. As the first promoter, the project party can propose the game’s world design, theme, player type, player operation, player world, and game assets. etc.; on this basis, in order to attract more participants, game tokens or limited NFTs can be distributed to participants, early supporters and players.

What connects the early participants is its economic incentive mechanism, and the early distribution model often determines the loyalty and future support of the community. The game that really develops may not be the grand game at the beginning.

Maybe from a certain point, there is a brand new mechanism that can attract a group of loyal community users, such as players, builders, investors, etc., and continue to make breakthroughs on this basis. When the game develops to a certain extent, there will be composability and user creativity, which will lead to some games with stronger ecological resilience. “

The gameplay of battle V2 has been updated, the playability has been increased, and some of the attributes of earn have been weakened in the presence of traffic itself . After the introduction of land, it will give new value to the production material wizard, and transform from user acquisition to user creation , and increase user stickiness in this way.

  • user extensibility

In the early days, with the increase of blockchain games, the time and money of participants have a greater probability of decentralization. At the beginning, blockchain games will also produce the situation that defi once appeared. Whichever defi protocol has the highest revenue, the funds will flow. In this situation, how to focus on players becomes more and more important.

  1. Guilds, through the formation of community culture, players are not only project investors, but also form interest-bound people through guilds. And form a social network through guilds to improve user stickiness. But how to prevent the guild from doing too much so as to harvest non-guild retail investors and even project parties is also an important measure
  2. Lower barriers to entry and simplify and popularize games. The games are mainly light games. Because in the later stage, whether it is a user’s spontaneous joining or a guild’s push-type joining, it will take lower time and learning cost. At present, the large-scale game groups are still dominated by young people who like this type of games, and other groups have little motivation to join.

With the accumulation of game players (traffic), the game has the opportunity to attract more builders (personally, the source of user creation personally believes that it comes from a stronger value consensus), thereby deriving a larger game ecology.

So early economic incentives are important. Because the economic mechanism determines the flow, and the flow determines the degree of attraction to the builders. The entry of the builders brings a better game experience, and the better game experience brings more flow, and thus begins to enter a positive cycle.

4. Restrict the path for P2E to become a capital disk

**From the perspective of the project party, ** For judging whether the project party will become a “sickle”, it can be judged from the following indicators:

  1. Token unlocking time of the project party: If the token unlocking time of the project party is too early and too much, the project party will become a big owner, and the possibility of profit flight will increase;
  2. Protocol revenue when the project absorbs incremental funds: The distribution of protocol revenue generated is an important indicator. It is undoubtedly unfair if the project party accumulates a large amount of revenue during the influx of funds instead of distributing the revenue to token holders. of. If the project is understood as a company, the agreed income is the company’s net profit, and the net profit must be distributed to all shareholders. In this way, the project party can also enjoy the benefits of its share appreciation by occupying a large number of shares through the identity of the founder, and the operation has turned to make the cake bigger instead of increasing the proportion of the cake.

From the point of view of the big households (guilds),

  1. Raise the threshold for profit sharing: Give incentives to real contributors, let the real contributors settle down, instead of rewarding the capital that flows back and forth. At present, a relatively realistic measure is that current coins cannot participate in the distribution of project profits, and can only enjoy the benefits of price increases.Reduce the amount of this currency and weaken the influence of the entire big family.
  2. Nationalization of large households: The project party will set up a guild by itself, and use its information advantages to absorb and release chips. The relative profit purpose is weakened and the influence of the project party on the market is increased.

Observation Metrics:

User Composition Analysis

User game time analysis

II. Chain change game:

By putting traditional game assets on the chain, the assets can be traded through the blockchain. It is believed that chain-modified games are currently more realistic than other types of games, and they have a certain degree of playability. The game economic model has been tested and updated by the traditional game market (currently, various game economic models on the market are generally similar, but the models and skins , different backgrounds).

1. The advantages of chain reform over traditional games:

  • The free circulation of assets will channel some of the project party’s income into productive players

In order to become a chain game, assets need to be on the chain. Assets on the chain means that assets can be traded and circulated freely on the chain. In traditional mobile games, general assets are bound to accounts and cannot be freely circulated to ensure players. The funds spent are recharged to the project party rather than other players.

After the free circulation of assets is opened, player output will inevitably form a negative premium relative to official sales, official revenue will be cut, and part of the revenue will go to productive players, forming a P2E cycle in the game. This part of the P2E income ceiling should be the official selling price of the same resource. When the price of the resource sold by the player is equal to the official selling price, the P2E income reaches the upper limit.

  • Driven by NFTs and Tokens, the upper limit of game life may be increased

In traditional games, there is no chain modification, and the main means of maintaining vitality is to stimulate players’ consumption and prolong the income period through operations such as opening new server and closing areas. However, the final income of the game economic system is imported to the project side, and some players lose the power of krypton gold or choose to spend only time. The high probability of exit of this part of players is permanent, and eventually the new game or background narrative will weaken, and no new players will enter the game and go to the end of their lives.

After such games are imported into the chain, NFTs and Tokens will definitely exist. If the acquisition model of NFTs and Tokens is linked to the in-game competition model, it will improve the incentives of competition, increase user stickiness from the economic interests, and reduce the passing of players. speed.

Because the economic model of the chain reform game itself must include a competition model, the risk of importing Token into this competition model is low, and the system of Token and the game itself is no longer isolated, which can stimulate players to participate in competition.

2. Observation points of the chain change game:

In addition to the general observation points (website traffic, number of users, etc.), the following dimensions can also be observed:

  • Negative premiums for resources produced by productive players and official resource prices

If the negative premium is small, the value is close to the value of the officially sold resources. Considering the relatively stable consumption of the resources produced in the game, the supply and demand relationship of the endogenous system is normal.

If the negative premium continues to expand, consider that the internal demand of the game has weakened and the supply has increased.

  • Floor price of NFTs with output capacity, dense association with Tokens, and a foreseeable upper limit on the total amount

In addition to blue-chip projects, the current NFT market itself has poor liquidity, and the continued decline in floor prices can consider weakening buying.

  • The relationship between Token and NFT empowerment:

Token is used as an incentive reward for competition. Players need to invest in income, and Token will form selling pressure, and some NFTs must be used as a carrier that can reduce selling pressure and lock liquidity in order to reduce the speed of system inflation. If the empowerment relationship is not beautiful enough, ” The on-chain system of Token-NFT” may crash before the game, and the game will lose its meaning of being on the chain and return to traditional games. At the same time, players who enter from the “NFT-Token” system will flow out.

  • The project party has launched continuous and long-term discount activities to seize the income of life-style players:

When the negative premium of the resources produced by the living players is very close to the official selling price, the project party launches activities to seize the income, destroying the original system supply and demand relationship, considering that the project party has a strong desire to increase income, and at the same time leads to the devaluation of resources, which eventually leads to the players need to continue because of the flood of resources. Invest in and out.

III, 3A masterpiece

Developed on the blockchain, the world view, narrative, playability, and economic system are large and complex, and require a long development time for games. Such as Illuvium, Star Atlas, QBIT, etc.

Problems with 3A masterpieces:

  1. The 3A masterpiece project approval time is relatively late, and the development cycle is long. If GameFi breaks out in 2022, and there are no projects on the market in the first quarter, due to the huge world view, system, and picture quality of 3A masterpieces, it is very likely that the launch will continue to be delayed.
  2. 3A masterpieces need to pre-sell NFT to raise funds. NFT itself is of high value. If it is necessary to continue to raise funds through NFT, there is a high probability that the price of NFT will drop due to spam before the game is launched. influence.
  3. 3A masterpieces may launch a pre-version (browser mini-game) to stabilize the value of NFT, and this type of game is mainly output. Since the endogenous economic system of the game has not yet been launched, NFT mining Token will inevitably form a selling pressure. Sacrifice the hype value of Token to maintain the value of NTF and form a value transfer.
  4. There are three narratives in the pre-release version of the 3A masterpiece:

    A. The expected narrative of the 3A masterpiece landing (as long as it does not land, it will exist).

    B. The P2E narrative of the pre-release version of the 3A masterpiece.

    C. The hype expectations of the 3A masterpiece itself.

If these narratives are established, 3A masterpieces will be classified as P2E games, but the narrative is stronger than ordinary P2E and plate games.

Ⅳ. Games or IPs containing creative NFTs

NFT completes the accumulation of traffic through games, but at the same time NFT also has a “universe”, such as land NFT can also be used in other games under the same background. After this type of NFT completes the accumulation of traffic, the value will not decrease due to the decline cycle of the game, which means that there is always a place to go and a point of generating revenue, and even future games can be built based on this type of NFT.

The generation of this type of NFT represents the user’s transition from a participant to a creator. Therefore, the greater the accumulation of traffic in the game, the easier it is for the NFT created by the user to form a value consensus, and the threshold value created by this part of the land or the user will also be higher. .

4. The economic system expected to be formed in the game:

I. Limited NFT and Unlimited NFT:

For example, land and planets are relatively limited.

For example, tools and spaceships are relatively unlimited. Although the total amount of different types of NFTs is limited, different types of NFTs can be produced.

Infinite is mostly used as an entry threshold. In order to allow the influx of incremental funds, the price of this part of NFT fluctuates within a certain range when the game is in the equilibrium stage. When the game declines, this part of the asset will also decline on a larger scale. The increase in the game development stage must not be too large (personally, the initial idea of ​​this part is that the price cannot be determined by the market, and the project party should set a guide price. Because of the existence of Axie, the rapid influx of funds in the early stage will accelerate the collapse of the economic system) .

The entry threshold is too high due to the rise in price, the incremental funds are insufficient, and the project is difficult to develop. At this time, if the project party chooses to adjust and control the price, the price of production materials will fall, which will inevitably lead to the devaluation of the token, and the interaction will enter a negative spiral. . With the withdrawal of a large amount of stock funds, the project is heading for collapse.

Limited NFT can be divided into profitable and non-profitable:

  • Profitable: Taking LOK as an example, the project party releases land early, obtains funds, and players obtain shares.Players with shares can earn profits. These individuals believe that the income of the U standard is better than the income of the currency standard. The value of land is actually highly linked to the value of the game, because land is shares.
  • Unprofitable: The overall price is the market’s expectation for the next stage of the game, and does not fluctuate with the rise and fall of the game at the current stage. This requires the game to have a high degree of scalability.

II. A limited number of NFT-Tokens are integrated into the game and form a highly correlated system:

If Token is regarded as a reward for players in the game, then there will inevitably be selling pressure for players who do not need to participate in governance. Moreover, the difficulty of Token acquisition should not be too high, otherwise the stickiness to the bottom players will be low.

At this time, a carrier that can lock a certain Token liquidity and restrict the selling pressure is needed. The limited NFT is a good carrier. The selling pressure is imported into the NFT to form a DeFi 1.0 model. For example, holders of limited NFTs need to pledge some Tokens to ensure the value of NFTs (in-game output rate, resource rate, etc.), allowing NFT holders (middle class) to absorb part of the selling pressure from “civilians”. And the interaction must be fully integrated into the game system, so that NFT holders will have the driving force to absorb the selling pressure.

At the same time, the game needs to have a perfect consumption system for tokens, and control the economic system in the game on the premise of reducing the loss of players (many games have increased the consumption limit, but they have been criticized by players, causing players to increase consumption and opt out).

III. There are enough players in the game to divide labor and achieve a balance between supply and demand.

  • Producer: Provide resources at a slightly lower price than the official price while earning a certain amount of revenue.
  • Consumers: Oligarchs, consume a lot of in-game resources and the number grows slowly, and because the gameplay exists in the game.
  • NFT holders: Participate in the micro-control of Token selling pressure on the premise of a control path.
  • Ordinary players: The reference for oligarchs. Because of the participation in the game, the selling pressure or the income obtained are not very strong, but the number is huge.

IV. The development cycle of the deduction game:

  1. Initial cycle : The influx of producers and consumers, the project party does not snatch the producer’s income; the supply exceeds the demand in the game, and the output of the producer and the same commodity provided by the project party form a negative premium.
  2. Consumption cycle : The influx of producers decreases, and the consumption of consumers increases; the demand in the game exceeds the supply, and the negative premium between the output of the producer and the same commodity provided by the project party decreases.
  3. Oligopoly Cycle : After a round of heavy consumption in the game, players form resource oligarchs. Squeeze the income of ordinary producers, and the stock producers withdraw. It is worth noting that in games without competition, such as some P2E games, an oligopoly cycle may not be formed. The prerequisite for the formation of an oligopoly cycle is that resources have an output limit within a limited time period and competition is formed.
  4. Stimulus cycle : After the formation of an oligarch in the game, the project party uses increased competitiveness (such as server merging, new server opening, server transfer, etc.) to smash the oligarchic pattern of a single server or continent, increase consumption, and re-influx of producers.

There are 3 possible crash cycles after the stimulus cycle ends:

  1. Cycle crash cycle : 3-4 cycles until there is only one oligarch left, unable to stimulate.
  2. The project party and the oligarch break and collapse : the project party reduces the price of commodities (inflation) and robs the oligarch’s income. Eventually the oligarchs quit.
  3. No new traffic collapse : No new players pour in while stimulating, and the output of producers and oligarchs enters a state of internal consumption until it collapses.

More dangerous signs:

  1. Stimulus cycles occur without a significant increase in traffic.
  2. Project parties and oligarchs scramble for the remaining income.
  3. Before entering the stimulus cycle, oligarchic suppression leads to negative growth in player traffic.
  4. Resource output presents a long-term negative premium, which cannot stimulate consumption.

As shown in the figure below:

The NFT income and payback cycle is a downward parabola and has passed the turning point.



Briefly describe the four major GameFi modes and their characteristics

In the early stage of the yellow line, it is possible that the acceleration will gradually rise:



Briefly describe the four major GameFi modes and their characteristics

There are 3 possible crash cycles after the stimulus cycle ends:



Briefly describe the four major GameFi modes and their characteristics

The above are relatively dangerous situations. If it can fluctuate around the turning point for a long time, the game cycle will be relatively prolonged.

The best cycle:

The law of the development of things will always go from prosperity to death. But there may be exceptions: the  fourth category of games, games or IPs that contain creative NFTs.

“Definition of creative NFT *: NFT completes traffic accumulation through games, but at the same time NFT has a universe. For example, land NFT is commonly used in other games under the same background. After this type of NFT completes traffic accumulation, it will not be affected by the decline cycle of the game. Leads to lower value, there is always a place to go and a point to generate revenue. It is even possible to build future games based on NFTs.*

The generation of this type of NFT represents the transformation of users from participants to creators, so the greater the accumulation of traffic in the game, the easier it is for the NFTs created by users to form a value consensus, and the threshold value created by this part of the land or users will also be higher. high. “

Take Axie Land as an example:

Although the game goes from the peak to the trough, the land carries the accumulated traffic during the game development process, and the value contained in the traffic is locked in the NFT of the land, and does not fall with the trough cycle of the game.


Opinion: Regarding games with creative NFTs, in the early stage of the game, whether it is P2E, chain reform, or 3A masterpieces, it is necessary to accumulate traffic during the initial game process. When this part of the traffic settles and a consensus is reached, the game enters the fourth Cycle: The creative cycle.

Creative cycle : In this cycle, the traffic is enough to carry the construction of various games. The value of NFT is not only fluctuating with the changes of a certain game. NFT is in an evergreen state, breaking away from the shackles of a single game and forming a large cultural universe , and the upper limit of the entire universe is the upper limit of economic benefits.

But unfortunately, this type of game has not been seen on the market at present, and Axie has only completed the initial traffic accumulation. Sandbox has not experienced the path of the previous game and did not achieve the accumulation of traffic, so naturally it will not form a value consensus.

The current recommendation for investment is to try to capture NFTs that may enter the creative cycle, which is in line with the starting point of long-term holding.

If you look at the short-term investment thinking, the yellow line cycle in the above picture is a good choice for “short, flat and fast”.

5. The significance of the union to GameFi

I. Views on DAO:

In the 2020 DeFi Summer, DAO has been popular for a while, and there is even a saying that the end of DeFi is DAO. But judging from the bull market’s one-year market trend, DAO has not exploded, and it can even be said that no application has landed. Judging from the current mature DeFi projects (Uni, AAVE, COMP), it is difficult for DAO to be implemented. Investors have a huge amount of chips, and decentralized governance is ultimately just de-retail governance.

Although PeopleDao in November 2021 failed, it opened up a new world of DAOs. The entire project from the founder’s establishment of the project to the public fundraising is relatively fair. The governance rights and the donation amount correspond to each other, and they are all on the same starting line. In order to de-institutionalize, this is also the spirit of fairness pursued by native users of the currency circle. Although it ended in failure, PeopleDao itself will become a symbol.

From the People’s point of view, the initiation of DAO itself requires a carrier. It is theoretically believed that if this carrier can provide strong cohesion (things that a single retail investor cannot do, the bigger the thing, the stronger the cohesion) and the appropriate amount of economic benefits, the upper limit of this DAO will be higher. If the controllable economic interests are too large, the governance of the DAO itself will be very chaotic, and it will also form the division of the oligarchs within the DAO. (This comes from the observation of leading DeFi projects such as UNI)

II. The significance of guild DAO to GameFi

At present, the game is considered to be a good carrier, and the game union is an organization with a great sense of honor, strong cohesion and certain economic interests. The following groups of people will appear in this organization:

  1. Banner figures: President, early promoters. Also an early investor.
  2. Management: The person responsible for managing the daily work and ensuring the operation of the guild.
  3. Deep Participant: Provides suggestions for the operation of the guild, deeply participates in daily activities, is relatively vague or does not pay attention to the concept of benefits, devotees.
  4. Ordinary participants: This part of the group is the largest and joins for economic purposes or honor purposes, in order to gain benefits that lone wolves cannot.

This kind of game guild itself is considered to be able to exist across the game when it is supported by revenue or driven by revenue.

Different game mechanics result in different user structures:

  1. Games with gold as the core: Ordinary participants hope to get rewards through the guild’s faster entry threshold or low-cost way.
  2. Games with competition as the core: Ordinary participants can accomplish things that cannot be accomplished through guilds while gaining benefits that ordinary players cannot.

Regardless of the mechanism of the game guild, the players who gather in the guild can become a larger moat for the guild if they can cross the game. The guild has its own traffic. This part of the players is relatively skilled in the operation process, and the large group will promote the early development of the game.

In the current game, if the moat of the game itself is low, the guild is the main moat in the early game, and this moat will be transmitted to the game itself, forming a complementary effect. GameFi and guilds are ultimately inseparable.

The roles that guilds may play in GAMEFI:

Three-way check and balance, the guild acts as a balance point between retail investors and project parties.Strengthen the right of retail investors to speak before the project, and at the same time help the project party to regulate retail investors. Similar to a voting proxy, but at the same time, it has a certain influence on the project party and has a binding property for retail investors.

III. Prospects for Guild DAO:

The DAO wants to transcend the existence of the game itself, and the income exceeds all other conditions in the process of DAO migration. Therefore, it is necessary to solve the problem of unbalanced income in different games. If a relatively stable income distribution can be achieved, DAO itself will also becomes a value symbol.

In addition, the guild DAO only attracts large players and scholars and cannot survive in this “game”, because any mature small team can build hundreds or thousands of robots to simulate users, and these “users” can simulate real Player behavior. Therefore, the value capture of guilds also requires other forms of efforts (such as e-sports).

6. Prospects for future GameFi projects

From the time dimension,

  • In the short term (1 to 5 years), the game will be financialized or the props/equipment in the game will be capitalized, and the combination of GameFi + DeFi will be born; in addition, the user base of Internet games is huge, with the participation of more key industry institutions , will attract more non-encrypted users to enter and further expand GameFi’s market;
  • In the long run (5-10 years or even longer), with the rapid development of high technology, various infrastructures such as AR, VR, and the improvement of on-chain transaction speed and the improvement of computing and data storage, the concept of the Metaverse begins to land. Games that mirror real life will also flourish, perhaps as seen in the movie Ready Player One.

What attracts Internet users the most is the Play to earn mode; the chain reform mode allows users to quickly familiarize themselves with the differences and innovations of blockchain games on the premise that the game is playable; although 3A masterpiece games require more time to conceive and develop creation.

But it presents a grander narrative and a sense of delicacy; the most anticipated are games that include creative NFT/IP. Once this mode is entered, a game project can no longer restrict the flow of NFTs, and can even collide with more GameFi This is also the direction GameFi needs to think and research in the future.

Overall, GameFi is just beginning to gain mainstream market attention, not to mention the possibility that the huge user base of the traditional game market will turn to blockchain games in the future, the success of Axie Infinity is a good demonstration of the growth of this market, guild The addition of DAO also injects more resources and benefits distribution methods into this track.

No matter which mode it is, if you want the game to be favored by more users, it is not only necessary to improve the playability of the game itself, but also to consider the design of the economic model, as well as lowering the threshold for user participation while still gaining benefits. This is The most essential difference between GameFi and traditional online games.

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