Game Governance in Web3 (1): What is Game Governance and Pros and Cons

This is a series of analyses on the different governance models used in games. Before discussing the different models, I would like to talk about:

1) What is game governance?

2) The necessity of governance processes in Web3 games, and the pros and cons

3) Possible game governance systems in Web3 in the future

Game Governance in Web3 (1): What is Game Governance and Pros and Cons

What is game governance?

Game governance is a process in which a game’s stakeholders participate in its evolution.

It can take an indirect form like providing organic feedback through a public forum, which is then iterated on by the development studio, or it can use a direct form like voting on content proposals that emerge from community discussions. However, both methods are currently used.

Game Governance in Web3 (1): What is Game Governance and Pros and Cons

In addition, it can be as granular as voting on individual content updates, or abstracted from the content itself like controlling parameters in the ecosystem, such as bps transaction fees on native DEXs, p2e mechanisms, etc.

Game Governance in Web3 (1): What is Game Governance and Pros and Cons

Game governance process visualization

The structure in which this process takes place is different in multiple games, in “Aggregation games” you can:

– Scrape replies to updates at various stages of the game through organic sources such as public forums;

– Create a committee representing players’ interests, for which player feedback is aggregated;

– Players are required to create proposals themselves.

In “Filtering games”, you can choose:

– All information filtering happens in the studio without player input;

– Proposals can be given additional weight based on the source;

– All proposals that pass the vote will have to be implemented.

Game Governance in Web3

keep

Game governance improves retention.

With the popularity of GaaS (Game as a Service), it is important that games continue to provide experiences that meet consumer needs. As such, this has led to an increase in methods and manpower dedicated to gathering and aggregating player feedback, and as we’ll see, many game governance mechanisms have emerged as remedies for players leaving the game after an update they didn’t like.

For Web3 games that want to profit by controlling key in-game infrastructure (such as NFT markets, AMMs, etc.), the key to affecting their revenue is the speed of player growth and the willingness to invest in the long term. Therefore, player retention is important.

Build trust with the community

Equally important is increasing investment by making players feel safe and building trust with the community.

Game Governance in Web3 (1): What is Game Governance and Pros and Cons

However, game designers always have an incentive to stimulate player assets in the short-term, which can damage the health of the game in the long-term. As such, game governance must consider very carefully the timing of decentralization, who can vote, what to vote for, and other financial policies implemented to align the game’s long-term growth with its investor-grade player base.

Also, a well-designed governance mechanism ensures that the player’s voice is heard, and many great games have ended up dying because of unsanctioned updates from the community.

Pros and Cons

Governance is content, and in keeping with the Web3 spirit of decentralization, it also adds extra complexity to game design.

Edward Castronova writes in Virtual Economy: Design and Analysis that economics and market design are extras that players can enjoy, and I personally have always preferred market making, trading, and investing over actual game genres like MMOs people.

So I think the ultimate goal of game governance is to integrate it into the content and organize other players, especially those who are constantly making suggestions during game development, who are also the most common players in the MMO genre. In a sense, game governance is the perfect combination of the two.

Web3 Game Governance System

weighted voting

– Certain heavy players, demographics can increase voting power in direct votes or council votes, which may be those UGC creators, players who have reached milestones in the game.

– The key difficulty is designing the best demographic map system to manage an area without requiring management capture over time.

Forkability

– Given enough time, all favorite games will open source their codebases, so private servers and modded forks will proliferate.

– If a base layer game provides assets and monetization by controlling liquidity or critical infrastructure (Dex, creator tools, staking rewards, etc.), open source can allow players to “easily quit” game updates they disagree with, while Contributions made are still monetized.

– Private server players will still be incentivized to use the core infrastructure and assets, similar to WoW’s private servers. Therefore, it makes sense to use open source as a means of Web3 game governance, thanks to Web3 game monetization and a factor that excites players.

– As long as the game state is not open source, the developer often acts as the main controller of the game, deciding what and how to implement changes to the game state.

Game Governance in Web3 (1): What is Game Governance and Pros and Cons

However, sometimes the feedback from many players is “noise” from a few special interest groups, which will ultimately harm the interests of the core player base, so improper handling of aggregation and filtering, and making improvements to meet marginal groups may The game leads to death.

Therefore, you can try the following solutions:

– Listen to the voice of the entire potential user base or target group;

– Listening to existing users, but placing too much emphasis on feedback from the types of users the developer wants to attract;

– use the designer’s intuition, which largely depends on how well they are attuned to the target group;

– Test new policy decisions in simulated instances and collect qualitative (e.g. satisfaction) and quantitative (retention, interaction increments, etc.) user data.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/game-governance-in-web3-1-what-is-game-governance-and-pros-and-cons/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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