In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

2021-the first year of GameFi Chain Tour

If 2020 is the first year of the DeFi explosion, then 2021 is undoubtedly the first year of the GameFi chain game explosion.

According to DappRadar statistics, on April 18, 2021, the number of transactions in the chain game sector was as high as 480.7 billion U.S. dollars. As of July 31, the number of users in the chain game sector exceeded 780,000, an increase of more than 170 times from the beginning of the year, and the number of daily active wallets on GameFi increased by 700% from March to July. As of July 30, 2021, the chain game market has attracted investment of nearly 1 billion U.S. dollars, and the total amount in 2020 is 72 million U.S. dollars.

In August 2021, Axie Infinity  surpassed NBA Top Shot to become a phenomenon-level product. Its cumulative transaction volume exceeded US$1 billion, setting a record high. As of August 18, its governance token AXS currently has a market value of up to 4 billion U.S. dollars, ranking 40th, and its price has increased by 132% since the beginning of the year. And it generates more gas fees in July than other crypto assets, including Bitcoin and Ethereum.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Source: CoinGecko

According to data from DApp data statistics company Token Terminal, the revenue of the Axie Infinity protocol in July was 4.2 times the combined revenue of the 2-10th in the total network protocol revenue.

According to TokenTerminal data, on July 28, Axie Infinity’s revenue reached 18.48 million U.S. dollars, and its single-day revenue has surpassed Tencent’s mobile game “Honor of Kings” twice; as of August 17, Axie Infinity had revenue of 334 million U.S. dollars in the past 30 days.

According to Sensor Tower data, the revenue of “Glory of the King” in July 2021 was US$231 million. The monthly income of representative works of blockchain games can already compete with the top traditional games.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Revenue from dapps and blockchain agreement for nearly 30 days on August 17, 2021

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

DeFi given GameFi

The chain game development process has gone through three stages: 1. The game currency is on the chain; 2. The game equipment and props and other assets are on the chain to confirm the rights in the form of NFT tokens; 3. The game’s internal logic and core rules are on the chain.

From 2017 to 2021, the phenomenon-level product of Axie Infinity appeared in the field of chain games, which drove the GameFi mode (DeFi+NFT+game), and made people notice the play to earn “play to earn” mode-while playing. Earn, the token assets obtained by the player in the game can be bought and sold. Axie’s Filipino players can earn more than their own part-time income in the game.

GameFi, namely Game Finance (adding financial elements to the game), or a more core mode called Play to Earn, is essentially a money game. GameFi is actually PoW+DeFi. By spending time and effort to obtain revenue through games, there is no original capital. DeFi is based on the Proof of Stake (PoS) consensus mechanism and requires the original capital cost to obtain revenue through mining. The DeFi component of GameFi is mainly reflected in: NFT game assets are decentralized and can participate in providing liquidity and some pledge mining.

GameFi focuses on playing games, and DeFi focuses on mining. GameFi replaces the mining process in DeFi with games. Funds are not a necessary condition. Time and energy are the key conditions for benefit. Users have to play with those characters and props, and have to win complex game levels and strategies to make money. Compared with mining, this path is much longer, so the project will have a longer life cycle. If the game’s economic model and gameplay are designed to be more mature and complete, the more the game’s lifespan will be prolonged. Moreover, the DeFi project fee is only about 0.3%, while the GameFi project party has more than 10 times the revenue, and the fee reaches 3%+. The project party itself has more funds to feed back the game.

For ordinary users, the cost of understanding DeFi mining is much higher than that of playing games. Therefore, chain games can go out of the circle and can attract users from Southeast Asian countries. This is why the current GameFi project revenue can even exceed most DeFi projects. One. (Refer to the previous picture: dapps and blockchain nearly 30 days of agreement revenue on August 17, 2021)

According to DappRadar data, as of August 16, 2021, the number of chain games has reached 838.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Axie Infinity development path map, source: CoinMartketCap

Advantages of chain games compared with traditional games

At present, many traditional games are free to play free mode, including the most profitable “King of Glory”, the popular game “Pokémon Go” and the Japanese mobile game “Ni No Kuni: Cross Worlds” that generated $100 million in revenue in 11 days. Game developer Revenue is obtained by selling game props, but this type of game has a drawback that has gradually been discovered. It must be gold to continue to complete the level, otherwise it will be stuck.

But traditional games are not without innovators, such as ” Roblox “, other developers and designers can make their own games and props in this game, and sell them to other players in exchange for virtual currency Robux. According to the data, 27% of the game cost goes to all game developers, 25% goes to the app store, 12% goes to the investment and support of the platform, and 27% goes to the game itself.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

However, traditional games do not get through the system, so the transaction of game assets is hindered and can only be traded within the game. Usually, traditional games receive only items or virtual currency rewards and have no control rights. In blockchain games, the game rewards are encrypted assets, which can be bought and sold freely on the chain. The Play to earn game also opens the legal currency deposit channel and uses credit cards, which greatly reduces the cost and threshold of NFT games and can attract players from outside the circle.

In the field of traditional games, for players, centralized game companies will collect most of the game revenue, or because of centralization, the interests of players are difficult to protect. In the field of blockchain games, most or almost all of the income belongs to the players themselves, which is the most primitive attraction for players.

For game developers, due to the maturity of the industry, oligopoly concentration continues to rise. For example, Tencent and NetEase occupy half of the market share, and traffic and resources are monopolized by a few companies. At the same time, small and medium-sized game developers are under great pressure to survive, and the cost of acquiring customers is getting higher and higher, while the user pay rate and profitability increase are small. In the field of blockchain games, it has only really started to develop in a total of three to five years. Except for the Axie Infinity that broke out this year, there is still huge potential in other sub-fields.

In 2020, the total revenue of the world’s top 100 listed game companies increased by up to 23% year-on-year, accounting for 94% of the total revenue of the game market in 2020 (excluding advertising). Currently, the world’s largest gaming company is China’s technology giant Tencent.

Blockchain games give the initiative to players, reconstruct the relationship between developers and players, and have great penetration and development potential.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Chain games corresponding to different types of traditional games

Source of game players-Game Guild & DAO

Even if the underlying technology of the game has a breakthrough development, the richness of the game content is gradually increasing, but without users, everything will become worthless.

The Philippine Game Association Yield Guild Games (YGG) proposed an Axie Scholarship (Axie Scholarship) project, which has three roles: Scholar player, manager, and YieldGuild guild organization. The manager is responsible for the development and training of newcomers. The guild organization does not directly contact the players, mainly through the manager.

Since the initial setting of the Axie game requires 3 Axie pets to start playing, the cost of several hundred or even thousands of dollars can persuade most people, and the administrator will lease 3 Axie as a team to the players who apply, so Players have almost no upfront costs and start earning SLP tokens in the game with 3 Axie. Players’ income is distributed according to the proportion of 70% of players, 20% of managers, and 10% of guild organizations.

Players can also let other players use their own Axie through the YGG guild in the later stage, and get a certain share from the SLP they earn.

Games that YGG has invested in or planned to invest in: Illuvium, LeagueofKingdoms, F1DeltaTime, TheSandbox, StarAtlas, ZEDRUN, etc.

The YGG guild organization model is not very difficult to imitate, and the encrypted game guild may gradually develop into a DAO organization. DAO is a decentralized organization based on a certain purpose that can organize people to invest or complete a certain purpose. It will promote the development of many blockchain games.

The epidemic has inspired the most active market for traditional games-Southeast Asia

In the newzoo global game market report (as of July 2021), the Asia-Pacific region accounts for 50%+ of the number of traditional game players (and revenue) in the region. This is a market with great potential, as long as this market is occupied , There is huge room for development.

“The Asia-Pacific region, which includes emerging markets such as Central and South Asia and Southeast Asia, has the world’s largest number of active gamers, accounting for 55% of global players, which is much higher than the number of players in other regions.”

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Source: newzoo

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

In the Google search trend, 100 represents the upper limit of search popularity. It can be seen that the popularity of the play to earn model has continued to rise from May to June, with Southeast Asia and the Middle East paying the most attention.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

In the Axie Infinity search trend, the popularity began to gradually increase in late April, the data reached a peak in mid-July, and then there was a 25% decline and remained stable. The Philippines also ranked first in popularity.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Because the YGG Association has reduced costs, Southeast Asian countries have been affected by the epidemic and their income from part-time work has been greatly reduced. As soon as I heard that there is a way to exceed the monthly income, it spread quickly and independently. I heard that some Filipino maids learn to play Axie games in one night, and by the way, I also brought other people in the circle of friends to the meeting. Playing Axie games has even become a tool for some Filipinos to support their families. In the play to earn documentary, there are six or seven-year-old men who play games for a few hours a day to pay for the medical expenses and living expenses of the old couple.

According to data, Axie Infinity’s average daily active users in July has exceeded 800,000, of which up to 60% of users are from the Philippines.

Characteristics of blockchain games

One is the rate of return. The most essential difference between GameFi blockchain games and traditional games is the mode of earning while playing, but an immature economic model that cannot form a closed loop cannot bring long-term stable income to users.

The second is playability. Judging from the past history of traditional games, whether the picture quality of the game itself is pixel or 3A high-end picture quality, as long as the game is fun, the user can put the quality of the picture quality in a secondary position. However, there are still a lot of games with insufficient investment and no playability at all.

The third is fluency. The infrastructure of blockchain games cannot be compared with traditional games. Traditional games have a throughput of tens of thousands of TPS. Every game action in a chain game needs to be packaged and broadcast throughout the network. The processing speed will definitely make players familiar with traditional games feel the gap.

Game fluency-the development of the underlying technology of the GameFi chain game

The public chain is developing rapidly to solve the pain points

In 2017, Cryptokitties broke out, and the industry also saw the immaturity of the underlying public chain technology, which was a pain point that hindered the large-scale application and development of chain games in a few years. High gas costs, low performance and network capacity issues are always fatal. At that time, Ethereum could only support 15-30 TPS per second, and the number of delayed transactions waiting to be confirmed was maintained at more than 20,000 per day. If you want to prioritize confirmation, players must pay gas fees that are about 10 times higher than before. The biggest feature of online applications is the ability to interact, and the interaction cost of Ethereum is too high.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Someone once complained about why some project parties issued NFTs on Ethereum, and the purchase of $3 goods even cost $79 in transaction fees.

In 2018, it will take a long time for Ethereum 2.0 to complete the deployment. Some blockchain game project parties are still anxious that many public chains do not support NFT.

In 2021, not only did there appear several public chains in Layer 1, but the innovation chain in Layer 2 also has a place, and there is even a blockchain specifically created for NFT.

  • Layer1 public chain representatives: Ethereum, WAX, Flow, Solana;
  • Layer2 side chain representatives: BSC, Ronin, Polygon, Immutable X.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic


Layer1 public chain

Ethereum blockchain -the strongest consensus

The advantages of the public chain represented by ETH: high consensus, nodes scattered all over the world, high degree of decentralization, and global participation, so there are many supporters. Disadvantages: Because the transaction packaging time is long, huge amounts of data cannot be processed, which can easily cause block congestion and lead to poor user experience. Although there are various problems, the strong consensus foundation has contributed to the ecological aggregation effect. For a period of time, the transaction volume of the top ten chain games on Ethereum is also significantly larger than other public chains.

Representative projects: CryptoKitties, The Sandbox , Big Time.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

WAX Blockchain-King of NFT

WAX is not a general-purpose public chain, but a public chain that focuses on NFT. Based on EOS transformation, it follows the DPoS consensus mechanism. The theoretical throughput of WAX can reach more than 3000 TPS, and the gas fee is much lower than that of Ethereum. In the future, WAX will promote the connection of on-chain NFT assets between independent Dapps, which will help enhance asset liquidity. In addition, WAX is also working hard in the cross-chain direction.

WAX is known as the “King of NFT”, relying on OPSkins (the operator of the world’s largest digital market) to have a million-level user base at the beginning of its establishment. In 2020, the NFT primary subscription on WAX will be sold out within a few minutes at the earliest, and its NFT secondary market transaction volume is 5 times higher than that of the primary market.

Relevant data shows that in the second quarter, the WAX ​​chain became the market leader, and NFT sales have exceeded the total sales of Ethereum and Ronin. The number of WAX daily active wallets interacting with blockchain games increased by 1,082% every quarter to 306,707.

According to public chain wallet data in June, ranking first: Wax (number of wallets: 306707), second: BSC (number of wallets: 8641), and third: Ronin (number of wallets: 7987).

Representative projects: Alien Worlds, R-PLANET, PROSPECTORS.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Solana blockchain-the most efficient public chain

Solana is a high-performance blockchain that does not use sharding, and may be the most efficient public chain.

  1. It has a core innovative historical proof consensus mechanism (PoH), which can introduce a time system that other underlying technologies cannot do, encode time (historical proof) as data, and sort transactions, so it does not need to interact with each other like other public chains. Communication can complete the consensus, reducing the time for consensus determination and message delivery.
  2. It uses GPU parallel processing mode for the first time. Other blockchains are single-threaded. Solana is the only multi-threaded blockchain that can parallelize transfers.

Therefore, Solana has the advantages of high throughput, high scalability, low latency and low transaction costs. Solana’s throughput can reach up to 50,000 TPS, up to 65,000, the block generation time is about 400 milliseconds, the number of global nodes exceeds 300, and the single transaction cost is as low as $0.00001 (almost none).

Disadvantages: Since Solana is not compatible with the Ethereum Virtual Machine (EVM), it cannot be as easy for developers to migrate as BSC and Heco. In the impossible triangle of the public chain, Solana is more inclined towards scalability, the projects on the chain are more centralized, and part of the security is sacrificed.

Representative projects: DeFiLand, Star Atlas, Aurory.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Flow Blockchain-Phenomenal Project Maker

Dapper Labs, the development team of two NFT phenomenal projects, CryptoKitty and NBA Top Shot, independently developed Flow, a public chain that focuses on adapting to NFTs and games, and can be split on Layer 1 and create high scalability.

Ethereum decomposes transactions horizontally, categorizing them according to transaction type, amount, and importance, and then processing them separately.
Flow is a vertical decomposition of transactions, the method is vertical sharding + specialized division of labor, which separates the resource-consuming calculation process from the time-consuming consensus process, and classifies transactions and nodes according to the unique dimensions of Flow, and then according to the nature and capabilities of the nodes themselves Assign tasks.

According to Flow’s official website, compared with the traditional underlying technology, Flow’s throughput is increased by more than 50 times without affecting security or decentralization, the speed is significantly improved, and the transaction fee is significantly reduced, with a minimum of 0.001 Flow .

At the same time, Flow has a rich ecosystem, including many heavyweight partners, which gives it a strong IP market advantage.

Representative projects: NBA Top Shot, MotoGP™ Ignition.

Layer2 side chain

Ronin Blockchain-Axie Infinity Customized Sidechain

Ronin is the side chain of the Ethereum chain. Its launch is a key catalyst for the explosive growth of Axie Infinity for two consecutive months starting on April 24, 2021. Axie has only 523 active users in January, and then daily active users (DAU) from The number of people in April surged from 38,000 to 252,000.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Source: DappRadar

Ronin chain transactions can be completed almost instantaneously, Gas fees are almost negligible, Axie can be transferred freely between Ethereum and Ronin, which makes it easier for players to reproduce, thus promoting the number of Axie, reproduction costs and market turnover Growth, which in turn promoted a significant increase in the number of DAU, Axie currency holders and Discord members. Axie even negotiated with Discord officials to abolish the upper limit of 100,000 members. As of the beginning of August, the number of members has reached 680,000+.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

The performance of the AXS token price is more intuitive: April 24th AXS price: $7.57, July 26th AXS price: $40.87.

In the second quarter, after Axie Infinity migrated to Ronin, it created more than $162 million in NFT transaction volume. In the absence of Axie Infinity, the entire Ethereum gaming ecosystem adds up, and the NFT transaction volume is $64.4 million.

Ronin is the only blockchain solution in the game field that exceeds Ethereum in terms of NFT transaction volume, and Ronin has generated more Gas fees in 30 days than BSC and Polygon. In July, Ronin’s deposit assets exceeded 500 million U.S. dollars, and the number of wallet downloads exceeded 1 million!

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Source: DappRadar

BSC blockchain-a hot spot for nuggets

The Binance Smart Chain BSC is based on the Cosmos side chain, with high performance and low transfer rates, compatible with the Ethereum virtual machine EVM, and easy to access the Ethereum ecosystem. BSC introduces the Proof of Stake Authority (PoSA) consensus mechanism to reach consensus by staking BNB and requires 21 validators.

Therefore, the BSC chain generates a block every 3 seconds, and the average gas fee for each transaction is $0.05. On the impossible triangle of blockchain, the BSC chain is an alternative solution that can be achieved in terms of transaction speed and transaction costs.

BSC has a strong financial background, a large number of community users and project resources, which are very helpful for the application to land. The two-round acceleration plan proposed this year is to gradually clarify the incubation of the GameFi track project.

The disadvantage of the exchange public chain is that its growth is driven by some NFT projects with a relatively concentrated lock-up volume and trading volume, and the degree of decentralization is not adequate, so it is also a hidden danger. In addition, the BSC chain has some network congestion from time to time, which is a problem that subsequent users have been paying attention to.

The BSC chain was born for Ethereum DeFi at the beginning, and this year it took into account the new hotspot GameFi. Today, about half of the top 10 chain game projects come from the BSC chain.

Representative projects: CryptoBlades , My DeFi Pet, My Neighbor Alice, MOBOX.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Polygon blockchain-the most complete expansion solution

Polygon is the first Layer 2 solution aggregator on the Ethereum chain. It has good EVM compatibility. Ethereum-based projects can be easily migrated and are also compatible with Metamask. It has high scalability, transaction security, high throughput (7200+TPS), fast confirmation (1-2 seconds on average), and low transaction fees ($0.00004 per transaction).

Under the premise of sharing the security of the Ethereum chain, Polygon expands through the side chain, which is both efficient and safe. At the same time, the expansion of the hybrid solution can lower the barriers to technology development.

Its biggest technical advantage is the diversification of expansion schemes, with the most full-stack solutions, among which the four most important expansion schemes: Polygon SDK, Polygon PoS, Polygon Avail and Polygon Hermez, and are continuing to increase. Expansion solutions with different availability, security, and costs are suitable for different users.

In July of this year, Polygon has announced the establishment of a new studio, Polygon Studios, focusing on games and NFTs, and has established a $100 million fund, planning to invest heavily in NFT. Currently 70% of NFT Dapps on Polygon are about games.

Representative projects: Loserchick, Tea Virtual, Exeedme

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Source: Loserchick

Immutable X Blockchain-Zero Expenses Expansion Solution

Immutable X is a Layer 2 expansion solution based on Ethereum. The throughput can reach 9000 TPS, and the gas fee for casting and transactions is 0. This chain can also provide NFT liquidity, so it is becoming more and more popular. Most of the NFT projects that choose this chain are concentrated in the game field.

The expansion solution adopted by Immutable X is ZK Rollup, which introduces the same batch zero-knowledge proof as the MINA blockchain, which allows transaction snapshots to prove past transactions, which compresses the amount of information required by Ethereum when transactions or NFTs are created. Therefore, there is no need to pay gas fees.

Immutable X consumes less than 30% of Ethereum’s capacity, and reaches hundreds of millions of transactions per day. At the same time, its network is stable and reliable, real-time transactions can be realized, and the transfer of assets can be completed instantly.
Representative projects: Gods Unchained, Illuvium (launched in the third and fourth quarters).

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Source: Illuvium

At the beginning of 2021, with the advent of the bull market, Ethereum’s DeFi ecosystem broke out again. However, the congestion of the Ethereum network and the extremely high rate cost restricted the development of DeFi for a while, so other public chain ecosystems have broad development space. And after a sharp drop in 5.19, various data fell after DeFi was frustrated, and the explosion of GameFi came into being.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

According to the DappRadar report, since April, the number of active wallets on the WAX ​​chain and the BSC chain has skyrocketed, which is far away from several other public chains.

As of the second quarter of 2021, the number of daily active wallets for blockchain games is about 375,000. Most games are active on the WAX ​​chain. Its daily active wallets increased by 1,082% from the previous month to 306,707; BSC ranked second. Chain, daily active wallets reached 8641; Ronin ranked third with 7897 active wallets daily.

Polygon’s active wallet data also surpassed Ethereum in July.

Confirmation and safety issues

The NFT digital asset confirmation scheme is not perfect. In terms of digital assets on the chain, there is no endorsement by a centralized credit institution, how to ensure that the ownership of assets is unique and certain, and how to solve the problems of counterfeiting and repeated sales. For the time being, there is no complete closed-loop solution.

This year, DeFi projects frequently have security issues, and a large number of assets have been stolen by hackers. This has become a new issue that the industry focuses on. GameFi’s transaction volume of hundreds of millions of dollars has become a sweet steamed bun. If it succeeds in getting out of the circle, it must be stared by many eyes. How to prevent security issues must be paid attention to.

Games ultimately carry massive amounts of player data with high concurrency, that is, they need high tps, safe and efficient underlying technology, and supporting data security, distributed storage and other plug-ins. The smoothness of the game is important to the players. Important user experience.

At present, the underlying public chains that have emerged have not yet unified standards, imperfect performance, and inadequate compatibility.

The future direction of GameFi public chain development: interoperability between all platforms, NFT used across different ecosystems, and interaction between all public chains and Ethereum.

Game playability and game profitability (economic model)

Game playability

Axie Infinity is a decentralized pet development and turn-based strategy game. Players buy, sell, trade, and breed cute digital pets-Axie, and fight pets with other players to win battles and complete necessary tasks. To obtain token SLP, by spending AXS and SLP to breed higher-level pets, tokens and pets can be traded for profit. This game is similar to Legend of Sword and Fairy.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Axie Infinity has achieved explosive growth, and everything develops regularly. The development model of chain games must also adapt to reality and transform. The cost of user “wool wool” is getting higher and higher. After game developers reduce the space for profit, how can players stay? Playing, or attracting new players, is a challenge facing chain games.

According to the Axie Infinity roadmap, AXS pledge will be launched in Q3 of 2021, and the AXS ecosystem will be launched at the beginning of 2022. By the first half of 2022, virtual land gameplay will be launched.

The co-founder of Axie Infinity mentioned in the AMA that other projects can provide part of the tokens to be distributed to Axie game players and participate in the entire game token ecosystem; at the same time, it can also provide AXS&SLP and players holding other currencies. Specific brand props are given more rich functions to form a doll model. Axie can cooperate with other games. Players can obtain specific items through cross-games. This also enriches the gameplay and attracts different users to both parties, which revitalizes the games on both sides, and successful cooperation will cause a cluster effect.

At present, the Axie team has stated that they cannot create enough content and experience to meet the ever-increasing needs of users, and they hope to seek help from players. Will they follow the example of “Roblox” and allow other developers to create and develop? Back then, Warcraft 3 became popular because it opened up the editor and editing language, and then Dota, Chenghai 3C, and Three Kingdoms Warriors appeared, which enriched the game scene. The Axie team might consider it.

After several years of development, blockchain games have added more attributes to the NFT, such as combat mode, incubation, combination, cultivation, split, land trading, etc., but the game’s playability and exquisiteness are still not as good as development. Mature traditional game.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

GameF shifted to a DeFi+NFT+game+DAO/social model

Many players have gradually realized that many chain games are not really fun, and they insist on being profitable. If chain games only focus on financing capabilities, they will not have long-term development.

GameFi’s focus is on games. Even if it is profitable, the game’s playability will not attract more new users. Games like Axie cannot survive on existing players. If you want to attract more players, More active players should constantly upgrade in the exploratory, competitive, and story richness of the game, so that players will continue to have a new sense of accomplishment, and meet the social attributes of the players. Even if there are no play to earn players, there are also pure play to win players to join, so that the game’s ability to resist the risks of the encrypted market can be greatly improved. Once it has formed its own user moat and barriers to competition, it will achieve rapid development.

GameFi should also be gradually socialized like traditional games, with DAO-like nature. Social in chain games is a rigid need, and it is also a link for GameFi to enter the meta-universe.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Economic model

For the development model block chain game, Abitchain founder Zhao Meijun has said, “block chain with a combination of game, the first game is a chain of currency block, the second game of props and characters block chain, The third is the blockchainization of the rules of the game.”

In the Axie Infinity game, players earn money by: 1. Earn SLP tokens by winning Axie pet battles in the game; 2. Breeding more higher-level Axies through existing Axies and selling or renting them; 3. AXS and SLP provide token liquidity (LP) to obtain income; 4. Investment in Axie, which is very rare; 5. AXS pledge; 6. Land sale.

In the previous few months, users in the Axie Infinity game have begun to buy and sell a large amount of land NFT. The price of these land NFTs ranges from a few hundred to tens of thousands of dollars. Kieran Warwick, the founder of the project Iluvium, which is about to launch the game Said that he has obtained more than 90 times the income by reselling the land.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

Axie Land Screen

Nearly 95% of the revenue generated by the player belongs to the player himself, and the remaining 4.25% is intercepted by the project team and will flow into its “Community Treasury” (community treasury), but only from this 4.25 revenue, Axie has generated revenue Hundreds of millions of dollars.

Axie economic model setting

Although the Axie Infinity game has a logical and self-consistent economic model, tokens generated by pet battles + tokens consumed by breeding pets form a complete economic closed loop, but whether it will develop smoothly as planned in the future requires practical demonstration.


  1. The starting point of the game is that the player has the qualification to enter by purchasing the Axie pet NFT, and the entry of funds causes the price of the Axie pet NFT to rise;
  2. Players who want to breed and upgrade pets as soon as possible must purchase more AXS and SLP, which causes the price of 2 tokens to rise;
  3. Because of the increase in tokens, the demand for tokens and NFTs has reached the maximum. At this time, more players are attracted, leading to excessive breeding of pets, and the excessive cost of breeding discourages new players, and the price of pet NFTs begins to decline;
  4. Because of the decline in pet NFT profits, players no longer breed and upgrade pets, so SLP demand decreases and prices fall, and eventually the game stalls due to a lack of players.

The number of Axie pet NFTs can be divided according to the scarcity level, and there is a breeding restriction rule, which can limit the growth trend of Axie pet NFTs to a maximum value, so that NFTs become scarce and valuable again.

Axie Infinity essentially requires new users and new funds to enter to increase the price of pets and tokens. According to the original setting, after a period of time, the cost of pet breeding is reduced to the player’s psychological price, and the player will return to the game for a cycle. However, other GameFi-type blockchain games are also emerging, and it is difficult to guarantee that players will not abandon Axie and seek other high-yield games. And compared with traditional games that have been accumulated for decades, Axie Infinity has not yet formed a competitive barrier in game playability, whether it is game strategy setting and picture quality, let alone social attributes.

SLP oversupply

At the same time, Axie is currently facing another problem, SLP production is too large. Its official website announced the current oversupply of SLP in early August, because users abused the PVE battle mode to generate too many SLP rewards, so the official announcement of the adjustment plan for SLP acquisition methods:

  1. Halved the number of SLPs that an account can obtain in PVE per day from 100 to 50.
  2. The SLP reward for completing daily tasks has been halved from 50 to 25.
  3. The difficulty of obtaining PVP SLP rewards now increases steeper as the level of the trainer increases.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

SLP supply and demand relationship

After entering August, the battle produced a large number of SLPs, and the amount of SLP burned for breeding pets was far behind, which caused the supply of SLPs to exceed demand. Players who have spent the cost to breed pets will suffer asset losses, which will cause a bad chain reaction.

The economic model of Axie Infinity, especially the prices of AXS and SLP, are deeply affected by the crypto market. This is not the game itself. Therefore, in order to improve risk defense capabilities, the official has been considering continuously enriching the game scene and enhancing the Axie pet NFT itself. Value.

For sustainable development, in terms of gameplay, Axie will launch several major upgrades in the future, including: workshops and Axie resource recycling (increasing NFT liquidity and revenue), land games (increasing gameplay), Ronin on-chain DEX (increasing AXS and SLP liquidity) and AXS pledge (increasing AXS income). These measures can enrich the story, increase the income of the economic model, and make asset liquidity uninterrupted.

In-depth analysis of the sustainability of GameFi chain games from the underlying technology and business logic

According to Newzoo’s “Global Game Market Report 2021”, in 2021, the total number of game players worldwide will exceed the 3 billion mark. It is estimated that by 2024, game players will reach 3.32 billion, and global game revenue will reach US$218.7 billion.

GameFi is currently one of the best ways for blockchain to enter the mainstream world. It allows us to see that entertainment, IP, and revenue break the boundaries and combine vaguely. With such a powerful explosion, it is destined to be the hot spot in 2021. . With reference to the traditional game market, the future of GameFi chain games is still a sea of ​​stars, which will continue to erode the traditional game market.


Posted by:CoinYuppie,Reprinted with attribution to:
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