Gamefi is a very controversial direction in business, its dual-coin mode and the role-splitting mode have constructed a delicate logic of earning tokens. There are projects with slightly higher external value after Gamefi such as move2earn. There are wide range of projects in the market, however, even the star project cannot run away from the fate of short life, and will eventually enter a recession period. The key sign of recession is that once user growth slows down, people will lack motivation to buy in-app tokens/assets. Also, it’s meaningless to talk about application scenarios with little investment value. Once a project suffers from user loss, its in-app token will enter a death spiral. Whether the project is centralized or decentralized, there is no value at all.
Gamefi projects with the solo purpose of making money has little long-term investment value. Also, there are many doubts about the move to earn product that appeared later. However, compared with some ill-designed gamefi project, the trending app STPEN indeed delivered an exquisite App.
According to Appannie, the app DAU of StepN reached its peak in June 2022, stands at 700,000. Its on-chain users (including active NFT, GMT, GST wallet address) also peaked at 127,000 per day. However, this figure dropped constantly after that. Its DAU dropped by 64% since its peak, and only stands at 250,000 now. Also, its on-chain DAU deceased to only 70000, a drop of 95% since its peak.
StepN DAU change. Peaked at around 700,000 in June and dropped to only 250,000 in September. Data source: Appannie
The number of daily active addresses of StepN on solana dropped from 100,000 in June to 6,000, a drop of over 90%
The number of daily active addresses of StepN on bsc dropped from 27,000 in June to 1,000, a drop of over 90%
The price of StepN governance token (GMT) price declined from all-time high 4 USD to only 0.65
The price of StepN game token (GST) on Solana chain saw a dive from all-time high 8 usd to only 0.03
The price of Stpen game token (GST) on BSC china dropped from all time high 28 usd to 0.033 usd
The price of GST on eth chain decreased from all-time-high 8 usd to 0.17 usd.
Above information indicates:
- StepN on-chain active users dropped by 95%, and its digital assets including NFT, GMT, GST entered a circle of death spiral
- The price of GST decreased by over 99%, its payback period extended to more than 3 months, meaning its tokennomics has flailed. However, about 200,000 users are still using the app every day, meaning some core users are still using it for jogging and this may help its token price to rise again.
- StepN crossed the three chains, namely solana, eth and bsc. Solana is still the largest platform of StepN with low gas fee and high tps. It is conceivable that after ETH is merged and sharding, its gas fee will be further reduced. ETH is more likely to replace Solana to become the largest platfrom for all gamefi and socialfi projects.
Apps like StepN will continue to merge in the market. Each blockchain track can nurture different players with a total worth of multibillion US dollars, nevertheless, only one of them will win the final game. Therefore, X-Fi projects with even more specific application scenarios are more likely to stand out in web3. In order to survive in the fierce web3 world, one must meet two conditions to stands out from the rest: one is that a project should have health tokenomics, meaning inflation and deflation need to be well-balanced. Another is that project should avoid stereotypes and be more intriguing. If the application scenario is well-selected, users will become willing to make their contribution to the community and bring benefits to all parties.
The later condition is actually the most important requirement. Move to earn only bring benefits to the user itself, and is useless for others. For example models like ‘Read to earn’ only attracts people who attached to free tokens, bringing little value to the community. Therefore, it is reasonable to say that SocialFi is more likely to become the next trend in web3. Nonetheless, one may ask “what is a good model in SocialFi?”. The answer is that a successful project needs to make sure that its users can earn tokens while making contribution to the community.
I am going to talk about a web3 project that really catch my eye: ZClub— a web3 version of clubhouse, adopting talk to earn mechanism to rebuild its economic model
The reason that I am in favor of this project is that ZClub choose to embark on the track of socialfi which is more sustainable than gamefi and healthier than move to earn.
Social connections bring all people together in ZClub, giving them emotional value so that they will become active users in the ecosystem. Also, NFTs and its investment value behind it will add fuel to the price of its in-app tokens. Frankly speaking, ZClub (https://zclub.app/) is the only project that can be called socialfi, and its app is about to release soon, quite delicate.
Indeed, ZClub is a clubhouse-like voice group chat app that is deeply integrated into gamefi. its main digital assets are seat NFT, room NFT, application token AHT, and governance token AUT.
SeatNFT holder can enter a voice chatroom, and apply for mic. AI will detect if the user is actually talking or just playing a youtube video, then he/she will be rewarded with AHT tokens in accordance with its NFT type when chatting with friends or families. SeatNFTs have different types, namely Guest Seat, Mediator Seat, Host Seat, Master Seat. People lose energy points to chat and gain a reward in the form of AHT tokens. For instance, Guest SeatNFT holders can earn 4 AHT while burning 1 energy point to talk. Also, Host SeatNFT holders can earn extra 1 AHT per hour when fulling his/her host duties by organizing and approving people to take mic to chat. The app workflow is quit user friendly, you can check its whitepaper for details: https://whitepaper.zclub.app/
ChatroomNFT is another vital concept in ZClub. SeatNFT holders must enter a chatroom if he/she wants to earn some tokens by talking with others. Therefore, it is nature for an event/talk organizer to be a RoomNFT holder. RoomNFTs can be purchased from marketplace or minted from burning 6 SeatNFTs.
Seat NFT and room NFT constitute a complete ecosystem, some of its mechanism are displayed below:
- Buy a SeatNFT and earn AHT through talk. You can also increase effective earning time by holding multiple SeatNFTs, allowing you to earn more tokens
- Use 2 SeatNFTs to mint a new one. AHT and AUT are required when minting a new SeatNFT. However, please be noted that each SeatNFT can only be minted for 5 times
- Burn 6 seat NFTs to mint a new RoomNFT, and provide a virtual place for SeatNFT holers to talk/chat with each others to earn tokens. Also, RoomNFT holder will take 5% as commission from all of the live gifting in his/her room. It’s a victory presented on a platter
Overall, ZClub has a strong nature in SocialFi. SeatNFT and ChatRoom NFT are directly linked with each other in terms of financial income. People need to enter into a room to talk to earn, therefore, social bonds are established during that very moment. As the app emphasis on gift giving culture, meaning Courtesy demands reciprocity. Therefore, live gifting will become a frequently social courtesy in the app, and benefits all parties. To be more specific, gifts are dominated in AHT. Approximately 50% of its value will be given to the recipient, 5% will go to RoomNFT holder, and some will be burned. Its flow chat is displayed below:
What if no one sendslive gifts? The answer is that Health point(HP), a numerical attribute representing the health of a Room/Seat, will drop constantly. Nobody can earn tokens once Room HP drops to zero. Therefore, live gifting will lead to the deflation of AHT.
People also need to repair the room once it go live. The max HP of Room is 100. This figure will drop per hour, depending on the repair attributes of different NFTs.
There is a “worn-out” penalty at three specifically Repair points:
(1) Below 60/100 repair points, ChatRoom Efficiency drops to 90%
(2) Below 50/100 repair points, ChatRoom Efficiency drops to 80%
(3) Below 20/100 repair points, ChatRoom Efficiency drops to 15%
The mechanism is well designed in this way. Guest and Host SeatNFT holders can take mic to talk and earn AHT, in the meantime, community participants need to send each other live gifts to maintain a reasonable Room HP. As for RoomNFT holders, they can earn AHT tokens by taking some commission from live gifting.
This economic model is more reasonable than StepN. However, people may say that zclub learned a lot from StepN, change its mechanisam from move2earn to talk2earn, even its tokenomics has many similarities. But if you take a deeper look, you will realizes that StepN’s token burning system may not be that good. As a socialfi project, ZClub Room NFT mint mechanism ensures the defilation of SeatNFT; live gifting ensures the deflation of AHT, therefore, introducing a healthier economic close loop for the ecosystem.
Anti-cheating is of great importance in talk to earn. Otherwise, people can simply earn tokens by playing a youtube video. As can be seen on its whitepaper, ZClub adopts AI to analyze the tone and content to decide the validity of the talk for token earning. In another hand, ZClub make full use of its social nature, allowing all participants to join DAO to review and even report Irregularities. People can initially report by staking tokens, others can join to review and even make a vote. Platform reviewer will make the final decision, and prize pool will be divided by all dao members who make the correct judgement. In this way, this DAO review mechanism seems to be more effective and rigorous than other procedures. But we will make a further analysis once its online.
Unlike many other teams, ZClub team consist of experienced entrepreneur and tech developers. And its app, which will be released in late September, is exquisitely designed. Also, the team is very low-key, no financing info is disclosed.
Found from zclub website, they are also conducting a twitter space airdrop activity (https://zclub.app/airdrop/). Users who have participated in twitter space are eligible to claim a free NFT from ZClub, honoring the spirit of open DAO.
Socialfi will become the next trend in business after gamefi, this track can also nurture many players. However, socialfi will become even more glory on eth2 after the completion of eth merge and sharing. ZClub seems to be a promising project in this track.
I also asked them why name the project ZClub in its official discord community. The answer is that the team wants to honor Zhang Shoucheng, a professor of physics at Stanford University and an evangelist of blockchain. As for AHT and AUT, they stand for the two roads near his home – Hamilton Avenue and University Avenue.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/talk-2-earn-my-crap-can-be-worth-money/
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