Just as the emergence of BTC created a unicorn company like Bitmain, in the craze of chain games, the Gold Association (DAO) emerged. Especially with the blessing of the Token economy, chain games have become a new way to earn money from work.
Previously, we listed the seven well-known chain game associations (DAOs) in the GameFi field. I believe that players have some understanding of some DAOs. But there are still many players who don’t know why DAO is so optimistic, and there are many questions about what GameFi and DAO will look like in the future, so let’s explore together with our perspective!
In a way that organizes with other people around the world, establishes the corresponding rules without knowing each other, and makes their own decisions autonomously, then these are encoded on the blockchain, DAO is making this a reality . As can also be seen in the previous article, DAOs are also starting to attract the attention of more traditional investors, and the venture capital firm A16z has also led multi-million dollar financings in individual DAOs and companies that support the creation of DAOs, then What exactly is a DAO?
DAO – popular science
The full name of DAO is Decentralized Autonomous Corporations, which means Decentralized Autonomous Organization. To understand DAOs, you first need to understand the technology behind them, most DAOs rely on blockchain technology and smart contracts, which are collections of code that run on the blockchain. DAOs are decentralized, which means they are not governed by individuals or entities, and the rules and governance of each DAO are encoded in smart contracts on the blockchain that cannot be changed unless voted on by DAO members.
Members of each DAO can collectively vote on decisions, rather than a minority having a majority say, usually on an equal basis. For DAOs, the blockchain can act as the backbone, maintaining the structure and rules on each chain. The birth of a DAO must have three basic elements:
- Have organizational goals and organizational culture (mission, vision, and values) that can be shared with strangers;
- Have a rule system including creation, governance, incentives, etc. that can reach consensus with strangers, and this rule is put on the chain through blockchain technology;
- There is a Token that can form interest associations with all participants to achieve full incentives.
DAOs are slowly starting to become mainstream, and Messari’s annual crypto report has designated 2022 as the year of DAOs! Why is DAO so optimistic?
Why is DAO favored?
The DAO started from the chain game. The chain game is indeed attracting attention in 2021. There are many ways to participate in this industry, but why do some project parties choose to establish a DAO instead of developing a game? The reason is actually very simple. With the rise of the blockchain game boom, many blockchain games have emerged. However, in the early stage of the game, a certain user base is definitely needed. If there is no good user base, it will be a long time. It will die soon, and if DAO is added at this time, it will make the game more stable in the early stage. Therefore, it is better to be a game guild than to be a developer. Without DAO, many games may not be able to do so well. It can even be said that the game itself and DAO complement each other. The strong user stickiness of the chain game guild also attracts capital investment. The new chain game of cooperation will also be the next wind vane.
In addition, GameFi is subordinate to Web3.0. The emergence of DAO has lowered the threshold for many players, allowing more people to experience the logic of GameFi. DAOs are also fully in line with the utopian decentralized internet envisioned by Web 3.0 enthusiasts, without intermediaries and promoting collective ownership.
The future of DAOs and GameFi
Blockchain games have changed the economic formula of traditional games. The current formula becomes that users make initial capital investment in order to obtain NFTs in the game, and then these NFTs provide users with opportunities and choices, similar to obtaining value from NFTs. When games and NFTs are combined, there are many advantages and enable P2E mode.
As P2E games become more and more popular, more and more gamers choose to join DAO to seek a new way to generate income, but now that the bear market has arrived, many players will have a question, will the bear market affect DAO? The answer is no, the guild should be fine in a bear market. The biggest risk of the guild is not the bear market, but people’s opinions on the guild. The guild has taken a lot of money and claimed to accomplish certain goals. However, if it is not completed, users will suffer losses, which will affect the perception of the guild. It is well known that blockchain projects cannot be separated from the support of the community.
We see DAOs as economies that are essentially open for people to participate in, mixing and matching their talents and skills, allowing them to work while distributing ownership. The DAO expands the quality and quantity of opportunities available to each participant (core contributors, bounty hunters, token holders, guest passes, etc.). Today, VCs are investing in DAOs, DAOs developing sub DAO structures, or registering as investment advisors to remove the shackles of the SEC that prevents VCs from fully encrypting, and early investors are turning to permanent capital vehicles. Messari’s investment report also boldly predicted that by 2025, one of the most active and largest AUM VCs will be DAO, and DAO will not be limited to the GameFi field.
The current GameFi can only be said to be a visual DeFi mining, not a game. First of all, the game must be interesting. If every interaction in the game is an on-chain interaction, then the game will be difficult to be interesting. So, a game has to be centralized to some extent, at least for now. In 2021, the most important feature of GameFi is revenue, which is also one of the biggest differences from traditional games. This can be used as an early incentive for GameFi or its long-term selling point. But nowadays, the era of stand-alone games has passed. One of the key attributes of current games is social interaction. In-game cooperation and communication are particularly important for more and more players. Therefore, whether it is traditional games or chain games, building a better social way is the direction of future thinking.
In addition to thinking about social methods, there is another important direction that is sustainability. For games, it is an inevitable problem to think about how to improve user stickiness, that is, persistence. Traditional games may iterate the gameplay and game quality to meet users’ preferences. For chain games, it is impossible to provide continuity. What is the missing attribute? 22 years is a year that has been favored by many people for GameFi. Many 3A masterpieces of chain games will burst out this year, and many DAOs have also participated in the project in the early stage. What kind of sparks will be created between them? ? Let’s wait and see.
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Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/will-gamefidao-become-the-mainstream-in-22-years/
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