Despite lackluster growth in the crypto gaming industry last year, venture capitalists still poured money into the sector. The subsector may need to look past token economics and find innovative ways to sustain itself over the long haul. One possible solution could be developing games that are not tied to cryptocurrencies or blockchain technology at all.
Since tokens represent ownership in economies, they may be a more appealing way of sharing economy revenues than traditional methods like charging member fees or providing discounts. However, due to increased retail skepticism and diligence, it will likely be difficult for tokens based businesses to achieve mainstream adoption.
Immutable is a company that is focused on creating an enjoyable gaming experience for its players. The most important element for them is ensuring that the economy is sustainable and that the user experience is excellent. From there, they hope to see all else fall into place. This focus on quality will likely set Immutable apart from other gaming companies in the future.
“The future isn’t shouting to gamers why they should love NFTs; it’s showing them with a product they want to play.” Immutable’s Robbie Ferguson
Gamers have always been a passionate bunch, and their obsession with video games is only increasing. This passion has led to the development of NFTs, or “non-fungible tokens” – digital assets that can hold unique properties. These assets can be used in video games to create more interesting and immersive experiences for players. With the help of startups such as Immutable, developers are beginning to take notice and implement NFTs into their software. This will not only make gaming even more exciting for enthusiasts, but it will also draw in new players who are curious about this burgeoning
Many blockchain gaming projects saw a drastic fall in their market capitalization in early 2022 as the inability to maintain sustainable economies and player bases was highlighted. This setback could be damaging for projects that were not able to adapt quickly enough, as the popularity of these games often hinges on their ability to keep players engaged.
Axie Infinity, one of the biggest Ethereum-based web3 games, saw a large spike in its token price in November 2021 but has since seen a significant decline. The game currently ranks eighth on CoinMarketCap’s list of the largest digital assets by market cap.
The Delphi report suggests that projects should delay issuing live tokens until they have developed their core game loops. This will help to protect the tokens from speculation and inflated expectations.
The development of blockchain technology is taking a step forward with the formation of the Ethereum Foundation. This foundation will aim to improve the efficiency and effectiveness of token usage within its ecosystem. This will come as a much higher standard than many currently use, ensuring that essential functions are achieved while keeping costs down.
