I went down a bit of a rabbithole learning about the current state of GameFi, as it's one of the most fascinating crypto-native economies and one that is applicable to crypto adoption in Southeast Asia. Sharing some of them below (credit goes to OP) in no particular order.
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While crypto and GameFi knows no borders, it is important to understand the specific dynamics of how it's playing out in a region like SEA, which has been an epicenter for much of the growth in 2021.
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GameFi is such a game-changer for Southeast Asia, especially as less than 30% are formally banked in places like the Philippines. In many ways, playing and earning crypto and staking tokens is many's first experience with digital financial services.
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I especially love what
@Ethlas_Official
is doing in onboarding the next billion non-crypto users through casual games - it resonates a lot with what
@BluejayFinance
is looking to do to make DeFi more inclusive for the mainstream audience, through non-USD stablecoins.
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Moving on from the market landscape and taking a look at GameFi tokenomics themselves, it's been a tremendous year of learning and experimenting. HOWEVER, we're still in early days in figuring out how to make GameFi more sustainable and tailor-made to different audiences.
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A couple of observations:
Games naturally have a lifespan. After the game is complete or the hype cycle dies down, then unfortunately the # of new users that come in will diminish. Many projects depend on new users to sustain token price.
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Some thoughts:
1. Upsell existing users to another game in the ecosystem
2. Enhance the richness of token sinks within the existing game (could make the game an open world concept so ppl continue playing)
3. Create network effects benefits to continuously bring in new players
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4. Create a balance of users coming into your game. Some that are there to play-to-earn, and some that are okay with pay-to-play
5. Bring in source of value from another party (e.g., sponsorships from other games) - not 100% if I'm supportive of ads but it is a way to monetize
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Some good threads to read to dive more into it:
1/ I was asked what my opinion was on GameFi's single vs. dual token model. vs. three token model?
Which token models are better?
{Spoiler: It doesn't matter}.
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There is no right solution to tokenomics yet - we're all still learning
1/ Some thoughts & charts on "Play to Earn" and how to pick better games for investors/guilds/players
I pulled some data on popular P2E game's utility tokens and graphed them over the last 9 months 👀👀
Keep reading below 🧵👇👇
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Here are some of my hypotheses around how GameFi will evolve over the next year:
1. Community-oriented micro-guilds. Despite all of the hype around the mega guilds like Merit Circle, Avocado and YGG, a large % of P2E players actually below to micro-guilds that are <15 in size.
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I think these will continue to grow, and the space around creating tooling to them will grow as well.
2. Greater user-centricity vs. game-centricity. Looking at users from an LTV perspective and creating platformized or community-based products (e.g.,
@RainmakerGaming
)
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3. Greater defi-nancialization of GameFi. Now that the P2E players are onboarded via the games, the creation of entire ecosystem of financial products like borrowing/lending, swapping, spending, saving, and more.
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What remains to be seen is WHO would lead the charge here in developing the capabilities: GameFi projects doing it in-house (e.g., native token swap), "DeFi for GameFi" as-a-service, or the L1 chains partnering with the games to service.
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4. Greater inflow of new capital and users from non-crypto native sources to avoid circularity. This could come from onboarding traditional games, and their associated user base.
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@SherryYanJiang
Hey Sherry, thanks for sharing the thread below! I'm exploring GameFi and would love to chat as I haven't met too many women in the space. :)
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