Things you need to know about holding Gaming Tokens
March 2022, Simon
Data Source: Footprint Analytics Gaming Coins
GameFiAlthough Game is ahead, Finance is the main reason behind its rapid development.
GameFi is still in its early days, and it is far from the playability of traditional games, but it is favored because it can help players increase profitability.
The player's profit in the game mainly comes fromNFTtrading, and the gametokenmining and trading. Therefore, it is particularly important for players to understand the economic model of tokens.
Token's economic model
The purpose of players in GameFi is to maximize their benefits, and the token pattern in the game will affect the behavior of players. It can be said that token links games, NFT and financial attributes. A sustainable, fair and attractive token model will have a significant impact on the success or failure of the game.
single currency
single currency
The single currency economic model uses one token to handle all platform-related affairs, such as in-game activities, platform governance, and transactions in the secondary market.
The advantage is that the economic model is simple, players only need to obtain one token to experience the game, and the income obtained is also the same token. It facilitates player transactions and reduces the difficulty of resource integration.
But the disadvantages are also obvious. Since the tokens consumed in the game are also value-added assets that players want to hold, the player's willingness to hold conflicts with the setting that the game has to consume tokens to continue.
Players can easily affect their operations in the game due to currency price fluctuations. When the currency price is too low, players will shake the profitability of the game and lose interest in continuing the game; when the currency price is high, continuing the game will consume high-value tokens and lose the player's assets.
multi currency
multi currency
Games in the multi-currency mode generally distinguish between platform governance tokens and tokens circulating in the game.
The platform governance token is mainly used to encourage players to contribute to community governance so as to improve players' recognition of the platform's value.
The token used in the game is mainly used for mining, trading, daily tasks, upgrades, etc. in the game. Usually there is no maximum circulation, and some do not even need to be a virtual currency on the chain, and will not be traded in the secondary market.
The multi-coin mode has various forms according to different game settings, and it also has obvious advantages and disadvantages compared with the single-coin economic mode.
The advantages are mainly reflected in the stability of the economic system in the game. The multi-coin mode allows players to not be affected by the price changes of the main token in the secondary market in the game. The separation from the tokens that are traded in the game can also allow the game party to adjust the economic model of different tokens more flexibly.
The disadvantage of the multi-coin model is that it increases the integration difficulty of the game party and increases the learning cost for players.
Dimensions of concern in the economic system
After knowing the form of the token in the game, it is more important to pay attention to how the economic system in the platform operates. It can be evaluated from the following angles of token:
Circulation and destruction mechanism
A reasonable and limited circulation can prevent token inflation, and an unlimited economic model may cause token depreciation, making players lose confidence in long-term holding.
distribution mechanism
Footprint Analytics - Axie Infinity Token Price
distribution mechanism
Example
Example
A wider range of practicality has a greater appeal to players. The tokens of most games have functions such as daily tasks, upgrades, purchases, and battles in the game, and some can also obtain additional NFT or token rewards by staking tokens. Use cases that extend outside the game will add more empowerment to the token, such as transactions in the secondary market, integration on other platforms to obtain income, etc.
unlock time
Setting the unlock time after obtaining the token will help prevent speculative users from affecting the currency price, and can also retain more users. At the same time, keeping the project team with the same lock-in period as the players is also beneficial to align the interests of the two.
according to
according toFootprint AnalyticsandDecentraland、Axie Infinity、The Sandbox、DeFi KingdomsandIlluviumimage description
Footprint Analytics - GameFi Token by MC
image description
Footprint Analytics - Top 5 Market Cap in Gaming
Good user experience and playability are also crucial, which is reflected in Illuvium. Although it has not been officially launched, players are shocked only by the announced game trailers. The exquisite graphics and rich game characters are a dimensionality reduction blow to the generally rough GameFi projects.
Although Illuvium suffered losses due to attacks and contract loopholes in December, it still ranks in the top 5. It can be seen that current players still have a great desire for game quality.
epilogue
epilogue
With more and more funds entering the GameFi field, there is no shortage of GameFi projects, but what is lacking is excellent projects from game quality to token economic system.
Compared with mature traditional games, games in the encrypted world are still in the "children" stage. But its financial attributes and high community participation allow it to open up a new blue ocean in the red ocean in the game field.
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This article comes fromFootprint Analyticscommunity contribution
The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.
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This work is original by the author, please indicate the source for reprinting. Commercial reprinting needs to be authorized by the author, and those who reprint, extract or use other methods without authorization will be investigated for relevant legal responsibilities.
