{"id":20208,"date":"2023-02-11T07:28:55","date_gmt":"2023-02-11T15:28:55","guid":{"rendered":"https:\/\/coinnetworknews.com\/2023-is-a-make-or-break-year-for-blockchain-gaming-play-to-own-cointelegraph-magazine\/"},"modified":"2023-02-11T07:28:55","modified_gmt":"2023-02-11T15:28:55","slug":"2023-is-a-make-or-break-year-for-blockchain-gaming-play-to-own-cointelegraph-magazine","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/2023-is-a-make-or-break-year-for-blockchain-gaming-play-to-own-cointelegraph-magazine\/","title":{"rendered":"2023 is a make-or-break year for blockchain gaming: Play-to-own \u2013 Cointelegraph Magazine"},"content":{"rendered":"<div>\n<p>Will 2023 finally see an explosion of crypto gaming? The signs are mixed, with former play-to-earn darling Axie Infinity <a href=\"https:\/\/cointelegraph.com\/news\/play-to-earn-falling-out-of-favor-after-massive-shift-in-priority-bga-survey\" target=\"_blank\" rel=\"nofollow noopener\">falling out of favor and hemorrhaging players<\/a>, while mainstream gamers report that Web3 games still have playability issues.<\/p>\n<p>The bright spot is that AAA games are finally starting to emerge in Web3, with projects like Illuvium garnering attention. And there\u2019s a ton of runaway, considering that Web3 gaming <a href=\"https:\/\/mpost.io\/metaverse-fundraising-report-for-2022-trends-in-nft-gaming-infrastructure-ai\/\" target=\"_blank\" rel=\"nofollow noopener\">raised<\/a> $4.5 billion in 2022. For comparison, metaverse projects raised $1.9 billion.<\/p>\n<p>The thesis is compelling for crypto gaming, but the way forward is unclear. Do tokenomics help immerse gamers in a game, or do they distract from the experience?<\/p>\n<p>\u201cI think the first big win will come from a game with tokenomics that don\u2019t explode and implode in six months, and that also doesn\u2019t feel like a \u2018crypto\u2019 game,\u201d Geoff Renaud, co-founder and chief marketing officer of Web2-to-Web3 creative marketing agency Invisible North, tells Magazine.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cStepN showed a ton of promise for easy onboarding and user experience but was marred by bad economics. Once there\u2019s a game model that feels frictionless \u2014 where you don\u2019t even know you\u2019re on the blockchain \u2014 and that has sustainable incentives for users, there will be a massive follow-on effect. Blockchain gaming needs to have one big win, and I have a feeling that\u2019s more likely to be from a simple mobile game that looks like Candy Crush than a AAA title out of the gates.\u201d<\/p>\n<\/blockquote>\n<p>Getting it right will help unlock mainstream crypto adoption. Illuvium founder Kieran Warwick tells Magazine that blockchain gaming is the \u201cbest case of onboarding the mainstream to crypto, as it\u2019s easier to onboard the masses through a game than a complex DeFi product.\u201d<\/p>\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"338\" alt=\"Illuvium\u2019s new game. Would you play a game that reminds you of Avatar?\" class=\"wp-image-16178\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-new-game.jpeg 600w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-new-game-300x169.jpeg 300w\" data-lazy-sizes=\"(max-width: 600px) 100vw, 600px\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-new-game.jpeg\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"338\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-new-game.jpeg\" alt=\"Illuvium\u2019s new game. Would you play a game that reminds you of Avatar?\" class=\"wp-image-16178\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-new-game.jpeg 600w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-new-game-300x169.jpeg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\"\/><\/noscript><figcaption class=\"wp-element-caption\"><em>Illuvium\u2019s new game. Would you play a game that reminds you of <\/em>Avatar<em>? Source: Illuvium<\/em><\/figcaption><\/figure>\n<h2><strong>Despite compelling numbers, commercial success is hard<\/strong><\/h2>\n<p>Many believe the GameFi sector has a bright future. According to a\u00a0 report by consulting firm MarketsandMarkets, the global blockchain gaming market will grow from $4.6 billion in 2022 to $65.7 billion by 2027. Naavik and Bitkraft Ventures, meanwhile, <a href=\"https:\/\/naavik.co\/deep-dives\/market-sizing\" target=\"_blank\" rel=\"nofollow noopener\">predict<\/a> blockchain gaming to grow to a $50 billion market by 2025.<\/p>\n<p>Are these projections plausible? Perhaps. GameFi <a href=\"https:\/\/dappradar.com\/blog\/dapp-industry-report-2022-dapp-industry-proves-resilient-in-crypto-winter\" target=\"_blank\" rel=\"nofollow noopener\">accounted for<\/a> 49% of all DApp activity in 2022, according to DappRadar. And there are 3 billion gamers worldwide, about half of which are in the Asia-Pacific region, and mobile gaming is a phenomenon in developing countries.\u00a0<\/p>\n<p>Yet, the problems facing mass onboarding for blockchain gaming are diverse and complex, including that no one seems to know how the tokenomics should actually work. Many gamers are also aggressively skeptical of crypto games, perceiving them as scams or selfish efforts to monetize gaming and increase profit margins. Moreover, there are no pin-up success stories for crypto gaming outside of relative successes like Axie Infinity and MIR4.<\/p>\n<p>Despite its many critics, Web3 can fit well into gaming culture.<em> <\/em>Consider existing freemium gaming models (with paywalls). While gamers must buy or grind for the skins (clothes and accessories) and often pay at every turn in these Web2 games, the Web3 model argues that gamers should benefit from secure ownership of their in-game assets.<\/p>\n<p>One goal of Web3 gaming is to let gamers sell or trade unused assets with earning potential, and keep their assets if games are discontinued or go offline. Improved player experiences are also possible, such as players being rewarded for being early or loyal players, meaning they can acquire rare items as new games become popular.<\/p>\n<figure class=\"wp-block-image alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"409\" alt=\"Atari\u2019s Missle Command circa 1980\" class=\"wp-image-16174\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Ataris-Missle-Command-circa-1980.png 300w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Ataris-Missle-Command-circa-1980-220x300.png 220w\" data-lazy-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Ataris-Missle-Command-circa-1980.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"409\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Ataris-Missle-Command-circa-1980.png\" alt=\"Atari\u2019s Missle Command circa 1980\" class=\"wp-image-16174\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Ataris-Missle-Command-circa-1980.png 300w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Ataris-Missle-Command-circa-1980-220x300.png 220w\" sizes=\"(max-width: 300px) 100vw, 300px\"\/><\/noscript><figcaption class=\"wp-element-caption\"><em>Atari\u2019s Missile Command circa 1980. Source: Retromobe<\/em><\/figcaption><\/figure>\n<p>As it was for crypto\u2019s cypherpunks, open-source culture is also part of gaming history. At times, game publishers relented to fans hacking their games to make them more challenging and replayable.\u00a0<\/p>\n<p>As told in Netflix\u2019s docuseries <em>High Score<\/em>, college students hacked and boosted Atari\u2019s Missile Command in the 1980s to make the game harder to beat, creating a booming black market arcade in their dorm room and booster kits for the arcade machine. Atari legally settled with the students \u2014 but only if they agreed to work for Atari. In this conception, gaming IP hacking can escape punishment if you\u2019re a true fan helping to improve the game. So, the idea of fan ownership of games makes sense in both crypto and open-source culture.<\/p>\n<p>Similarly, what\u2019s happening in Web3 today is an example of \u201ca decentralized remix culture where there is a utilization of assets or traits related to those assets,\u201d says Kishan Shah, chief operating officer of B+J Studios,<a href=\"https:\/\/docs.raindrops.xyz\/\" target=\"_blank\" rel=\"nofollow noopener\"> <\/a>which raised $10 million in September 2022 to bring its Raindrops Protocol NFT super app to life for blockchain-based gaming solutions.\u00a0<\/p>\n<h2><strong>Where will the winners come from?<\/strong><\/h2>\n<p>So, among all the different projects currently comprising GameFi, which games will be the most successful? With indie games, the audience is usually looking for something different, which creates an opportunity for blockchain gaming. Smaller publishers are also more likely to develop player-owned or interoperable game economies, as this is not really in the interests of a big studio currently making a fortune by owning everything.<\/p>\n<p>\u201cThe video games industry does about $120 billion per year in sales, a significant portion of which is virtual goods,\u201d <a href=\"https:\/\/www.forbes.com\/sites\/leeorshimron\/2022\/08\/13\/axie-infinity-pernicious-pyramid-scheme-or-gaming-breakthrough\/\" target=\"_blank\" rel=\"nofollow noopener\">noted<\/a> a16z general partner Chris Dixon, adding that \u201cmost video games have 100% take rates [commissions for sales]. Web3 (aka crypto) games reduce the take rate dramatically.\u201d That is, Web3 gaming can change the whole economic model of the gaming industry.<\/p>\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"322\" alt=\"Crypto game Illuvium. Looks a little like Axie Infinity Mark II?\" class=\"wp-image-16176\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Crypto-game-Illuvium.jpeg 600w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Crypto-game-Illuvium-300x161.jpeg 300w\" data-lazy-sizes=\"(max-width: 600px) 100vw, 600px\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Crypto-game-Illuvium.jpeg\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"322\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Crypto-game-Illuvium.jpeg\" alt=\"Crypto game Illuvium. Looks a little like Axie Infinity Mark II?\" class=\"wp-image-16176\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Crypto-game-Illuvium.jpeg 600w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Crypto-game-Illuvium-300x161.jpeg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\"\/><\/noscript><figcaption class=\"wp-element-caption\"><em>Crypto game Illuvium. Looks a little like Axie Infinity Mark II? Source: Illuvium<\/em><\/figcaption><\/figure>\n<p>So, the future looks bright, but getting there won\u2019t be easy. Game-making is very hard and highly specialized, and just because crypto firms want to make games doesn\u2019t mean they should. \u201cBlockchain companies building games is stupid. Game design is a very specialized profession,\u201d David Hong, an American based in Taipei who is the gaming lead for Red Building Capital, tells Magazine.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cGames should be coming out of gaming studios recruiting blockchain experts.\u201d<\/p>\n<\/blockquote>\n<p>The big studios also have existing distribution mechanisms and a waterfall cycle for their release schedules. Issues like whether the game will appear on consoles or PC and third-party retail sales can be set years before release, making a newbie upstart challenger subject to numerous obstacles. Then add tokenomics as another complicating factor.\u00a0<\/p>\n<div class=\"article-suggest\">\n<p>Read also<\/p>\n<div class=\"article-suggest__items\">\n<div class=\"article-suggest__item\">\n                        <a href=\"https:\/\/cointelegraph.com\/magazine\/powers-on-top-crypto-legal-regulatory-developments-2021\/\" class=\"article-suggest__subtitle display4\" target=\"_blank\" rel=\"noopener\"><br \/>\n                            <span>Features<\/span><\/p>\n<p>Powers On\u2026 Top 5 crypto legal and regulatory developments of 2021<\/p>\n<p>                        <\/a>\n                    <\/div>\n<div class=\"article-suggest__item\">\n                        <a href=\"https:\/\/cointelegraph.com\/magazine\/satoshi-needed-alias-but-crypto-anonymity-now-questioned\/\" class=\"article-suggest__subtitle display4\" target=\"_blank\" rel=\"noopener\"><br \/>\n                            <span>Features<\/span><\/p>\n<p>Satoshi may have needed an alias, but can we say the same?<\/p>\n<p>                        <\/a>\n                    <\/div>\n<\/div>\n<\/div>\n<h2><strong>No one gets the in-game tokenomics<\/strong><\/h2>\n<p>One major problem is that sustainable crypto gaming tokenomics have yet to be proven.\u00a0<\/p>\n<p>\u201cEveryone just copied Axie\u2019s two-token economics,\u201d notes Hong. No one really knows yet what the best practices of in-game tokenomics are. Most now argue that \u201cpure Ponzi schemes of 99% speculators and 1% players are not sustainable. This is because game-playing enthusiasts know that game mechanics are very intricate, and degens and power gamers will always break the system,\u201d Hong says.<\/p>\n<p>Warwick says he \u201ccalled Axie Infinity a Ponzi a couple of years ago, as it required more users to keep entering the ecosystem. \u200b\u200bAxies were identified as having inflationary properties due to the breeding feature, which resulted in a significant decrease in the value of assets. The abundance of assets created a lack of scarcity, contributing to the devaluation of these assets.\u201d<\/p>\n<p>It seems unlikely that Axie\u2019s developers set out to build a Ponzi scheme, and many pay tribute to the hard work they put in to build what would become a beta test of metaverse gaming. What\u2019s more likely is that they just couldn\u2019t make the token economy work without new gamers, like any startup pivoting to find a product-market fit.<\/p>\n<figure class=\"wp-block-image alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"410\" alt=\"Illuvium\u2019s Axolotl. Cute and mysterious\" class=\"wp-image-16177\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-Axolotl.png 300w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-Axolotl-220x300.png 220w\" data-lazy-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-Axolotl.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"410\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-Axolotl.png\" alt=\"Illuvium\u2019s Axolotl. Cute and mysterious\" class=\"wp-image-16177\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-Axolotl.png 300w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Illuviums-Axolotl-220x300.png 220w\" sizes=\"(max-width: 300px) 100vw, 300px\"\/><\/noscript><figcaption class=\"wp-element-caption\"><em>Illuvium\u2019s Axolotl. Cute and mysterious. Source: Illuvium<\/em><\/figcaption><\/figure>\n<p>Warwick is keen to explain why his game, Illuvium, has learned how not to fall into those traps and how the game\u2019s story and lore create a scarcity for its NFTs. Illuvials are the game\u2019s equivalent creature to an Axie.<\/p>\n<p>Fusing three Illuvials of the same stage of the game means burning NFTs and creating one Stage 2 Illuvial. Creating the most powerful creature in the line requires burning nine NFTs.<\/p>\n<p>Sets of Illuvials are also limited. Gamers can collect Illuvials until a series ends, at which point they can no longer capture that set and are forced to purchase them on the open market. There\u2019s also a bonding curve that increases the difficulty of capturing the creatures, meaning that they gradually go up in cost over time. In the game, this means that once an Illuvial is caught, it is harder to find it in the Overworld where it lives.<\/p>\n<p>Furthermore, <a href=\"https:\/\/cointelegraph.com\/magazine\/defi-abandons-ponzinomics-real-yield\/\" target=\"_blank\" rel=\"nofollow noopener\">the concept of \u201creal yield<\/a>,\u201d or sustainable revenue for gamers, is also emerging in blockchain gaming. Warwick says:<\/p>\n<p>\u201cBaked into our tokenomics is a system called revenue distributions, which means all of the in-game fees that are generated are distributed back to stakers in the protocol. We\u2019re the only game that is currently utilizing this method (to my knowledge).\u201d<\/p>\n<p>Finally, classes of elements such as wind, water and fire may change in popularity from series to series, so previously undesirable elements may later become desirable. \u201cLike Pokemon, you want to capture the most powerful,\u201d says Warwick.\u00a0<\/p>\n<p>While those things create scarcity and help the tokenomics, the game ultimately also needs to appeal to emotions. Like Hong, Warwick believes a game\u2019s success \u201cdepends on its ability to tap into the psychology of collecting and creating a connection between the characters and the audience.\u201d<\/p>\n<p>For example, Axie Infinity was inspired by Pokemon and Tamagotchi in creating its creatures. Elsewhere, building a universe of characters that players can connect with \u2014 like with Nintendo\u2019s Mario, for example \u2014 and contrasting them with lesser-known characters \u2014 like Bowser and Wario \u2014 who are also beloved by players for their distinct personalities helps create a compelling ecosystem. It\u2019s important to create characters that players can relate to, even for those who pick Wario because they see themselves as the villain.<\/p>\n<p>Then the main issue for any developer, though, is the exceedingly tricky task of making a good game.<\/p>\n<h2><strong>What makes a good game?<\/strong><\/h2>\n<p>We all have our favorite game, from retro classics like Space Invaders and Mortal Kombat to Fortnite, Grand Theft Auto and Halo, depending on our age and tastes.<\/p>\n<p>The story, characters and gameplay are key, as are games with enticing rewards systems that make your hard work worth it \u2014 unlocking new levels, characters, weapons, secrets and achievements. Gamers are given a reason to keep playing, and blockchain aims to give them digital ownership of the rewards for their efforts.<\/p>\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"308\" alt=\"Axies do look like Tamagotchis\" class=\"wp-image-16175\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Axies-do-look-like-Tamagotchis.png 600w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Axies-do-look-like-Tamagotchis-300x154.png 300w\" data-lazy-sizes=\"(max-width: 600px) 100vw, 600px\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Axies-do-look-like-Tamagotchis.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"308\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Axies-do-look-like-Tamagotchis.png\" alt=\"Axies do look like Tamagotchis\" class=\"wp-image-16175\" srcset=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Axies-do-look-like-Tamagotchis.png 600w, https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Axies-do-look-like-Tamagotchis-300x154.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\"\/><\/noscript><figcaption class=\"wp-element-caption\"><em>Axies do look like Tamagotchis. Source: Axie Infinity<\/em><\/figcaption><\/figure>\n<p>Good graphics help a lot, too, say most gamers \u2014 but not always. Some arcade games still captivate new generations of players. Gaming VC Hong is currently obsessed with one very basic game, Torn, for a simple reason: He plays against his brother-in-law. \u201cThe social element is important,\u201d he says, and the community <a href=\"https:\/\/cointelegraph.com\/magazine\/stop-crypto-community-imploding\/\" target=\"_blank\" rel=\"nofollow noopener\">must be authentic<\/a>.<strong> <\/strong>Edgy, colorful, pixelated indie games can offer something that AAA publishers with high-quality graphics cannot.<\/p>\n<p>Difficulty beating the game is another key to a successful game. However, in online games \u2014 which are arguably the most popular these days \u2014 it\u2019s about ranking up, improving skill levels, progressing, getting better gear and cosmetics, and playing with friends.\u00a0<\/p>\n<p>Like many, Hong argues that Web3 gaming needs incremental changes. \u201cIt must be palatable for Web2 gamers. What makes you think anyone wants to use a new platform? I still use Word and Excel. There should be value for time spent in the game, but everything else should be the same as Web2 games.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">If we really want Web3 games to be adopted by the Web2 audience, we need need to stop focusing on broadcasting the Web3 tech behind the games. Focus on highlighting what actually matters to gamers and let the benefits that Web3 tech provides speak for itself. <a href=\"https:\/\/t.co\/Uzqfrc71dk\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/t.co\/Uzqfrc71dk<\/a><\/p>\n<p>\u2014 Perion (@PerionDAO) <a href=\"https:\/\/twitter.com\/PerionDAO\/status\/1602908757398556672?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener\">December 14, 2022<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Still, finding a winning crypto game to invest in is hard because Web3 games have not gained traction yet. \u201cI don\u2019t really get into the details of the game. I don\u2019t invest in some drawings and a storyboard. Nobody knows what the market wants. I can only look for good quality teams that understand gaming psychology and good token models,\u201d muses Hong.\u00a0<\/p>\n<p>Hong is still meeting with as many teams as possible every day to find that magical tokenomics model.\u00a0<\/p>\n<p>There are some interesting experiments going on. For example, Racer Club Labs is creating a blockchain-based \u201cBYO\u201d (bring your own) tokens racing game for 2,500 NFT communities. In each Racer Club, there are 10 heroes created via the IP assignment of existing NFT holders from the collections of those communities.\u00a0<\/p>\n<div class=\"subscribe subscribe--inner\">\n<div class=\"container\">\n<div class=\"subscribe__inner\">\n<div class=\"subscribe__content\">\n<p>Subscribe<\/p>\n<p>The most engaging reads in blockchain. Delivered once a<br \/>\n        week.<\/p>\n<\/p><\/div>\n<div class=\"subscribe__img\">\n    <img decoding=\"async\" alt=\"Subscribe to Magazine by Cointelegraph Newsletter.\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2022\/10\/reading-copy.png\"\/><noscript><img decoding=\"async\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2022\/10\/reading-copy.png\" alt=\"Subscribe to Magazine by Cointelegraph Newsletter.\"\/><\/noscript>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>So, say that during the club creation phase, a Mutant Ape Yacht Club NFT holder assigns their unique 2D NFT to be immersed as a 3D hero character in an MAYC Racer Club. When this happens 10 times, the MAYC Racer Club becomes a 10-set club license, and it can be held, traded or sold individually.\u00a0<\/p>\n<p>By using existing NFTs and tokens rather than issuing new ones, the idea is to create scarcity.<\/p>\n<p>\u201cTo date, gaming still has no proven tokenomic model. Esports is the start-off bridge to the mainstream. My prediction is that whoever does it right wins the race this year,\u201d  Racer Club Labs co-founder Matt Ng opines.\u00a0<\/p>\n<p>While Racer Labs is built around using NFTs from elsewhere, there seems to be little chance that the major companies will adopt this model. Warwick says it\u2019s a pipedream:\u00a0<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe interoperability conversation is bullshit. Widespread interoperability is a lofty goal that is likely decades away. The idea of having characters like Mario from one game appearing in another game like Call of Duty is unrealistic. There are many technical and logistical factors that need to align for interoperability.\u201d<\/p>\n<\/blockquote>\n<p>However, he believes interoperability will begin to occur within games in the same franchise or from the same studio.<\/p>\n<h2><strong>The move from play-to-earn to play-to-own to play-and-develop<\/strong><\/h2>\n<p>Lifelong gamer Elisabeth Hare tells Magazine that gamers need more \u2014 and that blockchain can give it to them. \u201cWe need a paradigm shift where the power comes back to the people. One reason blockchain gaming is needed is because of the state of gaming today. Gamers don\u2019t own what they are buying, and they constantly need to buy things.\u201d<\/p>\n<p>She concedes that poor behavior by game developers, like releasing buggy games built around monetization, has soured the appetite for blockchain gaming.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cTake Overwatch, for example. Activision Blizzard essentially gutted the game, rereleased it as a sequel and heavily monetized it. The actual \u2018new\u2019 element of the game has been delayed at least a year. This is one of the reasons why I\u2019m not surprised gamers are skeptical about monetization.\u201d\u00a0<\/p>\n<\/blockquote>\n<p>Hare believes that games need gameplay mechanics that are not just based on earning. She is waiting for one or more great Web3 titles to prove her ideas right. \u201cThe perception in the gaming community is that NFTs provide more ways to extract money from the consumer. It\u2019s a money grab.\u201d\u00a0<\/p>\n<p>This makes education important, along with careful design. For example, when AAA studio Ubisoft released NFTs, there was a resounding backlash from gamers. Ubisoft responded that gamers didn\u2019t understand NFTs.<\/p>\n<p>\u201cWith emerging and controversial tech, gaming companies need to clearly demonstrate the benefits of that tech, or implement it in a way that\u2019s appealing or essentially invisible,\u201d Hare says.<\/p>\n<p>There needs to be a \u201cshift in the way NFTs and Web3 concepts are communicated to gamers, in that the Web3 parts should be hidden in the product,\u201d says the lifelong gamer.<\/p>\n<p>And while a Fortnite skin NFT in Minecraft might still be a while off, the search for the Web3 gaming gem continues.<\/p>\n<div class=\"article-suggest\">\n<p>Read also<\/p>\n<div class=\"article-suggest__items\">\n<div class=\"article-suggest__item\">\n                        <a href=\"https:\/\/cointelegraph.com\/magazine\/retire-early-with-crypto-playing-with-fire\/\" class=\"article-suggest__subtitle display4\" target=\"_blank\" rel=\"noopener\"><br \/>\n                            <span>Features<\/span><\/p>\n<p>Retire early with crypto? Playing with FIRE<\/p>\n<p>                        <\/a>\n                    <\/div>\n<div class=\"article-suggest__item\">\n                        <a href=\"https:\/\/cointelegraph.com\/magazine\/estonia-digital-natives-blockchain-nation\/\" class=\"article-suggest__subtitle display4\" target=\"_blank\" rel=\"noopener\"><br \/>\n                            <span>Features<\/span><\/p>\n<p>E For Estonia: How Digital Natives are Creating the Blueprint for a Blockchain Nation<\/p>\n<p>                        <\/a>\n                    <\/div>\n<\/div>\n<\/div>\n<div class=\"author category_page\">\n<div class=\"author__img\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" alt=\"Max Parasol\" height=\"300\" width=\"300\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/11\/Max-Parasol.jpg\"\/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/11\/Max-Parasol.jpg\" alt=\"Max Parasol\" height=\"300\" width=\"300\"\/><\/noscript>\n\t\t\t\t\t\t<\/div>\n<div class=\"author__content\">\n<h2 class=\"author__name\">Max Parasol<\/h2>\n<p>Max Parasol is a RMIT Blockchain Innovation Hub researcher. He has worked as a lawyer, in private equity and was part of an early-stage crypto start up that was overly ambitious.<\/p>\n<div class=\"author__follow body-l\">\n\t\t\t\t\tFollow the author \t\t\t\t\t\t\t<a href=\"https:\/\/twitter.com\/maxparasol\" target=\"_blank\" rel=\"noopener\">@maxparasol<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<section class=\"news\">\n<\/section>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/magazine\/2023-is-a-make-or-break-year-for-blockchain-gaming-play-to-own\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will 2023 finally see an explosion of crypto gaming? The signs are mixed, with former play-to-earn darling Axie Infinity falling out of favor and hemorrhaging players, while mainstream gamers report that Web3 games still have playability issues. The bright spot is that AAA games are finally starting to emerge in Web3, with projects like Illuvium [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,56,54],"tags":[259,212,2866,90,2865,2867,196],"_links":{"self":[{"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/posts\/20208"}],"collection":[{"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/comments?post=20208"}],"version-history":[{"count":0,"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/posts\/20208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/media\/20209"}],"wp:attachment":[{"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/media?parent=20208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/categories?post=20208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinnetworknews.com\/wp-json\/wp\/v2\/tags?post=20208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}