Blockchain gaming might become the future alternative to traditional gaming. Several issues concern players, including excessive microtransactions from companies like EA games or trademark disputes between corporations and indie developers.
The gaming market is one of the most flourishing that exploded following the pandemic, but problems like the ones stated before persisted. That’s why alternatives like blockchain-based games could make the industry fairer and offer players more engaging, affordable, and high-tech games.
Ethereum, for example, has been a massive contributor to the development of decentralized gaming, especially due to its support for play-to-earn games. Gamers can experiment with Ethereum-based games like Decentraland, The Sandbox, and Illuvium, win rewards in the form of native game cryptocurrencies, and exchange them to ETH USDT fast and easily.
But there’s much more to the industry than rewards, so let’s examine some notable future innovations in blockchain gaming.
Tokenomics in GameFi
The blend of gaming and decentralized finance, also known as GameFi, is important to improve the reward system for gamers. That’s how tokenomics can help: by using tokens as currencies, governance coins, or bonuses for in-game utilities:
- Utility tokens serve as a medium of exchange for buying items or upgrading characters;
- Governance tokens allow gamers to contribute to game updates and community governance;
- NFTs provide proof of ownership and rarity;
Developing a game’s tokenomics can be considerably challenging because a lack of a proper system can lead to hyperinflation or market crashes. Token distribution and supply must include an Initial Token Offering (ITO), introduce vesting periods to prevent volatility, and burn tokens to increase the total value of the remaining tokens.
Providing sustainability for in-game economies means:
- Balancing token supply and demand;
- Rewarding long-term participation;
- Creating developments and updates;
NFT Renting
NFT renting is becoming more popular in the gaming industry as it allows players to rent in-game assets so they can get temporary access to in-game items or characters without having to strive for full ownership. This also benefits owners, as they can earn passive income, while renters can lower their financial commitment, making NFT renting:
- Low-risk, helping players avoid financial loss during fluctuating market prices;
- Beneficial for NFT liquidity as the environment attracts more owners and renters;
- Budget-friendly, as renters can gain access to exclusive communities and in-game assets;
There are many types of NFT renting that expand the offer for both owners and renters.
The most popular is the subscription-based renting, where players pay a recurrent monthly or annual fee for the NFTs they want, providing predictable income, but there’s also:
- Collateral NFT renting for owners to avoid nonpayment or damage as they receive collateral;
- Royalty-based renting by paying renters royalty, especially for NFTs with revenue potential;
- Time-based NFT lending, where owners only charge renters for the time they use the NFT;
DeFi Integration
Decentralized finance will make games more accessible and rewarding for players, investors, and developers. Blockchain gaming started with the play-to-earn model to attract more players who wanted to put their gaming skills to work for incentives in the form of cryptocurrencies or in-game assets.
Blockchains like Ethereum and Solana have become popular options for developers to create P2E games due to their impressive tool suites and growing communities. With these blockchains, user incentivization is possible through the game’s native currency, which can then be bought, sold, or even traded.
Popular P2E games include the following:
- Axie Infinity (AXS) is a game where players collect Axies, cute animals for breeding and battling to earn the reward called Smooth Love Potions (SPL);
- Aavegotchi (GHST) has virtual pets as NFT collectibles with unique traits and attributes that make the game interesting;
- Decentraland (MANA) is a decentralized platform where games explore worlds or create their own to monetize digital experiences and earn MANA;
How Popular Are Blockchain Games?
Blockchain-based games tend to be popular among communities interested in cryptocurrency, blockchain, and Web3. However, they haven’t received much attention in the media due to several reasons and some feedback later. Decentraland, for example, seems to have numerous technical bugs, but the main problem is that the virtual world is mostly empty. While the poor optimization can be solved with more development investment, the popularity of the game will suffer if players don’t actually engage with all of the game’s features.
On the other hand, Sandbox players want an improved design and better goals, as the current ones are not enough to make them enjoy the gaming experience. Repetitive tasks and mundane objectives seem to make the game boring.
Axie Infinity has also received some harsh criticism over its high entry barrier, as players must buy three Axies to play the game. Its tokenomics also gives off the vibes of a Ponzi scheme, especially since early investors earn more than new investors.
Finally, the sidechain supported by Axie Infinity was the target of a major hack, leading to losses of more than $600 million.
When Should We Expect Decentralized Games To Gain Traction?
Decentralized games need several technological improvements and a better marketing approach. GameFi would add more economic value to games, support player-developer collaboration, and give assets true ownership, but the lack of awareness on the subject makes these games uninteresting.
Web3 gaming should embrace change beyond the incentivization system so developers can focus on making actual playable products. Indie games are the best example of how an engaging story can sell, even if the visuals are not the latest. They are original, satisfying, and rewarding, and the decentralized gaming sector could take inspiration from individual game developers in creating unique narratives.
Have You Played A Decentralized Game Yet?
Blockchain games have the potential to change the industry by offering rewarding systems and enjoyable gaming experiences. Compared to traditional games, where microtransactions turn games away, blockchain-based games allow players to win money through native cryptocurrencies or NFTs. GameFi allows modern models of tokenomics, renting NFTs, and features from decentralized finance technology. Unfortunately, decentralized games are still not quite popular beyond the crypto communities, but they could also refine their narratives and technological hurdles.
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