Sky Mavis reports that five times the amount of SLP is created each day compared to the amount burned through the Axie breeding process, representing supply inflation of ~18-19% every month. SLP has fallen a massive 99% from its peak of $0.36 to its current price of $0.005. In addition to sponsoring players, they are also accumulating valuable assets within GameFi games and are investing in the underlying project teams building out these games.Įngagement with Axie Infinity has plunged DappRadarĭue to rampant inflation within the tokens’ supply and waning user demand, Axie Infinity’s AXS token has declined 89% from its peak of $160 in November to its current price of $18. Despite their arguably exploitative nature, guilds continue to play an important role within nascent GameFi ecosystems. Player guilds controversially create a divide between capital and labor within GameFi ecosystems, with the guild owners retaining ownership of the assets and effectively employing players without providing basic labor rights or benefits. Yield Guild Games reported they sponsor 10,786 scholars that have generated over $11.3 million in total in-game earnings. Some of the prominent guilds participating in this schema include Yield Guid Games, Good Games Guild, and Merit Circle. Any proceeds earned by these scholars playing the game are shared by the guild and the player, with guilds taking as much as 40%. These guilds purchase Axies and then sponsor, or lend out the NFTs to player “scholars” forming a revenue share agreement. This was prohibitively costly for new players in emerging markets, and thus a new cottage industry of player guilds emerged. At the game’s peak of usage and adoption, the upfront investment for the three Axies required to play the game reached as high as $1,200. During the pandemic lockdowns, players within these countries were using the game not as a form of leisure, but as a way to supplement or supplant their incomes.Īdoption was also heightened by a type of apprenticeship in the game called “guilds”. These players were predominantly located in emerging markets, such as the Philippines, Thailand, Vietnam and Venezuela. Just one year later, it had just under 2 million monthly players, a 3,811% year-over-year increase. In September of 2020, the game had around 50,000 monthly active players. Initially, these game dynamics, accelerated by the pandemic-driven trading boom, led to explosive growth in user adoption and transaction volume within Axie Infinity. Game publishers can still benefit by building stronger player loyalty and thriving secondary markets that result in substantial royalty revenues funneled back to the game creators. It is a complete inversion of today’s gaming model. This means players are able to capture the majority of the value through the creation of new markets that did not exist before. Game publishers typically keep 100% of the revenue generated from their games, whereas Axie Infinity’s take rate is just 4.25% of in-game item transactions. Nor are there many questions that users deserve to share the benefits. On the surface, there is little doubt that players stand to benefit immensely from new methods of monetization and the ownership of in-game assets. However, to date, the crypto community has yet to see any token design approaches leading to sustainable user growth and value appreciation over the long term. Amongst crypto enthusiasts, Play to Earn has been heralded as a breakthrough approach in user incentivization, supercharging adoption by empowering users to monetize the time spent within digital worlds.
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