How can people never lose money in GameFi? Will the game creator send money to them?
If the game has balanced economics, it will work. It all comes down to if players find it fun, spend money upfront, and can get a return.
Most GameFi project tokens end up with a lot of loss in value over time.
Pretty much I don’t believe (My opinion) any project within Crypto has successfully introduced GameFi correctly.
They usually ask users to buy an upfront NFT so that they can slowly mine a pool of reward tokens in hopes of gaining back the value and earning more.
So if there is a good GameFi project with a good economics isnide, where does the money come from? The buyers(players) or the game creators? Who is giving the money by the end?
If there are good economics the Game studio that makes a great game will get $$ from say skins or whatever but share profits with their loyal players too.
Just think Fortnite, those who buy stuff will (Profit from skins/lootboxes whatever, NFT trading marketplace) but you can also in some way mine a % of the profits that the game studio makes. So it is like your players are also shareholders and get a dividend.
In World of Warcraft this was possible by actually selling gold. Probably a good game to model GameFi. Players want gold to buy things but it takes time to farm gold, money is made off of impatient people. This gave gold value, of course over time there is inflation since gold could be infinitely generated. Which is why warcraft designed gold sinks. (Gold gets burned when you buy things from NPC vendors)
Anyways, the money usually comes from the profits of the game studio or side markets.
Then you mix in NFTs and you can trade or lend characters or stuff out, so say it takes forever to create a diamond pick axe but its 50% better to mine. You can lend that NFT to a friend or guild member and they can use it. You can later sell it as well but also balance the economy with a durability rating on them as well.
Lots of stuff to think about when it comes to in game economies.
WOW is not a GameFi tho, wowers pay money to gain pleasure from playing games, and some of them might use this game to profit.
So these people who do not want to spend their time farming gold are the buyers, and they are gonna pay all the real money. So the gold farmers in GameFi can sell their stuff to new users who try to be a gold farmer, that sounds like a Ponzi.
No wonder why most StepN players lost the most of their money.
I’m using WOW as a good model/example for GameFi economies. Step 1 is having a good game that people enjoy. If an economy like WoW’s Gold scene can exist then GameFi is possible. The only reason WoW is not GameFi is that it’s owned by a centralized entity and isn’t integrated into blockchain technology.
People were still making thousands of dollars playing WoW which is what GameFi people want to do but in a decentralized way.
None of it is a Ponzi, it’s how the real world works too. We exchange time with money and vice versa.
Most or if not all GameFi currently is garbage because publishers/some game studios don’t want to give power to the players. They want to monetize the hell out of it and suck as much as they can from players. The people who work at game studios know nothing about Finance/Economies which is really needed when making GameFi.
I have invested in gamefi nft projects and think there is a big market out there for the right kind of ppl, I still see them as a either long term investment or a chance to flip them quick as I have come to realise that unfortunately with a full time job and family commitments I have no time to actually play the games
If the game ecpnomic is right, it will work. But i think it works until new players and new money joins the game…
This is a very a nice questions that needs to be answered
There are many business modal available on which games work to pay the players. I have seem a game pet vs pets in the gamefi section. They have a battel royle type game. Each player pay 1ticket to play if he win he can get 10tickets which are collected from other participants…
So the bad players pay and pay more so the other "good"playera can get more money?!
yes there are many economical modals on which games operate
GameFi is the future of all games. I’m sure everyone else will switch to it too.
A well structured tokenomics and strong player base is important here. Good point
Built on play to earn model
that needs to be answered
There a re many modals which can be followed on gamefi