GameFi had a great start of this year. The price advanced by the community and ecosystem hype but now all of them need to face one critical big question on this bear trend: How can GameFi dApps achieve sustainability?
In this article I'll firstly share how popular GameFi has performed recently. Secondly, my observation about Tokenomics sustainability. Finally I'll bring up how DungeonSwap implements sustainability to show a feasible way that GameFi could strive and flip the situation.
Popular GameFi Review
CryptoMines ($Eternal)
No matter how much social sharing or marketing one GameFi enjoys, it will eventually be challenged by its own Tokenmomics. Where do the rewards come from? Does it require a lot of new players to support the economy? How can it fight against a bear market when players FUD?
CryptoMines($Eternal) experienced its bull market at a peak value of $799.18 but within a week it depreciated to about $3. It was famous for it's great ROI to have 7 days break-even.
They tried to put more funds consecutively into the reward pool to stop the trend.
However the previous high ROI seems to still haunt CryptoMines economy - Players are kept drying out the reward pool. I'll keep track of this project to see how long it takes to achieve balance.
BNBHero ($BNBH)
No financial exploit and no gameplay utilization should be the baseline of a reliable DeFi project.
Several days back BNBHero was still a promising GameFi which used BNB as a reward token. It's dramatic that the game started one month ago, price was from $0.63 to a stable $5, now it's less than $0.2 within 2 days due to a bug discovered by players and being exploited.
The latest Tweet was about a special NFT made and got 9.1K likes. We know the game was so popular back to a week before.
The team also tried to provide funds into the reward pool. However the players' confidence level is so low that going back to original status requires more effort.
CyberDragon ($BNX/$Gold)
During this GameFi bear market, CyberDragon could be a perfect indicator. $BNX has been listed on BINANCE and many big CEXs so the game quality was verified by big DeFi organizations.
They have a dual-token economic system of BNX + gold and many other means to rebalance their economy, including but not limited to dynamic token mining ratio, NFT randomization, dungeon rewards control... not to mention a strong team to do smart-contract rewrite to adapt environment changes in a timely manner.
Even this big player encountered a similar challenge regarding sustainability. The price was from $200 to current $60.
The community is debating about the same thing across whole GameFi projects. Topics around how to attract new players? To create inflation to drive the economy but may cause price drop more? Or to introduce deflation to seek softly touch ground which may cast away existing players due to lower ROI?
BinaryX is at the Tokenomics refactoring stage. One enhancement after another. Let's see how a great team could provide solutions by coming releases.
Observation
From the ever successful period in bull market and the experience learned from bear market, I conclude 5 success factors in 3 main categories of a robust/sustainable GameFi project:
- - Blockchain security paranoid
- Tokenomics - Sustainable rewarding pools
- Tokenomics - Deferred rewards
- Tokenomics - A token-based economy (compare to usd-based)
- Expectation - A clear, solid and promising roadmap
DungeonSwap Sustainability
Since V1 gameplay, DungeonSwap keeps on emphasizing the blockchain safety in the perspective of hack-proof & economy stableness.
The gameplay adopts a future block mechanism to achieve fairness and prevent hack. As for Tokenomics DungeonSwap adopts a In-Game Rewarding Pool system which encourages players to purchase NFT by LP and the LP will be staked in pool to provide long term rewards.
Our players can feel safe playing DungeonSwap. This is the foundation to do upcoming evolutions.
Tokenomics
I know it looks a bit complex from the first glance. But that's how we achieve sustainability.
Simply put:
- Players purchase Relic(A required NFT to do P2E) by DND-BUSD LP in Ancient Ruin
- The paid LP will be sent to DeFi Dungeon Master to stake.
- The staked LP continues to provide $DND rewards for Ancient Dungeon
- Relic adopt depreciation mechanism, it gradually reduces its ROI potential.
Furthermore, Dev Team can manually(occasionally) input more funds to P2E gameplay to drive engagement. Like several days back we had a "Weekend Madness Event" of our P2E game, we held a total reward of 7000 DND party with great success.
Let's revisit the success factors of Tokenomics from the DungeonSwap viewpoint. These are exactly what DungeonSwap delivered.
- Sustainable Rewarding Pools - P2E dungeon reward pool refueled well by in-game staked DND-BUSD LP
- Deferred Rewards - Encourage players to hold rewards after playing by providing good staking APR
- A token-based economy - DND token only
Expectation
The completion of our Tokenomics is targeted by the end of 2021, the remaining part is the feature that can make NFT(Equipments) more valuable.
Conclusions
I hope the analysis and the idea of this in-game reward pool can provide a new angle on how we can construct a sustainable GameFi project.
And a humble request from me that DungeonSwap is about to complete the Tokenomics. We hope our game can be known by more global players.
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