Deep Dive
March 8, 2024

Crafting Incentives to Build Empires

Let's uncover how novel incentives can help build long-lasting web3 gaming empires

Respecting The Player

Beginning a journey in game development only unveils a slice of the larger challenge that awaits. Even the most revolutionary games may struggle to capture attention without a strong reason for players to engage deeply. The failure to invest in immersive experiences can result in a game's appeal fading quickly, leaving its full potential and enchantment undiscovered.

In the gaming and technology realm, a careful balance is needed between commercial success and truly connecting with player interests. The experience of John Riccitiello at Unity illustrates the complexities of achieving this balance. Riccitiello, renowned for his business savvy, acknowledged his distance from the gaming world itself in one of the interviews he gave, highlighting an industry-wide challenge that struggles to find the balance between profit motives and authentic player engagement.

The strategy of balancing business acumen with meeting player expectations by Riccitiello didn't fully resonate within the gaming community. Riccitiello's strategies, while perhaps beneficial from a business standpoint initially, ultimately led to gamer dissatisfaction and significant loss in popularity for the Unity product. His departure in October 2023 marked a pivotal moment, signaling a shift in Unity's role in the industry as well as its core principles - or maybe there was just too much damage and Unity couldn’t handle the future if the situation were to repeat itself?

This narrative serves as a cautionary tale, underscoring the importance of aligning business objectives with the players' real interests and desires. It's a reminder that fostering innovation and success requires a genuine connection with the community. Achieving this balance is essential not only for retaining loyalty but also for creating an environment where innovation and player satisfaction can coexist with business growth.

Reflecting on these challenges encourages us to learn from past mistakes, particularly those faced by the GameFi sector in 2021, and to strive for a harmonious blend of project integrity and community values in our future endeavors.

In Search for the Answer

In the gaming industry, the challenge of engaging and retaining players is multifaceted. Sometimes, marketing can obscure the flaws of lesser-quality games, while truly groundbreaking games might go unnoticed without viral acclaim.

Creating game experiences that deeply resonate with players involves more than just captivating graphics or innovative gameplay. It requires fostering a sense of healthy competition that elevates a game's allure and integrating fair monetization strategies that respect the player's investment and time. These elements are critical for a game's success and longevity in the market.

With the advent of web3 gaming, a domain brimming with promise and innovation, the industry faces new questions. How do we not only catch the eye of the discerning gamer but also maintain their interest in an ever-expanding universe of digital entertainment? What more can be done to harness the unique capabilities of blockchain technology to create not just games, but ecosystems that offer value, entertainment, and community to players?

As the industry evolves, it becomes increasingly clear that success hinges on our ability to adapt and innovate. Exploring new narrative depths, leveraging player-driven economies, and ensuring transparency and fairness in game mechanics and transactions are just the beginning. The future of web3 gaming lies in our capacity to reimagine the boundaries of what games can be and how they can enrich the lives of those who play them.

The Isolated Island

At the height of its popularity in 2021, the GameFi and web3 gaming sectors frequently overemphasized hyping their game tokens or in-game assets, quickly exposing the limitations of such an approach as investors - or mercenary capital we should say, moved swiftly between games, chasing profits. This transient capital movement, though criticized, was not the only challenge. A considerable share of value was also diverted by gaming guilds, which were once hailed as foundational pillars of the web3 gaming ecosystem.

Reflecting on these events, there's a noticeable shift in perspective. The difficulties encountered in 2021 stemmed partly from the isolated operation of gaming projects, rendering them vulnerable to speculative financial strategies.

The current narrative is evolving towards recognizing games not merely as isolated ventures but as essential parts of a broader, interconnected ecosystem. This holistic view not only enhances the intrinsic value of games for players but also offers protection against the unpredictable nature of speculative investing. Integrating games into a unified ecosystem diminishes their dependence on fluctuating incentives that could otherwise devalue their tokens.

Furthermore, adopting an ecosystem-centric approach promotes a more sustainable model for web3 gaming. This model encourages community engagement and collaborative efforts, leading to richer and more immersive gaming experiences. It shifts the focus of developers towards innovation and quality, aiming to ensure that games deliver genuine value beyond mere financial instruments designed to attract fleeting capital. Embracing this approach is crucial for stabilizing the market and unlocking the full potential of web3 gaming. It aspires to create meaningful and enjoyable experiences that resonate with players, maintaining their interest and engagement over time.

Building the Empire

In the crypto universe, filled with a variety of consensus methods, staking has emerged as a cornerstone of blockchain infrastructure. This process involves participants locking up their cryptocurrency to support the network's essential functions, such as transaction validation and bolstering network security. Those who stake their tokens are rewarded, often based on the amount and duration of their stake, with tokens from the project they're supporting, resembling the concept of receiving dividends on an investment. This symbiotic relationship encourages the upkeep of the network's integrity and gives participants a stake in the project's success, fostering a community deeply engaged in the ecosystem's well-being.

Why place such emphasis on the staking mechanism?

The significance lies in the connection between staking and the incentive structures that web3 games can implement to enhance their appeal and broaden their audience without compromising their security or diluting their tokens.

Reflecting on crypto trends, particularly during the 2021/22 cycle, we observed the Cosmos ecosystem rewarding ATOM stakers with several airdrops. This practice is gaining traction, with projects like Celestia embracing it to the fullest. This trend is now making its way into the web3 gaming sector, with ecosystems such as Ronin introducing rewards for staking in the form of ecosystem projects’ airdrops. This move signals a future where stakers might receive multiple airdrops from games developed within the Ronin ecosystem, starting with the PIXEL token airdrop to RON stakers in late February.

This strategic move ensures that projects are not isolated entities but part of a larger, supportive ecosystem. This not only facilitates their growth by converting users to active players but also aids in the incubation of projects by providing a range of support mechanisms. The success of individual games is thus seen as a collective victory for the ecosystem.

Final Words

At Elympics, we're diving headfirst into the rich sea of innovation that the gaming incentives landscape offers, keenly observing and integrating these creative breakthroughs to craft the ultimate ecosystem for our players, creators, and developers. As we peer into the future, we see the untapped potential of web3 gaming as a sprawling digital frontier ripe for exploration. It's a future where games become more than just entertainment—they're communities, economies, and shared experiences that deeply resonate with players.

Leading this charge, we at Elympics are not just imagining what the future could be; we're actively shaping it. We're crafting a realm where innovation, inclusivity, and imagination intersect, creating endless possibilities for the digital age. The path ahead is bright, illuminated by our dedication to a web3 gaming sector that thrives on creativity, community, and the endless potential of what we can achieve together.

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