New Economics Frontiers: Build In-Game Economics
Introduction
The emergence of Web3 gaming technologies are transforming an already growing online gaming industry along with the digital economy. This transformation is not only redefining gaming but also developing a new ecosystem where virtual assets have a value equal to tangible assets in the real worlds. People can have the ownership and control of their in-game assets through decentralised networks. The growth potential of in-game economies is huge, with countless open opportunities for secondary markets.
Rise of Web3 Gaming
The roots of Web3 gaming are connected with the proliferation of cryptocurrencies and blockchain technologies. In traditional Web 2.0 online gaming, all of the gaming assets and players' progress are under the control of strict centralised authorities, such as game developers or publishers, but in Wb3 gaming, there are decentralised networks with no central control by the game developers.
The technology disruption has allowed online game players to earn, buy, trade, and own their in-game assets, such as digital tokens or weapons, on a blockchain technology known as non-fungible tokens (NFTs). The advancements in online gaming tech, not only provide transaction security and transparency but also true ownership to players for in-game items.
Feature of Web3 Gaming
A significant feature of Web3 gaming is the empowerment of players by offering true ownership of their assets. Traditional gamers are noticing that players are significantly investing their money and time in order to acquire in-game assets without truly owning them. These in-game assets can be worthless and useless if the game servers go down or the player’s access to the game is restricted. However, Web3 gaming has changed this model by allowing players to keep their online assets in their personal blockchain wallets, which ensures that their assets are safe and are truly owned by them, regardless of the game’s fate.
Major Forms of Tokens
Below are some major forms of tokens which are used in Web 3.0:
NFTs
NFTs stand for non-fungible tokens. They are exclusive digital assets which are unique and can be owned through decentralised blockchian networks. S Game players can own these assets in their blockchain wallets and can trade them whenever they want to.
Reputation Tokens
These tokens indicate how much repute a player has in terms of skills and achievements. The players with a higher quantity of reputation tokens are recognised as high achievers and great contributors.
Currency-Form Tokens
These tokens are monetary assets and serve as a medium of exchange in the gaming world. These tokens allow various types of transactions between players and developers within the gaming market. These tokens are highly liquid and allow the creation of complex in-game economies in which players trade, invest, and accumulate wealth.
The Role of NFTs in the Web3 Game Economy
The role of NFTs in the Wb3 game economy is to focus on the three main areas:
Integrity of Scarcity
When there is a limit on the availability of NFTs, it will drive up prices and generate initial funding for the game. But this approach creates a first-mover advantage and shifts the focus from game play to speculation. Balancing scarcity is important to create a healthy game economy.
Scarcity for User Acquisition
Scarcity is a marketing tool to bootstrap the virtual economy and is effective in attracting initial users or participants. Over-relying on the scarcity can cause late joiners price out and lead to a speculative-driven market.
Natural Market Creation
Secondary markets naturally transform when there is a demand-supply gap for scarce assets in the marketplace. A game economy designer initially takes advantage of the secondary markets that can lead to rent extraction and resist value creation within the game economy. It is imperative to keep a balance between primary and secondary markets, which have a crucial role in sustaining the game economy.
Play-to-Earn Model (P2E)
The P2E is a gaming model in which merges blockchain and gaming technologies are used together. The players have the opportunity to earn tangible rewards within the gaming system, while playing games for entertainment purposes. The following points might be helpful in understanding the play-to-earn (P2E) model of online gaming:
Transforming Gaming into Earning
The play-to-earn (P2E) model is a new economic system with digital resources and assets where players can earn cryptocurrencies, through in-game activities. They can also spend money on in-game purchases of assets.
Incentivising Player Participation
The play-to-earn (P2E) model gives incentives to users for participating in online games. Players can earn money by joining and playing the games. These earning opportunities provide a strong motive for players to participate in the game, which in turn leads to a good gaming community.
Real Values for Virtual Efforts
This model is famous in developing countries, which provide a significant source of income and new revenue streams through digital gaming. But play-to-earn models are not the only ones that arise through the Web3 gaming system. But there are also some popular systems in development, such as play-to-own, learn-to-earn, and move-to-earn.
Impact on Gaming Dynamics
This model has changed the shape of the gaming industry by promoting skill development, collaborations, and in-game engagements. In addition, there is an aspect of community building in online gaming. Players are also given incentives to contribute to the success of the game and its related community.
Potential Challenges
Some of the potential challenges of the P2E model are, for example, market volatility, regulatory uncertainties, and maintaining a balance between rewarding gameplay and environmental sustainability.
The Evolution of Web3 Gaming Tournaments
The following points explain the evolution of the Wb3 gaming tournaments beyond competition:
Community Engagement Programmes
The Web3 gaming tournaments are now considered as community engagement programmes. They not only build great social communities but also create a sense of belonging among players.
Entertainment Aspect
The Web3 gaming tournaments have become mega entertainment events that attract audiences from all over the world. These events organise professional commentaries and live broadcasts that attract gamers and general viewers from many countries.
Career Pathways
These gaming tournaments offer educational and skill-building opportunities, which can prove to be a career path for many gamers. Along with huge earning potential, this career in e-sports also provides worldwide recognition to exceptional players. Scholarships and training programmes are also arranged for emerging players in e-sports.
The Economic Impact of Web3 Gaming
The Web3 gaming industry is growing rapidly. The following points explain the economic impact of the Web3 gaming industry:
Increasing Number of Players
The number of players in the gaming industry is increasing day by day. This tremendous growth potential is largely attributed to the use of the play-to-earn model, which allows players to earn money through online gaming. There are many online games that provide huge earning potential to the players, irrespective of their geographical locations.
Tokenisation of In-Game Assets
The tokenisation and blockchain leveraged in the Web 3 game assign true ownership to players of in-game purchases of assets. Players own digital assets such as NFTs and weapons, which allow players to trade, sell, and consume these assets in multiple games, creating a digital economy within the gaming world.
Innovation and Entrepreneurship
Web3 gaming encourages innovation and entrepreneurship in a country’s economy. Game designers, developers, game mechanics, creators, publishers, and players explore new opportunities, like developing new digital assets, producing game-related services, and launching new businesses within the gaming world.
Employment and Professional Opportunities
It also offers professional opportunities, creates e-sports careers, game development, virtual asset management, and blockchain technology, which creates new job opportunities in the gaming world.
Building an In-Game Economy
In-game economies are similar to real-world economies in many ways. Just like the real economy, the in-game economy also has spending, investment, saving, and more. Mostly, it revolves around building an empire of houses where there are two types of resources: houses and coins. Houses are a type of resource that is used to indicate the player’s progress within the game, and coins are the tangible resources that provide liquidity and make all the transactions possible in the game world.
Game features and characteristics consist of a diverse set of currencies in accordance with their complexity. The most common forms are:
Energy and Lives
In the gaming world, energy is the maximum amount of stamina a player can have to survive before losing a life, and life is the finite number of total tries a player has before the game ends.
Soft Currency
Soft currencies are those currencies that can be easily earned on free-to-play games. Players can easily earn them, which are available for rewards in the core game loop. For example, players can earn them by finishing levels, which can be used to buy lives, boosters, and other resources.
Hard Currency
These currencies help offer flexibility to players. For example, they are used to accelerate the player’s progression by skipping steps.
Conclusion
In conclusion, the transformation of Web3 gaming into a play-to-earn model is used to understand how people perceive gaming. It erases the line between work and play, offering players not just entertainment but also economic opportunities. In order to understand the revolution in the gaming industry, a person can join vast Discord communities and engage in hyper-casual games. It also provides proof of the economic revolution that is reshaping the gaming industry.
