By Ali Asef
Compiled by: Vernacular Blockchain
The gaming industry is undergoing a paradigm shift with the advent of Web3 technologies. Games that leverage blockchain components such as NFTs and ERC20 tokens are revolutionizing the gaming experience, providing players with new opportunities to earn real value through gaming. This article explores the requirements for creating a Web3-based game to earn revenue, the concepts involved, and the latest trends in this rapidly evolving space.
1. The concept of Play-to-earn Web3 games
Play-to-earn Web3 games allow players to earn real value in the form of cryptocurrency, tokens, or NFTs during gameplay. These games leverage blockchain technology to enable true ownership of in-game assets, enabling players to buy, sell, and trade digital items on a decentralized marketplace. Players can earn rewards through various in-game activities such as completing quests, fighting opponents, or participating in community events.
If you’re interested in building a metaverse game, we highly recommend reading our two previous articles on the subject: [Part 1] [Part 2]
Also, if you’re interested in statistics on Web3 game development, you can read this article: 4 Evidences That Web3 Games Are Not Dead.
2. The key role of game economics and token economics
The success of Web3’s revenue-generating games depends on a well-designed financial ecosystem that includes the principles of game economics, decentralized finance (DeFi), and token economics. Game economics provides us with a foundation for understanding how value is created and exchanged within games. DeFi introduces mechanisms such as staking and liquidity mining that enable players to earn passive income. Token economics, the study of token supply and demand, is critical to maintaining the economic balance of games, ensuring the sustainability of rewards and the healthy development of the in-game economy.
An example of NFT distribution and game economics in the Iskra project (currently the#1ranked game based on transaction volume).
3. Web3 Concepts in Play-to-Earn Games
Play-to-Earn’s Web3 games leverage various Web3 concepts and technologies to create engaging and rewarding gaming experiences:
ERC20Token: Many Web3 games use ERC20Token as their local currency. These tokens are used for a variety of purposes such as purchasing in-game assets, rewarding players, and conducting transactions within the game ecosystem.
Non-fungible tokens (NFTs): NFTs are unique digital assets that represent ownership of virtual items in games. These can include character skins, weapons, land, and any other collectible items. NFTs can be traded on specialized NFT marketplaces, enabling players to buy, sell, or trade their virtual assets.
NFT Marketplaces: Web3 games often integrate or work with NFT marketplaces to enable players to buy, sell, or trade their NFTs. These marketplaces leverage blockchain technology to enable secure and transparent transactions.
Staking and Liquidity Mining: Many Web3 games incorporate DeFi concepts such as staking and liquidity mining. Players can lock tokens or NFTs in smart contracts to receive rewards, participate in governance decisions, or contribute to the game ecosystem.
Decentralized Autonomous Organization (DAO): Some Web3 games are governed by DAOs, which are decentralized organizations run by community members. Players can participate in the decision-making process and shape the future of the game through voting mechanisms.
Interoperability: Web3 games often pursue interoperability, enabling assets and tokens to be transferred between different blockchain ecosystems. This allows players to use their assets in multiple games or metaverses, expanding opportunities for earning and trading.
4. The latest trends in Web3 games
The Web3 gaming space is dynamic and trends change rapidly. Interestingly, many of the games that were well-known in the Metaverse hype of 2022, such as Axie, Decentraland, Sandbox, StarAtlas, etc., no longer feature prominently in the list of currently popular games. Instead, a handful of new games with novel concepts and big venture capital investments are competing to attract new Web3 users.
Below is a list of the top games based on the number of active wallets in the last month according to Dappradar statistics.
Below is a list of popular games ranked by transaction volume.
Here is a list of popular games ranked by number of transactions.
5. Conclusion
The rise of Web3 games that earn revenue represents a paradigm shift in the gaming industry, providing players with new opportunities to earn real value from games. By integrating blockchain technology, DeFi concepts, and token economic models, developers can create engaging and sustainable gaming economies. As trends in the Web3 gaming space continue to evolve rapidly, staying ahead requires expertise and innovation.
