Blockchain technology has been making waves in various industries, and the GameFi market is no exception. Despite unfavorable events and crypto market fluctuations, in recent years, blockchain-based games have been gaining popularity due to their unique features such as true ownership of in-game assets and the ability to trade them on marketplaces. However, one area where blockchain games still need to catch up to traditional games is in terms of a sustainable economy.
So, we will talk about this issue today. We will delve into the topic of tokenomics in the GameFi market. We will analyze the current market conditions, pinpoint its deficiencies, and using our game “My NFT Wars” as an example, demonstrate how we intend to stabilize the token economy and ensure the long-term financial sustainability of our game.
The present economic state of the GameFi market
A sustainable economy is crucial for the long-term success of any game. In traditional games, this is usually achieved through a combination of in-game purchases, advertising, and subscriptions. But in blockchain games, the economy is often driven by speculation and trading of in-game assets on marketplaces. This can lead to a situation where the value of assets is driven by speculation rather than actual gameplay, and the game’s economy becomes unstable.
This is where a sustainable economy-driven ecosystem in blockchain games comes into play. In this type of ecosystem, the value of in-game assets is directly tied to the gameplay and the team’s expertise. For example, a game could have a unique crafting system where players can create rare items that are valuable in the game’s economy. These items would have real value and could be traded on marketplaces, but the value would be based on the item’s usefulness in the game rather than speculation. Despite these games gaining popularity in recent years, they also raise several sustainability concerns.
One of the main issues is the volatility of the in-game digital assets, such as NFTs. The value of NFTs can be highly volatile, with some NFTs selling for millions of dollars while others are worth nothing. This leads to creating a speculative market that is driven by hype rather than fundamentals, making it difficult for players to make informed decisions about which NFTs to buy or sell.
The inflationary economy in blockchain-based games refers to the rapid increase in the supply of in-game digital assets, such as NFT’s, which leads to a decrease in their value. This is caused by a number of factors, such as the overproduction of NFTs by game developers or the introduction of new, similar assets into the game. This lead to players losing the value of the assets they have acquired, and discourages long-term investment in the game.
The fast-profit driven ecosystem also leads to a lack of regulation and oversight, making it difficult to ensure that the game is fair and that players are protected from fraud or exploitation.
On the other hand, many GameFi projects have struggled with token liquidity shortly after their release. Trying to keep balance, developers create an artificial token liquidity. The artificial token liquidity problem in games, in turn, refers to the issue of creating a sufficient supply and demand for in-game tokens, such as virtual currency or items. These tokens are often used to purchase items or access certain features within the game, and their value is determined by the players’ willingness to buy and sell them. However, if the supply of tokens is artificially limited, it can lead to a shortage and inflated prices, which can negatively impact the player experience. Additionally, if the demand for tokens is artificially inflated, it can lead to a flood of tokens on the market, causing prices to drop and players to lose interest in the game.
To solve this problem, game developers must carefully balance the supply and demand of tokens, and ensure that there are enough players participating in the market to create a stable economy.
To address these concerns, it’s important to have a balance between short-term and long-term goals for the game and its economy. We’d recommend GameFi developers consider implementing regulations to protect players and promote transparency and fairness in the marketplace for NFTs. Additionally, it would be beneficial to encourage responsible spending and investing in-game digital assets and promote healthy player engagement and diversity in the game.
To ensure that blockchain-based games can continue to grow and thrive in the future, it is essential to address these concerns and work towards a more sustainable economy, where short-term and long-term goals are balanced.
Let’s take a more detailed look of how these concerns were solved in MY NFT Wars.
What makes MY NFT Wars economy sustainable?
To begin, it’s important to note that My NFT Wars is a blockchain-based game that aspires to organic token liquidity growth, which is assured by proven gameplay, liquidity mining, and smart staking approaches. These features are designed to create a self-sustaining economy where the value of tokens is based on the gameplay and the demand for in-game items.
The balanced game economy in My NFT Wars
My NFT War’s tokenomic will be closely connected to game balance and game economy which will be finally developed by the Alpha release. But at a high level, the game economy will be built toward the constant demand for tokens. Not artificial, but due to thoughtful and balanced mechanics and the right approach to managing market making. It will not be Set & Stone, but dynamically.
The overall economic model inside will be a lack of self-arbitrage of the game and its assets and a constant goal for the $GMFI token.
Data Driven approach
In My NFT Wars will be implemented systems that will construct and simulate the Unit economy based on player behaviors, player numbers, and in-game assets. Additionally, will be conducted a constant supply demand analysis to comprehend the current demand and take appropriate actions.
Enjoy a steady and organic token demand system in MY NFT Wars
There will be several business models to create constant and organic demand for tokens from My NFT Wars developers:
- My NFT Wars will be the primary source of exclusive in-game items, with some of the most powerful items only obtainable through us. We will establish a minimum price for these items, including services, NFTs, and assets.
- To prevent self-arbitrage, My NFT Wars has decided to use $GMFI token as the sole in-game currency. We will regulate the number of tokens released into the market by allocating them for vesting in various game mechanics.
- Furthermore, tokens will only be created in response to genuine demand. All token-minting events will be linked to the in-game economy. This means that as more players join the game, demand will increase and more tokens will be minted. This will prevent an excess of tokens on the market.
- My NFT Wars will regularly host events and activities, such as introducing significant mechanics every quarter, to generate additional interest and participation among players. This, in turn, will elevate the value of the in-game token.
- Seasonal and sponsored events are smaller drivers of token consumption that increase but are more frequent, such as weekly or monthly. The first type of event is more about the value coming from the existing community and the second one is about external sources of value coming into our circular economy.
- Players will have the power to govern the game through the DAO, including the ability to control the game economy and the value of in-game tokens, such as through token burning. This will happen if the players find it to be beneficial.
In conclusion, we expect, that My NFT Wars, could cause a mighty furor in the GameFi community due to its unique approach to creating a sustainable economy. By tying the value of in-game assets to the gameplay and the team’s expertise, implementing a liquidity mining system, and smart staking approaches, My NFT Wars has the potential to deliver what the GameFi community has been eagerly anticipating.
Are you ready to test out our sustainable approaches by playing My NFT Wars? Please share your thoughts in the comments section below.