It’s high time the Web3 gambling industry acknowledged some harsh facts. There are almost a thousand projects which have skyrocketed, some even in record numbers. However, nearly all of them have crashed. The explanation for the “why?” is simple, but very ugly.
Play-2-Earn can be described as a brilliant idea. You can earn money by playing video gaming! The model is obviously more complex than that. Money doesn’t come from nowhere. The value must come from somewhere. P2E gaming’s value is, unfortunately, rooted in asset speculation. “Oh It’s not worth it. I’m betting someone else will offer $10,000.
Indeed, winners can be found in every ecosystem. Web3 games often result in near-zero sum — there must have winners and losers. In the worst case, the only winners are those who bought the project. Every user loses because they are forced to give up their valuable capital in exchange for useless assets. I am unfailingly transparent. My own project, Draco Dice had a similar beginning (though it has a happy resolution towards the end). Consumers believed there was an exit strategy, which would allow them to hoard many thousand of digital dice in order to have a large number of assets that were worth more. Although I attempted to discredit the illusion that NFTs existed for profit, this illusion was strong.
In the best-case scenario of a Web3 ecosystem, the winners would be the ones who didn’t know better. They knew the money would run, that user growth would slow to an halt and that everyone would still be holding a useless bag. The smart ones got out before the rest. It’s also this point that I felt humbled. I was naive enough to believe that assets I held worth tens-of-thousands in USD would reach even higher heights through some miracle of increased user engagement.
I’m sorry, but my financial system has been completely destroyed. Now I need to be confident in the winners of the future.
It doesn’t matter how infuriating the term sounds, I am an unabashed “gamer”. This refers to a person who is passionate about games. But the problem is that Web3 gaming has slowly lost consumer agency. Web3 gaming should be a success. However, this is just a quick history lesson.
How we got here
First, gamers had physical media. Compact Discs as well as game cartridges were owned first. The digital distribution was then taken over by and vast platforms. The majority (but not all) of the games were no more physically produced. They could only be delivered digitally. This license is revocable at any moment and for almost any reason. Consumers are now even more restricted with games as a service (GaaS), becoming an industry standard. All the hard work that you put into an online experience could be erased if the developers decide to shut down the servers.
In other words, gamers only own their hardware. However, this is a matter of debate due to EULAs provided by OS and console makers.
Deep down, deep into the gaming hole. My skin has become paled and my eyes have become used to the harsh, blue-colored light of the screens. The potential for greater agency for gamers offered by non-fungible tokens is amazing. We could havethe entire games again. We could possessassets which we purchased or earned in a gaming environment and use them to further our utility. You could also sell them using the help of developers rather than arranging illegal transactions through black market website (that I’m not embarrassed to admit that I have used — there’s no choice). If the time comes to sell them, we could.
If this is you, I believe you’ll enjoy reading this article.
This contrasts with the reality we have of Play-2 -Earn, and it is clear that something is very, very wrong.
Fun Reality Check
P2E should have learned from the beginning that games should be enjoyable and bring in revenue. This lesson is not being widely taught. Web3 gaming has been dominated, aside from the two exceptions mentioned above, by button-clicking token manipulation software. Even then, “fun” remains an afterthought in many Web3 games. People aren’t just enjoying the experience. Everyone wants the sweet, sweet tokens. It’s all rocket emojis. You can also call HODL to get tokens.
The idea of making money from video games is not feasible at the moment. It is a con. You can ignore survivorship bias and anyonewill make a quick buck. Realizing this was transformative. It is impossible to sell Play-2 – Earn to actual gamers.
Believe me. Gamers can smell bullshit. Web3 has been accused of endless scams. It is.
We both see the real benefits gamers can enjoy by joining a Web3 network. However, Web3 gaming shouldn’t just be about Web3. There is no Play-2-Earn in the area we are heading — but we can still offer agency or revenue. We don’t need to stop selling games . can make a living. STOP IT This is what you must do to disrupt the gambling market.
This is an incredible opportunity. Web3 is a powerful tool that allows you to build amazing games without compromising gameplay.
I had promised a happy outcome earlier. This is what I and my colleagues have been striving for. NFTs are sold, but they do not get the spotlight. They aren’t the stars. If players find it enjoyable, the only way to make a game lasts is if they keep coming back for more. Because of this, I chose to ignore the short-term outcomes of Draco Dice launches that were otherwise successful. It isn’t important. Most significant is the benefits NFTs provide to players who are just playing to play.
How to Save Web3 Gaming
Draco Dice was, for example, launched because I wanted to create a standard of gaming assets that could be used in multiple games. This is being realized in just months. We’ve simultaneously developed Draco Dice – Skirmish alongside Draco Dicesweeper. Both can be played with Draco Dice: Skirmish and Draco Dicesweeper NFTs, which offer real, undeniable benefits that have never existed in the massive world of videogames. That’s it. What’s next?
Web3 should reach gamers where they’re at. Gamers don’t care about wallets. Gamers care only about the game. While I don’t suggest we hide Web3 technology, I do suggest we use the same language as gamers. Gamers understand XP levels, battle passes, currencies, and even markets — but it’s on us to streamline the experience of interacting with Web3 to break down what would otherwise be considered barriers to entry — such as requiring the manual creation of a wallet on this — or that chain beyond the username/password/2FA structure to which gamers are accustomed.
Lastly speculation must be eliminated or reduced as much possible. Retail investors can diminish the integrity of products that are ostensibly intended for entertainment. It’s not the same thing to have a large community who wants to make a fortune and another who just wants to enjoy your product. One is here because they want to play. The other one is here to make a profit. The ability of retail investors, to increase the perceived value gaming NFTs, must be directly attacked.
This is possible by rewarding gameplay more than offering high-ticket assets. Retail investors may be able to access high-value assets from a thousand places. But if you want to break into the gaming industry, then only those players who achieve skill, progression, or participation should have such power.
All this said, you would naturally be inclined to question how Play-2Earn could survive. However, the answer is there are some exceptions. Splinterlands & Gods Unchained were built with great gameplay in mind. Does that mean they must both continue to sell assets to stay afloat. Yes. This is no different than other game companies that have to frequently release DLC or battle passes or any other microtransactions. After all, revenue must flow.
Web3 is yet to acknowledge that Play-2Earn is dead. There is money in it right now, there will still be money tomorrow, and P2E’s decay will be gradual. While wise men would advise that we view the bear markets as a building market, I must warn you that the meat in the market is currently in the process of going bad. The absence of flies should not be taken as a sign for good health.
Web3 is capable of building better products and more services. This is where the future champions will be standing.