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Monday, June 3, 2024
HomeCryptoIlluvium co-founder announces GameFi is making a comeback

Illuvium co-founder announces GameFi is making a comeback

GameFi, once a popular keyword in the cryptocurrency market, is currently experiencing a strong resurgence. This resurgence is driven by innovative developments, market adaptation and a growing global player base.

This technology is not a growing trend but a transformative movement in the gaming industry.

Play-to-earn model

Kieran Warwick, co-founder of Illuvium, talks about Southeast Asia’s pivotal role in GameFi’s resurgence. According to him, Southeast Asia, with its young, tech-savvy population and high cryptocurrency adoption rate, is an important factor in this field.

The region loves mobile and accessible gaming platforms that integrate blockchain technology with localized content and mobile-first strategies to attract players in different markets. emerging school. Likewise, social and cultural trends also greatly influence the development of GameFi.

Play-to-earn trends by country | Source: DappRadar

Titles like Axie Infinity have successfully integrated local cultural and mythological elements into their in-game stories, boosting player engagement. However, Axie Infinity’s tokenomics model has a serious flaw. It prioritizes immediate profits over sustained player engagement.

Participants can receive AXS tokens by breeding Axies and selling them on the market. This has caused a wave of breeding as players aim to produce as many Axies as possible to maximize their token income. For this reason, Warwick emphasizes the importance of balancing resource scarcity in the game with accessibility.

“The approach to tokenomics and game mechanics needs to balance long-term player engagement with financial sustainability. Balancing the scarcity of assets in the game with accessibility is important, too scarce can hinder new player engagement, while too many can reduce value,” Warwick said.

This balance is important to avoid hindering new players from experiencing excessive scarcity or falling asset values ​​due to oversupply.

Number of GameFi users | Source: Dune

The concept of real yield, which provides tangible in-game rewards, is another step towards sustainability. However, this also poses risks such as hyperinflation of in-game assets and dependence on external economic factors. Therefore, a balanced approach is essential for long-term viability.

For example, dual token systems can provide depth in economic and governance aspects although these systems require meticulous management to prevent economic imbalances.

“They enable a more complex economy and give players a voice in governance, increasing engagement,” Warwick said.

Benefits of dual token system | Source: Accubits

The transition from Play-to-earn to Play-to-own reflects a comprehensive approach that focuses on fun gameplay in addition to earning potential. The success of these models depends on a delicate balance between fun gameplay and economic incentives.

Catalyst for GameFi’s resurgence

The entry of major game companies into GameFi is also a notable trend. Potential partnerships between traditional gaming companies and blockchain innovators could help revolutionize the industry.

For example, integrating GameFi elements into popular titles like GTA VI could significantly change player expectations and encourage traditional gaming industries to explore blockchain technology.

Virtual real estate is another growing area within GameFi. This new economy impacts asset valuations and players’ investment strategies, highlighting the need for robust economic models and transparent regulatory frameworks.

Likewise, the release of high-end VR devices like Apple’s Vision Pro is poised to greatly impact GameFi, delivering more immersive experiences.

“Adapting GameFi to these technologies will be critical for future growth. GameFi developers must balance innovation with user experience, especially for those new to blockchain,” Warwick asserted.

Forecast of AR/VR devices worldwide | Source: IDC

However, cyber security is still the most important thing. Warwick emphasized the importance of multi-layered security measures, regular audits, and transparent smart contract operations to protect player assets.

He affirmed: “Building a safe and trustworthy environment is extremely important for the development of the industry.”

GameFi developers must balance innovation with user experience, especially those new to blockchain. This includes developing intuitive interfaces, educational resources, and seamless integration of blockchain elements. Community feedback is also vital to GameFi’s success, shaping projects through community-driven feature development and feedback during beta testing.

The integration of GameFi with Metaverse promises a richer and more interactive gaming experience. This combination will likely bring about new forms of social interaction and digital economy in the virtual world.

Viet Cuong

Bitcoin Magazine

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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