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Play-to-earn game inspired by Bitcoin generates authentic value with gemstone NFTs
This game introduces a novel approach that ties in-game asset value to player engagement. Play-to-earn (P2E) gaming has recently captured the imagination of gamers worldwide, offering a new paradigm where entertainment intersects with financial rewards. However, despite having the intention to liberate gamers and give them more control, some challenges have come to light with the P2E approach. One of the key hurdles is the potential for game developers to prioritize profit maximization over creating engaging gameplay experiences. This can lead to repetitive or shallow gameplay loops, ultimately diminishing player engagement. Recent industry reports have indicated a gradual decline in the growth and adoption of the GameFi industry. An analytics report released by Messari Crypto in February 2023 revealed that the number of active players steadily declined by 34% since October 2022, with average monthly signups decreasing month-on-month. Another challenge is the volatility of token economics. The value of in-game tokens can fluctuate, often driven by market forces beyond the control of game developers. AXS $7.32 an in-game token of the popular P2E game Axie Infinity, soared to an all-time high of nearly $160 in 2021 but has since plummeted to around $8. This drastic drop has left many players struggling with the diminished value of their investment and earning potential. Ponzi-like economics and reliance on influx are also significant issues. Many P2E games rely on an influx of new players to maintain the value of their tokens and in-game assets. This creates a Ponzi-like structure, where the sustainability of the game ecosystem hinges on continuous growth. This unsustainable model has led to the downfall of several prominent P2E games, such as STEPN and the already-mentioned Axie Infinity, whose token values plummeted due to a decline in new user growth. As a result, many players have lost significant investments, highlighting the inherent risks associated with these unsustainable P2E models. Source - Coin Telegraph
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