The "interoperability" of blockchains may be the key to explaining the principles of macroeconomics in Metaverse games, and the key to keeping Metaverse games "playable" fun.
If you have no interest in the concept of the "metaverse" proposed by Zuckerberg, and have no idea of joining it, I have some bad news for you: you are already in the world of the "metaverse" without knowing it , sometimes, you don't need to own a virtual reality headset to enter a virtual world. Since our distant ancestors first painted cave walls, productive human life has represented the real world. But if television, radio, books, or the press have exposed you to events you didn't personally participate in, then you've already experienced some conceptual "metaverse" world.
Watching sports events and playing games are alternate realities we often engage virtually through screens, even when we're not there.
Gaming has so far dominated what most of us understand as the "Metaverse", or what we more often refer to as "Web 3.0". The never-ending exploration of what games depend on and the rules they play, and our willingness to place value on the events that happen in games, are an important part of human culture — from football games to chess to Roblox, they are economic Reflecting activity. The global sports market reached nearly $400 billion in market capitalization in 2020, and even in the context of the new crown epidemic and global lockdowns, the gaming industry's market is still estimated to reach $178 billion per year.
Therefore, games are likely to lead people into an immersive and more connected "metaverse" world more naturally. Games may also continue to provide financial value to consumers, companies, and nations in the "metaverse" world. Microsoft's recent acquisition of Activision Blizzard in an all-cash deal exemplifies this point.
earn while playing"earn while playing"(P2E) mode, it seems that we seem to see the future.
Using non-homogeneous tokens (NFTs) and in-game digital currency, players can obtain income in these games, trade in the form of tokens, and support multiple game tokens through cryptocurrency exchanges (such as AAX Exchange) transactions) to transfer value into real-world currencies. A big change, for gamers and non-gamers alike, is that instead of brand owners (Facebook/Meta, Microsoft, etc.) getting all the value out of games, gamers themselves can successfully "own" stakes in games.
secondary title
This is not a symbolic recognition
As an example, Axie Infinity is a game involving digital pets called Axies. When players contribute to the game's ecosystem, they earn tokens. However, to start playing, users must purchase their first Axie — an NFT that accrues value in-game. The game involves two tokens built on the Ethereum blockchain. Axie Infinity Shards (AXS) and Smooth Love Potions (SLP). SLP is earned in-game and requires"reproduce"New Axies to gain.
In the game world, there are many factors that can promote the price performance of digital assets, such as Axies' SLP, which are affected by factors such as the distribution method of tokens, the rules around supply, price stabilization mechanism, how governance is carried out, and so on. Of course, the desired power of the game's users themselves is also important, but utility is probably the most important factor for a token powering a game. Simply put, does the asset enable the holder to get the experience they want? This may include aspects such as gameplay, community status, and earning opportunities. If players see value, then they will stick with it and even buy more. Otherwise, like any asset, people can choose to sell it for a profit and invest their time and money in other, more interesting things.
In Axie Infinity, the utility of its SLP build is how players can create new Axie pets, which can make more SLPs and create more value for players. This positive feedback loop drove SLP prices soaring in the summer of 2021, but it has fallen 94% since then. This means that people are more valued at selling the SLP than holding it and"reproduce"secondary title
early condition
To be clear, the concept of "earn while you play" is still in its infancy. Games like Axie were early experiments in combining gameplay and economic models. Axie itself introduced SLP as a second in-game currency after discovering that a single-token economy has its own liquidity issues. Experimentation continues, but a key lesson for veteran game developers is that the fun of playing a game still needs to come first, not a matter of making money.
The risk of putting economics ahead of gameplay is simply that it turns off players. For example, attempts by Sega, Konami, and Square Enix to bring NFTs into popular games have faced user opposition. However, as time goes on, we can expect that increasingly complex and expansive Metaverse games will offer an incredible range of experiences. More choices and richer gameplay will naturally allow more users to discover the role of holding tokens, thus making the game-based economy more durable.
As more and more games and sports projects are established in Yuanqi Universe, the quality of the games will gradually improve. We humans need contests, heroes, narrative, and luck, we want to interact as part of an audience, to have a shared experience, and we want to be part of the game ourselves. There's no reason why games on the Metaverse shouldn't get us excited as much as the Premier League, the NBA, or the most-watched esports event of 2021, the Liberty Fire World Series.
Better gameplay is what makes a game-specific microeconomy more persistently sticky. What the blockchain can add is a level of interoperability that makes the macroeconomics of veteran games more fluid and fair in general than today's mega-sports. Interoperability offers players the opportunity to bring digital assets or achievements from one game directly into another, and even further into social platforms. This gives players a greater share of value creation and more power. Therefore, "earning while playing" has become a common goal of participating users and game publishing companies, rather than just today's game companies unilaterally gaining benefits.
about the author
about the author
Ben CaselinHe is Head of Research and Strategy at AAX Exchange, the world's first cryptocurrency exchange powered by London Stock Exchange Group's LSEG technology. Ben Caselin has a background in art creation, social research and financial technology, has in-depth research on Bitcoin and DeFi, and provides strategic guidance for AAX. He is also a working group member of the Global Digital Finance Federation (GDF), a leading industry body dedicated to accelerating the development and adoption of digital finance.
