Gaming NFT & Play-to-Earn Model: Main 2022 Trend in Gaming and Investing
In 2021, the video games market was truly booming. It appears from the industry growth rates that 2022 will be also extremely hot. Such technological trends like augmented reality (AR, VR and MR), people’s love towards mobile games, as well as blockchain, NFT, and Play-to-Earn model entering the gaming industry, serve as the main reasons behind the gaming industry boom.
According to forecasts, by 2023, the blockchain games market will reach $218 billion while people will spend $168 billion on in-game purchases.
Yosuke Matsuda, the president of the Japanese internet giant Square Enix, shared with the company fans in the New Year letter that in 2022 the main focus of the developer of console and computer games will be in NFT and blockchain games. According to Matsuda, NFT, blockchain and metaverse are the main gaming solutions for the near future. Those who will understand it earlier than others will lead the market.
Blockchain games and contemporary business
NFT, non-fungible tokens, and blockchain games are the topics that today affects all companies working in gaming industries and social media. Major investments in metaverse that were loudly declared by Mark Zukerberg, did not go unnoticed. It turned out that the majority of major corporations put serious hope on the virtual world in terms of business development and new opportunities for earning.
The manufacturing process of virtual goods is way cheaper than that of real ones. At the same time, they are often bought much faster. They reach customers in a matter of seconds and can become collectables no less than their analogue masterpieces. To be more precise, as 2021 has shown, with proper intuition and navigation in the blockchain community, NFT will become a much more profitable investment than real art.
NFT & Play-to-earn: how to make the game profitable for all
Each year, Collins English Dictionary selects the Word of the Year that reflects the previous 365 days the most. In 2021, this was the word “NFT”. This is no surprise, as, by the end of 2020, the capitalization of this industry was $100 million but by the end of 2021, it has reached $23 billion!
The main driver that led NFT to the top position among digital assets is GameFi, or the games with the inherited Play-to-Earn (P2E) model.
The idea to earn while playing has become a true revolution in online games. Earlier it was possible with streams that required the collection of the audience and at least minimum exposure. P2P games offer a radically different approach: each and every gamer can earn. As a rule, gaming rewards are distributed in tokens that can be later sold in exchanges for real money.
Gamers are paid for completing tasks, gaming artefacts, characters etc. If citizens of countries with relatively high levels of income saw P2E games as a nice bonus that allows them to earn a bit instead of wasting time in the game, the citizens of countries that suffered most due to pandemic saw blockchain games as a chance to get a real income in the absence of other sources.
How can an investor earn on investing in gaming projects at early stages?
Not only gamers but also investors can earn money on blockchain games. 2021 has demonstrated that gaming tokens and NFT often cost a couple of dozens of dollars upon launch but after several months the same tokens could bring their owners 1000x profits with the price growth due to surge in the game popularity. For example, AXS, native tokens of Axie Infinity, has grown from $200 to $250 000 in a year.
Investing in the early stages is also possible on special platforms called launchpads that work on crowdfunding principles. Unfortunately, this opportunity exists more in theory since there is much more money in the market than deserving projects. Since only a few among thousands get allocations to buy tokens, also often in the form of lottery, the majority of investors have no real chance to participate in closed investment rounds of the projects.
Meta DAO Guild: retail investors have a right to earn on GameFi
The situation is far from pleasant. On the one hand, decentralisation should have made investments in blockchain games a truly people’s phenomenon where all participants have equal rights. On the other hand, in most cases, the priority pass for allocations was granted to a bigger fish — venture funds that in fact early on and fully occupied a promising niche.
The solution for this problem is offered by DAO — the main type of platforms organisation in DeFi. These are decentralised autonomous organisations that are governed by the community using voting mechanisms. All activities of such organisations are built around one goal: profit maximisation for DAO members.
The platform Meta DAO Guild is built on those principles. It will provide retail investors with easier access to early investments in GameFi with the instrument DAO Launchpad, a decentralised venture fund for investments in blockchain-based gaming projects. At early stages, investors always get the best deals while in a couple of years returns on purchased tokens and NFTs can bring 10x, 100x and even 1000x profits!
Who governs DAO Launchpad?
DAO Launchpad is a fully decentralised autonomous organisation. It means that it is governed by the users with a voting mechanism. Voting rights are in line with the number of MDGG — tokens of the Meta DAO Guild platform — staked into the smart contract. By voting, users choose the projects that the fund invests in. Since the decision is collective, the chances to choose the most promising game multiply.
Blockchain games developers are also interested in holding financial rounds on DAO Launchpad because apart from investments, they also get access to a hot audience, a gaming community. To show the advantages of their cool projects, developers often grant DAO Launchpad members access to their games during alpha and beta tests. At these stages, investors get truly unique opportunities to stock up on gaming NFTs prior to their market entry.
Other components of Meta DAO Guild infrastructure
The Meta DAO Guild infrastructure, apart from DAO Launchpad, also includes the following components:
● MetaRent — a p2p platform for renting gaming NFTs. It is an important part of the ecosystem because entry tickets to P2E games are often very pricey, becoming a serious entry barrier for many players. A win-win solution of the renting platform helps to overcome this barrier: 50% of gaming rewards go to the NFT owner, 50% go to the gamers.
● Scholarship — an educational platform for growing and confirming gaming skills. NFT owners that would like to rent out their assets, first of all, follow the “school” ranking to decide on a gamer. The higher the status of the games, the higher the number of offers.
● MetaExchange — an exchange for gaming NFTs. If a gaming item is hard to sell, it can be exchanged on the platform for those items that can help to succeed.
All in all, Meta DAO Guild solves the most burning issues that slow down the blockchain games industry growth: providing retail investors with access to early investments on one hand, and providing new projects with access to a motivated audience, on the other hand. Also, thanks to the renting mechanism, gamers that previously could not afford to enter the game now can earn while playing. On February 22, the project is launching the MDGG token sale that is available for all on https://metadao.gg.
The nearest future of gaming
According to Newzoo predictions, by 2023, there will be 3.07 billion gamers in the world. In general, the video gaming market is always moving in line with technological development and the evolution of people’s gaming choices. Apart from that, growing competition among developers might also become a decisive factor that will drive the gaming process improvements. It appears that the share of blockchain games among such a giant number of all gamers will inevitably grow.
This trend is apparent to venture investments that despite legal uncertainties in a totally new area has increased their presence in the NFT games sector from $400 million at the first half of 2021 to $4 billion by the end of the year. The co-founder of the video streaming service Twitch
Justin Kan tweeted that NFT and blockchain games have all chances to become the dominating business model in the gaming industry in the upcoming decade.
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Source: Legit.ng
