Although blockchain technology brought vast earning opportunities for gamers and hence for game developers, earning should never come first. Throughout the rather short yet branched history of Web3 games, quite an impressive amount of earning models and tokenomics has been introduced. All of them differ quite a bit, but there’s one striking aspect they have in common - none of them appears to be sustainable, at least in the long run. If you’re inclined to blame it exclusively on crypto winter, please, do us a favor and think twice.

Underlying Problem of Web3 Games’ Economic Models

Regardless of the exact tokenomics approach, whether the developer prefers a single-token economy, such as Decentraland, or favors the diverse opportunities of dual-token tokenomics, such as Axie Infinity, CoinMarketCap charts seem to favor none. Why is it so? First of all, most of the Play-to-Earn games are more akin to pyramid schemes than anything else. To power their reward mechanisms, games such as Axie Infinity rely on the massive influx of new users who support the token price with entry costs - most commonly in the form of NFT purchases. To think that your game has endless user acquisition potential is naive at best.

The more pending problem of blockchain games, however, stems from an unforgiving lack of quality. Once the stream of new users subsides, the token price decreases, and mere entry costs emerge as unprofitable, the better part of existing users starts thinking of quitting the game. Why? Because it’s not fun enough. None of the existing Web3 games reaches the quality heights of the popular Web2 games. And that sucks. Statistically, most of the players prefer entertainment over earning. Doesn’t it speak volumes?

From our experience, the earning potential and ownership in Web3 games should serve as supplementary motivation that leverages gamers’ initial desire to play the game. In short, design a game that’s worth playing first, come up with a sophisticated economic model second.

Catering to Gamers’ Needs Before Introducing Earning Model

First of all, it’s essential to build an engaging game. Even more important is to diversify the gameplay for a wide variety of players to broaden the user acquisition and retention potential. Although it’s been a while since Richard Bartle defined four categories of online players in 1996, his model still proves relevant to modern online gaming. Every game designer should bear in mind the following categories to achieve a sustainable player base.

• Achievers: These players enjoy setting and achieving goals within the game. They prioritize gaining points, levels, equipment, or any other in-game measure of success. Achievers will go out of their way to attain game-based rewards and feel satisfaction in doing so.

• Explorers: Explorers enjoy discovering new aspects of the game world. They will venture into the farthest corners of a game map, try out different game mechanics, and generally seek out the unknown. They find joy in discovering secrets, hidden locations or understanding the inner workings of the game.

• Socializers: For these players, the primary appeal of a game is interacting with other players. They enjoy forming alliances, making friends, chatting, and being part of a community. While they may participate in other game activities, their main motivation is the social aspect.

• Killers: Killers thrive on competition and conflict. They enjoy asserting dominance over other players, often through direct combat or other competitive mechanics. For these players, the thrill comes from besting other players, either through skill, strategy, or teamwork.

In short, any well-balanced multiplayer online game should open possibilities for gripping conflicts to satiate the destructive tastes of Killers, introduce a varied achievement system to cater to Achievers, if possible, support the game with an integrated social hub for Socializers, and lastly, build an elaborate world and storyline to entertain Explorers. Once you have a game design ready to entertain a vast audience within the game’s genre niche, you’re set to enrich the game with an economic model that sustains the game studio and rewards players. Blockchain offers many ways how to accomplish this.

Adjusting Earning Model for Different Types of Web3 Gamers

In this stage of building a game with a sustainable economic model, it’s essential to take a closer look at Web3 gamers’ types. Recognizing various player archetypes in a game empowers developers to grasp the nuances of their game economy more deeply and design incentives that resonate. Although the archetypes might differ by the perspective from which you analyze them, nami.gg has come up with the highly relatable distinction of Web3 players’ archetypes.

• The Profit-Maker is a player who primarily trades in-game assets for real money. Instead of being motivated by the pure joy or challenges of gameplay, their main drive comes from the potential financial profit. However, games that are majorly driven by profit-seeking behaviors can often become unsustainable and can even verge on gambling in their design and appeal.

• The Collector taps into the inherent human tendency to collect items. Before the advent of NFTs, these collections were often only recognized within the confines of the game. But with NFTs, in-game items transform into tradable assets that come with provable rarity and ownership, elevating their value and appeal.

• The Early Believer is an individual who invests in games even before they're officially launched, often through digital asset pre-sales. In return for their early support, they receive exclusive in-game bonuses or NFTs. This model not only provides developers with funding to further the game's development but also paves the way for these early backers to make profits by reselling their NFTs to newer players.

• The Big Spenders, often referred to as "whales" in the gaming industry, are players who make significant in-game purchases. These players are often a substantial source of revenue for many games. The innovation of open economies in Web3 games allows even regular players to benefit financially from these big spenders by trading items that are in demand.

• The Rent Taker introduces a novel way of earning in the gaming sphere, which is by renting or staking in-game assets. This method of passive income generation transfers a considerable portion of the game's economy into the hands of its players. However, such a model might inadvertently recreate some of the less favorable aspects of capitalist systems within the game's environment.

• The Rarity Hunter is a player predominantly motivated by the scarcity and rarity of in-game assets. With Web3 technologies and smart contracts, the rarity of digital assets is transparent and verifiable. However, one must be cautious as the artificial scarcity of these assets can potentially skew and distort normal gameplay.

• The Hodler represents a category of players who, instead of actively playing, prefer to hold onto their NFTs due to their perceived future value. They expect these assets to appreciate and bring them profits in the long run. Even though they might not be regular players, they stay invested in the game ecosystem because of the valuable assets they own.

As you can see, relying on Big Spenders’ pockets and Early Believers’ willingness is not enough. A robust ecosystem of Virtual Assets, NFTs, token holding opportunities, digital real estate, and reward models plays a crucial role in a project’s success or failure.

Our Pick On Building Sustainable Games & Web3 Game Economies

It’s crucial for us to combine uncompromising game quality supported by entertaining game designs and storytelling. On top of these cornerstones, we subsequently build economic models beneficial for developers and players alike.

Overall Gaming Experience

• Emphasis on Quality - We don't compromise on quality. Our aim is to merge the stunning graphics and deep gameplay associated with Web2 platforms with the breakthrough features of Web3. Leveraging the capabilities of Unreal Engine 5, we ensure our games are visually captivating. We also give paramount importance to gameplay dynamics and design.

• Rich Storyline - We firmly believe that a compelling storyline enhances a game's allure. With a focus on detailed world-building and unique character development, we provide players with a deep narrative context. Our dedication to storytelling is evident in Citizen Conflict, which extends its universe beyond the game with an accompanying book.

• User Onboarding and Retention- We prioritize a user-friendly experience. Our interfaces are intuitively designed, ensuring even those unfamiliar with Web3 can navigate with ease. We also support traditional Web2 logins, such as Google, Facebook, Twitter, and email, underscoring our commitment to a seamless user experience.

Sustainable Economic Model Insight

• Multi-Source Economy Model - We have designed a multifaceted economic model that seamlessly integrates NFT sales, token transactions, and tailored advertising opportunities for our partners. In our ecosystem, players are encouraged to purchase utility-rich NFTs. Instead of providing gaming rewards in our native $QORPO currency, which could lead to its depreciation, we smartly opt for stablecoins from sponsored prize pools. On the advertising side, our partners benefit from a vast range of promotional channels, spanning from social media to PR articles, and access to our expansive network of influencers, gaming guilds, and content creators. Additionally, our in-game branded product placements provide a distinct marketing avenue.

• Diverse Game Portfolio - Diversity is at the heart of our strategy. Our flagship hero shooter game, Citizen Conflict, is not just a source of entertainment but also an integral part of the esports landscape, garnering economic benefits from sponsored tournaments. Another standout title, AneeMate, is poised to drive NFT sales with its engaging creature-catching gameplay, reminiscent of the beloved Pokémon series. Recognizing the surge in mobile gaming, we have also introduced EGGos, meticulously crafted for smartphones, promising players a high-octane action experience akin to Fall Guys.

• The Economy Loop - At the heart of our strategic approach is the economic loop. This mechanism is built around three core tenets: acquiring users with exceptional content, retaining users with a variety of rewards and content incentives, and consistently re-engaging them with fresh content, be it new game releases or thrilling tournament seasons.

Game Quality Meets Economic Sustainability

As explained by our CMO, David Achberger:

“Quality games come hand in hand with good economy models which are now more important than ever within the web3. Economy loop drives not only the new players to the game but retain and entertain them for a long time. We in QORPO Game Studio strive to build something that could be a role model for future web3 games to come with sustainability as a main priority."

Our CBO, Sebastian Soos, further explains:

“To develop an efficient economic model for Web3 games, emphasize the creation of games that players primarily engage with for enjoyment rather than solely for earning purposes. It is crucial to prioritize the reward of players through in-game perks, assets, or stablecoins, rather than utilizing a native token. Additionally, focus on building a seamless ecosystem to drive company revenue and leverage blockchain technology to ensure transparent revenue redistribution back to the players. This approach ensures a balanced and engaging gaming experience that aligns seamlessly with the evolving landscape of Web3 gaming.”

How to build an economic model that works for Web3 games? Put the player first. Understand the players’ psychology and create top-notch games. On top of giving players reasons to stay, give them reasons to spend - frequent in-game content incentives will do. Lastly, embrace the multi-source economy model instead exclusive NFT sales.

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