This is a contributor content by Alexander ShelyutsinCo-founder of the GameFi project ZombieTrain.
GameFi is at the intersection of gaming and finance within a blockchain framework, using NFTs and smart contracts, where players can earn real-world rewards while having fun. it’s a universe where grinding not only gives you leaderboards but also some real world value. Players thought it was gaming with a payday attached—and moving fast.
How Telegram Games Are Leading the Charge
Telegram has become a GameFi hub of its own, ushering in a new wave of user engagement. Games like Hamster Combat, Catizen, Notcoin, Dogs, and Gatto lead this charge, attracting tens or even hundreds of millions of users worldwide. These games combine addictive gameplay with opportunities to earn rewards, making them a magnet for both casual players and crypto enthusiasts.
How Are Rewards Distributed?
Many GameFi projects in the past have been stuck in a Ponzi scheme loop. Players earn rewards as long as new players enter the ecosystem. This is unsustainable, and eventually, the system will inevitably collapse. So, how about we try something more honest, sustainable, and engaging?
Imagine this: a user who is extremely dedicated to gaming 8 hours a day, 20 days a month. Even after squeezing the maximum ad revenue and incentives, the rewards can increase to $80 per month. While there are countries where $80 makes sense, the cost of showing ads to such users will cut into the final analysis. That doesn’t make sense even for these users.
What are the Solutions?
1. Player Classification
Not all players have the same goal. Some are here for the thrill, while others want to see their wallets grow. Even in GameFi projects, we see this spectrum:
- Fun-first players: They enjoy the game and may see the income as a bonus.
- Earners: They have them for the grind and potential payoff.
By focusing the rewards program on top earners, the system can maintain higher payouts, incentivizing these users while maintaining the fun element of the game for casual players.
2. Controllable Payouts
Allowing users to control when they cash out is exactly how you can apply market pressure to tokens. Even setting withdrawal limits did not solve this problem. So, what if we take back control? We can reward users monthly or quarterly instead of letting them withdraw constantly.
- Predictable Supply: This method lets you calculate the supply and buy tokens back systematically, which stabilizes the token prices.
- Psychological Boost: Receiving a large payout feels more satisfying than a trickle of small amounts. Big check = big smile.
3. Smart Long-Term Tokenomics
Sustainable tokenomics isn’t just about deciding what percentage of tokens go—it’s a comprehensive strategy that includes max cap, buyout, and token burn. These elements form the backbone of your project, creating an ecosystem that not only survives but thrives. With the right strategy, you build a foundation for your project to last longer and attract both loyal players and smart investors.
Good Tokenomics:
- Axie Infinity: Its dual-token system (SLP for in-game rewards and AXS for management) effectively balances player incentives and ecosystem management. Features like token burns for breeding keep the supply in check.
- Catizen: A model of sustainable reward structures and in-game token utility, ensuring both long-term engagement and value retention.
- Bad Tokenomics:
- Hamster Combat: A textbook “hit-n-run” system. The rewards structure is overloaded to attract early adopters, with no long-term plan for retention, leading to an eventual collapse as player interest wanes.
Key Takeaways:
Bad tokenomics may generate hype in the beginning, but without these key elements, they are bound to crash and burn. Sustainable tokenomics is your project’s insurance for long-term success.
4. Token In-Game Utility
To make the game economy sustainable, your token must have real value in the game. Without it, players would sell their profits, destroying the ecosystem. Here’s what works (and what doesn’t):
Good Utilities:
- In-game purchases: Skins, boosts, and premium content make the token indispensable.
- Event participation: Exclusive events that require tokens to join add fun and value.
- Partnership perks: Reward users with real benefits like discounts or merchandise.
Bad Utilities:
- Staking rewards: If it adds to the token supply without creating demand, it’s a trap.
- Liquidity pools: Same problem—more supply with no intrinsic value.
Rule of Thumb: If the utility increases the token supply without adding value, scrap it. Sustainability thrives on balance.
Final Thoughts
Creating a sustainable GameFi economy is like balancing on a tightrope between fun and financial stability. With careful player categorization, regulated payouts, and meaningful token utilities, we can revolutionize the industry.
GameFi’s potential is huge, and the next wave of projects could move beyond Ponzi-like models into truly rewarding, profitable ecosystems. So whether you’re grinding in Hamster Combat or strategizing in Catizen, remember, the game is evolving—and you’re part of the revolution.
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