CoinEx Institution | Start Your P2E Investments from GameFi Platforms (I)
The concept of Play-to-Earn (P2E) made popular by Axie Infinity has drawn the market to GameFi since the summer of 2021. In the past few months, we have seen a dazzling array of new GameFi projects. They are either PvP/PvE mini-games that copy Axie Infinity’s breeding model or large AAA games that won’t be available until later this year. With the GameFi mechanism, crypto users can earn profits apart not only from token investments but also from staking tokens and NFT assets for mining revenue, and from making more in-game earnings by upgrading items/NFTs and improving their skills/levels.
The fact that there are now more ways to earn money means that you may suffer more kinds of losses. Over the long term, GameFi is undoubtedly favored by the market. However, in the short term, GameFi tokens and NFT assets are sometimes overvalued. Considering their incompleted economic mechanisms, unappealing gameplay, and unknown launch date, the marketcap of many GameFi projects is simply too high, which is particularly dangerous in light of the uncertain market conditions.
Additionally, based on our experience in traditional games, the development cycle of a single game is often lengthy and expensive. Meanwhile, a game will not remain appealing for all that long. Therefore, investing in a single GameFi project may come with high risks. Although you can always spread your risk by investing in different GameFi projects, another approach to diverse risks is to invest in GameFi platforms.
For instance, investing in Nintendo is not that risky as investing in Mario games. Such an approach is also an easier starting point for investors who are new to GameFi investment. Gaming platforms are more focused on user traffic, traditional games, and the introduction of GameFi projects, which facilitates the development and user growth of GameFi projects in the early stage to a certain extent.
Today, we will analyze some GameFi platforms in the crypto industry, with a focus on platform features, token economy, and games.
Gala Games aims to build a decentralized game network where it provides curatorial and maintenance services as an entity. This includes helping to integrate game studios into the Gala Network, updating the node software, etc. With Gala Games, games themselves are not deployed on the chain. Instead, only their assets will be launched on Gala Network. Moreover, players decide when to mint and launch such assets.
1. Platform Features
Gala Games relies on nodes to maintain the operation of its network. Because the Gala Games network is a blockchain-based gaming platform, the network needs a decentralized network of computing power to make sure the games operate normally and the network is secure, stable, and cheap to run. That’s where a Gala Node comes in — the node operators take on a small part of the work that needs to be done for the games to work for players.
According to Gala’s official documents, rewards are subject to the following three consensus mechanisms:
(1) Proof of Stake: Nodes running stably could get points. The specific mechanism has not been disclosed.
(2) Proof of Work: Nodes support the Gala network by providing hashing power, and the number of points available per unit of hashing power will be determined by a decentralized algorithm.
(3) Proof of Storage: The Gala ecosystem aims to host all games on decentralized storage. Nodes can support the ecosystem in terms of storage, and the specific points for the storage will be determined by a decentralized algorithm that awards points based on the location, speed, and reliability of the storage.
Generally speaking, both hashing power and storage are critical resources for a game. Gala will have a “see-saw” algorithm that will determine which resources are most needed by the network. For example, if the network has tons of storage but very little processing power, then it will give higher rewards for processing than storage. This would incentivize additional processing suppliers. In short, the network will adapt to its needs. However, as Gala remains in an infant stage, the Proof of Work and Proof of Storage mechanisms have not been activated.
With regards to the types of nodes, Gala initially planned to divide all nodes into three categories: Founder’s Nodes, Paid Nodes, and Free Nodes. However, Gala later took the view that the long-term stability of the network depends on nodes being online essentially 24/7. It felt that neither a “paid” (rental) nor “free” model would achieve the goals or minimum requirements of the network to function. Therefore, Gala nodes are placed into two categories instead: Founder’s Nodes, which work for the entire Gala ecosystem, and Game Specific Nodes, which are for different games.
Right now, the total supply of Founder’s Nodes stands at 50,000, 23,000 of which have been sold. As of December 31, 2021, a Founder’s Node is priced at about 186,000 GALA (approximately $88,000). In addition to the reward points, Founder’s Nodes also have voting powers. For example, they could vote on which games can enter the Gala ecosystem. At the moment, a game called Last Expedition is at the stage of node voting. Speaking of the Gala-powered games, Town Star also sells game nodes called Town Star Nodes, while the number of TOWN token rewards available to players is closely bound up with Town Star’s DAU (daily active users).
2. Token Economy
The maximum total supply of GALA tokens is set at 50 billion, while its current total supply and circulating supply are approximately 36.4 billion and 7.5 billion, respectively. Right now, GALA can be used as a transaction medium on the platform for buying NFT items.
Ways to get GALA: 1. Play games; 2. Become a Founder’s Node; 3. Referral rewards; 4. Buy GALA in secondary markets.
Before Gala Games launches a large number of games, becoming a Founder’s Node is the main way to get GALA tokens. After purchasing a Founder’s Node license, you can earn 1 point if the node is run for at least six hours per day. If someone runs 10 Founder’s Nodes at the same time, he/she can get 10 points a day. The system will distribute the daily GALA token rewards according to the proportion of points earned by each node in the entire network.
If a friend of yours became a Founder’s Node through your referral, you can then get a referral reward of 10 points. If the referred node runs for at least six hours a day, you will get an additional 0.1 points every day.
Additionally, every July, the additional issuance of GALA will be halved, which means that only 12.5 billion GALA will be minted from July 2021 to July 2022, and only 6.25 billion GALA will be minted from July 2022 to July 2023. Moreover, 50% of the newly minted GALA will be temporarily used for rewarding Founder’s Nodes, and the other 50% will be reserved for the Gala Games conservator-ship, a community treasury developed by Gala Games.
3. Platform-based Games
At present, only two Beta-stage games can be played on Gala, and the others are all under development (as the picture below). It should be noted that Gala owes part of its fame to Town Star, a simulation & management game developed by the Gala team. Last summer, the game attracted droves of crypto/non-crypto players who spent countless hours for in-game rewards. In Town Star, players must develop and expand their town with limited spaces and initial resources, fully tap into their AI workforce, and produce increasingly valuable goods.
WEMIX is a platform for gaming DApps that provides users with wallets and a marketplace for digital assets (fungible tokens & non-fungible tokens). The platform aims to build a blockchain gaming ecosystem with users’ “experiential value” at the core.
1. Platform Features
WEMIX is backed by existing game IPs. Wemade Tree, a provider of blockchain gaming services behind WEMIX, is a subsidiary of Wemade, which is a KOSDAQ (Korea Stock Exchange) listed game developer that has been serving the global game market for over 20 years. The company owns more than 40 big-name game IPs, including MIR4, a game widely known in Asia.
WEMIX uses a multi-chain-based hybrid structure. WEMIX is not only a blockchain gaming platform but also an integrated network based on a multi-chain hybrid structure for blockchain-as-a-service and asset management, which mainly consists of three layers:
- Service chain: This is a side chain consisting of multiple chains that functions to provide services. Right now, it has launched Tornado Chain. The game token assets on the service chain include Tornado Token, Darksteel Reserve Allotment, and CQ Zuanshi.
- Public chain: A blockchain for asset management, i.e. the WEMIX Chain.
- Bridge chain: An intermediary blockchain that enables the transfer of assets between the service chain and the public chain.
2. Token Economy
The total supply of WEMIX tokens is 1.018 billion, while its current maximum supply and circulating supply are approximately 1.015 billion and 123 million, respectively. The WEMIX network generates 1 block every second, and 1 block produces 1 WEMIX.
WEMIX features a wide range of application scenarios, including but not limited to: Paid as network fees (transaction fees and cross-chain fees); settlement of game tokens, payment for B2B solutions; tokens obtained from crowdfunding for game projects; staked for benefits and interests; get airdrops of game assets. In particular, the settlement of game tokens means that tokens on the service chain can be traded externally only if they are converted into WEMIX tokens.
Ways to get WEMIX: 1. Sell game items; 2. Trade game tokens; 3. Buy WEMIX in secondary markets.
3. Platform-based Games
Generally speaking, games on WEMIX can be placed into two categories: simple, casual games and large, intense games (as the picture below). It is noteworthy that MIR4 significantly expanded the influence of the platform. First released in South Korea in November 2020, the game immediately became the most downloaded game in the country. Today, MIR4 is available in 170 countries around the world. In addition to the MIR tag, the game also offers gaming experiences that are different from similar games by leveraging blockchain technology.
MIR4, an all-new game built using Unreal Engine, comes with sophisticated maps and character drawings. The game has also adopted blockchain technology for the first time, and players can now use DRACO tokens in exchange for FIX (Darksteel), a basic in-game resource. In MIR4, there are four classic job classes: Warrior, Sorcerer, Taoist, and Lancer, each of which has 13 skills.
Apart from the four mechanisms (Hunting, Fathering, Mining, and Meditating) that enable character growth and deliver economic value, the game also features political, economic, and social systems. MIR4 also features classic gameplays such as the clan system, pet system, and raids. The feature of real-time chat translation in MIR4 allows players from all over the world to play together. The game presents a well-established virtual world.
MOBOX is a GameFi platform that combines DeFi and NFT to create a Free-to-Play and Play-to-Earn ecosystem. The development Mobox is divided into three stages: (1) Short-term: A blockchain version of Steam/Epic games; (2) Mid-term: A MOBOX DAO where players holding governance tokens will be able to participate in decision-making; (3) Long-term: A cross-platform metaverse.
1. Platform Features
MOBOX comes with both centralized and decentralized access. The MOBOX platform offers a decentralized and centralized account at the same time. To begin with, users of MOBOX can register/log in with their social media accounts, which makes it easier for them to get started with the platform. Secondly, users can generate an address in MWallet or import their private key to link the wallet to an existing address or a third-party wallet, and the private key will be stored on the cloud for enhanced security.
MOBOX features a well-rounded GameFi system that combines DeFi and NFT and is backed by multiple types of assets. Assets on MOBOX now cover FT and NFT. More specifically, the former includes the platform-based token MBOX, which is obtained by staking MBOX and used to increase MBOX’s farming revenue, veMBOX, which comes with voting powers for major decisions, and KEY, which is used to open Mystery BOX. NFT assets, on the other hand, include the following categories:
(1) MOMO, NFTs that resemble elf pet Axies, is divided into six different qualities: common, uncommon, unique, rare, epic, and legendary. The higher quality, the greater the corresponding hashing power, and the more MBOX mining rewards will be available to the holder. Moreover, the MOMO quality will also affect your performance when users game with other players.
(2) In MOBOX, Boxes, as valuable as the KEY token, includes Mystery BOX and MEC BOX. Players can open a Mystery BOX to get random MOMO NFTs and open MEC BOX to get a random number of crystals, which can be used to increase the hashing power of MOMO. You can get a BOX through paid battels or buy one from the NFT market.
(3) GEM: Each MOMO has four fixed GEM positions, which can be inlaid with green, blue, yellow, and red GEMs. The highest level of each GEM is 9. Players can get GEMs through the hashing power lottery and the veMBOX lottery. GEMs can also be bought in the NFT market.
Revolving around the two kinds of assets, MOBOX has created a GameFi world where DeFi converges with NFT. In the very beginning, users stake stablecoins (BUSD, USDT, and USDC), single tokens (BNB), and LP tokens to get MBOX and KEY. Both tokens can be used to open or buy Mystery BOX for NFTs, which can be used in MOBOX-powered games or staked to get MBOX rewards. For more specifics, see the picture below.
MOBOX builds an open, transparent distribution platform through P-NFT. When a game is successfully published on the MOBOX platform, the developer receives a Published Non-Fungible Token (P-NFT) representing their ownership of the published game. On the one hand, all revenue the game generates is recorded on the blockchain, ensuring full transparency. On the other hand, the P-NFT smart contract also serves as a revenue sharing agreement between the platform and the developer, automatically paying out the developer’s revenue share directly to their MOBOX wallet.
2. Token Economy
The maximum total supply of MBOX tokens is set at 1 billion, while its current total supply and circulating supply are approximately 389 million and 8 million, respectively. Primary functions of MBOX: Used as an in-game currency; yield farming; staked for BOX rewards; governance; bidding for the legendary MOMO NFTs.
Ways to get MBOX: 1. Yield farming rewards; 2. Rewards for staking special NFTs; 3. Play to earn; 4. Buy MBOX in secondary markets.
MBOX tokens feature a buyback and burn model (see the picture below). 80% of all profits across the platform is directed into an “auto buyback and burn” pool consisting of BNB. Whenever the price falls below the 72-hour average price, the smart contract will be triggered to repurchase and burn MBOX.
MOBOX has introduced four mini-games (as the picture below), which are available on both web and mobile devices. These games can be placed into two categories: (1) Games that focus on finance, such as the DeFi game MoMo NFT Farmer and the simulation game TradeAction with simulated competitions; (2) Team battle games that include Token Master, Block Brawler, and the upcoming Tactical Party Slayer.
To be continued in Part II: https://coinex.medium.com/coinex-institution-start-your-p2e-investments-from-gamefi-platforms-ii-daafc516bbbc