Research Summary
The article discusses the different monetization options available for Web3 games. It emphasizes that staking, a popular method in Web3 gaming, is not a revenue channel but a loan incurred by the game developer. The article also explores other monetization methods such as one-off purchases and battle passes, comparing their benefits and drawbacks. It concludes by suggesting a hybrid between a traditional battle pass and an NFT as a potential solution, and warns against the unsustainable economy created by giving away premium items for less than their worth.
Actionable Insights
- Reevaluate Staking Practices: Developers should consider the financial implications of staking. While it can incentivize players to hold onto their tokens/NFTs, it’s essentially a loan, not a revenue source.
- Consider Hybrid Battle Pass NFTs: A hybrid between a traditional battle pass and an NFT could offer a more sustainable monetization method. These NFTs would have a temporary lifespan and offer certain benefits, but would be burnt at the end of a set period.
- Reinvest in Game Development: Excess economic rent should be reinvested into improving the game, rather than accruing to players who aren’t adding value.
