Buidler DAO analyzes the development of GameFi and believes that Ponzi structures are a double-edged sword. It explores how GameFi can achieve a good Nash equilibrium and divides GameFi into two basic directions: gamified finance and tokenized gaming. It analyzes the possible solutions for both directions.
The Ponzi structure is a Coordination Game in game theory, which has two Nash equilibria: one where everyone chooses to trust and invest, and one where everyone chooses not to trust and engage in a run at the appropriate time. Most GameFi users are speculators who are well aware that they are playing a Ponzi game. However, despite its flaws, the Ponzi structure brings not only a downward spiral but also an upward spiral to GameFi. GameFi certainly has its shortcomings, but its advantages are more numerous, enough to make practitioners go all in. In my opinion, there are two major advantages: consensus building on the value of the token, and post-buying (redemption).
GameFi has two basic directions: Gamification Finance, which focuses on financial attributes, and Tokenized Game, which focuses on gaming attributes.
- SEC’s lawsuit against Ripple for violating securities laws will come to an end. What does this mean for the cryptocurrency industry?
- Avail “Data-Driven Bridge” Interpretation: How to Help L2 Rollup Stacks Enable Validium and Volition Modes?
- What did the 34-page court ruling in SEC vs. Ripple actually say?
For Gamification Finance (XX to Earn), it is not XX to Earn that is wrong, but the GameFi project parties that follow suit and copy the model. XX 2 Earn is actually a form of buying volume – using token liabilities to buy volume. Strategies to address this include: 1) complexifying the structure and strengthening the community of interests; 2) enhancing the social currency attribute; 3) finding new scenarios from new standards; 4) launching XX to Earn at the appropriate time; and 5) building consensus during cycle fluctuations.
There are two important observation indicators for the Tokenized Game direction. The first is having money, and the second is having high gaming attributes. Strategies include: 1) making full use of Battle Blockings – if the design of the chain game itself is exciting enough, with a season every six months, defining Battle Blockings, presenting the props obtained using NFT, and using the income from Battle Blockings and NFT trading fees to form a long-term stable profit model; 2) paying attention to the new EIP of NFT, as blockchain has already been of great help to games. As long as the same playability is achieved, blockchain games will definitely have a crushing advantage over traditional games when combined with the narrative of “asset ownership” and combinability.