NFT 2.0 & GameFi. Market analysis. Part I
In this article we begin the analysis of the GameFi segment (Play-2-Earn, Move-2-Earn, ETC.), as well as try to illuminate the most important and promising projects, their strengths and weaknesses. We will begin the consideration by alphabetical. In the first part – 10 projects.
In the world of games, practice has long developed that players want to earn money, and corporations do not allow this to do this by all possible forces. Why? Because they lose and a lot. Be that as it may, it was game currencies that became the topic of study of one of the first reports about Bitcoin in 2012, and such services as XSOLLA were developed precisely thanks to the digital goods market from games. Like many exchange points.
And yet Steam and others are in no hurry to the NFT market. And the reason is the same: corporations built a model of monetization of a completely different kind than it is in Web 3.0. And yet, as we know, progress cannot be stopped. Knowing this, let’s move on to a brief description of the projects.
Briefly about the world without collateral
Briefly the Service concept sounds like Rent-2-Earn. Let’s try to explain with two examples. The first is the game lease as it is today, namely:
- The player pumps the character, say, up to 80 levels;
- Then he begins to lease it, taking a deposit for the duration of the lease;
- If the character is returned, the bail is also returned, and with it – payment of rent.
And here there are several obvious disadvantages at once:
- We need an escrow, which will confirm that the character is returned, the deposit is transferred to the pledger, and the rent is completely paid;
- Further – not all characters according to this scheme can be transmitted: It is enough to say that in some cases the cost can reach thousands and hundreds of thousands of dollars, and the age of the players begins at 7-9-16 years and is unlikely to expect such savings from them;
- In addition, the transfer of not a character, but, for example, armor – a separate, long and complex story.
And yet – there are solutions. And it is not one.
https: // 99starz.IO/ – Perhaps one of the classic approaches where you can create guilds and money earned in profitable farming in order to increase the earnings received.
The project is focused on large services, such as Axie, Sorare, Revvracing, Cryptomotors. In fact, NFT rental occurs through the internal token stz, which is designated as Cross -cross, multi -platform and accessible to everyone Participants in the ecosystem 99starz. But today the token is released in the amount of 99M and only in the ERC-20 standard.
In fact, the project is focused on building guilds (hence the division of players into masters, captains and players), their training and joint earnings through rent.
https: // BlackPool.Finance/ – This project is focused on the segment, the name of which was chosen Esports. From games and others NFTS: Sorare, Aavegotchi, Guild of Guardians, etc.
Actually the service positions itself as a hedge fund for working with NFT mechanics, access where it is not open. Therefore, the number of contributors is extremely limited . It seems that in the end it is a niche solution, not a massive solution.
In this, it looks more like The Lao, Flamingo Dao than on a purely Play-2-Earn or a similar project.
https: // duble.one/ – unlike the previous project, this is already a full -fledged decentralized NFT rental protocol with open source code, as well as this and trading platform for NFT-assets.
One of the features of the project – sublease: NFT can not only be taken for primary use, but also develop a network of users of secondary ones (just).
Of the technical details-the use of EIP-4907, EIP-5006, which are back compatible with ERC-721/1155. About 40 projects for today: https: // Double.One/Collection/List .
https: // gamecredits.Org – the essence of the project boils down to the fact that each NFT provides the rights to management and one land, and also mines $ Genesis, which nourishes the economy Genesis Worlds. At the same time, “Genesis Mining Claims are the fundamental NFTS, which allow you to participate in the management of the individual world, mining Genesis tokens. Each NFT Mining Claim contains a conceptual 3D model of the world ”.
There is a complete analysis of tokensomics by reference and return to it in one of the following parts, while basic mechanics are described in the documentation, and not on the main site: https: // docs.GameCredits.Org/ .
Another important feature is that on the Game Credits platform users can create, buy and sell NFT without gas payment, and also do bets Game Credits for creators or projects to earn Game and Loyalty Points, which can be exchanged for NFT from participating creators.
https: // IQ.Space/ – Perhaps the first, distinctive feature that is striking is the following thesis: IQ Protocol allows the owners of digital assets to receive passive income by safely leasing their NFTS and Fungible tokens . Tenants can access assets and their Utility function for a certain period of time.
Thus, this service is one of many, but it is focused not only on “pure” Gamefi mechanics, but also on the Defi segment.
In this case, the lease mechanism is still on launch.
https: // Lootnft.IO/ – This project is strikingly different from the previous five, because the LOOT NFT – Gamified arcade with the virtual world, depicting alternative reality. Moreover, there is an application for interactiveness: each component of the world was collected together and covers 6 sites with various branding that work as separate applications and businesses. Nevertheless, each site is compatible with others, has the possibility of a single entrance and a general transaction book, which creates a meta -combat combined.
In addition to common mechanics – there are also unique ones: say, an order for individual works on a competitive basis, etc.P.
Another feature is the NFT connection directly with offline world through special persons-curators. Therefore, the rental of NFT here occupies a small part of the concept, but still has its own characteristics, which we will talk about.
https: // Playdex.IO/ – First of all, it is a highly specialized supermarket. In the second – the landing platform (lending) through NFT.
In fact, PlayDex – rental market for P2E. Or market rental market NFT. The service allows players and guilds to rent gaming assets from NFT holders, connecting all interested parties in the P2E field through one optimized platform. In general, in this regard, there are no huge differences from “competitors”.
But, judging by the traffic of the site, this project has all the prospects to gain a foothold as a niche solution, because the indicators even in 2022. higher than other services.
https: // paM.Io/ – The slogan sounds quite simple: trade, study, borrow. And the concept in this regard suffers from originality. On the other hand, positioning is similar to Playdex (https: // vote.Prom.IO/#/): NFT playing platform for sale and rent. Fully decentralized, confidential and safe.
There are still few participants (79), because the project is at an How to add a network early stage and is largely relied on MVP.
https: // www.Renft.IO/ – Perhaps the most interesting in the project is White Label with a message: connect and create your own rental NFTS site. Another feature is the ability to stipulate in advance (through a smart contract) the terms of payment of income.
Although the project is focused on unstressed lease – it has a solution for the collateral lease, including.
The project is quite young, so the main issues have been made as proposals for Tao: https: // comunity.Renft.Io/ .
https: // unitBox.IO/ – this project has several strengths at once, besides standard mechanic’s unstable lease,.
The first of them is the possibility of opening a credit line, the interest and the body of the loan on which are extinguished by renting NFT for rent. The second-work both at the level of EIP integrations and with the help of a WRAP NFT mechanic. Finally, the third is a compound of the Defi practitioner with the standards of the GameFi industry.
The project is now at the SEED stage and therefore are implemented Dapps in the form of MVP.
As you can see, all services considered (however, those that will be investigated later are similar in this) young and launched either MVP, or as an early alpha version, which indicates a potential market growth in the next 3-5 years.
But for this it is necessary to study its quantitative characteristics that we will try to do in three parts of our pretending.
To date, the following parameters can be identified for comparison: technical, economic, legal, other. The consolidated list can be as follows:
- The essence of the technical solution (Approach);
- Service/product status (Product Status);
- Supported Chains;
- Marketplaces (Buy/Sell MarketPlace);
- Credit line (Credit Line (Lending));
- Stakeing (Staking/Farming);
- White Label;
- Entrance barrier barriers;
- NEFT transfer requirements (NFT Migration REQUREMENT);
- Double use problem
- Tulkites for guilds (Guilds Management Tool);
- Compatibility with Institute Compatibility;
- Revenue Sharing Rental, ETC.);
- Supported EIPS/ERCS (Supporting ANY ERC/EIP Standards);
- Other criteria.
From the point of view of technical implementation, almost all of the analyzed projects support the EVM networks: BSC (BNB Chain), Ethereum, Polygon. At the same time, projects on other blockchains, primarily SOLANA & NEAR, after – Tezos and others, including Wax (EOS), are also present, but their number is very limited. This coincides with the conclusions of other studies. Example:
We also note that among the technical decisions of the lease/subarens should be allocated 3 main approaches:
- Wrap NFT: by wrapping NFT 1.0 It becomes 2.0, and thereby, can receive new properties without changing standards;
- Similar, but still the so -called Smart pits, which are concentrated on a narrower spectrum of operations (transactions) with assets;
- There is an possibility of influence Directly on NF metadataT, which is a lesser way than those indicated in p. 1-2.
Separately, we identify that each project is trying to use as many actors as possible, attracting the developers. For this, they are implemented:
- SDK approach;
- White Label Media;
- Open Source;
At the same time, the basic difficulties of the market are not hidden in the technical part, but in the economic one, therefore, today there are several vectors of possible development:
- Undoubtedly, General token with a Utility functional – an understandable, simple, although not always elegant solution, besides, the token cannot always be involved in different mechanics;
- Rent and sublease NFTS – a completely established practice, which quickly became understandable to many due to the lack of pledge and a long entrance to the games, but it is no longer possible to call it the only one;
- Lending through rent and other mechanics – The development of Defi components in Gamefi is already: this is seen by prospects and scale, although there are no full -fledged token for analysis;
- Pharmacing and/or staying – It is also worth recognizing with general solutions for Defi/Gamefi segments, but without filling the treasury (Treasury) it will be extremely difficult to develop this vector.
From these theses you can draw two simple conclusions:
- The technology is ahead of the economy today;
- Each project is trying to test its own mechanics of attracting players, which means a positive growth in tools for the latter.
But is there a prospect in all this? Let’s try to answer this question.
The first thing that can be apparently appreciated is the attendance of resources:
- BlackPool: >47k (France, USA, India, Italy, Switzerland);
- Double: > 22K (USA, China, Poland, Latvia, England);
- GameCredits: >5k (Germany, Mexico, USA, Argentina, France);
- IQ.Space: >32k (USA, VNM, Germany, Netherlands, Norway);
- LOOTNFT: >8K (USA, Mauritania, Switzerland, Argentina, Bolivia);
- Playdex: >95k (Indonesia, Philippines, Russia, Canada, USA);
- Prom: >18K (Turkey, Indonesia, France, India, Canada);
- Renft: >29k (Netherlands, USA, Taiwan, Korea, England);
Us (Menaskop & DAO Synergis) an abnormal pattern by countries has been revealed.
On the one hand, the Philippines, Brazil, Indonesia, India, a little further Russia and other countries are leading in the Play-2-Earn market (sometimes the following numbers are given by the Filipinos (40%), Venezuens (6%), Thai (5%), Brazilians, Brazilians (3.5%) and others.), and on these sites mainly the United States and the EU state. In our opinion, it is explained simply: VPN. But we can confirm or refute only in a full study, which will be published in December 2022 together with the Envelop team.
Another important indicator is the amount of DAPPS where you can use the unsteady rental of NFT:
At the same time, it is worth considering that more than half of active blockchain-wallets in the peak accounted for the GameFi Industry, which means the following: for the mass user, this entrance point is most convenient.
What will happen in the second and third part?
First of all, we will consider such projects as Gameram.COM, Starsharks.Com, Playnity.IO and many others. Secondly, let’s try to evaluate the positive and negative sides of the unstoping rental market relative to Defi Mechanic.
Another important indicator is the number of active accounts, as well as the number of active players in the industry. No less significant aspect, which will be considered later-capitalization: it reached $ 12-4 billion in Max for various calculations, which is less than 10% of the global Game industry. This can be seen when analyzing a number of resources:
Finally, it is worth discussing the issue of investment from 2017 to 2022. And be sure to consider it in one of the parts. Finally, let’s try to evaluate the main question-the issue of the tokenomics of the outdoor lease projects based on the analysis of the tokenomics of the GameFi products themselves and their tokens. To do this, we consider both the theory (WP/LP of projects) and practice (their statistics DAPP). In particular, the following documents: