Despite some gamers’ resistance to “tokenomics,” industry executives predict that gaming studios will continue to use airdrops and other incentives to attract players. Kieran Warwick, founder of gaming studio Illuvium, stated in an interview with Cointelegraph that airdrops are an easy way to gain market share. However, Warwick emphasized that games must also deliver on the fun and gameplay aspects to succeed. Shi Khai Wei, founder of venture capital firm LongHash Ventures, echoed this sentiment, highlighting the importance of making games enjoyable.
Axie Infinity, a blockchain game, has been one of the most successful examples in the industry so far. However, the game’s creator, Sky Mavis, struggled to retain users after a $650 million bridge hack and other challenges during the last bear market. Wei stated that games with sustainable economics, appropriate emission schedules, the right player base, and incentivized gameplay are the ones that will survive.
Warwick acknowledged that token incentives may attract airdrop farmers instead of genuine gamers but believes it is a necessary evil to expand the player base. He added that it also helps to draw attention from gamers in the space. Illuvium recently released 200,000 ILV tokens, valued at around $25 million, as part of its six-month Play-to-Airdrop initiative. These airdrops will be collectible in Illuvium Arena, Overworld, Zero, and Beyond, which will launch on IMX, an Ethereum NFT-focused layer 2, at the end of May.
Gabby Dizon, CEO of Yield Guild Games, argues that while airdrops can accelerate GameFi adoption, not everyone is solely interested in financial returns. Dizon and Warwick believe that GameFi still lags about 14-15 years behind traditional games but anticipate that the gap will narrow rapidly. Warwick noted that the rate of innovation in blockchain is much faster due to the experience of blockchain studios’ members who previously worked on mainstream games with millions of players. He emphasized that it takes time to create all the necessary elements for a successful GameFi project.
Warwick stated that building intellectual property in the gaming industry can take up to six or seven years, and leading gaming studios are currently halfway through that process. Dizon hopes to see a GameFi project emerge that can significantly propel the sector forward, similar to how Clash of Clans and Candy Crush impacted traditional gaming in the early 2010s. Yield Guild Games aims to create a decentralized network of gaming guilds that bring together blockchain games and gamers within a single community.
Wei, on the other hand, remains confident that the GameFi industry will witness the release of a AAA-standard game by 2024.
(Source: Robbie Ferguson)