Play to earn economies as base layer protocols for games

By considering P2E economies as the economic and social base layers for an entire ecosystem of games, we believe that building a P2E ecosystem is less about game development and much more about worldbuilding, culture, and incentive design of the underlying economy.

For these virtual economies to retain its community members, they must fairly and transparently make decisions that have serious economic implications to their citizens such as:

-IP: eg. How should the intellectual property of the ecosystem be licensed?

We believe P2E games should be careful about designing incentive structures that are based on gameplay alone. By doing so, they expose themselves to the risk of skewing their membership towards mercenaries, who are more likely to jump from game to game in search for higher returns (similar to how yield farmers jump from farm to farm in DeFi protoco... See more

These economies are not only just places where community members play, but also worlds in which they have financial upside, ownership over revenue generating businesses & valuable digital assets, and defined jobs & responsibilities.

-Economic policies: eg. In-game asset supply, balancing mechanisms

Player retention in gaming is everything. Despite this, publishers optimize for company profit at the cost of player value and well-being. They are able to do this due to their end-to-end ownership and control over the development, distribution, and management of games.

We believe that Web 3 games will win over Web 2 and Web 2.5 games because they leverage community ownership, real economic value, and native composability to drive greater player adoption & retention. We believe that the Web 2.5 approach to building P2E ecosystems is not enough to prevent the value extraction of communities. This is because there w... See more

We believe the opportunity cost of not building for interoperability will overshadow the net cost of doing so.