Case Study: P2E Gaming Projects Tackling The Barriers To Web3 Mass Adoption

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As the decentralized and more democratic iteration of the internet, Web3 has a strong value proposition. Many expect the mass adoption of the new web to start with the NFT-powered blockchain gaming space, for which last year’s colossal rise of the non-fungible token sector paved the way.

Blockchain gaming supercharges non-fungible tokens via the Play-to-Earn (P2E) model by empowering users to earn, trade, and use them as in-game items with complete, verifiable ownership through the distributed ledger. Although, while P2E games have been dominating blockchain activity and reached an all-time high in April 2022 at 1.23 million unique active wallets (UAW), the niche hasn’t yet lived up to the mainstream.

The sector still faces significant issues, such as mediocre concepts, lack of catching gameplay, poor UX, weak and unsustainable in-game economies, oversupply of in-game NFTs, incomplete ecosystems, high entry barrier, and others. Until these issues are solved, blockchain gaming won’t be able to fulfill its role as a primary facilitator of Web3 adoption. 

Let’s see some examples of innovative P2E projects which offered their solutions to some of the industry’s most burning problems.

In-Game Economy: P2E’s Weakest Link?

One of the most tender spots of P2E projects is the in-game economy. Given its leading role in powering ecosystems, it has not only to be robust – but also sustainable. Unfortunately, economies of too many Play-to-Earn games and metaverses lack these qualities. 

Dubai-based Farcana leverages the first-of-a-kind Play-to-Hash (P2H) model (accepted by USPTO for registration) to power its triple-A blockchain gaming metaverse. In addition to native $FARCANA token and NFT rewards, players can earn Bitcoin by competing with others in grand tournaments in the terraformed Mars-themed battle royale game. 

Through backing prize pools with their own mining power and ensuring transaction transparency, Farcana becomes one of those metaverse projects most integrated with the real economy and guarantees the endless supply of tournament prizes. 

Players have to purchase tournament tickets to get a chance at winning BTC rewards, which is another necessary mechanism to ensure the long-term sustainability of the game economy. At the same time, accessibility can be enhanced by the participation of gaming managers, who can delegate their tickets to talented players unable to afford them. And, given the immersive gameplay and brain-computer interface (BCI) integration, the metaverse will hardly be struggling for new gamer blood.

The Oversupply of In-Game NFTs

Even though NFTs were meant to be one-of-a-kind digital assets, many P2E solutions face an oversupply of in-game non-fungibles. With the number of non-fungible token minters surging from 500 in Q1 2021 to 1.2 million by early 2022, NFT hyperinflation of assets might eventually create an artificial bubble that will fuel a significant market crash after it pops.

To avoid drowning the demand, the P2E racing game Roach Racing Club introduced the Run-or-Die concept, which burns the non-fungible tokens of inactive players. This mechanism helps achieve a balanced in-game economy and serves as an incentive for users to be more active within the ecosystem. 

The project, considered “the first smart gambling game of blockchain”, introduced a new poker game model with a strategy chord – play-AND-earn. The primary target audience is crypto-savvy enthusiasts: risk-takers who love a mix of excitement, forecasting, and strategic thinking.

With an interesting twist to the game mechanics, players can ‘breed’ new roaches. Each new generation of the in-game NFTs becomes less resistant to the Run-or-Die mechanism, but their stats are bound to increase (all hail the evolution).

Lack of Value for Traditional Gamers

When it comes to the crypto space, blockchain games have a relatively low entry threshold. However, for traditional gamers, it’s still a gated market. For the time being, the Play-to-Earn space struggles to create the value that would enable traditional gamers’ mass adoption of blockchain gaming solutions. New mechanisms, complicated models, too much information on the backend (while the player wants to keep to the frontend and just enjoy the ride), and low levels of trust – are just a few factors that stand in the way. 

Revoland, an e-sport multiplayer online battle arena (MOBA) game and P2E ecosystem developed by Chain X Game (CXG), seeks to fill the gap between traditional gaming communities and new blockchain-based gaming.

Besides working on its native titles, the CXG team has a dedicated blockchain integration department, which applies its SDK to help Web 2.0 games into Web3. The publishing department – the third division of the company – will aid the most promising P2E projects in kickstarting their titles via an end-to-end Initial Game Offering (IGO).

To make the process of transition to P2E more smooth, Revoland has built partnerships with various companies both in and outside the market. These include the tier-one professional payment service company Khalaspay, which provided on and off-ramps to the world’s various currencies; multinational tech company Huawei, which helps Revoland create millions of jobs for the MENA region, and empower people to generate income.

Missing Out on B2B or B2C Opportunities

When designing P2E solutions, many projects exclusively focus on serving either individuals or businesses. At the same time, targeting both audiences is crucial for enhancing long-term sustainability and the overall ecosystem efficiency.

Unlike most blockchain gaming solutions, UNITBOX DAO captures both B2B and B2C audiences to create new opportunities for GameFi and DeFi market participants, ranging from guilds and scholars to gamers and investors. It uses decentralized finance mechanics to provide users with access to high-yield financial products and ease investments into the Play-to-Earn space. 

The keystone of the ecosystem is the first collateral-free renting protocol for NFTs, which is powered by a unique wrapped NFT (wNFT) technology. The project aggregates thousands of NFTs and GameFi projects, connecting them with crypto investors, guilds, scholars, and players, and effectively lowers the entry barrier for new players while empowering investors with the ability to earn revenue via renting or staking.

On UNITBOX, guilds have access to advanced guild management tools and infrastructure, along with the NFT rentals and DAO ecosystem delegation. Scholars can benefit from job opportunities and intuitive profit-tracking through a wide variety of tools and programs. Moreover, both guilds and scholars can gain access to an extensive gamer database and liquidity-raising instruments, which they can utilize to grow their revenue.

Reaching Web3 Adoption Through Innovative Concepts

From the oversupply of NFTs and weak in-game economies to the inability to connect various market participants and the lack of value for traditional gamers, the Play-to-Earn sector is facing multiple issues that hinder its ability to reach the general public.

While early projects kickstarted the adoption of the technology, it is up to promising P2E startups to tackle the challenges of the blockchain gaming market by demonstrating out-of-the-box thinking and leveraging innovative concepts.

Achieving success in this field is crucial, as the Play-to-Earn sector has great potential to serve as a key catalyst for Web3 adoption.

Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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