NEST Roundtable 9：Digital Assets in GameFi
Participants:
Woody: Head of Marketing at NEST
CP: Head of business operations development at Binary X
Volkan Arslan: Head of marketing at Yeeha Games
YSI9HT: Managing Director at YSight Capital
Tina: Operation Manager of Spola Labs
Lyon: CTO of Findtruman
Conference recording：https://twitter.com/NEST_Protocol/status/1584530189928710144
Would you please introduce yourself and your project?
Tina: Spola Labs plans to use NFTs in other web3 native products to bring sports fans with benefits, including future event tickets VIP, boxes, and other premium opportunities to empower sports business opportunities and art market IPs, eventually realizing value add to both consumers and industry, then facilitating a paradigm shift within the Spola Labs businesses. The ecosystem consists of NFT market and NFT-based community, third party opportunities, web2 companies and DAO.
Volkan: Yeeha Games is revolutionizing GameFi by connecting web2 gamers and web3 gamers through the benefits of blockchain technology. What we do different basically, we bring good mobile games to the market. Our main goal is basically bridging web2 and web3 through traditional gamers which is the market.
CP: Binary X is the biggest GameFi platform on the BNB chain. We started out more than a year ago to develop engaging games that incorporate GameFi elements. Today we have two successful titles under our Belt, Cyber Dragon and Cyber Chess.
Lyon: Findtruman is a content creation platform built in web3. This project is based on our previous web2 application which is a sort of RPG game. We have two parts in our platform. The first part is user generated content editor, and the second part is a 3D story game plat platform.
Ray: YSight capital is a Hong Kong and Singapore based token fund and incubator and we are focusing on web3 infrastructure like GameFi and all of the innovative startups. as we all know that kimchi is come from the you know the combination of gaming and finance, so what we call DeFi as leader back in well again with the collectible NFT service as user experience.
Woody: NEST is the web3 infrastructure and we build a probabilistic virtual machine. And based on this PVM it allows developers to simply generate on-chain assets by simply calling our functions. We have NEST Fi and recently we provided to earn 20 times leverage of perpetual futures and with no holding feature for your open position.
What is GameFi? X2E, Mobile game, PC game, Console game, etc., can they all be the part of GameFi?
Tina: GameFi is a combination of the terms gaming and decentralized finance and describes integration of blockchain applications in the gaming sector for monetization purposes. Smaller publisher in particular use of possibility of monetizing their games by issuing tokens. So for me, they can all be parts of GameFi, just different types of display form.
Volkan: To be more precise here, GameFi is everything combines good gaming. Blockchain elements and financial elements which are implemented in a really well. So, it is a product, it’s everything involved.
Lyon: GameFi is a sort of decentralized application where users can play games with some incentives as encouragement after the play of the game. All games could be a part of GameFi in a Dapp way with incentives. Now most of the GameFi product are more focusing on the play to earn more than the gaming mode, which means most of the previous GameFi product are not very interesting to players from web2 users.
Ray: From the investor side, the traditional video game like traditional PC game players is switched to blockchain gaming. Although traditional video game and PC game often encourage players to buy in game items, I guess the value of this asset is really allowed to actually be traded for real world currency. On the other hand, the valuable in game asset within the play to earn games and the whole GameFi space recorded on blockchain, and this means that the asset can be exchanged for cryptocurrency and later be converted into fait.
What is the market trend of GameFi now, in terms of development, business models, users’ preference, etc.?
Tina: Recently GameFi change to be play-to-earn model and even further. Now people even want to make more views friends in game, not only because for making money, but also their social. The original business model is only early participants can get profits. GameFi becomes more complicated and has a lot of business closed loop, which is more playable and more social right.
Volkan: I think the trend will continue to try to go for the quick money, but to go for something logical and legit here, I would say the trend that users prefer right now is transparency, logical decision making, community building and a healthy ecosystem.
Woody: Community driving is a market trend now and actually it’s not only in GameFi, but I also think a lot of on changing projects are trying to do a community driven decisions for their product development.
CP: GameFi has gone through numerous changes in terms of business model. I guess the industry has quickly realized and the community as well that these play to earn model was not very sustainable in the long run. So, gamers want to see us develop games that are more focused on fun and earning and also earning potential.
Lyon: The trend of the GameFi recently is more focusing about the content and high-quality stories. The play to earn mode can only attract some web3 speculators who want to make money. If focusing on high-quality, the economic system will be healthier and there will be less Ponzi scheme.
Ray: Content creating is quite important because at the same time we’re digging into the he AIGC because it can inspire me about how to make decisions on GameFi investment. GameFi now enhances gameplay by adding complexity and challenge for players. I guess we should take more and looks at some of the most significant factors that may likely cause GameFi to undergo and considerable change in the following months.
What kinds of digital assets are in GameFi now? Are they necessary?
Tina: GameFi incorporates blockchain based assets like NFTs and crypto currencies into video games. The core of GameFi is having complete ownership over the assets you earn in game. With the game shift into crypto world, we need to make some assets on chains, so we need NFTs. Currencies are also needed in the game and also linked to their real life. So only when a game has digital assets like NFTs and crypto currencies, it can have a close economic loop.
Volkan: A big mistake a lot of GameFi projects did was basically making their game only accessible through the NFT. So now, we are doing games that you could play without NFTs. Also, users want some uniqueness customization, like unique characters. So, they might build psychological bond to that character by implementing more traditional gamers who have exactly that mindset.
CP: I think the digital asset you can find GameFi are like the assets you can get from playing traditional games like world of warcraft. The digitizing and tokenizing of these assets basically just makes it easier to transfer across the assets. These assets are all built on the blockchain they are then authenticated and that is a very important aspect. There are also many types of new NFTs appearing.
Lyon: About AIGC, we believe it would be an important part in the future. More and more projects will use this kind of AIGC to help the community or the professional writers to create a stories or whatever kind of work. In some projects the digital asset is very complicated which is not easy for the team to maintain at a stable price or a stable economic balance for the user or for the investors and this is also a very important reason for which a lot of projects cannot go much further.
Ray: I think digital assets are necessary. The use of virtual reality and AR devices in metaverse games will help create the immersive 3D settings where you can buy sell and earn digital assets like crypto and NFTs. The web3 games are more and more like the game in the reality. And I guess the more interactive and complex games are being developed in the future which means more complicated tokenomics linked to digital assets and more interactive and complex video games will be transferred and developed.
How do you think the future of GameFi? Do you think 2023 will be a bull market for GameFi?
Tina: So, if NFT summer was 2021 and Layer 2 Summer was 2022 So what will summer 2023 be? I think it can be GameFi. Nowadays people are addicted in engaging with metaverse, and many products are focusing on it as well. Metaverse seems to be a parallel word to our real life it is awesome because people can do whatever they want to try in this virtual reality. People can engage and enjoy the game and do some assets management. So, I believe it would be a bull market.
Volkan: It really depends on how everything goes in general and how the crypto market performs in general. Actually, I think the bear market was really well for GameFi because 99% of all the Ponzi schemes projects just got like flooded out. We are not in the best position globally right now when it comes to economics and development, so it’s all about the money flood.
CP: I believe that the future of game five lies in transitioning away from the play to earn model. we are working with a very unstable product right now and a lot of what we are seeing or what we have seen is unsustainable in the long term. Exploring ways to monetize passion and make gaming more rewarding than how it is already, that is one thing that should be the top of mind for all GameFi projects out there. I do think that overall, the GameFi is positive. Some experts are making GameFi as a semi web2 and web3, so I wouldn’t be so quick to say that it would be a bull market next year, but there are lots of progress behind the scenes that are happening right now that will make bull market possible.
Lyon: I think GameFi application will be much better in user experience, and with the development of a lot of infrastructure in crypto and it will be able to attract a lot of web2 players in the next year.
Ray: Whether it’s well based on a play to earn crypto model or not, it could be a lot of new games comes up. According to the current market data, probably recent GameFi industry has gradually declined maybe during the first-year cycle for the blockchain gaming industry. Despite the downturn this year, it has also proven to be the year for GameFi fundraising.
Q&A (Some questions from audiences)
Spola Labs: @AnkurAiran asked: Can you talk about how you will ensure fan involvement? Will there be fan-based token as digital assets?
Tina: We have model which allows people to participate and vote. And if you hold a Spola pass, you will be able to participate and decide the future and help the team develop better, which will also give you rewards. And yes, there will be fan-based token as digital assets and it will be called SPO.
Yeeha Game: @raochi asked: Will Yeeha Games issue tokens or NFTs in the future? Which game/metaverse/blockchain motivated you to create this project?
Volkan: For every game we are implementing NFTs. We don’t just like randomly release NFTS we make sure like the whole tokenomics system behind it. On the other side, yes, we will issue tokens YEE in quarter three 2023.
Binary X: @Sushant asked: What new innovations / tech can we see in the GameFi industry in the future?
CP: We spend a lot of time in that area like how to make things sustainable, what kind of token sale you should go for? So, I think in terms of innovation, we are starting to see a lot more interesting tokenomics and how can play with the in-game economics of things. The other way would be engaging more than ever with the community.
FindTruman: @Enzzoe asked: I saw you guys have partnership Solana blockchain. But currently it has many problems. Is that not a threat to your project?
Lyon: We do on Solana because we are trying to implement it in a multi-chain mode, which means we encourage creators to choose their own preferred or their favorite chains to publish their NFTs or launch their stories. By this way, we can attract the users from different chains to share their stories and creations in our platform.
YSI9HT: @Ravi999567 asked: What are the future goals and Ideas of YSHIGHT? Also do you guys only focusing on China country?? Because I can see all your Twitter data is in Chinese including tweets
Ray: Previously I tweet or retweet some content in in Mandarin, but in the future, I’ll pay more attention to use English. We invest globally, so we have portfolios from many countries.
In the end
It is a great discussion on Digital Assets in GameFi，we will have our 10th NEST Roundtable (Twitter Space) on Oct 31st, and discuss “Will Gamefi lead the way to the Metaverse”， Please follow our twitter feeds and don’t miss out.
