Huobi Ventures Weekly Report #41: GameFi — from Web2 to Web3
Huobi Ventures Weekly Insights
Insight provided by Alex Dong of Huobi Ventures
GameFi — from Web2 to Web3
A traditional game, plus the transformation of the blockchain part may be sufficient to create a good web3 GameFi project. However, if you want to achieve greater success in the web3 world, you would need to work on more to adapt your gameplay to crypto users.
Deployment of Smart Contract
The incorporation of smart contracts is the first thing to do. Before that, it is necessary to have a comprehensive understanding of the statistics of each public chain, such as gas fee, TPS, number of active GameFi players, transaction volume, guilds, etc., and choose an appropriate public chain to deploy the contract accordingly. At the same time, you need to choose the appropriate protocol type for your token and NFT. After the contract is deployed, a security audit is required to avoid being attacked by hackers which might cause property losses.
Tokenomics is critical to GameFi. The activity level of a mobile game is usually determined by the core gameplay and game content. For a Web3 game, Tokenomics is no less important than the first two. An important reason why the economic system of mobile games can maintain good operation is that its economic ecology is more like a closed system and does not directly interact with the outside world. When there is a major design error in the economic system of a mobile game, the loss can be compensated by rollback or user compensation. Web3 games financialize game assets through tokens, NFTs, etc., directly linking the game economy with the external real-world financial system, exposing them to speculators, investors, arbitrageurs and other forces, relatively speaking, more fragile.
Considering the irreversibility of Tokenomics, it is necessary to simulate the economic system many times before designing the economic system. In the simulation process, not only the abnormal behavior of players and speculators should be considered, but also the liquidity crisis that may be caused by the fluctuation of the overall crypto market. At present, most of the GameFi on the market adopts the dual-token model, and at the same time uses NFT as a capital reservoir to maintain the relative stability of the economic system. This is not set in stone, and the best solution can be obtained by tailoring it according to your own project.
Advertising is an indispensable marketing activity in the operation of mobile games. For a game that has just been put on the market, a successful advertisement placement can help increase the popularity of the game and introduce an objective number of users. At present, the main advertising channels for mobile games are search engines, APP stores, social media, point walls and CPA advertising. In Web3 games, due to its Play to Earn game mode and the lack of a game distribution platform, the team often needs to build its own community before the game is released to seek users’ sense of participation and belonging. How to gradually expand the game community, increase community participation, and give relevant rights and interests to community members is a relatively big challenge. In terms of channel distribution, GameFi is not much different from mobile games. It mainly promotes the dissemination of game content in the community through KOLs, social media ambassadors, and game live broadcasts. The birth of Tokenomics enables Web3 games to give unilateral benefits to early members of the community, allowing early members to become sincere fans of the community and to promote the game spontaneously. In addition, AMA is one of the most common techniques to close the relationship between project parties and community members, allowing players to get instant responses to their questions. The DAO organization can help the operation team to understand the needs of players and the degree of aggregation in time, so as to make adjustments in the design of the economic system and the content of the game.
About Huobi Ventures
Huobi Ventures is the global investment division of Huobi, which empowers Huobi’s global presence and boosts the shared growth and benefits with its global partners through the capital operation. Huobi Ventures explores, unveils and assists the industry’s cutting-edge technologies and emerging business models, enabling Huobi to pursue sustainable development and the whole industry to establish a win-win ecology. Huobi Ventures is committed to seeking like-minded strategic partners around the world, focusing on supporting high-quality innovations and technologies by leveraging complementary resources. It aims to realize the prosperity of the blockchain industry by collaborating with its partners.