It’s time to get serious about sustainability in Web3 gaming.
Since 2022, while the flaws of traditional P2E games are gradually being revealed, Ethlas has been making innovations in business models to try to solve sustainability problems.
“GameFi 1.0 is not sustainable, and it was built on this idea that there’s always somebody who’s willing to subsidise your earnings and in turn, somebody else would subsidise their earnings.” – Wui Ngiap Foo, CEO and Co-founder of Ethlas
So, how do we move forward with GameFi in the midst of crypto winter?
Introducing the concept of GameFi 2.0, which is predicated on three things:.
- Sustainable Unit Economics: A sustainable incentive-based mechanism is necessary, and a solid economic model should be established to create a business model that generates revenue and is profitable, which contributes to the longevity of the economy. We are constantly questioning ourselves: how can we couple the idea of finance into games, but not make earnings the quintessential element of GameFi?
- Real Utility: One solution that is hypothesised to counter the aforementioned question is to focus on providing real utility to users, not a superficial utility that’s rampant in the GameFi1.0 scene. This means that users are acquired and retained through fun games that are genuinely enjoyable, and provide value that transcends monetary gains.
- Multi-purpose Game Token: Most game tokens in the GameFi1.0 scene are specific to in-game purposes, but it is proving to be unsustainable in the long run, especially during this trying time. As part of the strategy to retain users through providing utility, game tokens should be supercharged into an asset that is multi-purpose.
Presenting: Ethlas Ascension
The next phase of Ethlas’s roadmap, Ascension, is geared towards building a launchpad that will enable a sustainable growth trajectory and setting a gold standard for what a sustainable Web3.0 GameFi company should look like.
- Ethlas’s tokenomists monitored the game economy took a strategic call to deprioritise Komo Klash with P2E, as this would irrevocably crash XGEM prices beyond repair within 6 months or less.
- Learning from other established protocols globally, the team is also making further adjustments to token staking and liquidity provision rewards (The Tree of Life and the Bank features inside Ethlas) to calibrate towards sustainable emissions for the long run.
- Utility features are a key priority, starting with a series of upgrades planned for Komos and XGEMs. Beyond just a P2E asset, Ethlas is building Komos into an upgradable Komo Founder Pass (KFP).
- To honour early supporters and liquidity providers, Ethlas will be offering a token swap programme for locked rewards from liquidity token stakers, Tree of Life stakers that have accumulated a minimum amount of 50,000 in-game GEMs will have the privilege to swap them for Ethlas’s governance token ELS, which is expected to publicly launch in 2023.
- Following the footsteps of established and successful token projects, XGEM will become a deflationary currency to reward long-term holders. From November 2022 onwards, XGEM will follow a regular burn schedule that will reduce its total supply on a monthly basis and hence increase the value of tokens in circulation. The exact amount to be burnt will vary by month, but is expected to be over 200M in its inaugural month of the burning schedule.
- XGEMs will be central to the XGEM rewards platform (xgem.finance) as both a loyalty currency and digital passport unlocking access and value across retail, gaming, and entertainment experiences with multiple brands, platforms, and merchants.
- While maintaining a strong presence in Ethlas, XGEMs are currently being seeded into more GameFi ecosystems: as a central currency that’s distributed and circulated across game aggregators and tournament platforms.