Binance Research (Stefan Piech, Mac Naggar)
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In this report, we’ll dive into key aspects of the gaming world and think about key elements a crypto-native game should bring. We’ll further think about tokenomics in the context of games in more detail and discuss elements such as inflation and the overall sustainability of tokenomics. In addition to that, we’ll propose a sustainable tokenomics design for crypto games.
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We see significant benefits to users and developers. Ownership over your assets, the ability to earn rewards while playing, and decentralized governance power are just a few.
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While still in its early stage, we believe that web3 games will likely do for blockchain technologies what solitaire did for the computer in the 1990s – drive further adoption and education.
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Looking at the tokenomics element in more detail, we believe that fun and entertainment remain key elements to consider – tokenomics should add to this rather than distract from it. One key issue that P2E games are facing is sustainability since a majority of players are putting too much focus on the ability to earn tokens rather than enjoying the game itself. As such, we see that while there are benefits to a two-token model, it isn’t an underlying necessity for games to be successful. We rather see that truly fun games can design sustainable tokenomics with a single token alone.
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One of the obvious challenges with creating sustainable web3 games is tokenizing all game assets without sacrificing control of the game’s economy. It is important to keep in mind that just because an in-game asset can be turned into an NFT or fungible token, it doesn’t mean it should be made into one.
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