Concept and Balance
A healthy economy is crucial to the success of any GameFi project. And a healthy economy = economic model depends on the balance of the economic cycle. The Metaverse doesn’t need another six-month lifespan project. IDV could not agree more, and is dedicated and anxious to develop an everlasting game with a sustainable economic system that players’ contributions will be valued and will be rewarded accordingly.
A Game is ought to be played. A GameFi merges the financial elements on top of that. Developers often lost balance of their focus and became biased toward the financial aspect, the games aspect therefore had fewer resources and slowly became less playable as time goes by, and inevitably there will be no such thing as Play2Earn anymore.
According to the analysis from DFC Intelligence and Newzoo, there are three billion gamers contributed to the whopping 159 billion USD for games in just the year of 2020. Since IDV knows traditional gamers are totally capable of and willing to pay for gaming bills.
IDV understand this and designed its games (as a whole, not just tokenomics or economy) with the balance of these and everything. IDV deliberately make the games to allow these traditional gamers to pursue the pure entertainment aspect of the game, without much consideration of the P2E model, just like every other renowned traditional game title. These gamers still get their rewards and can be a P2E gamer any time they want, but without their notice, they actually provided an opportunity to the HOTA’s developer to convert their contributed revenue into rewards in the P2E aspect.
The loop is now closed.
But traditional gamers have their own preferences.
● Willing to pay for better game experiences.
(Faster stage clearing, better avatar outlook, showing off etc.)
● Don’t see games as investment tools.
● Don’t expect returns.
● Don’t care if game assets have real-life value.
● Don’t accept inflation or deflation for in-game currency.
● Don’t want to pay or play if in-game currency fluctuates.
● Don’t know much about cryptos and don’t care anyway.
It is expected that if players are required to use cryptocurrency to play and/or to perform in-game top-ups, then the turnover rate of players’ spending will drastically reduce. Given the marginal cost of a new player (CAC, Customer Acquisition Cost) is at a record high already (average 50 USD per user), it means ARPU (Average Revenue per User) would drop below the CAC and therefore losses in gross profit. It is doomed this way.
However, the project must go on. Ideaverse Game Studio tackled this, designed and developed a brand new GameFi economy model that would take care of both the Gaming aspect and financial aspect into a perfect integration.