Web3 Gaming’s Evolution: Beyond Token Incentives to True Utility

The Sandbox co-founder Sébastien Borget highlighted a growing impatience among Web3 gamers towards games that rely solely on token incentives without providing real utility. In a dynamic panel featuring leaders from Animoca Brands, Sky Mavis, and Dapper Labs, a consensus emerged that the future of blockchain gaming hinges on depth, engagement, and genuine digital ownership, rather than mere token accumulation.

Borget pointed out that the quick saturation of the market with similar token-based incentive models led to player disillusionment, as many games failed to deliver on the promise of meaningful utility for their in-game assets. This has led to a pivot towards games that offer core gameplay and utility from the outset, suggesting a shift away from token-first strategies to engaging gameplay that rewards players with tokens as a secondary benefit.

Digital Ownership and Economic Incentives

Aleksander Larsen of Sky Mavis, the powerhouse behind Axie Infinity, argued for a balanced approach that doesn’t abandon the principle of in-game tokens but emphasizes fun and engaging gameplay as the primary draw for players. He advocates for the industry to refocus on digital ownership and the unique economic incentives that can drive user acquisition outside traditional gaming platforms.

Larsen’s reflections on Axie Infinity’s success and shortcomings underscore the potential for evolving the model towards sustainability and deeper player engagement.

Empowering Players Through Tokens

Roham Gharegozlou from Dapper Labs (known for NBA Top Shot) and Robby Yung from Animoca Brands brought forward the idea of tokens as a means to transfer ownership and value back to the players. They envision a future where games are built with community ownership in mind, allowing players to leverage their in-game assets and reputations across a broader ecosystem of digital experiences, including lending protocols and DeFi.

Yung also touched on the concept of an “intermediary stage” towards achieving an interoperable metaverse. This stage would allow players to transfer value between games through fungible tokens, facilitating a new level of cross-game interoperability and asset portability.

The discourse at NFT Paris underscores a pivotal moment for Web3 gaming, as industry pioneers navigate the challenges of marrying token incentives with substantive gameplay and utility. The shift from token-centric models towards engaging, utility-driven experiences marks a mature phase in blockchain gaming’s evolution. As developers experiment with balancing fun, ownership, and economic incentives, the future of Web3 gaming looks poised to offer richer, more immersive worlds where players are true stakeholders in their digital realms.