Please check out latest news, expert comments and industry insights from Coinspeaker's contributors.
The three-token model of GalaxyBlitz anchors the price of NFTs through fixed consumption.
The topic of Web2 games is a huge one. Since free-to-play (F2P) games account for the vast majority of the mobile game industry in terms of revenue, reaching 74% according to one study, it’s clear that the F2P model is the dominant force in the mobile game industry. So what can we learn from this model?
Before analyzing the F2P model further, let’s look at an economic concept called “price discrimination”. With an affordable price, the manufacturer can obtain the maximum benefit. Price discrimination is very common around us, including but not limited to: big data killing, time-limited discounts, buy-one-and-get-one free deals, and coupons.
The F2P game, due to its high production cost and comparatively low marketing costs, has become a commodity that is quite suitable for the tool of price discrimination. This is because the game reduces the actual selling price of the product in various ways.
According to the calculation of the consulting firm Newzoo, the market size of “in-app purchase” games can reach 200 billion US dollars in 2023.
So what can we learn in this regard?
We can first analyze the failure of games like Axie Infinity in terms of economics, which is partly because of the lack of price discrimination.
A new Web3 game, GalaxyBlitz, intends to use a new type of economic model to achieve price discrimination, which as a MMOSLG (Massive Multiplayer Online Simulated Life Game), is seeing a surge in users as web3 games become more popular. This is a marked difference the ones used generally in Web2. Besides, MMOSLG games are proving to be very popular all around the world and have been very lucrative in recent years.
Do these successes inspire the success of Web3 Gaming? A three-token model can be proposed as follows:
- Governance Token: used for in-game governance, which is consistent with other Web3 gaming projects.
- Tesseracts: Similar to the gems in Clash of Clans, the main in-game currency in GalaxyBlitz is called “Tesseract”, and the price is fixed at 0.01$. These are centralized tokens and will not appear on the chain. On the one hand, price fixing is the basis for the project team to implement price discrimination. On the other hand, there is also the need for Web2 players to spend money in Google Pay and Apple stores. The consumption of Tesseract by players will fund the DAO treasury and be used to repurchase gold tokens.
- Tesseract: Possesses a large amount of cosmic raw energy that can transform time and space, so it can greatly speed up the construction process and enhance the abilities of heroes and soldiers.
- Gold Token: Hyrdoxyl (HY) is an on-chain token. HY is released by NFT players according to the in-game rules. After HY is transferred to the game, it will be automatically converted into tesseract tokens according to the market price.
- HY Lab: Distributed on planets with ancient biological genes, these biological genes can reveal the mysteries of the universe, so they can be converted into a space-time matrix, but the conversion efficiency depends on the quality of the mined genes. The powerful alliance of interstellar colonization groups (guilds) will exploit HY in large quantities by occupying these resource planets.
The three-token model of GalaxyBlitz anchors the price of NFTs through fixed consumption. There are two ways to generate GalaxyBlitz NFTs. The first is NFT merging. The difference compared to the birth models of Axie and Stepn is that the merging of NFTs in GalaxyBlitz is closely related to guild wars. Only guild members who occupy resource stars with NFT cloning factories are eligible to give birth to NFTs. This will greatly increase wars between guilds for resource planets, and at the same time promote the development of guilds. Therefore, players are advised to build their own interstellar defense lines sensibly!
Above is an original image of a GalaxyBlitz NFT clone factory. The Flying Pyramid is an industrial spaceship of the Borken Military Chamber of Commerce that will randomly fly to a certain planet on the GalaxyBlitz Interstellar map to provide NFT weapons, spaceships, and hero replication and cloning services.
The second generation method is to generate hero NFTs by drawing cards. At this time, the consumption methods of card drawing mode are the krypton gold token: space-time matrix, and the price of tesseract is fixed, so subsequently the price of hero NFT will be fixed. If the hero NFT price is $100, then it will always be $100 and will not change. At the same time, the GalaxyBlitz team will use the price discrimination method of Web2 to promote the player’s consumption of NFT cards, thereby generating the consumption of tesseract and the generation of cards.
This model is more like “shared property housing”. The NFT, whose cost is fixed instead of falling with the drop of tesseract, will make the price of NFT have a “bottom”, which greatly reduces losses for players. This is more in line with the economic model of Web3 mining: the manufacturing cost of Bitcoin mining machines is fixed and will not change with the rise and fall of the price of BTC.
On the other hand, the benefit of this type of economic model is to help Web2 game practitioners’ experience in recharging (i.e. implementing “price discrimination”) can be quickly transferred to Web3 Gaming. Practitioners only need to design a “krypton gold token- Circulation path of “NFT-“Golden Token-“Krypton Gold Token”.
In this case, this new economic model will not produce a “death spiral” problem. Web3 gaming can have a healthy ecosystem only if the income of “gold hunters” comes from “krypton gold hunters”, which can only happen through the development of high-quality games. Once the quality of Web2 games can be matched in Web3 such as GalaxyBlitz does, it will pave the way for the next bull market in GameFi.
GalaxyBlitz can be downloaded here.
Disclaimer: Coinspeaker is not responsible for the trustworthiness of any content or product on this page. Though our goal is to provide you with the most valuable information that we could find, we recommend you conduct the necessary research on your own before taking any decisions related to the products presented in this article. This article can’t be considered as investment advice.