This is collaborative content from Aliaksandr SheliutsinCo-founder of the GameFi project ZombieTrain.
GameFi is located in the intersection of gaming and finance within a blockchain framework, leveraging NFTs and smart contracts, where players earn real-world rewards while having fun. It’s a universe where grinding not only gives you leaderboards, but also some real-world value. Players have come to think of it as a game with a payday attached, and the move is quickly catching on.
How Telegram games are leading the charge
Telegram has become a GameFi hub on its own, sparking a new wave of user engagement. Games like Hamster Combat, Catizen, Notcoin, Dogs, and Gatto are leading this trend, attracting tens or even hundreds of millions of users around the world. These games combine addictive gameplay with opportunities to earn rewards, making them a magnet for casual players and cryptocurrency enthusiasts alike.
How to distribute rewards?
Many GameFi projects in the past were caught in a Ponzi scheme. Players earned rewards whenever new players entered the ecosystem. It was unsustainable and eventually the system would inevitably collapse. So what if we tried something more honest, sustainable and engaging?
Picture this: a highly engaged user who plays 8 hours a day, 20 days a month. Even after squeezing out maximum ad revenue and incentives, rewards could be capped at $80 per month. While there are countries where $80 is significant, the cost of showing ads to such users will reduce the final control. This doesn’t make sense even to these users.
What are the solutions?
1. Categorization of players
Not all players have the same goals. Some are here for the thrill, while others want to see their wallets grow. Even in GameFi projects, we see this spectrum:
- Fun-first players: They enjoy the game and may see winnings as a bonus.
- Salaried: They are there for the hard work and potential reward.
By focusing the rewards program on top earners, the system can maintain higher payouts, incentivizing these users while maintaining the fun element of the game for casual players.
2. Controllable payments
Allowing users to control when they withdraw money is exactly how market pressure can be applied to tokens. Even setting withdrawal thresholds has not solved this problem. So what happens if we take back control? We could reward users monthly or quarterly instead of allowing them to constantly withdraw.
- Predictable Supply: This method allows you to calculate supply and buy tokens systematically, stabilizing token prices.
- Psychological boost: Receiving a large payment is more satisfying than receiving small amounts. Big checks = big smiles.
3. Long-term smart tokenomics
Sustainable tokenomics isn’t just about deciding what percentage of tokens go where; It is a comprehensive strategy that includes capping, buying, and burning tokens. These elements form the backbone of your project, creating an ecosystem that not only survives but thrives. With the right approach, you’ll be laying the foundation for your project to last longer and attract both loyal players and smart investors.
Good tokenomics:
- Axie Infinity – Its dual token system (SLP for in-game rewards and AXS for governance) effectively balances player incentives and ecosystem governance. Features like burning tokens for playback keep supply under control.
- Catizen – A model for sustainable reward structures and in-game token utility, ensuring both long-term engagement and value retention.
- Bad tokenomics:
- Hamster Combat: A textbook “hit and run” system. The reward structure is too focused on attracting early adopters, with no long-term plan for sustainability, leading to eventual collapse as player interest wanes.
Key takeaway:
Bad token economics may initially generate buzz, but without these fundamental elements, it is doomed to fail. Sustainable tokenomics is the insurance for your project to have lasting success.
4. Utility of tokens in the game
For the in-game economy to be sustainable, your token must have real in-game value. Without it, players will sell their winnings, ruining the ecosystem. Here’s what works (and what doesn’t):
Good public services:
- In-game purchases: Skins, upgrades, and premium content make the token indispensable.
- Event Participation – Exclusive events that require tokens to join add excitement and value.
- Partnership Benefits: Reward users with real-world benefits, such as discounts or products.
Bad public services:
- Staking Rewards: If you increase the supply of tokens without creating demand, it is a trap.
- Liquidity funds: same problem: more supply without inherent value.
General rule: If the utility increases the supply of tokens without adding value, throw it away. Sustainability thrives on balance.
Final thoughts
Creating a sustainable GameFi economy is like balancing on a tightrope between fun and financial stability. With careful categorization of players, controlled payouts, and meaningful token profits, we can transform the industry.
GameFi’s potential is huge and the next wave of projects can go beyond Ponzi-like models into truly fun and profitable ecosystems. So whether you’re working on Hamster Combat or strategizing on Catizen, remember, the game is evolving and you are part of the revolution.
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