Play to earn economies as base layer protocols for games

-Monetization: eg. value accrual mechanisms, transaction fees

We believe that Web 3 games will win over Web 2 and Web 2.5 games because they leverage community ownership, real economic value, and native composability to drive greater player adoption & retention. We believe that the Web 2.5 approach to building P2E ecosystems is not enough to prevent the value extraction of communities. This is because there w... See more

For economies to be sustainable, the sinks need to take more of the token supply out of the economy than the faucets that bring the token into the system, otherwise, there will be natural downward price pressure as supply increases over time.

-Sinks take supply of an asset out of an economy

(eg. SLP earned by completing quests or battles)

These economies are not only just places where community members play, but also worlds in which they have financial upside, ownership over revenue generating businesses & valuable digital assets, and defined jobs & responsibilities.

Player retention in gaming is everything. Despite this, publishers optimize for company profit at the cost of player value and well-being. They are able to do this due to their end-to-end ownership and control over the development, distribution, and management of games.

-Treasury: eg. What community initiatives should be funded?

We believe the opportunity cost of not building for interoperability will overshadow the net cost of doing so.