For all the talk about how crypto is changing the world, the vast majority of token-based projects are short term games that structurally devolve into glorified pyramid schemes. Inflated expectations lead to the classic boom-bust cycle where speculative intent runs ahead of reality, and eventually, it all falls down.

We are in the first wave of web3 games. Right now, we’re seeing many of them focused on play-to-earn. They’re mostly about the money instead of prioritizing fun and engaging gameplay. If web3 gaming remains tuned in this way – focused on those looking to earn rather than play – then we fear it will never be mainstream and many projects will fail.

We believe P2E games should be careful about designing incentive structures that are based on gameplay alone. By doing so, they expose themselves to the risk of skewing their membership towards mercenaries, who are more likely to jump from game to game in search for higher returns (similar to how yield farmers jump from farm to farm in DeFi... See more