This is a contributor content by Aliaksandr Sheliutsin, Co-founder of GameFi project ZombieTrain.
GameFi lies at the intersection of gaming and finance within a blockchain framework, leveraging NFTs and smart contract, where players earn real-world rewards while having fun. it’s a universe where grinding doesn’t just get you leaderboards but also some real-world value. Players have come to think of it as gaming with a payday attached—and the movement is catching on fast.
How Telegram Games Are Leading the Charge
Telegram has become a GameFi hub of its own, sparking a new wave of user engagement. Games like Hamster Combat, Catizen, Notcoin, Dogs, and Gatto are leading this charge, attracting tens or even hundreds of millions of users globally. These games combine addictive gameplay with opportunities to earn rewards, making them a magnet for both casual players and crypto enthusiasts.
How to Distribute Rewards?
Many GameFi projects in the past were stuck in a Ponzi scheme loop. Players earned rewards as long as new players entered the ecosystem. It was unsustainable, and eventually, the system would inevitably collapse. So, what if we try something more honest, sustainable, and engaging?
Imagine this: a super-engaged user playing for 8 hours a day, 20 days a month. Even after squeezing the maximum ad revenue and incentives, the rewards might cap at $80 per month. While there are countries where $80 is meaningful, the cost of showing ads to such users will reduce the final check. That makes no sense even for these users.
What Are the Solutions?
1. Player Categorization
Not every player has 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 might see earning as a bonus.
- Earners: They’re in it for the grind and potential payoff.
By focusing the rewards program on top earners, the system can sustain higher payouts, incentivizing these users while maintaining the game’s fun element for casual players.
2. Controllable Payouts
Letting users control when they cash out is exactly how you can apply market pressure on tokens. Even setting withdrawal thresholds hasn’t solved this problem. So, what if we take back control? We could reward users on a monthly or quarterly basis instead of letting them withdraw constantly.
- Predictable Supply: This method lets you calculate supply and buy tokens back systematically, stabilizing token prices.
- Psychological Boost: Receiving a large payout feels more satisfying than a trickle of small amounts. Big checks = big smiles.
3. Smart Long-Term Tokenomics
Sustainable tokenomics isn’t just about deciding what percentage of tokens goes where—it’s a comprehensive strategy that includes a max cap, buyouts, and token burns. These elements form the backbone of your project, creating an ecosystem that doesn’t just survive but thrives. With the right approach, you’re building a foundation for your project to last longer and attract both loyal players and savvy investors.
Good Tokenomics:
- Axie Infinity: Its dual-token system (SLP for in-game rewards and AXS for governance) balances player incentives and ecosystem governance effectively. Features like token burns for breeding keep the supply in check.
- Catizen: A model of sustainable reward structures and in-game token utility, ensuring both long-term engagement and value retention.
- Bad Tokenomics:
- Hamster Combat: A textbook “hit-n-run” system. The rewards structure is overly front-loaded to attract early users, with no long-term plan for sustainability, leading to an eventual collapse as player interest wanes.
Key Takeaway:
Bad tokenomics might generate hype initially, but without these foundational elements, they’re doomed to crash and burn. Sustainable tokenomics is your project’s insurance for lasting success.
4. Token In-Game Utility
To make the game economy sustainable, your token must have real in-game value. Without it, players will sell off their earnings, tanking the ecosystem. Here’s what works (and what doesn’t):
Good Utilities:
- In-game purchases: Skins, boosts and premium content make the token indispensable.
- Event participation: Exclusive events that require tokens to join add excitement and value.
- Partnership perks: Reward users with real-world benefits like discounts or merchandise.
Bad Utilities:
- Staking rewards: If it adds to token supply without creating demand, it’s a trap.
- Liquidity pools: Same problem—more supply without inherent value.
Rule of Thumb: If the utility increases the token supply without adding value, scrap it. Sustainability thrives on balance.
Final Thoughts
Creating a sustainable GameFi economy is like balancing on a tightrope between fun and financial stability. With careful player categorization, controlled payouts, and meaningful token utilities, we can transform the industry.
GameFi’s potential is enormous, and the next wave of projects can move beyond the Ponzi-like models into genuinely enjoyable, profitable ecosystems. So whether you’re grinding in Hamster Combat or strategizing in Catizen, remember, the game is evolving—and you’re part of the revolution.
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