The Web3 gaming ecosystem has evolved significantly since the launch of CryptoKitties in 2017. According to DApp Radar, gaming decentralized applications (DApps) now account for around 26% of all on-chain activity. Despite the sector’s growth, many play-to-earn (P2E) games that emerged during the NFT boom in 2021 have since struggled or disappeared.
The decline of P2E games can be attributed to several factors, including an imbalance between gameplay mechanics and tokenomics. Take Axie Infinity, for example: at its peak, the game had over 2.7 million daily active users, which has since dwindled to 81,900. Although Axie Infinity’s gameplay was relatively engaging, its tokenomics were unsustainable. Players would nurture digital pets to sell for a profit, but when too many players began cashing out, the market became oversaturated, causing the price of Axies to plummet.
The Open Network (TON): A New Player in Web3 Gaming
While P2E has faced significant challenges, Web3 gaming is far from over. The TON blockchain is emerging as a promising platform, particularly through its tap-to-earn (T2E) games. Recent statistics reveal that TON’s ecosystem has processed 1 billion transactions, largely driven by the growing popularity of T2E games.
TON, a Proof-of-Stake (PoS) blockchain, integrates Web3 functionality into the Telegram messaging app ecosystem. To succeed, developers of TON games need to strike a balance between playability and sustainable tokenomics, areas where many P2E games have fallen short.
Playability and Sustainable Tokenomics
Many P2E games are criticized for being too complex or lacking the long-term financial sustainability to support their ecosystems. TON’s T2E games address these issues by focusing on ease of play. Unlike P2E games, which require numerous complex on-chain actions, T2E games on TON are simple to play and accessible to anyone with a Telegram account.
For instance, the game "Banana" attracted over 1 million users within 72 hours of its launch and grew to more than 8 million in just one month. The game involves collecting virtual bananas, which can be worth 500 USDT, depending on rarity. Its straightforward gameplay, requiring just a click to earn rewards, sets it apart from the more cumbersome P2E models.
Similarly, "Hamster Kombat," another T2E game on TON, uses a clicker model to reward users. Importantly, these games have introduced more sustainable tokenomics, avoiding the pitfalls of oversupply that led to the collapse of P2E models like Axie Infinity. TON developers have made it easy to trade in-game tokens or convert them to stablecoins like USDT, providing a more stable and balanced economic system within the games.
What Does the Future Hold for TON’s Gaming Ecosystem?
It is too early to predict whether TON’s Web3 games will be a long-term success, but the outlook is promising. With over 700 million monthly active users on Telegram, TON’s tap-to-earn games have a built-in user base that could drive significant growth.
The simplicity and addictive nature of the tap-to-earn model, coupled with its potential for real financial rewards, are key factors in its success. According to Vincent Maliepaard, marketing director at IntoTheBlock, the model’s innovative design will likely contribute to its broader adoption.
TON’s approach appears to address many of the challenges that undermined earlier P2E games, particularly the problem of token oversupply. By combining ease of play, sustainable tokenomics, and strong community engagement, TON’s gaming ecosystem could pave the way for a more balanced and sustainable era in Web3 gaming, where entertainment and financial incentives coexist effectively.
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