(Olive Tree, Van Gogh)

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Web2 Games vs. Web3 Games

Web3 games are P2E (Play To Earn) mode and open ecology, the core of which is to allow players to become the real owners of in-game items. After P2E allows players to become the main players in the game, the retention rate of players also increases. This can be seen from Axie Infinity, whose retention rate is higher than most Web2 games.

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Web2 modding games and Web3 games

Axie Infinity becomes the banner of Web3 gaming. Many Web2 games are trying to replicate its success and expect to be the next Axie Infinity. However, some games still have a corporate-controlled model, and the incentive mechanism still does not activate players. This may make these "modified" games face certain development difficulties.

This is a modified game with an "encrypted game" cloak. Its main feature is that it uses NFT technology to express its virtual items using NFT, and at the same time issue its tokens. But the game itself is still controlled by the project party, including the development direction and experience of the game. For the project side, the core is to sell more "NFT" and obtain greater benefits from it.

These "modified games" use encryption technology, but have many similarities with Web2 games. Although the NFT (virtual item) sold is owned by the user, the design and distribution of the NFT itself is still controlled by the project party. In other words, the "modified game" itself is not a real DAO, nor is it a real open ecosystem, but a still closed system built using blockchain.

Web3 games will eventually move towards community games, which can achieve bottom-up development. The Web2 "modding game" still relies on a top-down push and is ultimately limited by its closed systems.

Web3 games are encrypted native games

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*P2E and community DAO governance

In Web3 games, P2E is an important part. It can include players in the ecosystem of its development, where players have real interests. Regarding the development of the game, players have a need to express and will actively participate in it. As the game develops, players become more and more aware of where it is going.

For example, how to balance in-game assets? If there is no balance, the economic system in the game will collapse, so how to achieve the balance of token output and consumption? How does the game DAO treasury accumulate assets to support its ecological development? How can the game develop more scene applications? Does the game cooperate with other games? How does the game improve the player's experience? And so on.

There are many major decisions that require the participation of all participants in the community. If a certain type of participants over-consider their own interests, such as investors, it may lead to the loss of players, which may ultimately be detrimental to Its long-term interests, these are issues that need to be taken into account.

Exploring the way to promote game development through DAO governance is a major topic, and there is no successful precedent. This is a process of continuous exploration.

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*True open ecology

In Web2 games, the data itself is one of the biggest moats, while in Web3 games, the data is open, and any builder can build and innovate between different game ecologies.

In this case, Web3 games can have endless possibilities, and through economic incentives, creators can build various innovative games to create unprecedented experiences. Players can gather power to decide which metaverse to cooperate with. The composability of Web3 games is similar to the composability of DeFi. On the basic Lego building blocks, we can see the birth of creative products. Intercommunication across metaverses here may include item image, interaction rules, asset value, player reputation, etc. Even through the cross-chain protocol, the intercommunication between different chain games similar to illuvium and Star Atlas can be realized.

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Sustainability of Web3 games

Like Web2 games, Web3 games also have sustainability issues, and there are still a small number of successful games.

The sustainability of the game mainly depends on the accumulation of the value of the ecology itself. When the value flowing into the ecology exceeds the value flowing out of the ecology, sustainability occurs. In other words, we often say that there must be application scenarios. When players put time or money into the game, there will be consumption. Once the consumption exceeds the output, the in-game economy will start to grow, which will attract more players, builders and investors to enter.

Therefore, if the Web3 game is to be sustained, the issue of value inflow and precipitation must be considered.

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Composability of Web3 Games

Through its token economic incentive mechanism, Web3 games have built economic systems of different sizes, some are sustainable and developable, some cannot complete the cold start, and some cannot find the driving force for development after the cold start , each facing a different situation.

In this cold start, the developer, as the first promoter, can propose the world design, theme, player type, player operation, player world, game assets, etc. of the game; on this basis, in order to attract more participants, the Ownership of the game is assigned to participants, early backers and players. What connects the early participants is its economic incentive mechanism, and the early distribution model often determines the loyalty and future support of the community. TreasureDAO distributed its MAGIC tokens to community users early on, which formed the first batch of loyal users. Once there is basic support, it means that the early consumption can support the output, thus completing the cold start.

When the game develops to a certain level, there will be composability, which will lead to some games with stronger ecological resilience.

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Data is no longer the moat for Web3 games

TreasureDAO was developed from the community at the beginning. It found inspiration from the development of the loot project, through the community distribution of tokens, through the construction of an NFT market (L2 network based on Arbitrum) in series, through cooperation with different Metaverse games, through the construction of Its own flagship game tries to weave its own network by cooperating with liquidity protocols (such as OlympusDAO) and NFT circulation protocol Mural across different EVM chains.

In addition, its token mechanism cooperates with the resources in the game. In order to upgrade and iterate new tools and new equipment in the game, it requires the cooperation of its MAGIC token and resource NFT, which further creates a mutual promotion effect.

Of course, mechanics alone don't guarantee a game's success. The success of the game requires a fair distribution model, excellent game narrative and gameplay, and finally the scale of players can be accumulated.

The bottom layer of true sustainability is the community culture formed by the game itself. It is culture that attracts users to retain for a long time, and only after that can it retain value and be sustainable. Therefore, Web3 games need to have their own culture. If MEME culture can be formed, it will be more sustainable and have a more stable foundation.

With the increase of Web3 games, the time and money of participants are more likely to be dispersed. In this situation, how to focus on players becomes more and more important.

When there are more core participants, the more costs are paid, the higher their loyalty is, and more people will be attracted. At the beginning, Web3 games will also have the same situation as defi. Whichever defi protocol has high returns, the funds will flow there. At this time, the design of economic incentives becomes more and more important: give incentives to real contributors, let real contributors settle down, instead of rewarding capital that flows back and forth.