Original source: ThePrimediaDAO
Original author: Jerry@TPDAO
Introduction
Even without 404s (ERC-404 and the iterative evolution of protocols inspired by it), GameFi will become an important hot track in this cycle. You may be confused - the topic of this article is to discuss the story after 404s activates NFT. Why does it say that GameFi will be active without 404s?
Because AI and Web3 are ready for everything in the metaverse, decentralized computing power, storage and other DePINs are constantly improving, highly immersive hardware devices such as AR/VR/XR are constantly iterating, traditional finance and encryption markets are gradually integrating, and Sora AI elements such as AI will promote the progress of the construction of the metaverse. DeepLink has even emerged to provide ultra-low latency cloud game rendering service functions for the metaverse. It can be defined as a project to redefine remote games in the Web3.0 era. It has remote control functions and provides Sharing GPU and cloud traffic bandwidth can serve various application scenarios related to the metaverse, cloud games, etc...
Based on all this, mankind is ushering in a digital society that reconstructs the economic order with blockchain as the bottom layer. But all of this requires the most suitable Metaverse application scenario. In the narrative of metaverse construction, GameFi is the most important component of the metaverse application space.
After getting through the memo of the Metaverse concept in 2021, in the past two years, we have entered the process of multi-dimensional collaborative development and steady advancement of the Metaverse construction. It seems that only GameFi is slightly less popular. The reason is the dilemma of the last round of GameFi track - under the X-earn mode, GameFi was unable to complete NFT value capture in the later period and became a short-term takeover game.
In this grand narrative context, we can enter the theme of this article - NFT in the post-404 era will become a basic element of the metaverse world based on the value capture logic given by GameFi. In addition, with the solution to the liquidity problem, NFT will become a crypto market. Mainstream assets.
1. 404 and NFT
Since the wave of Pandora memo triggered by 404, the introduction to 404 has been very detailed. We will only briefly review it: ERC-404 is a protocol standard that mixes ERC-20 and ERC-721. Under the 404 protocol, NFT and Token can Mutual conversion allows NFTs to be split and traded like tokens, achieving native liquidity and fragmentation.
Native liquidity and fragmentation are achieved, which is crucial. This is fundamentally different from the previous fragmented implementation of NFT liquidity - under the ERC-404 protocol, NFTs can be represented as fungible homogeneous tokens under certain conditions, while in other cases they remain Non-fungible tokens. This kind of flexibility has the possibility of interoperability in a wider range of scenarios - whether it is trading scenarios that require high liquidity, or asset management/basic requirements that require personalization and uniqueness in chain games/GameFi or even the Metaverse world. Scenes.
The most basic value that 404 brings to NFT is to release liquidity. Take Pandora, the leading project of the ERC-404 protocol standard, as an example. Its market transactions basically come from FT. The NFT transaction volume is about 1% of the FT transaction volume. The core liquidity of the Pandora series Performance is currently priced almost entirely by Uni v3 AMM.
To sum up: NFT assets in the post-404 era have the characteristics of “card drawability”, “native fragmentation” and “AMM liquidity”. GameFi, which is constantly iterating on the 404 protocol, is also constantly surprising the market. For example, Project Matthews first ERC-404 token built on the BNB Chain (BSC) aims to become the core of the Project Matthew game ecosystem and provide NFT utility and value in Project Matthew.
The latest news is that MB4 holders participate in a guessing game and win rewards based on how similar their NFT is to the winning NFT:
Airdrop campaign structure: The campaign is divided into three stages: preview rewards, guess any 3 MB 4 NFTs and hold at least one NFT with similar properties, and guess the correct NFT image and receive rewards.
Prize Pool: The current total prize pool for the MB 4 airdrop is $1 million, which includes various rewards such as Epic Matthew Land, $MC tokens, land upgrade scrolls, game coins, and game props.
Reward Distribution: Rewards will be distributed based on the similarity between the properties of the winning NFT and the NFT held by the participant. The more similar the attributes are, the more rewards a participant may receive. The prize pool will be distributed equally to all winners, and if no one wins at a certain level, the remaining prize pool will be distributed in the next event.
Legendary quality: Users holding 404 NFTs of legendary quality can also share in the legendary prize pool, which accounts for 10% of the current prize pool.
Claim Rewards: Users must have received BinaryX IGO Matthew Box 404 to be eligible for airdrop rewards.
2. GameFi and Metaverse
We judge that the logical starting point for the activation of GameFi by NFT after 404s is the intrinsic reason that caused the last round of GameFis dilemma - under the X-earn mode, GameFi was unable to complete NFT value capture in the later period and became a short-term takeover game; we judge that even without 404s GameFi It will also become an important and popular track in this cycle. In addition to the narrative judgment at the beginning, we also have factual support - after the last round of Gamefi wave receded, games are still the most active part of the entire industry, and the game industry still maintains It has hundreds of thousands of independent active wallets every day.
However, if the root cause of the overall high death rate of the GameFi track in the previous round is not solved, this wave of GameFi will still only add some practical samples to the industry - GameFi without activation of NFT is an application scenario for the metaverse. Trial and error was carried out, but it was unable to carry the heavy responsibility of building the economic system of the metaverse.
In the last bull market, when Metaverse memo and NFT were just speculation on PFP and X-earns GameFi was booming, we established the strategy of Based on defi, gamefi, and socialfi to analyze the construction of the Metaverse economic system in 2021 Investment research topic. After discussing the first part DeFi: From data asset management to production factor allocation, we previewed the second part, defining GameFi as version 0.01 of the Metaverse application scenario and reconstructed production relations.
But soon the GameFi track was almost completely wiped out in the last round, and the second part of the investment research analysis was put on hold. In the post-404 era, even NFT assets in the veteran GameFi will be activated. In this article, we take the Project Matthew before the 404 era as an example to introduce the basic essential functions of its NFT assets in the metaverse after the liquidity empowerment in the post-404 era. It can be regarded as a reference to With defi, Based on gamefi and socialfi, analyzing the construction of the metaverse economic system is a continuation of the theme. This is a space-themed simulation game on the Ethereum blockchain. In this game, players take on the role of space explorers and must build and manage their own space base, mine resources, recruit soldiers, and engage in battles to expand their territory and power. Players can earn virtual currency Matthew Coins by completing tasks, participating in activities and transactions, and can purchase assets and trade for cash; players can also obtain NFT assets (virtual items and props) in the game; NFT interoperability has also been Being developed, digital assets obtained from other games can also be used in the Matthew Project.
Project Matthew can be seen as an NFT before the 404 era activated by 404s, and is a typical example of how to activate GameFi. Taking Matthew Land as an example, there are three main types of Matthew Land NFTs: operating area, fault area and overload area. Each type has its own unique benefits that can have a significant impact on development progress; lands also have five quality levels: Shabby, Common, Rare, Epic and Legendary, with higher quality providing more various benefits, e.g. Increase resource production, improve the functional level of Matthews laboratory, lower energy consumption, faster transactions, etc.; the high quality of Matthews land can have a significant impact on the overall efficiency. Each piece of Matthews land has a different set of attributes. This can significantly impact your simulation strategy, ultimately lengthening or shortening your payback period.
*Note: This comparison chart shows an estimate of the maximum $MC yield difference between different land qualities to help players better understand the impact of land quality on payback periods.
In the post-404 era, NFT land has both asset attributes and liquidity. The complement of this factor allows its complete economic system to be revitalized - you can not only carry out construction and development to obtain your long-term strategic deployment in the game, but also FT can realize the assets of NFT land, and can allocate rights and interests at the level of crowdfunding and co-construction of important assets and equipment...
When we discuss Project Matthew in the post-404 era, we must fully understand that in addition to unlocking liquidity, 404 also brings more possibilities for users to realize their rights and interests in chain games/GameFi and even the metaverse world. For example, the concept of partial ownership can be realized, so that multiple users can jointly own the same NFT (large equipment such as land, buildings, space vehicles, etc.) and share the corresponding ownership rights according to the number of tokens held.
Therefore, we can predict that the GameFi practice in the post-404 era will become a basic application of the Metaverse that reconstructs the economic order with blockchain as the bottom layer. Of course, after GameFi, we can also look forward to more implementation paths that give metaverse residents users the status and contribution rights to build, such as socialfi. The third part of our topic preview in Based on defi, gamefi, socialfi, analyzing the construction of the metaverse economic system is From socialfi to AllFi: the material basis of human digitalization and the value basis of the metaverse construction. All of this is achieved through the basic essential functions of NFT in the post-404 era.
Here, we want to further clarify that without the basic requirements for NFT in the post-404 era that have been gradually determined based on GameFi practice, would it be that important to the Metaverse?
We have elaborated on this in On the Value Logic of Bear Market Bottoms Out Based on Civilization Stops - We have gathered the power of technology and industry to construct a metaverse space, and we must use high-end chip technology and may have to break through the Moore effect. Integrated circuit systems, more efficient network communication technology (5G/6G) and VR/AR/MR/XR hardware and the development of advanced virtual engines and interaction technologies, wearable biosensor hardware and adaptive precise motion capture Software and hardware are used to realize somatosensory reactions, movement rules and a highly immersive experience in the virtual space of the metaverse world. If the Metaverse is just a highly immersive digital space, is it all worth it?
Even it can be a complete social operating ecosystem. If the digital society is not reconstructed with blockchain/Web3 decentralization, Token (FT/NFT) mechanism and DAO organizational governance, it will give mankind a better social system and evolution. The fate of the governance structure and the transformational significance of this advancement of human society will also be eliminated.
Conclusion
To briefly summarize, we will find that the basic essential functions of NFT for the construction of the metaverse are realized in application scenarios such as GameFi. This topic has already been covered in the KOL-style article creation I did for Wang Feng during the preparation of Element in 2021. The leading conclusion such as Dont talk about the metaverse without NFT also came from this discussion. But in that cycle, NFT was ultimately just a narrative supported by the memo and speculative attributes of PFP, and Metaverse and GameFi quickly disappeared from the mainstream market.
Until the 404 came along, it was just right. Of course, at this stage, 404 is just an inspiration, and there are still flaws. It has been transferred indiscriminately and may even be burned under attempts to improve the 404 protocol, which will destroy the uniqueness, immutability, rarity, and construction of the metaverse of NFT, which is important and precious. The basic element attributes.
As mentioned in this article, I believe that the protocol itself will have more iterations and innovations, the application layer will have more room for imagination, and the metaverse construction narrative will bring greater development potential to participants.
