In August 2021, TokenTerminal data showed that the NFT blockchain game Axie Infinity had a 30-day revenue performance of up to US$334 million, far exceeding the US$231 million revenue of "Honor of Kings" in July.

In February of this year, according to the statistics of CryptoSlam, Axie Infinity became the first NFT series with sales exceeding 4 billion US dollars. Its market transaction scale is second only to OpenSea and LooksRare, ranking third in the world.

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What exactly is GameFi?

Literally understood, the term GameFi comes from the combination of Game (game) and DeFi (decentralized finance), that is, through the token (token) economic system in decentralized blockchain games, the game has financial attributes, even similar to a gamified financial product. This is the fundamental reason why GameFi can support players to play and earn directly in the game.

In the game world presented by GameFi, game characters, props, and related derivatives can all be converted into NFT (non-homogeneous tokens), forming an asset unit with independent scarcity, complete ownership, tradable transfer, and value-added features. With the support of the value guarantee of blockchain technology, the ownership of the rights and interests of game assets is not only clear and clear, but also the value can be realized through the NFT trading market.

Currently, GameFi is undoubtedly one of the hottest tracks in the encryption market. In addition to obtaining NFT assets in the game, blockchain games also allow players to participate in decision-making on game planning, upgrades, etc. through governance token voting. In addition, governance tokens can not only be consumed in the game, but also traded on encrypted exchanges, and will appreciate in value as the game improves and develops.

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GameFi1.0: Open the door to a new world of "play and earn" games

From the perspective of the profit model of traditional games, depending on the type of game, online mobile games mostly adopt the method of "free to play + in-app purchase" to provide purchase opportunities for better game experience, including characters, skins, equipment, functions, rights, etc. . The stand-alone game basically sells a single product directly, providing a one-time buyout opportunity. Online end games also use the method of selling usage time, such as point cards, monthly cards, etc. In addition, there are games that use the game environment to sell commercial advertising spaces, or use joint marketing, competitive activities, etc. to generate revenue.

As game participants, the fulfillment of players' needs in traditional games is mainly focused on satisfying inner feelings, achievements, experiences, etc. through the novel and dreamy virtual space created by games. Of course, there are also players who regard the game as a tool for making money, and obtain transfer fees from the sale of high-level game accounts and rare props. However, when traditional game players invest time, energy, and money, their main return is to gain experience.

In a sense, the behavior of professional game players to obtain bonuses through game events is also a kind of earning by playing. But in any case, it is an indisputable fact that game operators earn money from game participants by providing game experience services. Even if all kinds of game competitions are held, in the final analysis, it is still a part of game commercial marketing, and the ultimate beneficiaries are game operators.

In this context, the emergence of blockchain games has undoubtedly completely changed the profit distribution model of traditional games, and game operators are no longer the biggest beneficiaries. The process of "spending money to play games" has also changed to "gaining benefits from playing games", and the goal of playing games has also changed from spiritual satisfaction to profit acquisition. Obviously, the most important contribution of GameFi1.0 is to completely subvert the value of games, and at the same time, separate this new game economic model independently.

In such an economic model, as an excellent form of value bearing, NFT provides a nearly perfect solution for the presentation, protection and circulation of virtual asset value. Not only can almost all props and equipment in the game be NFTized, but gamers can also generate and cast them in a specific environment, and sell them in the NFT trading market to obtain value-added income.

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GameFi2.0: Make P2E "normalized" in games

In the rating standards in the traditional game field, there is a saying of "3A games". In fact, this unclear concept refers to a game masterpiece that is piled up with a lot of money (A lot of money), a lot of resources (A lot of resources), and a lot of time (A lot of time).

In other words, creating a 3A game, using a lot of manpower, costing tens of millions or even hundreds of millions, and developing it for several years seems to be a certain standard. Of course, the specific regulations or standards of 3A are not very clear, but the shock and aesthetic feeling of the final game is self-evident.

At present, blockchain games are mostly farm farming, harvesting; sandbox travel, missions; pet development, fighting; card collection, synthesis, combat strategy, fighting, etc. 3A game works. After all, it is not an easy task to build a game on the blockchain with a powerful world view, in-depth narrative, complex economic system, and multi-level playability similar to 3A games.

However, after overcoming pain points such as asset confirmation, liquidity, and transaction realization, the P2E revenue-based economic model created by GameFi urgently needs to be expanded and applied to more, newer, and larger-scale game carriers. That is to say, in GameFi2.0, using the P2E model, more sophisticated and large-scale games will be created. At the same time, P2E can also be imported into ready-made large-scale games through chain reform, and the GameFi brand will be branded on 3A games.

There is no doubt that traditional games have irreplaceable advantages in releasing emotions and gaining experience, which is also an important reason why players are willing to spend their energy and money in the game. However, for blockchain games, the purpose of P2E seems to be a bit too clear. In terms of awareness of participation, playing and earning has long since left only the word "earning", and "playing" is nothing more than a means to achieve the latter.

Specifically, after understanding the essential characteristics of P2E, people participate in blockchain games. This process is like rushing to where they can find gold. If the premise of "pursuing profit" is the premise in the game, the player's emotional experience of the game will inevitably be greatly reduced in the process. Fundamentally speaking, this pure "financial gamification" is not conducive to the long-term development of the blockchain game itself.

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Summit AscendEX: Overlooking GameFi2.0, providing a stage for the essence of the track

From traditional finance to the emerging encryption industry, Summit AscendEX knows that innovation and subversion are the only way to survive and win, and regards the core values ​​of "efficiency, transparency, and stability" as the outline for guiding development. At the same time, in combination with market demand, research and development of encrypted financial products and services that can meet the diverse needs of users is the constant pursuit of AscendEX to lead the industry with product innovation.

On March 23, Galaxy Blitz (MIT), which was exclusively launched on AscendEX and opened the auction, is a combat strategy NFT game designed based on the GameFi2.0 development concept.

The game world built by Galaxy Blitz can bring players an unprecedented visual experience, and allow players to become a part of the game's economic ecology, while gaining a super game experience and rich returns. And this seems to allow people to see the stalwart figure of industry elites working hard towards the development requirements of GameFi2.0.

With the rapid development of new concepts such as GameFi and NFT, from the standpoint of centralized exchanges, the discovery and support of more high-quality projects on the track, providing them with a stage for display and cooperation, is the pinnacle of AscendEX's support for encryption. The most appropriate and effective contribution to the development of the industry and related segments.