GameFi are video games with financial factors. Simply put, it is a combination of Game + Defi (Decentralized Finance). The term GameFi was first used by Andre Cronje - Founder of Yearn Finance.
GameFi was born to bring a "play to earn" model that allows gamers to earn income based on their time and effort contributing to the game. Players will be rewarded with tokens, NFTs, etc. and can sell them for profit.
GameFi projects are quite diverse and are usually made up of 2 main elements: NFT (Non-fungible token) and Native Token.
NFTs : Usually in-game items will be built in the form of NFTs (non-fungible tokens) such as characters, land, equipment, weapons, etc. Therefore, the player can completely have proof of ownership of any in-game items they acquire.
Native Token : Normally, most GameFi projects nowadays have 2 types of tokens
- Reward token (like CBT in Cyball): The reward token usually has an unlimited total supply. This is the token that gamers will receive as a reward for participating and contributing to the game's activities.
- Governance token (like CYB in Cyball): This is the main token of the game, which acts as the governance token. The number of governance tokens is limited.
Gamefi projects will have certain reward and anti-inflation mechanisms to ensure the balance of game tokens and the benefits of players.
Regular players will have to buy NFTs to participate in activities in PvP, PvE, Mining games, etc. to earn rewards such as tokens or NFTs and buy as well as sell them on the marketplace. In addition, players can also make use of the Defi feature of the game by staking coins or adding liquidity to AMM (Automated Market Maker).
The main pillars of a Gamefi project
- Gameplay : If a game project wants to grow in the long-term, it needs to have a captivating gameplay and bring a sense of entertainment to players. This helps the game attract a certain number of users to accompany, contribute and support the project throughout the development process.
- User : Since every product becomes useless without users, it can be said that users are the soul of every project.
- Gaming guild : is an important and indispensable bridge between users and Gamefi projects. Gaming guild can bring available resources from its own ecosystem (user pool) and many other useful tools to the Gamefi project.
(click the link below to learn more about “What is gaming guild”)
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