Kate Irwin

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop">subscribe</a>.



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A new Arbitrum-based blockchain called Studio Chain is launching to explore what crypto can do in the entertainment sector.



Karrat Foundation worked with Arbitrum Foundation on the project. Karrat Foundation is behind the KARRAT token used by AMGI Studios’ battle royale game My Pet Hooligan, which the team says has seen over 500,000 downloads on the Epic Games Store so far in early access. KARRAT will also become the native token for Studio Chain, and My Pet Hooligan will launch on Studio Chain.



Quick sidenote: A couple years ago, I got to <a href="https://decrypt.co/videos/live-events/eQ71oapI/behind-the-scenes-with-amgi-studios-and-my-pet-hooligan">check out</a> AMGI’s studio in California where My Pet Hooligan is being made IRL. The team was incredibly passionate not only about their video game and their quirky rabbit-based IP, but also about their plans for animated films. They’re next door to Hollywood, after all.



Studio Chain ties into that vision.&nbsp;



Abitrum Orbit is tech that lets others launch their own chains, and they’re all connected to create “a universe of chains.” Arbitrum One, on the other hand, is the main <a href="https://blockworks.co/tag/arbitrum">Arbitrum</a> chain that’s an EVM-compatible L2 on Ethereum, using <a href="https://docs.arbitrum.io/how-arbitrum-works/optimistic-rollup">optimistic rollups</a> to reduce network costs. So Studio Chain will be its own chain within the Arbitrum network of chains.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1062" height="528" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png" alt="" class="wp-image-98813" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=1062 1062w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXdcMp3FYZDlb9v7Hlv6qDbupjT6dRrtK2XdbFID8i578R4GbeVTz0h2FBgjm8Jbj7Ogoy77YFbdr69kLGJnWUWbv6DIKJkBNhcEzDS8hL44YqPDfOcm4Y8_IU12YderSg7-Q_8I9g.png?w=80 80w" sizes="auto, (max-width: 1062px) 100vw, 1062px" /><figcaption class="wp-element-caption">KARRAT price action, sitting at $0.08 at time of writing</figcaption></figure>



“By leveraging Arbitrum&#8217;s powerful infrastructure, we&#8217;re able to create gaming experiences that were previously impossible,” said Luke Paglia, COO and co-founder of AMGI Studios, in a statement. “My Pet Hooligan is just the beginning — this collaboration enables seamless in-game asset ownership, true player-driven interactive extensions, and enhanced interoperability that will transform how audiences engage with entertainment.”



In the statement, an unnamed Karrat Foundation rep hinted that the chain could change how “entertainment IP is created and distributed.”



This is ambitious for sure, though we don’t really know more specifics on their plans just yet.&nbsp;



Studio Chain will have to compete with the many existing gaming chains out there, like Ronin, Sui, Immutable, and Abstract, as well as chains that launched to just support one game.&nbsp;



<a href="https://thedrop.beehiiv.com/p/betting-on-bitcoin">Off The Grid</a> from Gunzilla Games is an ambitious game with its own chain, Gunz, using Avalanche, and has seen <a href="https://dappradar.com/blog/january-kicks-off-with-3x-increase-in-on-chain-gaming-compared-to-2024">4.9 million</a> monthly active wallets as of January 2025. <a href="https://thedrop.beehiiv.com/p/another-one-bites-the-dust">MapleStory</a>’s upcoming crypto version is also planning to launch its own Avalanche chain, too.



Gala has touted its crypto-powered film vision for years, but we haven’t seen that venture take off (Gala launched a FILM token last year, and that’s down 93% from its all-time high).&nbsp;



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="766" height="459" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png" alt="" class="wp-image-98812" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=766 766w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=436 436w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=365 365w, https://blockworks-co.imgix.net/wp-content/uploads/2025/03/AD_4nXcYkpakLKeC84qsMdPSU_qieQ-3UANhzSaBm2CyCGN-grwkBFfa5yV6Bied9JNizLOu9eZF8UuscCdSNrdPawkD2BfwOeZdL_oKX5bFYVd7HThzo-FBb8OfPygQOh8ykD135powwA.png?w=80 80w" sizes="auto, (max-width: 766px) 100vw, 766px" /><figcaption class="wp-element-caption">Gala FILM price over time on CoinStats</figcaption></figure>



Ultimately, we just haven’t seen any major blockchain film or television projects, or blockchain-based film platforms, skyrocket into the mainstream yet. Recently, niche plays have been making a splash, like <a href="https://thedrop.beehiiv.com/p/this-mfer-is-normal">The Normal Mfer</a>, an animated short that heavily references meme culture, crypto culture, and the Mfers NFT collection.



More broadly, it seems we’re still in this era of crypto where projects want to launch their own chains. We saw 104 gaming-related networks announced last year, according to data from crypto gaming platform Game7.&nbsp;



Starting a dedicated chain can give studios more control and independence, but I don’t know whether all of these chains will have significant staying power long-term.&nbsp;



I think it mostly depends on whether these games get enough consistent players — and revenue — to keep the lights on.



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Gaming

An Arbitrum-based blockchain is exploring what crypto can do for the entertainment industry

Shiti Manghani

Have we forgotten about fun?&nbsp;



GameFi is witnessing a pivotal migration right now from play-to-earn to play-to-own models. And amid the yearning for possession of these NFTs (perhaps in spite of it) many Web3 gaming developers have inadvertently strayed from the essence that animates gaming — characters, narratives, gameplay experiences and community.&nbsp;



They crack their heads figuring out ways to incentivize NFT ownership, overcomplicating the process and losing sight of the fundamental elements that breathe life into gaming.&nbsp;



The prevalent misconception that NFTs are singularly the epitome of Web3 gaming’s value system needs dismantling.&nbsp;



Players are not concerned about the mechanics of NFT ownership or ownership itself, but about whether the game offers an enjoyable experience. The heart of a game isn’t encapsulated in the tokenization of in-game assets — it’s in the intricately designed worlds, the compelling storylines and the immersive strategic gameplay that captivates and challenges the players’ imagination.&nbsp;



The intersection of ownership and fun gameplay truly defines Web3 gaming, far beyond token possession.



<h2 class="wp-block-heading">Creating genuine value</h2>



As Web3 gaming developers, we must acknowledge that the creation of in-game assets of genuine value demands more than just a technical tokenization process; it needs artistic labor. It calls for dedication from diverse and talented teams, and more importantly, community involvement in crafting worlds, characters and narratives that resonate profoundly with players.&nbsp;



NFTs that are born from these intricacies go beyond ownership and hold value as they become vessels embodying collective efforts and emotional connections, encapsulating a slice of every player’s unique journey.&nbsp;



NFT ownership within GameFi isn’t a solidarity pursuit; it thrives within a symbiotic relationship embedded within a comprehensive ecosystem that flourishes through community-driven financial, creative and social contributions.&nbsp;



Read more from our opinion section: <a href="https://blockworks.co/news/blockchain-gaming-gamers">Hey gamers, blockchain isn’t that bad</a>



It’s easy for us to overlook the significance of a tightly interwoven and inclusive gaming ecosystem in nurturing NFT ownership. We often fail to realize that players’ experiences across various spaces and platforms are an integral part of a fun gaming experience. They are crucial in extending the influence of token possession beyond the game interface and provide players with the robust support and diverse interactions necessary to cultivate and maintain their incentive and interest in owning NFTs.



To successfully foster a sustainable gaming ecosystem, we must be able to balance fun, accessibility and ownership. Achieving this balance through enhanced tokenomics, community participation and effective governing mechanisms forms the bedrock for long-term viability in Web3 gaming. While significant, NFT ownership or play-to-own models alone cannot guarantee success for a game without an ecosystem that prioritizes an enjoyable gaming experience.



2023 marked a transformative phase in GameFi: The blockchain gaming industry <a href="https://dappradar.com/blog/state-of-blockchain-gaming-in-q1-2023">saw</a> modest growth from 43% in Q4 2022 to 46% in Q1 2023, with around 44% active wallets.&nbsp;



The influx of talent from traditional gaming studios and the continual innovation in projects signal a continual promising trajectory for GameFi. As it continues its evolutionary journey, we need to recognize that NFTs aren’t the destination — they are the milestones marking the evolution of gaming, the keepsakes of players’ experiences and the testament of a community’s collective journey within GameFi.&nbsp;



NFT ownership in Web3 gaming is overrated unless it is intrinsically linked to fun.



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<div class="wp-block-post-author-biography">Shiti Rastogi Manghani is an award-winning business leader with 14 years of experience across 11 countries managing multi-million-dollar projects. Presently, Manghani serves Find Satoshi Lab as its Chief Operating Officer where she oversees all marketing, communications and growth initiatives for Find Satoshi Lab as well as the brands it oversees. Manghani is an Electronics Engineer and holds an MBA in Marketing. She founded her computer vision-based AI start-up, which ranked among the Top 50 well-being start-ups in the UK (At no. 14) and the Top 100 health companies in the UK. Previously, she has worked towards launching Wall Street Journal’s digital arm in India and building power brands at PepsiCo US. </div>


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Forget NFTs. Let’s go back to basics and make Web3 games fun first.

Jack O’Holleran

Whether embraced with open arms or met with skepticism, the integration of blockchain within mobile gaming is not just a possibility — it&#8217;s an impending reality.



As the figures and trends from recent years illuminate, mobile gaming&#8217;s ascendancy is undeniable. Coupled with the shifting dynamics of in-game purchases transforming gaming economies, a new era beckons, an era where Web3 will take center stage.&nbsp;



The reasons are manifold: Enabling a new transaction paradigm, instant expansion for players and publishers to a global marketplace and genuine digital asset ownership. These facets make it clear that the gaming world is poised for a Web3 overhaul. It&#8217;s not so much a matter of &#8220;if&#8221; but &#8220;when.&#8221;&nbsp;



Gamers might have reservations or display hesitancy, but industry dynamics suggest a clear direction. The convergence of mobile gaming and Web3 is on the horizon, ready to reshape the industry, irrespective of whether every individual gamer is on board.



<h2 class="wp-block-heading">The meteoric rise of mobile gaming</h2>



The world of gaming has seen an exponential growth trajectory, with mobile gaming leading the charge.&nbsp;



In 2022, the valuation of the global gaming market <a href="https://newzoo.com/resources/blog/the-games-market-in-2022-the-year-in-numbers">reached</a> an impressive $184.4 billion. Mobile gaming, bolstered by the increasing ubiquity of smartphones around the globe, carved out a staggering $92.2 billion from this total, meaning half of the global gaming revenues were derived from mobile games alone.&nbsp;



This dominance leaves conventional platforms, including console and PC gaming, striving to catch up. The allure of mobile gaming is multifaceted: Not only does it provide the convenience of gaming virtually anywhere and anytime, but it also offers immersive experiences designed for brief yet meaningful sessions.&nbsp;



The “perception” of Web3 gaming is not the reality



Web3 gaming’s current bad rap was actually well earned.&nbsp;



Critics have asserted that blockchain games are boring, costly and cumbersome to play, and that they appeal solely to technical minds and speculators. There&#8217;s also debate about excessive gas fees, with some even dismissing all Web3 games as not genuine gaming experiences. A few go as far as to brand NFTs as deceptive and challenge the real relevance of blockchain within the gaming world.&nbsp;



The reality is that these criticisms were accurate. However, huge amounts of time, resources and funding have been pointed at solving these issues.



Those watching closely are seeing that the page has turned. As of now, more than 35 Web3 games have over 5,000 active players daily, marking an increase from the previous year. Breakthroughs such as embedded wallets, zero gas blockchains and instant block times, among others, have paved the way. This progression has smoothly integrated blockchain tech into the gaming scene, making it more of a foundational element than a main attraction.



It&#8217;s evident that the earlier skepticism around blockchain gaming is diminishing, and the line between conventional and blockchain gaming will blur in no time.



Mobile gaming&#8217;s economic success doesn&#8217;t solely rest on the vast number of players it attracts; the revenue model that mobile games employ plays a pivotal role. And central to this model is the presence of in-game purchases. No longer confined to mere aesthetic enhancements or gameplay shortcuts, these purchases have become core components that drive the in-game economy.



The assets that users purchase —&nbsp;ranging from exclusive character skins to in-game abilities — provide players with both gameplay advantages and bragging rights. As the digital economies within games have matured, in-game purchases have morphed from being simple microtransactions to vital elements that not only enrich the gaming experience, but also encourage sustained player engagement and investment.



These aren&#8217;t just about acquiring assets anymore, they&#8217;re about owning digital properties in a Web3 framework. Players will soon recognize the heightened value of their in-game assets, pushing them further into the embrace of blockchain-driven gaming realms. And as these in-game economies mature, the shift from simple microtransactions to essential Web3-based transactions becomes inevitable.



At the heart of this transformation lies the capabilities of blockchain technology.



Blockchains open up a whole new world of transaction and marketplace activity. Through the use of modern blockchain technology such as “gas-free transactions,” microtransactions can live in a seamless manner within gameplay. The concept of “programmable money” via smart contracts can truly come to life within mobile gameplay.&nbsp;



Rather than limiting the marketplace for in-game items to the app itself, the game can have a storefront in any NFT marketplace while still earning royalties via smart contracts. This gives far greater flexibility to game players and game developers/publishers.&nbsp;



Read more from our opinion section: <a href="https://blockworks.co/news/web3-playful-fun" target="_blank" rel="noreferrer noopener">Web3 should never, ever grow up</a>



Blockchains also allow players to truly own assets via in-game NFTs. Not only do they wholly own the asset, but they can play to improve its utility and eventually sell it in a marketplace to other game players. This notion of true ownership and asset liquidity adds a layer of real-world value to in-game items. The implication is profound: If players know their items can be sold or traded, they may be more incentivized to dive further into in-game economies, knowing their assets hold tangible value beyond the screen.



As we stand at this intersection of technology, innovation and gaming passion, it&#8217;s crucial to recognize that the impending fusion of Web3 and mobile gaming is more than just a passing trend — it&#8217;s the dawn of a <a href="https://blockworks.co/news/blockchain-gaming-gamers" target="_blank" rel="noreferrer noopener">revolutionary epoch</a>.&nbsp;



Drawing from the evolution of mobile gaming&#8217;s economic structure to the undeniable pull of blockchain&#8217;s transformative potential, the direction is unambiguous. Web3 integration, offering genuine digital asset ownership and decentralized economies, isn&#8217;t merely an industry&#8217;s adaptation — it&#8217;s a redefinition of gaming&#8217;s essence. While individual sentiments among gamers may vary, and the pace of acceptance might differ, the industry&#8217;s trajectory toward a Web3-based future is set.



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<div class="wp-block-post-author-biography">Jack O’Holleran is Co-Founder and CEO of SKALE Labs, the team behind SKALE, the world&#8217;s fastest blockchain, designed for ultra-fast, secure, user-centric Ethereum scaling. Jack is a veteran Silicon Valley Technology entrepreneur with a deep background in machine learning/AI technologies and blockchain. Formerly, Jack co-founded IncentAlign (now Aktana) and held executive positions at Good Technology and Motorola. Jack first started working with digital currencies in 2008 when he was instrumental in building a digital currency platform for Enterprise Resource Allocation.</div>


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Ready or not, Web3 mobiles games are coming

Bart Hillerich

In the rapidly evolving world of blockchain gaming and decentralized applications, the significance of a reliable and robust infrastructure cannot be overemphasized. As developers aim to scale, enhance efficiency, and safeguard users, integrating powerful tools becomes paramount.&nbsp;



In this context, we delve into how Altura, a prominent platform for blockchain game developers, revolutionized its Web3 gaming ecosystem by collaborating with <a href="https://www.quicknode.com/?utm_term=quicknode&amp;utm_campaign=Brand&amp;utm_source=google&amp;utm_medium=cpc&amp;hsa_acc=1365030395&amp;hsa_cam=20244916698&amp;hsa_grp=150357053496&amp;hsa_ad=617804978340&amp;hsa_src=g&amp;hsa_tgt=kwd-972169075647&amp;hsa_kw=quicknode&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad=1&amp;gclid=Cj0KCQjw9fqnBhDSARIsAHlcQYQ_QWHvemzpk-zLhXhd_AM1LGuv1Ii7P7dk99NkqGPO-Xu-CcV7qV8aArSyEALw_wcB" target="_blank" rel="noreferrer noopener">QuickNode</a>. Furthermore, we&#8217;ll explore how DappRadar, the global dApp store, amplifies its real-time analytics capabilities with QuickNode&#8217;s robust infrastructure, ensuring both operational excellence and user safety in the face of prevalent scams.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading">Altura</h2>



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1200" height="630" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png" alt="Altura integrates QuickNode to get more reliable blockchain infrastructure performance." class="wp-image-67704" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=1200 1200w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=80 80w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /><figcaption class="wp-element-caption">Source: <a href="https://www.alturanft.com/ogimg.png" target="_blank" rel="noreferrer noopener">Altura</a></figcaption></figure>



<a href="https://www.alturanft.com/" target="_blank" rel="noreferrer noopener">Altura</a>, a platform assisting blockchain game developers to integrate Web3 into their games, partnered with QuickNode to fortify its Web3 gaming ecosystem. Altura’s partnership with QuickNode has addressed past infrastructure inconsistencies, enhanced operational efficiency, and empowered them to tap into historical blockchain data using Archival Nodes.



<h3 class="wp-block-heading">Shaking off reliability issues</h3>



Before connecting with QuickNode, Altura struggled with its previous Web3 providers, experiencing frequent downtimes and shaky support. After a couple of misses with other providers, they turned to QuickNode because of its reputation for being reliable. Making the switch, Altura found what they were missing: reliability and a smooth ride.



With QuickNode on board, Altura dove deep into the available. They started using the Archival Node, a treasure chest of old blockchain data. Then came <a href="https://www.quicknode.com/quickalerts" target="_blank" rel="noreferrer noopener">QuickAlerts</a>, a nifty tool letting developers keep tabs on stuff like when NFTs are sold, resulting in an augmented marketplace indexer and easier new chain integration. Thanks to these tools, Altura&#8217;s platform became more efficient and user-friendly. QuickNode gave them the magic touch to level up in the blockchain gaming scene!



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“I can attest to both the user-friendly nature and the innovative techniques employed by QuickNode. However, the crux of any product’s effectiveness lies in its reliability. In my experience, among all the available products in the market, QuickNode is the singular entity that satisfactorily meets this essential requirement.”
<cite>Abdullah Rangoonwala, Head of Engineering at Altura</cite></blockquote>



<h2 class="wp-block-heading">DappRadar</h2>



<figure class="wp-block-image is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png" alt="DappRadar leverages QuickNode to protect users from blockchain scams." class="wp-image-67703" style="width:840px;height:473px" width="840" height="473" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=80 80w" sizes="auto, (max-width: 840px) 100vw, 840px" /><figcaption class="wp-element-caption">Source: <a href="https://dappradar.com/">DappRadar</a></figcaption></figure>



<a href="https://dappradar.com/" target="_blank" rel="noreferrer noopener">DappRadar</a> is the world’s dApp (decentralized application) store, serving as the starting point for millions of users as they initiate the discovery of Dapps across all product categories and blockchains. QuickNode’s robust infrastructure offers raw blockchain data, with instant access to archive nodes, tracking patterns, and other features; it provides the foundation needed for DappRadar’s real-time analytics tools to function and scale its data analytics capabilities across multiple chains.



<h3 class="wp-block-heading">Shining a light on bad actors</h3>



In an industry where scams are prevalent, maintaining user safety is essential for a platform like DappRadar that aggregates dApps globally. Every day, hundreds of smart contracts pop up; many are not trustworthy. By leveraging Quicknode, DappRadar taps into over 300,000 listed smart contracts, alerting its users if a deal is too good to be true. Thanks to this, developers can help users avoid sneaky scams lurking in the shadows and DappRadar can much easier maintain its reputation as a safe, trustworthy solution for locating dApps.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“When we started DappRadar two years ago, we chose QuickNode instead of running our own node. Saved us time and money!”
<cite>Skirmantas Januškas, Co-founder of DappRadar</cite></blockquote>



<h2 class="wp-block-heading">QuickNode&#8217;s crucial role in shaping the future of Web3</h2>



In the blockchain sphere, having a resilient and efficient infrastructure is not just about enhancing operational capacities; it&#8217;s about ensuring user safety and providing unparalleled experiences.&nbsp;



Altura&#8217;s transformation and DappRadar&#8217;s unwavering commitment to user safety are testaments to the indispensable role that QuickNode plays in fortifying the Web3 domain. By addressing the intrinsic needs of the decentralized world, QuickNode is setting a gold standard, helping renowned Web3 applications navigate challenges and scale new heights.



To get started implementing QuickNode into your endeavors, check out <a href="https://www.quicknode.com/?utm_term=quicknode&amp;utm_campaign=Brand&amp;utm_source=google&amp;utm_medium=cpc&amp;hsa_acc=1365030395&amp;hsa_cam=20244916698&amp;hsa_grp=150357053496&amp;hsa_ad=617931270212&amp;hsa_src=g&amp;hsa_tgt=kwd-972169075647&amp;hsa_kw=quicknode&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad=1&amp;gclid=CjwKCAjwo9unBhBTEiwAipC1181Cbw-SH0WRLDWk__hpugprn1pVnPeIQlvP32ezTSdY1dVqzyHiyxoC1YUQAvD_BwE" target="_blank" rel="noreferrer noopener">their website</a>. To stay on top of their latest updates, be sure to follow the team on <a href="https://twitter.com/quicknode" target="_blank" rel="noreferrer noopener">X</a> and join their <a href="https://discord.gg/quicknode" target="_blank" rel="noreferrer noopener">Discord server</a>.



This content is sponsored by <a href="https://www.quicknode.com/?utm_term=quicknode&amp;utm_campaign=Brand&amp;utm_source=google&amp;utm_medium=cpc&amp;hsa_acc=1365030395&amp;hsa_cam=20244916698&amp;hsa_grp=150357053496&amp;hsa_ad=617931270212&amp;hsa_src=g&amp;hsa_tgt=kwd-972169075647&amp;hsa_kw=quicknode&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad=1&amp;gclid=CjwKCAjwo9unBhBTEiwAipC1181Cbw-SH0WRLDWk__hpugprn1pVnPeIQlvP32ezTSdY1dVqzyHiyxoC1YUQAvD_BwE" target="_blank" rel="noreferrer noopener">QuickNode</a>.



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blockchain

The secret sauce behind Web3’s premier applications

Blockchain gaming is revolutionizing the gaming industry by merging cutting-edge blockchain technology with the immersive world of video games. As cryptocurrencies and decentralized finance (DeFi) gain momentum, blockchain gaming presents a new frontier for investors seeking high-growth opportunities.&nbsp;



By understanding the fundamentals, staying informed about regulatory developments, and adopting a prudent investment approach, investors can seize opportunities in this transformative and rapidly evolving domain. This investor&#8217;s guide, boosted with insights from experts at <a href="https://blckwrks.co/3YTx6op" target="_blank" rel="noreferrer noopener">Polemos</a>, provides a comprehensive understanding of blockchain gaming&#8217;s advantages, investment potential, and challenges.



Key takeaways



<ul class="wp-block-list">
<li>Blockchain gaming offers true ownership of assets via NFTs, ensures secure gameplay with smart contracts, and opens financial avenues through DeFi integration.</li>



<li>It&#8217;s essential that prospective investors understand what exactly they are purchasing. Oftentimes, Web3 participants confuse &#8220;casino chips&#8221; for &#8220;shares of casino ownership.&#8221;</li>



<li>With significant market growth and potential, investing in blockchain gaming requires thorough due diligence but can yield substantial rewards despite market volatility and regulatory uncertainties.</li>



<li>The synergy of blockchain, NFTs, and DeFi is reshaping gaming, offering true ownership of digital assets that can be freely traded.</li>
</ul>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading">Investment Opportunities in Blockchain Gaming</h2>



In the long term, experts forecast substantial long-term growth for blockchain gaming. As technology evolves, blockchain gaming could become a mainstream form of entertainment, bridging the gap between traditional gaming and digital asset ownership.&nbsp;



Like any emerging industry, blockchain gaming carries inherent investment risks and has already mourned many failed projects. Market volatility, technological challenges, regulatory uncertainties, and competition can all play a role in impacting investment outcomes. However, early investors with a strategic and diversified approach may reap substantial rewards in this dynamic sector.



When evaluating blockchain gaming projects, prospective investors should conduct thorough due diligence. Key factors to consider include the team&#8217;s experience, project goals, partnerships, revenue streams, gameplay, and tokenomics. It’s also essential to understand what exactly is available to purchase as an investment vehicle. Oftentimes, investors are buying blockchain gaming utility tokens under the incorrect belief that their purchase represents ownership in the project and will appreciate as the project succeeds, similar to how traditional shares of a company function.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“There’s a difference between owning shares in a casino and buying their chips. If you own shares in a casino, you can reasonably expect a return—they find it quite hard to lose money. If you own chips in a casino, you can reasonably expect to lose everything you have over time. Similarly, if you’re investing in a blockchain game, it’s essential to know whether you’re buying shares in the ‘casino’ or the chips. You need to make sure that what you’re doing is investing in something like the shares of the project that will pay a return as the game is successful.&#8221;
<cite>Richard McLaren, COO &amp; Co-CEO of Polemos</cite></blockquote>



NFT renting is another promising prospect that could one day be a lucrative investment vehicle. Renting NFTs is a more affordable way to access high-value in-game assets and also allows gamers to try out different NFTs before purchasing them.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1638" height="2048" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=1024&amp;h=1024" alt="" class="wp-image-66790" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=1638 1638w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=240 240w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=819 819w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=1229 1229w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=206 206w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=209 209w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=175 175w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-3.png?w=64 64w" sizes="auto, (max-width: 1638px) 100vw, 1638px" /><figcaption class="wp-element-caption"><a href="https://twitter.com/ParallelTCG" target="_blank" rel="noreferrer noopener">Parallel</a>, a highly-anticipated upcoming sci-fi trading card game, enables players to share the NFT cards they use in battle with other players for XP rewards. | Source: <a href="https://twitter.com/ParallelTCG/status/1696903333544341616?s=20" target="_blank" rel="noreferrer noopener">Parallel X</a></figcaption></figure>



NFT rentals can also scale up to NFT Land parcels in large-scale open-world games and metaverse platforms. An exciting prospect to many Web3 participants, believers look forward to one day providing virtual world access to large brands that want to establish a tangible presence in the metaverse. Landowners could earn revenue via a rental fee, a percentage of revenue generated on the land itself, or some other agreed-upon avenue.



<h2 class="wp-block-heading">The Advantages of Blockchain Gaming</h2>



As the gaming landscape evolves with the introduction of blockchain technology, certain industry norms are transforming, paving the way for a better gaming experience for all.



<h3 class="wp-block-heading">Ownership of Digital Assets</h3>



Traditional gaming models often restrict players from owning in-game items, characters, or virtual real estate. In contrast, blockchain gaming leverages non-fungible tokens (NFTs) to grant true ownership of digital assets.&nbsp;



NFTs are at the core of blockchain gaming, enabling the creation of unique in-game items that players can own and one day potentially transfer across games through advancements in NFT interoperability. These items, ranging from virtual weapons and armor to rare collectibles, can be traded and sold in open marketplaces, creating a thriving market of collectors and investors.&nbsp;



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png" alt="Star Atlas, a blockchain-based, space-themed, grand strategy video game built on the Solana blockchain, enables players to own a variety of in-game NFTs, like spaceships, resources, and collectibles." class="wp-image-66696" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/08/image-2.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Star Atlas players will own an arsenal of deployable in-game assets, including spaceships and resources | Source: <a href="https://twitter.com/staratlas/status/1686774130493059072?s=20" target="_blank" rel="noreferrer noopener">Star Atlas X</a></figcaption></figure>



<h3 class="wp-block-heading">Decentralization and Trustless Gameplay</h3>



Blockchain gaming operates on decentralized networks, eliminating the need for central authority control and putting power into the hands of the players. Smart contracts, the backbone of blockchain technology, facilitate trustless interactions between players, developers, and other stakeholders. This transparency and security build player confidence and enable fair and tamper-proof gameplay.



<h2 class="wp-block-heading">Understanding the Mechanics of Blockchain Gaming</h2>



Blockchain gaming is bringing unprecedented changes to virtual worlds and in-game experiences. Digging deeper, we uncover several core mechanics driving the evolution.



Smart Contracts and Gaming Protocols



Smart contracts are self-executing contracts with predefined conditions written into their code. In blockchain gaming, smart contracts govern various aspects of gameplay, asset ownership, and reward distribution. These protocols ensure fairness and automation, minimizing the need for intermediaries.



Gaming on Public and Private Blockchains



Blockchain gaming can take place on public or private blockchains, each with its advantages. Public blockchains, like Ethereum, offer greater decentralization and access to a global user base. On the other hand, private blockchains may provide better scalability and customization options for certain gaming platforms.



Integration of DeFi in Blockchain Gaming



DeFi protocols are making their way into blockchain gaming, enabling players to participate in yield farming, staking, and lending using gaming assets as collateral. The integration of DeFi creates a new dimension of financial opportunities for both gamers and investors.



The Play-To-Earn Experiment



Blockchain gaming began with the introduction of play-to-earn models, where players could earn cryptocurrencies and in-game assets by participating in gameplay. These economic incentives were designed to attract players looking to monetize their gaming skills and time by participating in a global marketplace of digital assets. However, as time progressed, it was found that play-to-earn game systems have a strong tendency to <a href="https://blockworks.co/news/play-to-earn-gaming-is-dead">generate catastrophic consequences for game economies</a>, leading to investor losses and the shutting down of projects.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“We do see the term &#8220;play-to-earn&#8221; discredited in general by now, and when it comes to any mentioning of earning potential (as a result of digital asset ownership and potential trading capabilities), then it is important to emphasize that this isn&#8217;t going to be available in every game, and where it is, it won&#8217;t be something the majority will be able to achieve. Also, for those that do, it is likely not going to be material enough to become anyone&#8217;s side hustle.”
<cite>Sascha Zehe, Co-Founder &amp; Co-CEO of Polemos</cite></blockquote>



<h2 class="wp-block-heading">Blockchain Gaming’s Challenges</h2>



The blockchain gaming space is still in its early stages of development, and as a result, there is a lack of quality games. Many blockchain games are simply clones of existing games with blockchain features added on top. Others are poorly made and lack the polish and gameplay that gamers expect. There are several contributing reasons for this.



From a technical standpoint, building blockchain games is significantly challenging due to the current limitations of blockchain technology. Blockchain&#8217;s inherent scalability issues, transaction costs, and the need for a deep understanding of smart contract programming add layers of complexity that can make the development process more complicated compared to traditional gaming platforms. There are not many experienced developers who know how to build high-quality blockchain games.&nbsp;



Additionally, many potential players lack familiarity with cryptocurrencies, digital wallets, and blockchain mechanics, which adds significant friction and complexity to the process of getting started. As a result, the blockchain gaming market is still relatively small, which means that there is less incentive for established, well-funded developers to create high-quality games.



<h2 class="wp-block-heading">Acquire your edge</h2>



Blockchain gaming represents a new paradigm in the gaming industry, offering exciting opportunities for both players and investors. As the industry evolves, investors should stay informed about the latest trends, project developments, and regulatory changes.



When it comes to staying informed about blockchain gaming, there’s no better platform than <a href="https://polemos.io/" target="_blank" rel="noreferrer noopener">Polemos</a>. An information provider, lending and staking service, and community, Polemos is a premier destination for anyone interested in gaining an investment edge in this sector of crypto. To get insights delivered to your inbox every Friday morning, <a href="https://blckwrks.co/3YTx6op" target="_blank" rel="noreferrer noopener">subscribe to their weekly newsletter</a>.



This content is sponsored by <a href="https://polemos.io/" target="_blank" rel="noreferrer noopener">Polemos</a>.



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blockchain gaming

The crypto investor’s guide to blockchain gaming

Michael Bodley

Scores of smaller Web3 game developers, as well as venture capitalists who back them, were getting increasingly antsy about Microsoft’s long planned deal to snap up Activision Blizzard for a cool $69 billion.



News of the proposed purchase started circulating in Jan. 2022. Microsoft said at the time that the publicly-traded technology company had struck a deal to acquire Activision Blizzard in a massive all-cash deal — <a href="https://finance.yahoo.com/news/activision-blizzard-stock-jumps-36-on-microsoft-takeover-news-141836539.html" target="_blank" rel="noreferrer noopener">sending</a> the game developer’s stock soaring 25%.



And sending the Web3 world abuzz when it came to parsing <a href="https://blockworks.co/news/microsoft-bets-big-on-the-metaverse-with-68-7b-deal-for-activision-blizzard" target="_blank" rel="noreferrer noopener">Microsoft’s brewing ambitions for its own metaverse products</a>. 



The paths of both companies in the duration hasn’t been pretty: Regulators in the US and abroad have repeatedly moved to block the deal — generally on antitrust grounds — and a number of smaller traditional gaming companies and crypto-native outfits have kicked up a fuss.



With expectation building that the purchase would finally happen, more than a year after the buy was first made public, the United Kingdom’s Competition and Markets Authority (CMA) unexpectedly stepped in to block it late last week.



Representatives for both <a href="https://blockworks.co/tag/microsoft" target="_blank" rel="noreferrer noopener">Microsoft</a> and Activision have <a href="https://investor.activision.com/news-releases/news-release-details/activision-blizzard-announces-first-quarter-2023-financial" target="_blank" rel="noreferrer noopener">said</a> they’re still committed to closing the acquisition. Still, smaller Web3 game developers are now breathing no small sigh of relief. 



Paul Hsu, the co-founder and chief executive of the blockchain-focused venture capital firm Decasonic, told Blockworks in an interview on Friday that the CMA’s move is a net positive for the Web3 gaming sector.&nbsp;



“When I saw this, it was like, ‘This is so big and impactful for Web3 gaming,” Hsu said. “It certainly impacts so many [in the sector]. The markets reacted correctly, and Microsoft was down, and Sony was up. Clearly this was landscape shifting.”



That’s true, Hsu said, for small gaming outfits building their titles and related NFT applications on blockchains, as well as their backers and incubators — plus gamers looking for a splash of more variety than long time blockbusters franchises like Call of Duty.&nbsp;



Blockchain game developers may be lean in terms of resources, Hsu said, but they’re “constantly shipping” new titles and iterations on existing games.&nbsp;



That’s contrary, the venture capitalist said, to large traditional gaming studios that may be complacent when it comes to their existing business models and associated revenue streams.



Intellectual property is becoming increasingly important in the Web3 gaming sector, he said.



And the stakes are on the rise, with the likes of Microsoft looking to build out their own intellectual property streams that tap crypto native content.&nbsp;



“That IP really matters,” he said. “In the future of Web3, you’re starting to see Web3 native brands emerge.”&nbsp;



<h2 class="wp-block-heading">FTC tried to block Microsoft-Activision deal first</h2>



Microsoft has deep resources at its disposal to purchase crypto native gaming companies — a fact more interesting in lieu of the Activision Blizzard deal.&nbsp;



In the US, the Federal Trade Commission (FTC), <a href="https://www.ftc.gov/news-events/news/press-releases/2022/12/ftc-seeks-block-microsoft-corps-acquisition-activision-blizzard-inc" target="_blank" rel="noreferrer noopener">said</a> in December 2022 that it would look to scuttle the deal. The FTC worried it would give Microsoft an unfair leg up in terms of tying Activision Blizzard’s number of blue chip gaming titles to Microsoft’s Xbox.  



Meanwhile, Web3 defections from executives tied up in the deal have mounted.&nbsp;



Daniel Alegra, who held the titles of both president and chief operating officer for Activision Blizzard, jumped ship earlier this year to <a href="https://blockworks.co/news/yuga-labs-activision-blizzard-cardano" target="_blank" rel="noreferrer noopener">step in as Yuga Labs’ next chief executive</a>. 



Read more: <a href="https://blockworks.co/news/microsoft-culls-metaverse-team" target="_blank" rel="noreferrer noopener">Microsoft Culls Metaverse Team It Created 4 Months Ago</a>



Yuga Labs then added another layer to its Web3 gaming push by <a href="https://blockworks.co/news/yuga-labs-hires-cto" target="_blank" rel="noreferrer noopener">moving to tap a former Epic Games executive as its chief technology officer</a>. 



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Activision Blizzard

Why The Microsoft-Activision Deal Failing May Be Good for Web3

Yuga Labs hired Epic Games veteran Mike Seavers as the company’s chief technology officer on Friday. 



The consensus from a number of crypto industry participants?&nbsp;Blockchain-based gaming initiatives just got a great deal more gripping — and likely more competitive.



Seavers said in a statement that “there have been rare moments over my career where I felt like a new technology was creating a true paradigm shift for the world,” adding that he recognizes Web3 as “one of those moments.”


<div class="wp-block-image">
<figure class="alignright size-medium"><img loading="lazy" decoding="async" width="1600" height="1551" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=300&amp;h=300" alt="" class="wp-image-53894" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=265 265w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=269 269w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=226 226w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/image-11.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Incoming Yuga Labs Chief Technology Officer Mike Seavers | Source: Yuga Labs</figcaption></figure></div>


<a href="https://blockworks.co/tag/yuga-labs">Yuga Labs</a>, the Web3 company with a weighty venture capital arm, said in a statement on Friday that Seavers is set to join the company on May 22. A spokesperson for Yuba Labs declined to make Seavers or another representative for the company available for comment.&nbsp;



By all appearances, Yuga is making a significant push into Web3 gaming this year.&nbsp;



Seavers is taking the job of current Yuga Labs chief technology officer Kerem Atalay, according to the company, who is set to “remain with the company as a close strategic advisor.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">I’m beyond excited for Mike Seavers to succeed me as CTO at Yuga Labs. I have complete confidence in Mike and believe he is the right person to scale the Yuga engineering org to deliver on our ever-growing ambitions as a company. It has been an immense privilege to watch Yuga… <a href="https://t.co/8WRNRv1eQQ">https://t.co/8WRNRv1eQQ</a>&mdash; EmperorTomatoKetchup (Kerem Atalay) (@TomatoBAYC) <a href="https://twitter.com/TomatoBAYC/status/1651949259057504258?ref_src=twsrc%5Etfw">April 28, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h2 class="wp-block-heading">Yuga Labs ‘clearly taking gaming very seriously’&nbsp;&nbsp;</h2>



Chris Akhavan, the chief gaming officer of Magic Eden who joined the NFT marketplace in November 2022, told Blockworks in an exclusive statement on Friday that Weaver’s hire is the latest indicator that Yuga Labs is “clearly taking gaming very seriously.”



That’s especially true when taking into account the fact that Seaver’s pending start as the company’s chief of technology follows Yuga Labs’ <a href="https://blockworks.co/news/yuga-labs-activision-blizzard-cardano">installation of former Activision Blizzard executive Daniel Alegra as its CEO</a> back in March.



Back in September 2022, Yuga made another noteworthy move when it <a href="https://decrypt.co/109966/yuga-labs-hires-chief-gaming-officer-to-further-web3-gaming-push">tapped</a> Spencer Tucker to lead the company&#8217;s gaming division. The <a href="https://decrypt.co/109966/yuga-labs-hires-chief-gaming-officer-to-further-web3-gaming-push">move</a> caused some buzz in the industry, with regard to speculation about gaming specialists moving into the crypto space.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">&#8211; The new CTO of <a href="https://twitter.com/yugalabs?ref_src=twsrc%5Etfw">@yugalabs</a> is one of the most accomplished technologists in the gaming world. &#8211; CGO &amp; CEO of Yuga Labs are some of the best executives in the gaming world. Web3 Gaming will be defined by Yuga.&mdash; lior.eth (@lior_eth) <a href="https://twitter.com/lior_eth/status/1651947921514942464?ref_src=twsrc%5Etfw">April 28, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Akhavan spent more than eight years at the startup Glu Mobile, which was <a href="https://venturebeat.com/games/ea-completes-2-4-billion-acquisition-of-glu-mobile/">acquired</a> by gaming giant Electronic Arts in 2021 in a $2.4 billion deal.&nbsp;



Weaver worked directly on the development of a Fortnite product, according to Jonathan Campeau, Executive Producer at Aurory Games, adding that a “clean slate with new emerging tech” on its own is “enough to attract any” chief technology officer. 



Seaver’s hire “shows that Yuga Labs is doubling down on their [Web3] strategy, and wants to develop the exact same formula,” according to Campeau.



With one notable caveat, that is.&nbsp;



“Except this time, leveraging blockchain technology will create tremendous value for players in the long term,” Campeau said. “Really smart move.” 



<h2 class="wp-block-heading">Where is crypto gaming going in Q1?</h2>



There have been a number of notable instances of top talent from traditional AAA gaming companies taking the plunge into venture capital firms with digital asset dealings.&nbsp;



There have also been defections here and there from the industry, in terms of recent hires running back to traditional asset managers and gaming studios. This mainly accelerated in the fourth quarter of last year as crypto markets tanked.&nbsp;



It’s all added up to crypto industry participants eagerly parsing what the latest in people moves for gaming companies means for the sector.



Animoca Brands has also gotten in on the crypto gaming push, with at least one recent indicator pointing to the fact that the <a href="https://blockworks.co/news/animoca-brands-web3-gaming-mma">sizable crypto backer is looking to accelerate its funding of startups in the sector</a>.&nbsp;



Asked the outlook for the crypto gaming and NFT sector for the remainder of the second quarter, Jonathan Campeau said “that’s a hard one to answer” given that “a lot of [Web3] game developers are experimenting still in many different ways.” 



“There is no real definite set of guidelines to follow for developing a” Web3 gaming title “yet,” according to Campeau, apart from “relying on the web2 traditional best practices that have been working for decades.”



He added: “We are seeing more and more web 2.5 games for that reason as [Web3 developers realized it might still be too early to throw crypto jargon into the mix for mass adoption.”



Update: April 29 at 7:47pm. An earlier version of this article attributed Jonathan Campeau&#8217;s quotes to Chris Akhavan. We regret the error.



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crypto hiring

Yuga Labs CEO, CTO Hires May Point to ‘Mass Adoption’ of ‘Web 2.5’ Games

Macauley Peterson

<a href="https://blockworks.co/tag/play-to-earn">Play-to-earn games</a> may have faded from view, but Web3 gaming start-ups are plowing ahead with functional NFT integrations, and <a href="https://blockworks.co/news/eve-online-web3-blockchain-game">Web2 game publishers are preparing</a> to incorporate some of the same concepts into their existing franchises.



In the “if you build it, they will come” mold, Unioverse has debuted its first playable proof-of-concept, Proving Ground, a single-player time trial which makes use of <a href="https://blockworks.co/news/web3-gaming-hellscape-needs-reboot">the would-be franchise’s first “hero” character</a>, Reyu.



Game designers at Random Games are combining traditional game development with world building and cultivating a community through ownership of playable characters. The hope is that external developer partners will take the chance to expand upon the company&#8217;s initial “building blocks,” according to Chief Technology Officer Wyeth Ridgway.



“What we’re showing off is how good your avatar looks and how functional he is,” Ridgway told Blockworks. “We solved all these complex geometric problems so when we share this project with developers they’re getting weapons systems, inverse kinematic systems [and] physics systems.”



All the Proving Ground (previously known as Danger Room) code will all be released to game developers to give them a starting point. “We basically end up saving the developers we’re handing this to a bunch of time,” Ridgway said.



Meanwhile, players can drop in their NFTs and take a stab at navigating the various levels of the Proving Ground to compete on completion time with other players and climb a weekly leaderboard. Solve the game fast enough, and the NFT can become permanently ranked with the chess-like title of grandmaster.



Ridgway describes that as part of the ownership culture of Web3, adding value to the NFT through its career achievements. Or, “kind of like having the game-winning ball in the NBA playoffs,” he said.



That metadata, while displayed on OpenSea listings, is stored on Unioverse servers for now. The end goal is for Unioverse to be “a community owned franchise,” but until then it’s reliant on the internal team, Ridgway said. “We’ll handpick a couple developers in 2024 to work with.&#8221;



After the initial single-player “sandbox,” the next step is a multiplayer, character-plus-vehicle battle royale-style game. “Like, a Mario Kart type of thing,” Ridway explained.



<h2 class="wp-block-heading">The role of NFTs in gaming</h2>



The Unioverse NFTs are tailored to various levels — from “common” to “legendary” which, while not affecting game play, can appeal to collectors as well as gamers. That seems to be one of the through lines of this burgeoning Web3 gaming narrative.



Another franchise, Kaidro, from creators Robert Simons and Peggy Chung, is billing itself as a “Web2 crossover” where the NFTs form an optional clan system that can attached to a player’s character to form a ranking system.



The game is also planning to make use of non-transferable — or “<a href="https://blockworks.co/news/what-is-decentralized-identity">soul-bound</a>” — NFTs, which function like any traditional <a href="https://en.wikipedia.org/wiki/Battle_pass" target="_blank" rel="noreferrer noopener">battle pass</a> in a Web2 paradigm.



Royalties on the secondary sales of in-game assets is expected to form one leg of the team’s business model, in a trans-media franchise that began as a webcomic in 2020.



The game is envisioned as a clan vs. clan competition based on seasons. “Season 0,” an open beta, is expected to reach gamers by the end of the year, while Season 1 will introduce players to the core story in 2024.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="2560" height="1243" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=1024&amp;h=1024" alt="" class="wp-image-53839" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=2560 2560w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/kaidro-demo-2-scaled.jpg?w=80 80w" sizes="auto, (max-width: 2560px) 100vw, 2560px" /><figcaption class="wp-element-caption">Demo video of Kaidro game; Source: kaidro.com</figcaption></figure></div>


“I’m a huge fan of collectibles,” Simons, the co-founder of developer Gadget-Bot Productions, told Blockworks. “The natural course of digital assets is you should own them.&#8221;



Simons said there’s still effort needed before mainstream gamers will warm to the concept. “I think it’s going to take time for people to understand that…why are you pouring all your hard earned money into this thing?”



Ridgway sees the cultivation of an ownership culture as the core appeal of in-game NFTs.



“An asset like your sword that you spent 5 years earning in [World of Warcraft] that doesn’t just exist in a database on the WOW server but exists as a thing that can be in an open marketplace — that in and of itself is interesting,” he said.



But for him, it’s the potential for a royalty stream to directly support game creators that’s even more significant.



“I still think the ultimate promise of NFTs lies in fulfilling that promise [of royalties],” he said.



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NFTs

Game Designers Take Baby Steps Toward Web3 Vision

John Gilbert

The inherent value to owning in-game assets is hard to measure. <a href="https://www.vice.com/en/article/3abaw5/gamers-dont-want-nfts" target="_blank" rel="noreferrer noopener">Critics</a> have argued that the technology doesn’t provide inherent utility because the growth is rooted in speculation. 



And if gamers can transfer assets to other players without using blockchain, then does a certificate of ownership on a blockchain have any value to the gamers who just want to use the asset?&nbsp;



According to Canaan Linder, CEO of <a href="https://www.stardust.gg/" target="_blank" rel="noreferrer noopener">Stardust</a>, blockchain offers something that publishers don’t: the open invitation to build upon user and developer generated content. While users may have the ability to transfer ownership of assets in closed ecosystems, publishers are unwilling to provide that type of ownership that grants full creative freedom. This type of utility has the potential to offer more than hype.



His company created a seamless, low-code solution for developers to integrate NFTs into their games for millions of mainstream players. Blockworks sat down with Linder to learn why the gaming industry as a whole could still benefit from blockchain.&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Blockworks: What are the biggest challenges that game developers face, and how can blockchain technology address them?&nbsp;



Linder: The gaming industry has primarily been focused on mobile gaming in the past 10 years with a lack of innovation and a reliance on user acquisition through advertising. Blockchain represents a novel innovation in the gaming industry – the first in years. This innovation comes at an incredibly serendipitous time, the recent changes to IDFA (Identifier for Advertisers) by Apple have made user acquisition more expensive for all games. This has resulted in declining margins for developers, who are now looking for ways to innovate and provide value to players through more rewarding and entertaining experiences..&nbsp;



NFTs (non-fungible tokens) offer a way for game developers to give value back to players in order to keep them engaged. Instead of paying for user acquisition through advertising on Facebook and Google, game developers can utilize NFTs to incentivize and retain players, giving that value back to them and creating a new model for user acquisition. Going even further, NFTs allow game developers to work together to increase the total utility in the gaming ecosystem, building composable ecosystems that every developer and player can contribute to.&nbsp;



Blockworks: What are some ways that NFTs can give value back to the player?



Linder: Digital assets today are valued only by the utility given to them by a single developer, and that item can only be used in that ecosystem. With NFTs, players truly own their items, and can take them outside of the game into any other ecosystem, application, or game. This true ownership that the player has means they can have full control over what they do with that item, whether they sell it, use it in another ecosystem, or even destroy it to forge a more powerful item in another game they want to play.&nbsp;



This increased utility not only brings more value to players, but the items themselves. I have personally spent thousands of hours in League of Legends and Fortnite (yikes), and the ability to bring those items, skins, and rewards into other games, use them in other applications, even potentially attach them to my resume as I applied to Riot out of college, is incredible. 



Blockworks: What types of web2 games could benefit from this type of integration?



Linder: MMOs are a great example of a category that could benefit from NFTs. I grew up playing Runescape, and there are many elements in the game that NFTs could supercharge. MMOs such as Runescape are centered around virtual economies, extremely rare items, and grinding for resources – all elements where NFTs can improve the player’s experience and Lifetime Value (LTV).



Blockchain and NFTs are all about interoperability and composability, where game’s and item’s functionality can be extended by others. Runescape has a long history of players wanting to contribute their innovation to the game, look no further than RuneLite, an open source Runescape client as an incredible example of this. Opening up Runescape’s economy to blockchain and NFTs, players and developers can now contribute to Runescape by creating secondary marketplaces, different DeFi products, other games that leverage Runescape items, and an infinite amount of innovation all driven by NFTs.&nbsp;



Blockworks: Is gaming Interoperability a must have for this industry?



Linder: It’s important to realize no one’s hair is on fire because they don’t have NFTs in-game today, but like all 10x innovations, blockchain and NFTs represent a new form of growth that we cannot even comprehend. Pointing to other innovations, such as the internet, tablets, and smartphones which were not initially seen as necessary, what is seen as a must-have today will be very different to how we see it in 20 years from now.



Interoperability represents a new and exciting innovation for the gaming industry, built on a technology that hasn’t fully yet been matured or seen to its full potential. Every other huge innovation has these same characteristics in its first few years, early, not easy to understand, but gives the potential for real and exciting change. Gaming must embrace this interoperability based mindset with blockchain technology, it is the future of the gaming industry.



Blockworks: How does this permissionless environment translate into value for the users?



Right now interoperability between games is largely limited, but this permissionless ecosystem has generated a layer of utility outside of the gaming world. For example, a player may be able to use an NFT as collateral to borrow money from a lender through a decentralized finance (DeFi) platform. In this case, the NFT serves as a way to secure the loan, with the lender holding onto the NFT as collateral until the loan is repaid. While NFTs right now are usually gaming items, they could be any other collateralized good, such as a home, car, or painting.&nbsp;



A small, but great, example of interoperability is a verified profile photo on twitter, where NFT collectors can show off their NFT as a validated digital good. I know for certain I will be buying the NFT that has the ability to show up as a skin in Fortnite.&nbsp;



Blockworks: Why other types of opportunities can these gaming NFTs offer?



Linder: Right now, NFTs are locked into gaming environments and have very little crossover with other applications. We’ve seen interoperability with gaming NFTs as verified profile badges on twitter, but not much more than that.



Starbucks Odyssey is Starbucks’s blockchain reward program, with NFTs, Starbucks can partner with games to offer free coffee for anyone who gets to a certain level, or the Warriors can partner with Fortnite to give unique fan experiences to anyone who finds a Steph Curry jersey in game. This interoperability hasn’t existed today in an open and permissionless environment, and with blockchain, the level of innovation will not only increase in gaming, but will for every business that interacts with this open technology.&nbsp;



Blockworks: What are the biggests challenges for developers wanting to integrate these NFTs into their games?



Linder: One of the major challenges that game developers currently face in the web3 space is user onboarding. The onboarding process for web3 games currently is cumbersome and confusing, it must be a one-click experience. While many solutions in the market today say they are better, they still take forever and offer foreign non-game like user interfaces, with high friction for the end user. Games that have the lowest “time to fun&#8221; are much more successful, and user interface design is one of the key components in onboarding a player into your game.&nbsp;



<a href="https://www.stardust.gg/">Stardust</a> offers game developers the ability to create custodial wallets for players, allowing them to pick up and use in-game items without necessarily understanding that they are interacting with NFTs or blockchain technology. This makes it easier for game developers to contextualize NFTs into their games and helps to keep players engaged – which is a must-have for acquiring millions of users.



This interview has been edited for brevity and clarity.



This content is sponsored by <a href="https://www.stardust.gg/" target="_blank" rel="noreferrer noopener">Stardust</a>.



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Q&A: Does the Next Generation of Gaming Actually Need Blockchain?

Ornella Hernandez

<div id="highlights-block_62db1b3366d1a" class="highlights">
 <ul>
 <li>The company intends to leverage 5% of its platform fees to initiate a buyback and burn program of its green metaverse token (GMT)</li>
 <li>The price of GMT has increased by nearly 23% in the past 30 days</li>
 </ul>
 
</div>



Move-to-earn blockchain-based application Stepn recently <a href="https://stepnofficial.medium.com/stepn-announces-q2-profits-initiates-quarterly-gmt-buyback-burn-32ad0b764de9" target="_blank" rel="noreferrer noopener">generated</a> $122.5 million in profits in the second quarter through its platform fees — which have made up a growing chunk of revenue, more broadly.&nbsp;



The company said in a <a href="https://stepnofficial.medium.com/stepn-announces-q2-profits-initiates-quarterly-gmt-buyback-burn-32ad0b764de9" target="_blank" rel="noreferrer noopener">Medium post</a> it intends to leverage 5% of the proceeds to initiate a buyback and burn program of its green metaverse token (GMT), a governance token that acts as a store of value. The announcement informed users that the buyback and burn process may take a few weeks to complete to avoid causing sudden GMT price volatility.



In the meantime, Blockworks’ Empire podcast hosts spoke with <a href="https://www.linkedin.com/in/yawn-rong-4b4b1861/?originalSubdomain=au" target="_blank" rel="noreferrer noopener">Yawn Rong</a>, co-founder of Stepn, about the company’s rapid growth and its efforts to shift from Web3 to Web2 to remain sustainable.



Rong said Stepn wants to first and foremost promote a healthier mind and body lifestyle by encouraging daily exercise via token incentives. While solana (SOL) is needed to purchase sneaker NFTs, for now users can only earn the green satoshi token (GST) while walking, jogging or running.&nbsp;



GST can then be converted into GMT or USD Coin. The more conversions, however, the more it drives down the price of GST, resulting in less potential earnings.



Once Stepn enters its next phase, which might be in the next six months, according to Rong, users may be able to earn GMT and trade on a “completely functional” decentralized exchange (DEX) and marketplace. Additionally, Stepn has an apparel and water brand in the works.



The upcoming buyback program may likely end up reducing the supply of GMT through scheduled burning. Additionally, the stability of the price of GMT will be dependent on the number of Stepn users, and the number of new daily accounts has been in decline since May, <a href="https://dune.com/0xpineapple/StepN" target="_blank" rel="noreferrer noopener">according</a> to data from Dune Analytics.



Rong told Blockworks that about roughly 30%, or 210 million, GMT tokens have been completely burned. And they will continue to burn GMT until “we feel it is the time for people to earn the GMT.”



The dual token system is meant to have GMT earning counterbalance GST earning. GST has an infinite supply — it serves as an inflationary reward token that bears the brunt of the selling pressure from users cashing out the rewards. GMT, on the other hand, has a supply of 6 billion tokens and accrues value based on in-app user transactions and in-game utility functions.



Mike Dudas, founder and general partner at early stage venture capital fund 6th Man Ventures, which invested in Stepn, shared its faith in the app via a Stepn Telegram chat. “They have a roadmap and token model that aims to ensure balance over time in the ecosystem,” Dudas said, adding it&#8217;s “very easy to call something new a ponzi scheme.”&#8217;&nbsp;



Dudas appeared to be striking back at allegations from industry participants that the app, just six months old, is a ponzi scheme or even a rug pull waiting to happen. Dudas added it’s more difficult to defend a product when “public discussion isn&#8217;t really nuanced,” and the company won’t share the entirety of a roadmap “with hundreds of potential copycats waiting to pounce.”&nbsp;



Ryan Mullins, CEO of NFT (non-fungible token) sneaker game Aglet, told Blockworks he is skeptical of how sustainable the Stepn model is.&nbsp;



“Once the hype dies down and the new influx of players isn&#8217;t there anymore, it doesn’t work anymore,” adding that he views it less as a game and more about rewarding a healthy lifestyle.



On Friday, Stepn <a href="https://stepnofficial.medium.com/open-letter-recent-changes-d671fc28945e" target="_blank" rel="noreferrer noopener">released</a> a posts to address the introduction of “health points” to increase the lifespan of sneakers, and even admitted that these mechanic changes didn’t help the price of GST.



Nor did they yield instant results.



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Stepn Founder Wants To Promote Healthy Body and Mind, but Skeptics Question the App’s Sustainability

Shalini Nagarajan

<div id="highlights-block_62d9721d45f72" class="highlights">
 <ul>
 <li>Haseley told Blockworks his play-to-earn project Undead Blocks is different from other Web3 games</li>
 <li>Bear markets are upsetting for people — so gaming is a distraction, he said</li>
 </ul>
 
</div>



Venture capitalists are heavily eyeing <a href="https://cms.blockworks.co/tag/gamefi/" target="_blank" rel="noreferrer noopener">GameFi</a> — they’ve funded the sector more than any other crypto-related investment this year. <a href="https://twitter.com/MessariCrypto/status/1545950954960220161" target="_blank" rel="noreferrer noopener">Messari</a> found more than $1.2 billion of funding poured into 128 companies in the first quarter of this year alone.



Blockworks spoke to <a href="https://www.linkedin.com/in/grant-haseley-116a2398/" target="_blank" rel="noreferrer noopener">Grant Haseley</a>, founder of Web3 game <a href="https://www.undeadblocks.com/" target="_blank" rel="noreferrer noopener">Undead Blocks</a>, about his kill-to-earn zombie shooter game that went live in May. He said an effective play-to-earn game is one that engages most players with entertainment value, rather than one that uses earnings as the primary gameplay motivator.



The former Goldman Sachs analyst turned Web3 game developer wants the <a href="https://cms.blockworks.co/play-and-earn-is-fixing-gamefi/" target="_blank" rel="noreferrer noopener">play-to-earn</a> concept to evolve into “play-to-have-fun.” It’s a big misconception that games compete against each other, he said, adding that founders of Web3 games interact and have working relationships with one another because each project generates more users for the ecosystem.



GameFi companies on his radar include Mythical Games, Blowfish Studios, <a href="https://cms.blockworks.co/tag/the-sandbox/" target="_blank" rel="noreferrer noopener">The Sandbox</a> and Big Time.



Blockworks: When and why did you enter the GameFi sector?



Haseley: I’ve been in crypto since about 2015, and I observed how we went through a <a href="https://cms.blockworks.co/category/defi/" target="_blank" rel="noreferrer noopener">DeFi</a> explosion that pivoted over to GameFi.



<a href="https://cms.blockworks.co/tag/axie-infinity/" target="_blank" rel="noreferrer noopener">Axie Infinity</a> was the game that brought it mainstream, but I didn&#8217;t really like their tokenomics model. I figured it was <a href="https://cms.blockworks.co/axie-infinity-active-users-nft-prices-continue-to-decline-after-bridge-reopening/" target="_blank" rel="noreferrer noopener">going to flop</a>. People were just selling the secondary currency called SLP because they didn&#8217;t believe in it. They wanted to cash out.



I figured that I could build a better tokenomics model, and I just needed a fun game to play. In the last year, we’ve raised about $5 million to develop Undead Blocks. It&#8217;s a zombie shooter, similar to Left 4 Dead, Call of Duty – Zombies or Resident Evil. But I’ve been in play-to-earn for the last year-and-a-half now, and if anyone tries to tell you they&#8217;re an expert, they&#8217;re wrong. 



We&#8217;re so early. I&#8217;m in New York, and if you polled 100 people, I bet you one would know about what play-to-earn gaming is.



Blockworks: What has changed in GameFi between when you started working in the same and now?



Haseley: Most of the scammers are gone, and that’s good. I think a lot of them got wiped out by the crypto crash. Around late 2020 and early 2021, people were inside, the pandemic was still ongoing, and there wasn&#8217;t a lot to do. People were creating <a href="https://cms.blockworks.co/tag/NFT/" target="_blank" rel="noreferrer noopener">NFT collections</a> left and right.&nbsp;



Anything you touched turned to gold. You had these whitelist giveaways. You had these groups calling themselves play-to-earn experts that were minting NFTs (non-fungible tokens) with no game-development experience. They don&#8217;t know how to develop a game, but that was the buzzword. The cool thing to say was: “We&#8217;re an NFT group and we&#8217;re building a play-to-earn game.”



Now you&#8217;re starting to see less and less of that. It’s begun to consolidate toward more traditional gaming studios. At Wagyu, which is developing Undead Blocks, we’re working with an actual game studio to develop the game. But you&#8217;re not seeing as much fluff out there from NFT collections. That consolidation is necessary so people can identify games and projects that have real gameplay.



<h3 class="wp-block-heading">What crypto winter?</h3>



Blockworks: Why is GameFi doing comparatively well among crypto subsegments at a time of macro uncertainty?



Haseley: This whole “crypto winter” is just incorrect. I think from a DeFi (decentralized finance) perspective, I would probably agree. But GameFi has never been hotter.



If you have a working product in a working game, you&#8217;re not going to have trouble raising funds and capital. You&#8217;re seeing some of the largest venture capital firms in the world wanting to develop these games because they see that this is the next pivot and next area of opportunity. A16z recently raised <a href="https://a16z.com/2022/05/18/games-fund-one-building-the-future-of-games/" target="_blank" rel="noreferrer noopener">$600 million</a> and Immutable launched a <a href="https://cms.blockworks.co/immutable-earmarks-500m-fund-for-gaming-web3-development/" target="_blank" rel="noreferrer noopener">$500 million fund</a> to pay game developers, so this isn’t going away anytime soon.



If we&#8217;re in a bear market and people are upset they&#8217;ve lost money, they want a distraction and to have fun. Gaming allows you to do that. People are going to want additional ways to make income, and play-to-earn gaming is the next pivot for them to be able to do that.



Blockworks: Do players need to have a particular interest in cryptocurrencies to play these games?



Haseley: No. I&#8217;ll give you a reason why. On Undead Blocks, we&#8217;re giving away money for free as we’re fully sponsored — liquidity is being brought in through sponsorship. Polkastarter Gaming, which is a massive launch pad, is giving us $10,000 for example. We&#8217;re running a free-to-play tournament where people can come in and earn crypto just by playing the game. Having these sponsored tournaments for us is bringing in those Web2 gamers that never wanted to get into crypto or NFTs because we’re giving them a reason to play.



You don&#8217;t need to know anything about crypto if the game is fun, and that&#8217;s what you&#8217;re starting to see with other game studios like Mythical Games, Blankos Block Party or Gala Games developing the “Last Expedition,” which is another shooter. These games are going to look so realistic that people won&#8217;t know anything about crypto but still be interested.



Blockworks: Has Undead Blocks released yet?



Haseley: Our beta is out, it&#8217;s fully live and it&#8217;s free to play to the public. Anyone can go on our website, they can download, they can play the game, they can give us feedback. If you get a chance to play it, what you&#8217;re going to see is this doesn&#8217;t feel like a Web3 video game.&nbsp;



Traditionally, there are two factions of Web3 video gaming where they either are just web-browser based games that are decentralized yield farming that aren&#8217;t very fun, or they&#8217;re these AAA gaming studios that promise and sell you a dream but never give you a fun game. Our beta is fully functional, and our full game experiences go live in about two months. But you can earn right now.



Blockworks: How many current players does Undead Blocks have?



Haseley: We just crossed 10,000 downloads, and about half of them have been playing at least once a day. They&#8217;re all practicing for upcoming tournaments. We&#8217;re over 5,000 daily active users. That number is going to increase exponentially as the word spreads to Web2 gamers that they can come and earn for free with no NFTs required.



This interview has been edited for length and clarity.



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GameFi

Q&A: Web3 Game Founder Says GameFi Has ‘Never Been Hotter’

Sebastian Sinclair

<div id="highlights-block_62c7b13a99f39" class="highlights">
 <ul>
 <li>Konvoy Ventures, which previously backed ailing crypto gaming developer Sky Mavis, has launched a new fund aimed at budding games studios</li>
 <li>Web3 tech, platforms and other various techologies will be the target of the fund, Konvoy said</li>
 </ul>
 
</div>



Early-stage investment firm Konvoy Ventures said Wednesday it has rolled out a multimillion-dollar fund for budding gaming companies focused on a number of verticals including Web3.



Dubbed Konvoy Fund III (KFIII), the new $150 million fund will focus on pre-seed, seed and Series A funding for those companies creating assets across multiple industries including education and healthcare, according to a statement.



Following the launch of KFIII, Konvoy said its managed assets would rise to $270 million. Despite a <a href="https://www.bloomberg.com/news/newsletters/2022-06-17/web3-fans-say-it-was-never-about-the-money" target="_blank" rel="noreferrer noopener">declining interest</a> for Web3 tech, Konvoy is hoping its latest fund will help connect investors to projects both in the budding blockchain sector as well as traditional games studios.



&#8220;The pandemic was an adrenaline shot to the gaming industry because more and more people turned to games as a source of entertainment and also a way of staying social with their remote communities,&#8221; Konvoy Managing Partner Jason Chapman said in the statement.



The venture capital firm launched its second fund in 2020 — worth around $65 million — in a bid to capitalize on growth in the gaming sector.



Founded in 2017, Konvoy focuses mainly on the North American, European and African markets with plans to expand further into Latin America, India, South Korea and Southeast Asia, it said.



The Denver-headquartered firm&#8217;s portfolio consists of 33 companies that have collectively raised $450 million in follow-on funding and have backed blockchain gaming developers, including the once praised <a href="https://cms.blockworks.co/tag/sky-mavis/" target="_blank" rel="noreferrer noopener">Sky Mavis</a>, creator of <a href="https://cms.blockworks.co/tag/axie-infinity/" target="_blank" rel="noreferrer noopener">Axie Infinity</a>. 



Konvoy also participated in an $8.3 million funding round for <a href="https://cms.blockworks.co/genopets-raises-8-3m-for-a-virtual-game-with-real-benefits/" target="_blank" rel="noreferrer noopener">NFT game Genopets</a> last year.



The popular Axie has all but fallen <a href="https://cms.blockworks.co/axie-infinity-active-users-nft-prices-continue-to-decline-after-bridge-reopening/" target="_blank" rel="noreferrer noopener">flat on its face</a> in recent months, reflected in the weekly NFT (non-fungible token) sales volume on its platform, which declined by more than 99% since its peak in November — dropping from $753 million to $3 million. Genopets&#8217; native token, GENE, is down more than 77% from its all-time high of $37.79, also a November peak.



Still, Konvoy said the $200 billion video gaming industry, as well as the blockchain and crypto industry, presented a myriad of other opportunities for it to execute its &#8220;proactive and thesis-driven&#8221; approach.



&#8220;This new fund will not only allow us to focus on additional geographic regions but also new types of companies and technologies,&#8221; said Jackson Vaughan, another of Konvoy&#8217;s managing partners. &#8220;If there’s one main learning from this period [the pandemic], in which the world has undergone unprecedented disruption, is that there is such an enormous opportunity ahead of us.&#8221;



Konvoy said it plans to expand its team to 15-20 people by the end of 2023 and will seek to deploy more capital to around 30 early-stage companies over the next two and a half years.



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Funds

Konvoy Ventures Launches $150M Fund To Back Web3, Gaming Firms

Pat Rabbitte

<div id="highlights-block_627bd33e60997" class="highlights">
 <ul>
 <li>GameFi is considered a sector of Web3 because ownership is decentralized between builders, investors and players</li>
 <li>Gaming NFTs are simply a record of game asset ownership on a public blockchain</li>
 </ul>
 
</div>



<h3 class="wp-block-heading">GameFi explained&nbsp;</h3>



GameFi, as the name suggests, is the intersection of gaming and finance. It&#8217;s considered a sector of Web3 because ownership is decentralized between builders, investors and players. These two industries found each other on the blockchain through an exciting ecosystem of in-game tokenomics and gaming NFTs (non-fungible tokens).&nbsp;



In this context, gaming NFTs are simply a record of game asset ownership on a public blockchain such as Ethereum, Cardano or Solana.&nbsp;&nbsp;



The decentralization of GameFi allows game assets (or NFTs) to be transferred out of and between games. This transferability gives the assets value outside of the gaming ecosystem. And because the ownership status of an NFT is tracked on the blockchain, they can be bought and sold as collectibles on third-party exchanges.



This evolution in gaming isn&#8217;t about game mechanics. Rather, it&#8217;s about moving game monetization closer to the ultimate vision of Web3. Many big GameFi builders hope these games will become blockchain marketplaces where the free market gives value to in-game assets within a player-owned ecosystem.



Learn more: <a href="https://cms.blockworks.co/can-gamefi-still-unlock-the-metaverse/">Can GameFi Still Unlock the Metaverse?</a>



<h3 class="wp-block-heading">So what are the real world benefits of gaming NFTs?</h3>



It&#8217;s not just about digital collectibles. Gaming NFTs bridge digital worlds by introducing a new era of game asset collecting. It is the technology that will facilitate a unified metaverse, and Web3 gaming will bring several benefits that traditional gaming lacks.



Ownership: In traditional gaming, in-game purchases are non-transferable investments locked within a single gaming world. Gaming NFTs bestow ownership of in-game assets to players. That ownership is more meaningful as it&#8217;s not restricted within the game publisher&#8217;s walled garden.



Provable scarcity: The scarcity of gaming NFTs can be proven via the immutable records of the blockchain. This is important when you consider that rarity and authenticity are valuable traits in the minds of collectors. Furthermore, gaming NFTs cannot be tampered with or duplicated due to the immutable record generated on the blockchain upon digital asset issuance.



Interoperability: The traditional online gaming model relies on centralized servers. Such games operate on disparate systems. When it comes to gaming NFTs, they can be designed to be transferable, interconnected and interoperable with other games built on the identical underlying blockchain. The player then has the freedom to use them in other games (if other games support those assets) or to sell them to other players.



<h3 class="wp-block-heading">Obstacles to GameFi</h3>



One wrinkle that needs to be ironed out is scaling. Currently, most gaming NFTs are issued on the Ethereum blockchain. Ethereum gas fees are making transaction costs impractical. This bottleneck has meant that chains that achieve much higher throughput, such as Polygon and Solana, are becoming increasingly popular for blockchain-based gaming. This is likely to remain the case until the eth2 upgrade.



There&#8217;s resistance to blockchain-based gaming from many gaming communities. Previously, attempts to use micro-transactions to monetize games have seen backlashes. Due to bad experiences in the past, many gamers assume that a move to gaming NFTs is purely profit-driven and a mechanism that the most prominent game publishers will utilize to nickel and dime them.



Another fear is that a &#8216;pay-to-win&#8217; model will be pursued, resulting in more significant repercussions. If a player manages to buy their way through the game, they gain unfair advantages over other players.



The most prominent game publishers are interested in gaming NFTs but need to innovate ways to integrate monetization without sacrificing play. Top ten gaming company Ubisoft recently <a href="https://gamerant.com/ubisofts-project-q-nft-controversy-issue-explained/" target="_blank" rel="noreferrer noopener">experienced a community backlash</a> when it tried to introduce NFTs through one of its games. As a result of the community response, the company rolled back on its intention to use NFTs.&nbsp;



<h3 class="wp-block-heading">The future of gaming NFTs</h3>



While Axie Infinity has been a breakthrough for the play-to-earn model of blockchain gaming, further innovation is needed to bring the advantages of blockchain-based gaming to the mass market. An<a href="https://cms.blockworks.co/play-and-earn-is-fixing-gamefi/" target="_blank" rel="noreferrer noopener"> evolution toward a play-and-earn model</a> is already underway. This approach focuses on gameplay as much as it does on tokenomics.



This doesn&#8217;t mean that play-to-earn is going to go away anytime soon. It will remain an appealing segment of Web3 gaming to participants that are already crypto native. These games will continue to attract participation through their tokenomics more than anything else.



This contentious yet exciting merge of DeFi and gaming has vast untapped potential. As gamers, developers and investors find solutions that satisfy all parties, they will expose the remaining users of a <a href="https://www.investopedia.com/articles/investing/053115/how-video-game-industry-changing.asp#:~:text=In%202020%2C%20the%20gaming%20industry,than%20%24260%20billion%20in%20" target="_blank" rel="noreferrer noopener">$155 billion gaming industry</a> revenue. to DeFi.



<h3 class="wp-block-heading">How to invest in Web3 gaming</h3>



Investors can take several approaches to invest in this space.



Play-and-earn: The play-to-earn and play-and-earn blockchain gaming models are one approach. Axie Infinity developer Sky Mavis was the first major innovator in this space. With this model, gamers can invest their time and effort in return for game NFTs and tokens that have value outside the Axie ecosystem.



This is particularly relevant in developing countries with significant potential earnings relative to the local economy and per capita income. The Philippines accounts for 40% of Axie Infinity players. In October 2021, the total number of in-game Axie tokens that had been minted accounted for 1.7% of the GDP of the South East Asian country.



Whether play-to-earn or the more recent advent of play-and-earn, playing games based on these models represents one of the most straightforward entries into investing in NFT gaming.



Rent-to-earn: As development in this space has progressed, many of the most popular NFT games now require a substantial investment to commence playing and earning. At its height, the <a href="https://dappradar.com/blog/axie-infinity-trading-volume-up-despite-crypto-price-dump" target="_blank" rel="noreferrer noopener">average price</a> for an Axie Infinity NFT is around $355 — and a minimum of three are needed before a new player can play the game.



Gaming guilds such as <a href="https://www.unixgaming.org/" target="_blank" rel="noreferrer noopener">UniX Gaming</a> have emerged to help players invest in gaming NFTs through offering newcomers the option to rent under a scholarship program. Profits are then shared between the guild and the player. This is yet another approach that removes entry barriers for a player to participate and earn.



In-game currency:&nbsp; A blockchain-based game will have an in-game token to function as the game&#8217;s currency. It&#8217;s possible to invest directly in these tokens. However, the degree to which the token supply is limited is one factor that needs consideration when deciding whether to take this approach. Games with a capped token supply are more likely to appreciate, given the game&#8217;s sustainability and demand.



Governance tokens: Blockchain-based games are also likely to have governance tokens. A governance token allows the holder to vote on smart contract code changes and treasury management items. Taking Axie Infinity as an example uses Axie Infinity Shards (AXS) as its governance tokens.



Stakeholders have a strong incentive to obtain governance tokens: they hold influence over game tokenonmics. Some of these tokens provide voting rights over the strategic direction of the protocol. Additionally, these tokens will often include rights to cash flow akin to dividends with equities.



Gaming guilds: Many consider investing in individual games risky due to the presumption that most fail. Gaming guilds offer investors a risk-averse strategy.&nbsp;



Take UniX gaming guild as an example. UniX carries out due diligence on games it believes will be successful and buys NFT assets in those games. Therefore, holders of the UniX token benefit from professional curation of NFTs much like an ETF or index fund. Additionally, the holder shares in the revenue from NFT scholar rentals and asset price appreciation. All of these assets are managed decentrally through a DAO. And the diversification spreads risk across all investments.



Initial game offering (IGO): Investing in an IGO through launchpads such as <a href="https://finalround.unixgaming.org/">UniX Gaming’s Final Round</a> offers the opportunity to get NFTs or tokens in upcoming games at a discount price. If the game achieves popularity with listings on major exchanges, investors can expect a significant return on investment.



<h3 class="wp-block-heading">Further Reading</h3>



The sponsor of this Investing Guide — UniX Gaming — has partnered with DAO Maker and SL2 on Final Round, its multi-chain launchpad, which is due to launch imminently. Further details can be found <a href="https://medium.com/@UniXgaming/unix-gaming-dao-maker-sl2-team-up-for-final-round-launchpad-40ed978fd023" target="_blank" rel="noreferrer noopener">here</a>.



<h3 class="wp-block-heading">Relevant Podcasts</h3>



<a href="https://cms.blockworks.co/podcast-the-future-of-play-to-earn-gaming-felix-sim-gabby-dizon/" target="_blank" rel="noreferrer noopener">The Future of Play-To-Earn Gaming | Felix Sim and Gaby Dizon — Empire podcast by Blockworks</a>



<a href="https://cms.blockworks.co/podcast-why-gaming-nfts-will-be-bigger-than-twitch-justin-kan/" target="_blank" rel="noreferrer noopener">Why Gaming NFTs Will Be Bigger Than Twitch | Justin Kan — Empire Podcast by Blockworks</a>



<a href="https://youtu.be/tIVsk6aOafM" target="_blank" rel="noreferrer noopener">FTX&#8217;s Gaming Strategy | Amy Wu &#8211; Empire Podcast by Blockworks</a>



<a href="https://youtu.be/990N8M7UhIo" target="_blank" rel="noreferrer noopener">How Web3 Will Change The Gaming Industry | Carra Wu &#8211; The Unstoppable Podcast</a>



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This content was sponsored by <a href="https://www.unixgaming.org" target="_blank" rel="noreferrer noopener">UniX Gaming</a>.



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