Gaming

Web3 gaming in the third world: Axie facilitates billions

Web3 gaming in the third world: Axie facilitates billions

Blockchain analytics platform Nansen’s research department has published a comprehensive guide to the popular gambling game to win Axie Infinity, calculating quantitative information such as 2.8 million unique addresses currently holding 11.1 million of Axies, alongside the fact that 97% of these users hold a minimum of three non-fungible or NFT Axie tokens.

Axie Infinity is a play-to-earn (P2E) game built around collecting and interacting with digital pet avatars called Axies. Built by Vietnamese game studio Sky Mavis in March 2018, the game rose to cultural prominence in 2019 following the emergence of stories in which players from third world countries such as Venezuela and the Philippines lived in full time of Axie’s native crypto. assets: Smooth Love Potion (SLP) and Axie Infinity (AXS).

In May 2021, 22-year-old John Aaron Ramos, recognized as Magnus TV within the gaming community, announced that Axie Infinity had empowered him to make two lucrative real estate purchases in the Philippines.

Nansen’s report follows the trend of other public assessments of Axie, focusing primarily on the benefits of authenticated ownership of in-game assets, secondary market trading opportunities and decentralized governance, as well as the looming potential for interoperability between games, among others.

On the subject of decentralization, Ethereum co-founder Vitalik Buterin was sadly inspired to pursue the technology following a harrowing experience on World of Warcraft, a game formerly owned by Activision Blizzard before it was acquired by Microsoft for $69 billion in January.

Buterin said “Blizzard removed the damage component of my beloved Warlock’s Siphon Life spell.” In other words, Blizzard rolled out an upgrade that recalibrated the power dynamics of certain characters and weapons, and so Buterin became what in the gaming scene is referred to as a “nerf.”

The prevalence of such incidents throughout the gaming community has highlighted the reliance on centralized servers and, in turn, has become a point from which to drive further innovation.

An infographic from the Nansen report visualize the proposed impact of integrating NFTs into gaming ecosystems, signaling a shift from the traditional top-down linear model to a circular model that promotes a user-governed decentralized autonomous organization (DAO) mechanism to grant players the self-sovereignty in their quest for entertainment.

Source: Nansen — What is Axie Infinity and how do you play it?

In a recent attempt to refute criticism leveled at game studios embracing and integrating NFTs, co-founder of popular streaming platform Twitch, Justin Kan, argued that gamers should embrace the emergence of blockchain. , dispelling fears that game uniqueness and environmental impact, among other things, are insurmountable hurdles the industry must overcome, or perhaps more likely, find consensus on.

Related: The Ethics of Hiring Cheap Filipino Staff: Crypto in the Philippines Part 2

Considering data revelations that Axie Infinity generated $1.3 billion in revenue and $4 billion in trading volume over the past year – a portion of which equals company earnings – we spoke to a number of experts and space enthusiasts to reach a balanced verdict on the true potential of play-to-earn blockchain games.

John Chen, president of the decentralized layer 2 protocol Umbrella Network, provided context to the thesis that blockchain gaming can be seen as glorifying the fortunes of a minority of users, usually located in underdeveloped countries, such as rationale for what could potentially be considered a modern form of resource exploitation.

Chen noted that “We are in the early stages of blockchain gaming – too early to suggest there is a narrative for blockchain gaming. Furthermore, we do not consider it resource exploitation,” before declaring:

“Admittedly, those who participate as gamers in developing countries don’t seem to see it that way, as P2E games provide a previously unavailable revenue stream, often in amounts that significantly impact livelihoods. people.”

As a resident of Manila in the Philippines, Laguna Games Marketing Manager Brian Akaka revealed that societal incidents such as “COVID, vaccine availability, country development” had a significant impact on the adoption rates of P2E games in Southeast Asia. , before continuing :

“Calling them resource exploitation is a first-world view. Here it is much more of an opportunity that did not exist before, albeit with a high barrier to entry. Granted, the US-based media is going to cover it from a certain point of view, but it’s important to note that it’s a different point of view here.

Pundits and enthusiasts across the space have often touted that pairing financial incentives like NFTs and tokens with gaming platforms is an innovative business model that could propel them into a new landscape, while others anticipate potential pitfalls related to the aspect of implementation.

Axie Infinity’s decision to overhaul its reward system has come under intense scrutiny by some over the past few weeks, a move that has resulted in the removal of daily quest and adventure modes, as well as a reduction in the daily supply of Smooth Love Potions (SLP). around 56%. According to the platform, the inference measure was imperative to avoid the risk of “total and permanent economic collapse”.