3 Lessons from Hamster Kombat's Decline

The Rise and Fall of Hamster Kombat

After witnessing numerous cycles in the Web3 gaming space, Hamster Kombat's dramatic rise and fall (with 300 million players at its peak, and a subsequent 86% player exodus) offers crucial lessons for the future of Telegram Web3 games and GameFi as a whole.

Here are three lessons learned.

1. Transparency and Consistent Rules Are Non-Negotiables

The last-minute rule changes by Hamster Kombat, including the token distribution adjustment and the implementation of anti-cheat systems, was one of the key reasons that triggered its community's outrage and showcased how sudden policy shifts can destroy community trust.

The lack of clear communication about token categories (Total HMSTR, Claimed, Next Unlock, Unclaimed) and reward calculation left players in the dark about their actual rewards. As it turns out, Hamster Kombat's token distribution heavily favoured referrals over actual game engagement.

Dedicated players who spent hours climbing leaderboards received merely $1 to $10 in rewards, while influencers with large followings reaped disproportionately large rewards.

2. Technical Infrastructure Must Be Adequately Tested Before Mass Usage

The TON wallet outages on token launch day was a result of inadequate infrastructure planning. Trust evaporated instantly when players could not access their hard-earned tokens due to network overload.

On the other hand, successful launches like Polygon's gaming subnet had to undergo extensive stress testing before they were released to the public. This reiterates how Web3 gaming infrastructures must be battle-tested before, and not during mass adoption events.

3. Gameplay Enjoyment Should Remain Top Priority

Hamster Kombat's peak saw players scrounging for tokens rather than pure gameplay enjoyment. The simplistic gameplay, while initially appealing, could not sustain player interest beyond the token launch, further contributing to the steep decline in player numbers.

A way that developers can prolong gameplay is to borrow a page out of gaming consoles' book and introduce a level of sophistication. Another is to appeal to gamers' nostalgia; Good Game Arcade is a vibrant Mini App game platform on Telegram that houses games surrounding a goblin theme, offering simple yet engaging gameplay reminiscent of retro mobile games.

aelf Ventures' Take: A Wake-up Call for Web3 Game Developers

The proliferation of Telegram Web3 games has shown us a replicable 'tap-to-earn' and simplistic gameplay model. Game developers will have to take these learnings from Hamster Kombat into their next creation to avoid a similar fate of sharp player declines.

Focus on building a compelling game loop that stands on its own merits. The tokenomics should enhance the experience, not be the experience.
Start with a smaller, dedicated player base and scale organically. Avoid the temptation of rapid growth through unsustainable token incentives.
Most importantly, invest in robust community management and transparent governance systems from day one. The success stories of tomorrow will come from teams that understand they're building games first, blockchain applications second.

Remember: League of Legends didn't need token incentives to become a billion-dollar game, and neither does your Web3 project.

*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

What's aelf Ventures?

aelf Ventures is the investment arm of aelf, a high-performance Layer 1 AI blockchain platform that offers builders and users advanced AI functionalities and cutting-edge infrastructure. With a dedicated fund of $50 million, aelf Ventures is focused on empowering Layer 1 blockchain projects and various aspects of the Web3 ecosystem, such as DeFi, GameFi, NFT, and those looking to make the transition from Web2 to Web3.

Till date, aelf Ventures has invested in projects such Crystal Fun and Confiction Labs (pka. Mythic Protocol), and is actively incubating promising ventures within the ecosystem such as Portkey, eBridge, Forest NFT Marketplace, AwakenSwap, eWell, and BeanGoTown.

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Feature	Description
Inheritance	ERC-404 inherits from the interfaces IERC-404, IERC721 Receiver, and IERC165, implementing functions specified in these interfaces, behaving as both ERC20 and ERC721.
Data Structures	Mappings track balances, allowances, approvals, and ownership of tokens. Double-ended queue stores ERC721 token IDs. Data for managing ownership and indices of ERC721 tokens.
Constructor	Initialises token name, symbol, decimals, and other necessary variables for ERC20 and ERC721 tokens.
Token Minting and Burning	_mintERC20 function for minting ERC20 tokens. _retrieveOrMintERC721 function for minting ERC721 tokens and retrieving from a bank. _withdrawAndStoreERC721 function for depositing ERC721 tokens into the bank.
Transfers	Functions for transferring ERC20 and ERC271 tokens between addresses. Distinguishes between token types based on ID. _transferERC20WithERC721 function handles transfers involving both types.
ERC20 and ERC721 Interactions	Approve function handles approvals for both token types. Functions like transferFrom, safeTransferFrom, and permit handle transfers and approvals.
EIP-2612 Support	Supports EIP-2612 permit functionality for ERC20 tokens.
Interface Compatibility	Implements necessary functions for ERC-404 and ERC165 interfaces, indicating compatibility with ERC20 and ERC721 standards.

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aelf Ventures' Voices: 3 Lessons from Hamster Kombat's Boom-to-Dust Saga