The GameFi sector, a fusion of gaming and finance, has seen rapid growth in recent years. However, sustainability remains a major challenge as mentioned in our previous articles about Why P2E Games Fail and How We Can Save GameFi. As we enter 2024, it's crucial to explore strategies to make GameFi projects more sustainable, ensuring longevity and player engagement. In this article, we cover the four key strategies that can help achieve this goal of sustainable GameFi.

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1. Prioritise Game Design and Engagement

The heart of any successful GameFi project lies in its gameplay. The key is to create a game that players want to play for its own sake, not just for financial rewards. This means focusing on engaging mechanics, compelling narratives, and stunning visuals. The game should be enjoyable and captivating, offering a rich experience that players return to out of genuine interest. A game with strong design and engagement can maintain a loyal player base, which is essential for long-term sustainability.

In the realm of GameFi, games like Axie Infinity have set a precedent in emphasising engaging game design. Axie Infinity combines adorable creatures, tactical battles, and a robust community, making the gameplay enjoyable beyond its earning potential. However, new projects must learn from the challenges faced by such pioneers. For example, maintaining a balance between new player acquisition and the game economy has been a critical issue for Axie Infinity. Future GameFi projects should take note of these challenges and strive to create a game-first approach where the financial aspects do not overshadow the gaming experience.

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2. Balance Rewards with Enjoyment

GameFi's unique proposition is the blending of gaming with financial incentives. However, it's crucial that these financial rewards do not overshadow the intrinsic enjoyment of the game. Rewards should feel like a natural part of the game's ecosystem, enhancing the experience rather than being the sole reason to play. This balance ensures that the game remains enjoyable for its own sake, while also providing the added bonus of financial incentives.

A prime example of balancing rewards with enjoyment can be seen in The Sandbox. This virtual world empowers players to create and monetise their gaming experiences on the Ethereum blockchain. The game rewards players with tokens for participating in various in-game activities. However, it also places a strong emphasis on creativity and user-generated content, offering intrinsic value that goes beyond mere financial incentives. The success of The Sandbox shows that a well-balanced approach between rewards and gameplay can lead to a more engaged and sustainable player base.

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3. Embrace Diverse Revenue Streams

Relying solely on in-game tokenomics can be risky. To build a more robust and sustainable financial foundation, GameFi projects should look at diversifying their revenue streams. This can include subscriptions, sales of cosmetic items, and creating marketplaces for user-generated content. Diversification not only provides additional revenue, but also helps mitigate risks associated with token value fluctuations, ensuring a more stable financial environment for the game.

Dapper Labs' NBA Top Shot showcases the potential of diverse revenue streams in GameFi. By selling NFTs (Non-Fungible Tokens) of NBA highlights, they've created a new revenue model that doesn’t solely rely on traditional in-game purchases or tokenomics. This approach not only appeals to traditional gamers but also attracts sports enthusiasts and collectors, broadening the project's audience. The success of NBA Top Shot underlines the importance of innovation in revenue models for GameFi sustainability.

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4. Foster Community Governance

Empowering players through community governance models can significantly contribute to the sustainability of GameFi projects. When players feel a sense of ownership and are involved in decision-making, they are more likely to be engaged and invested in the game's success. This approach can lead to more sustainable tokenomics and align the interests of developers and players, creating a cohesive and supportive ecosystem.

Decentraland serves as a leading example of community governance in action. In this virtual world, users have a say in the governance decisions through the Decentraland DAO (Decentralised Autonomous Organisation). This model allows players to directly influence the development and policies of the game, fostering a strong sense of community and ownership. Such governance models can lead to more aligned incentives between the developers and the player base, contributing to the long-term viability of GameFi projects.

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Start Building your Sustainable GameFi project today

Creating a sustainable GameFi project in 2024 requires a multi-faceted approach that focuses on strong game design, balanced rewards, diverse revenue streams, and community governance. By prioritising these aspects, GameFi can evolve into a sustainable and thriving sector that appeals to a wide range of players, ensuring its longevity and success in the gaming industry. aelf adopts the same stance towards building sustainable Web3 games and with our aelevate Gaming Grant Program that provides grants of up to US$150k per project, technical resources, and expert guidance, we're ready to fuel the development of new games and nurturing a more sustainable and robust Web3 gaming ecosystem.

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*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.

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About aelf

aelf, the pioneer Layer 1 blockchain, features modular systems, parallel processing, cloud-native architecture, and multi-sidechain technology for unlimited scalability. Founded in 2017 with its global hub based in Singapore, aelf is the first in the industry to lead Asia in evolving blockchain with state-of-the-art AI integration, transforming blockchain into a smarter and self-evolving ecosystem.

aelf facilitates the building, integrating, and deploying of smart contracts and decentralised apps (dApps) on its Layer 1 blockchain with its native C# software development kit (SDK) and SDKs in other languages, including Java, JS, Python, and Go. aelf’s ecosystem also houses a range of dApps to support a flourishing blockchain network. aelf is committed to fostering innovation within its ecosystem and remains dedicated to driving the development of Web3, blockchain and the adoption of AI technology.

Find out more about aelf and stay connected with our community:

Website | X | Telegram | Discord

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Tool/Platform	What's it about
ChainGPT	An AI-powered assistant for the blockchain and crypto industry, specializing in content creation, language translation, smart contract coding, and more.
aelf	A high-performance, customisable multi-chain blockchain framework with AI-powered smart contracts and a developer-friendly environment.
Quick Intel	An AI-powered crypto security platform that helps investors avoid scams, rug pulls, and honeypots by analysing smart contracts, social sentiment, and on-chain data.
Cogwise AI News Aggregator	An AI-powered news aggregator that analyses real-time news and global trends to predict market movements in the crypto market.
OpenAI Codex	An AI system that transforms natural language into code, automating code creation for smart contracts, blockchain applications, and other development tasks.
QnA3	An AI-powered Web3 knowledge hub that provides real-time information and insights on cryptocurrencies, blockchain projects, and the broader Web3 ecosystem, with unique Solana Actions integrations.
Fetch.ai	A platform that combines AI and blockchain to create autonomous economic agents (AEAs) for various applications, including supply chain optimisation and smart city management.
Octavia	A decentralised digital identity (DID) platform for creating and managing self-sovereign digital identities, empowering users to control their data and online presence.
TensorFlow	A versatile open-source machine learning framework used for building AI models that can analyse blockchain data, enhance security, and predict market trends.
Alethea	A platform that creates 'Intelligent NFTs' (iNFTs) with unique personalities and the ability to engage in conversations, powered by AI and blockchain technology.

Chain	URL	Explorer
AELF	https://aelf-test-node.aelf.io/	https://explorer-test.aelf.io/
tDVW	https://tdvw-test-node.aelf.io/	https://explorer-test-side02.aelf.io/

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.

Role	Max Number
BP	2N+1, N starts from 8 in 2022
Candidate node	5*(2N+1)
Voter	No limit

Benefits	Description
Makes smart contracts 'smarter'	AI-driven smart contracts can autonomously modify terms based on predefined conditions and real-time data input, ensuring that the contracts are not just automated but also intelligent and self-improving over time.
Levelled up data analysis	Data is the new oil, and AI is the machinery that refines it. It is possible for AI to reduce large-volume blockchain data analysis time by up to 90%.
Boosts security	Through machine learning models, AI can prevent frauds and detect security threats in real time. It can identify potential breaches, predict future threats, and adapt to evolving security measures.
Lowers carbon footprint	AI algorithms help optimise energy consumption in blockchain operations, given the flak drawn by activities like Bitcoin mining.

How Can We Make GameFi Projects Sustainable in 2024