How Telegram Mini Apps Monetise GameFi

Introduction

With an existing user base of over 750 million, Telegram presents an incredible opportunity for game studios and developers to reach a wider audience and explore new monetisation tactics.

Innovative Telegram-based games like Hamster Kombat and Catizen have already demonstrated the platform's potential, blending monetisation strategies from both Web2 and Web3 gaming. With this, they hope to create sustainable gaming ecosystems.

In this article, we will explore the key GameFi monetisation strategies typically used by Telegram games. This will also show why tapping into Telegram's ecosystem is increasingly becoming a priority for any forward-thinking game studio.

Traditional Gaming Revenue Models, With a Web3 Twist

Telegram Web3 games have integrated blockchain elements into the traditional Free-to-Play (F2P) model, creating great value propositions for players. Players can now earn financial rewards through gameplay and community engagement, while also having true ownership of their in-game assets.

X-Activity-To-Earn (X2E) games have emerged as a particularly successful adaptation of the Tap-to-Earn (T2E) model for the Telegram ecosystem, starting with Notcoin. Another popular X2E game is Pluto.Vision Lab's X2E game Catizen, in which players earn in-game coins through simple daily activities and engagement and referral rewards (through friend referrals).

The X2E model has proven particularly effective on Telegram due to the platform's massive user base, seamless bot integration and inherent social nature. This approach maintains high user retention through consistent micro-rewards while keeping operating costs relatively low for developers.

Web3 Games' Monetisation Strategies

The most successful Telegram Web3 games have adopted sophisticated, multi-pronged monetisation strategies, with tokenomics a major factor.

1. Initial Game Offerings (IGOs)

IGOs are crowdfunding methods designed to support the early stages of blockchain gaming projects to secure funding. In exchange for supporting the project, participants receive in-game assets, often in the form of NFTs, game-specific tokens, or early exclusive access.

IGOs generate revenue through tiered token sales with premium pricing for early access packages. Strategic partnerships with institutional investors leading up to IGOs could also provide additional capital while helping establish initial token liquidity and price baselines.

The IGO process not only secures funding but creates an invested early adopter community that supports long-term project success and potentially a sustainable revenue stream.

2. Token Airdrops

Token airdrops have evolved as a promotional tool into a potential revenue stream within the Telegram ecosystem. Telegram projects such as Catizen is known to implement premium airdrop tiers, where committed players make in-game purchases to boost their points' earn rates in the hopes of receiving higher airdrop rewards in the future.

This unique play-to-airdrop approach reduces user acquisition costs through organic growth and viral marketing, and at the same time creates a potential revenue stream.

Non-Fungible Tokens (NFT) in Web3 Games

NFT integration in gaming has changed how developers and publishers approach digital asset monetisation and player engagement.

1. NFT Collectibles

From cosmetic items to unique gameplay environments, they signal rarity and value among gaming communities, much like the collector dynamics seen in traditional trading card games and other physical collectibles.

2. Utility NFTs

These are tangible in-game benefits that provide value through functional advantages, such as special character abilities or weapons. Some NFTs also act as a gateway to exclusive content and opportunities, from special tournaments to early access privileges. This fosters a sense of exclusivity and engagement among dedicated players.

Monetisation Potential Via NFTs

The possibility of cross-game NFT compatibility presents a unique value proposition to both players and developers. Enabling assets to function across multiple games or platforms contributes to an interconnected ecosystem where digital assets maintain relevance beyond a single game's lifecycle, reducing the risks associated with digital assets investments and reaffirming the value of NFTs.

The revenue potential of NFT integration also extends beyond initial sales, encompassing secondary market royalties and marketplace fees.

On Adding Traditional Gaming Elements to the Mix

In addition to the strengths of Web3 and blockchain gaming, Web3 Telegram games are also infusing traditional gaming monetisation elements into their games.

Battle pass systems

Free and premium game tiers within these systems provide ongoing engagement and revenue opportunities.

In-game purchases

They come in the form of extra lives, in-game currency, weapons, cosmetic items, boosters, access to new levels, characters or special power-ups.

Cosmetic upgrades and customisation options appeal to players' desire for personalisation, while time-saving, earn-rate-boosting features cater to those willing to pay for efficiency.

In Closing

Web3 and Telegram games present unique challenges compared to traditional games. Market volatility remains a significant concern, leading developers to implement stablecoin options and dynamic pricing models that can adapt to changing market conditions.

Deeper integration with DeFi protocols can also be a consideration to create new financial opportunities for players and developers alike.

As the Web3 gaming space continues to evolve, the success formula for projects seems to be one that effectively balance user retention, revenue models, and tokenomics sustainability.

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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.

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.

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

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How Web3 Games Are Monetising on Telegram