2024 has seen explosive growth in Telegram Mini Apps, with games like Catizen, Empire X, and Tomarket capturing millions of players through a model called 'tap-to-earn'.
By offering rewards for simple, repetitive gameplay, these games with Telegram and Web3 integration promise crypto rewards with minimal investment or skill required.
But as they gain traction, the question arises: will these Telegram blockchain games avoid the pitfalls that brought down their predecessors in play-to-earn gaming?
The Rise and Fall of Play-to-Earn: A Cautionary Tale
The play-to-earn (P2E) model, best exemplified by Axie Infinity, was a revolutionary concept that captivated millions. Players earned real crypto by purchasing in-game NFTs, which could then be used in battles to win tokens.
Its success could be attributed to a combination of right timing and a strong community: the game came about at a time when the crypto world was booming and interest in NFTs was reaching fever pitch. People were drawn to the idea of actually owning their in-game assets and making money while playing.
Axie Infinity's scholarship system, where players could 'rent' Axies from owners and split the earnings, lowered the barrier to entry and allowed more people to participate.
However, with high entry costs and a fragile token economy, it eventually crashed, leaving users with devalued assets and an economy that couldn't sustain itself.
Axie’s collapse highlighted a key weakness in P2E: the model’s reliance on user-funded economies and the vulnerability of token values to user churn. This decline also underscored the challenges of relying on a game’s ecosystem to drive demand indefinitely.
Many other games followed a similar boom-and-bust fate. While not strictly a P2E game in the same vein as Axie, The Sandbox, similarly, experienced a surge in popularity due to the metaverse trend. When the initial hype died down, the high cost of land and the lack of engaging experiences led to a decline in user activity. The price of SAND tokens also crashed spectacularly—this, again, brought out the lack of foundation in its inflationary tokenomics model.
Tap-to-Earn: A Promising Yet Familiar Alternative?
Telegram's tap-to-earn model is making waves, and it has the potential to address some of the shortcomings that brought down those earlier P2E games.
Tap-to-earn aims to simplify Web3 gaming with minimal user investment, through its Telegram and Web3 integration. Unlike P2E, tap-to-earn games often have no upfront costs, making them far more accessible. With just a Telegram account, users can participate in games like Hamster Kombat, earning rewards simply by tapping the screen. The ease of entry is a major appeal, particularly for Web3 newcomers.
Moreover, most tap-to-earn games on Telegram require no upfront investment. This eliminates the financial risk that was a major barrier in games like Axie Infinity.
Yet, the model faces familiar challenges. The simplicity that attracts players can also lead to shallow gameplay, leading to high player turnover. When there is high player turnover, one can expect another boom-and-bust cycle.
The biggest question mark, as with the P2E model, is long-term sustainability. How will these games generate revenue to support the rewards system? Will the in-game tokens hold their value?
What pages should tap-to-earn games take out from their predecessors, so they're not doomed to repeat history?
Here are four lessons to ensure the long-term viability of Telegram’s tap-to-earn ecosystem.
1. Accessibility Over Exclusivity
A major reason for the initial success of P2E games like Axie Infinity was the potential to earn real crypto by playing, albeit with a significant barrier: players had to buy in-game NFTs worth hundreds of dollars to start earning.
While this worked temporarily, it restricted access, especially as NFT prices soared. Tap-to-earn, in contrast, offers free entry through a simple Telegram interface, made easy with Telegram and Web3 integration.
The takeaway? Focus on accessibility without requiring players to 'invest' financially. Reducing barriers to entry, as tap-to-earn does, could foster a more sustainable and diverse user base.
2. Simple, But Not Too Basic Gameplay
One of the main challenges with tap-to-earn games is maintaining player interest over time. Simple mechanics, like tapping for rewards, might generate initial excitement, but often lack the complexity of gaming console games to retain players long-term.
This lesson is rooted in P2E’s downfall: users lost interest when gameplay became repetitive and rewards declined. For tap-to-earn to sustain itself, developers should research ways to infuse a richer experience with engaging mechanics and meaningful progression. This gives it a better shot for players to want to return to these Telegram blockchain games.
3. Sustainability Through Alternative Revenue Models
P2E games heavily depended on new players buying in to maintain their economies. When player growth stalled, the economy faltered, leaving many players with depreciating assets.
Tap-to-earn games like those on Telegram adopt a more sustainable approach, using ad revenue rather than player investment to fund rewards.
However, games need to provide consistent value and features to support token demand beyond airdrops and advertisements. Implementing compelling token use cases, such as purchasing in-game items, unlocking exclusive content, or staking, is a given; but more needs to be done. An example is to introduce mechanisms to limit token supply, so as to prevent excessive inflation.
While the Telegram Mini App platform is thriving, it may not shimmer forever like diamonds. Game developers would do well to consider big-picture expansion plans beyond Telegram, such as cross-platform integration with alternative platforms to create more streams of revenue.
4. Community Building and Constant Feedback
The success of Web3 games often depends on vibrant, engaged communities. P2E games saw strong communities initially, but when economic value waned, so did player loyalty.
Therefore, community engagement efforts should be anything but fleeting. Beyond the hype of airdrops, players have to feel like they belong to the game's development and success. This can be achieved through regular community events and competitions, transparent feedback channels, and decentralised governance models.
Social features such as guilds, social media groups, and leaderboards can encourage player-to-player communication and contribute to a thriving community. In turn, this not only boosts player retention, but also provides insights for further development.
Learnings and Future Outlook for Telegram's Tap-to-Earn Games
As Telegram Mini Apps grow in popularity, developers have the opportunity to create a more sustainable and engaging model for Telegram blockchain games. Unlike traditional P2E, tap-to-earn games must prioritise both long-term engagement and value creation to retain players. Strategic partnerships, continuous updates, and diversified gameplay experiences could help tap-to-earn games sustain player interest and avoid the cyclical hype that plagued P2E.
The collapse of play-to-earn serves as a cautionary reminder: a sustainable Web3 game requires more than initial excitement. For tap-to-earn games on Telegram to succeed, developers must innovate beyond simple mechanics and build ecosystems that attract and retain diverse user bases. This will ensure that tap-to-earn not only attracts users but keeps them engaged, allowing it to be a bridge for mass adoption in Web3 gaming.
aelf has since embraced artificial intelligence into its Layer 1 blockchain platform to enhance network performance, improve user experience, and simplify the building process for developers. Those exploring aelf's ecosystem would also find Telegram-based Web3 games such as HamsterWoods, a play-to-earn social game where players raise and nurture their NFT hamsters, and Project Schrodinger, a first 404 collection NFT game where users adopt and trade rare cats.
*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.
About aelf
aelf, an AI-enhanced Layer 1 blockchain network, leverages the robust C# programming language for efficiency and scalability across its sophisticated multi-layered architecture. Founded in 2017 with its global hub in Singapore, aelf is a pioneer in the industry, leading Asia in evolving blockchain with state-of-the-art AI integration to ensure an efficient, low-cost, and highly secure platform that is both developer and end-user friendly. Aligned with its progressive vision, aelf is committed to fostering innovation within its ecosystem and advancing Web3 and AI technology adoption.
For more information about aelf, please refer to our Whitepaper V2.0.
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