It's called GameFi if you can do it, and Ponzi if you can't do it

I haven’t written an article about GameFi for a long time, because I don’t have money in my pocket to be a leek . The recent revision of AXIE INFINITY has completely reduced the income from adventures and daily tasks (yes! Even the basic 50 is gone, only through PVP) You can get SLP, but you can still get 1 SLP to reward new players who are accidentally crushed. Such a mechanism is purely based on the concept of P2E and the current price of SLP. It is really difficult for new players to join in this cycle. Why is this cycle so attractive?

In fact, from the standpoint of short-term investment, the payback period is the most practical thing. After all, all the income after drawing the capital is the net profit, so the payback period is the most attractive term for GameFi.

When MMORPGs first became popular, as long as any online game with a certain density of players could generate an economy, everyone had the opportunity to make money with European blood and increasingly hard livers . At that time, the economy It completely depends on the rarity of resources, and it is absolutely impossible to obtain funds directly from the game company, and it is difficult for the demand to be saturated in an instant. Therefore, as long as the heat is there, there will be continuous funds to enter the game market. Until the Leijin game came out, most of the revenue was converted from private transactions by players to win-win by game companies. Looking at GameFi on the other hand, the tokens awarded to players are completely dependent on the initial investment, and the blind box has an ultra-low probability of huge profits . Therefore, as long as you face extremely fast mining and selling, there will be problems with cash flow, resulting in no reward.

In this situation, the usual practice is to reduce production and increase costs, but this approach will make the group who feel that the investment rate is insufficient, and sell it to the next batch of leeks . In this case, the project side only earns a small amount However, there is no way to stop the vicious cycle from continuing, and even the price of Token collapses in the end.

At this time, there is another way to do it, which is to create new gameplay, or create additional tokens to promote new economies. For example, now AXIE has begun to increase the number of PvP to obtain AXS places, but with the accumulation of time, the next collapse That's AXS. When the output is not controlled, or the speed of control is not as fast as the speed of production, it will become a situation of printing money, and it will naturally become worthless.

So what does this have to do with Ponzi? For the definition and story of Ponzi (Ponzi scheme), please refer to Wikipedia . Some people often equate MLM with Ponzi scheme, but in fact, although MLM companies have hierarchical organizations, the sales of their own products will generate profits. , just turn these profits into commissions and distribute all the dealers. On the contrary, Ponzi only uses the funds invested at the beginning for distribution, so MLM cannot be classified as Ponzi. Of course, there are also MLMs that directly use the Ponzi method , but that No additional discussion.

Unlike GameFi, Ponzi is a project that will disappear no matter how big it gets in the first place. That is to say, to do these two things, after deducting information ability, the most important thing is to be good at mathematics . As long as you calculate a formula that maximizes benefits, you don't have to worry about the timing of running away. Long before GameFi appeared, Some companies used Ponzi's method to attract members, telling them that they were investing in blockchain mining. At first, everyone had a commission, until one day the head office was hacked, and everyone lost everything.

The interesting thing is that some companies started out with the Ponzi way of operating, ended up raising funds for them by accident, then made a product that was invincible and sold, and then went through some administrative changes in the size of the organization, and later became a public listing. company. Will anyone hold them accountable for using Ponzi's way to raise funds before, I don't think so, or those who know the black history have been dealt with or sent with money .

In fact, whether it is GameFi or Ponzi, history is written by the victors. If you run away early or crash, you will be scolded as Ponzi by everyone. Your game will run forever, and you are a popular GameFi.