BackIssues with Play-to-Earn Gaming Guilds and Projects Tackling Them
Play-to-Earn gaming guilds (also known as crypto gaming guilds) are decentralized organizations which involve a combination of investors and players within their respective communities.
PremiumGood things don’t come easily, and Play-to-Earn gaming guilds are not an exception to the rule. There is no doubt that these gaming guilds are at the forefront of Web3, crypto and gaming - but as appealing as it is, it does come with its setbacks.
What are Play-to-Earn Gaming Guilds?
Play-to-Earn gaming guilds (also known as crypto gaming guilds) are decentralized organizations which involve a combination of investors and players within their respective communities. In-game items, such as NFTs, are purchased by intermediary managers who then lend them out to players, who can earn yields through the utilization of these assets. Being such a fresh concept in the Web3 world, these gaming guilds are however experiencing quite a few difficulties in the early teething stages.
Native Tokens
Purchases, sales, lending and all in-game transactions are made possible through the ownership of the gaming guild's governance tokens. This can be a cause of concern for multiple reasons. Firstly, most gaming guilds will have their own token, native to their gaming guild - meaning that players will have to buy new tokens each time they want to join and participate in a new gaming guild. This automatically means that the functionality of the tokens is extremely limited, leaving their main benefit to be for staking.
High Risks
Staking tokens and NFT’s are not a walk in the park. The volatility of tokens as well as NFT’s is extremely high, meaning that the value of these assets could change overnight. Not a bad thing if the value skyrockets, however, the crypto world has seen a number of unpredictable, negative turn of events in the past months and years. For some, investing in such assets is simply not viable due to the high risks involved.
Retention
The lack of functionality that the gaming guild tokens offer is worrisome in terms of the retention of community members. Additionally, crypto gaming guilds are growing in popularity, with new guilds entering the market, and ultimately saturating it. By not focusing on long-term benefits for community members, some guilds may be in danger of high client turnover.
Exclusivity equals Exclusion
Play-to-Earn (P2E) games more than often require players to purchase digital assets, such as NFT’s, in order to take part in their gaming world. With this being said, the barrier to entry is extremely high and excludes a large portion of gamers, separating traditional gamers from crypto gamers. Even though some P2E games offer free options for players who do not wish to purchase tokens or NFT’s - the gameplay is often limited. Many gaming guilds provide players with an option to enter a scholarship program, allowing them to join the gaming guild without acquiring assets. These scholarship options do however follow a lengthy process before approval and have limited spaces available.
What Is The Next Step?
Seeing as the world of P2E gaming guilds is merely at the beginning of its journey, - how soon until the respective issues are tackled? LuduFi, an economic sharing model lending protocol, has entered the gaming guild world which many believe is the future of the crypto gaming guild world.
Through peer-to-peer contract agreements, LuduFi allows users to lend out NFT’s - which eliminates the exclusion of players who perhaps are unable to get their hands on in-game assets. The lending model of LuduFi will allow investors and gamers to join forces, while both benefiting from profits. The lending ensures trust and transparency through the LuduFi Asset Management Tool (AMT), which provides users with a simple dashboard, outlining player performance and earnings, together with a function of automated payouts to both parties. An impressive feature of the LuduFi AMT is that it brings together and integrates all games onto one clean dashboard - allowing both players and investors to have quick and easy access to all of their gaming guild information on one platform. To ensure efficiency, transparency and trust amongst the lenders and players - the dashboard has a built-in chat system, for ease of communication.
Conclusion
The concept of P2E gaming guilds has truly taken the crypto and gaming worlds by storm, but being such a fresh notion in the Web3 space, it has come with a number of drawbacks such as exclusion, poor token functionality and more. Could platforms such as LuduFi bring about positive change and be the future within the P2E space? Only time will tell.
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