The StarFall Online P2E Economy: Solving the Problem that Sinks Most Crypto Games
Do you know the biggest economic problem facing P2E crypto gaming today? Find out how we created a new GameFi model that solves it.
Are you reading this article because you’re on the fence about P2E crypto games? Are you a Web 2 gamer thinking about the new frontier in Web 3? Maybe you’re already into cryptocurrency and DeFi, and you’re intrigued by the prospects of GameFi.
So you found an awesome MMO game online, and it features a P2E model that promises you rewards in cryptocurrency for your in-game winnings. Sounds great, right? But also, too good to be true. You’re smart, so you do your research. That’s why you’re here, reading this.
You read several articles about crypto gaming, with some telling you about how you can make a fortune and others telling you to be more cautious. And you probably read about the games that started out with so much promise for their players, but then…
What you see in this graph is a trajectory that’s all too common among P2E game economies. Over the last year, most P2E games saw sharp declines in their economies because they weren’t sustainable. What happened?
Well, they put all of their work into the launch and marketing of their games, and found great ways for players to earn cryptocurrency in the short term. But they didn’t give as much thought to their long-term plan, and especially to their in-game economy design.
They grew popular quickly, signed up new players, and raised copious amounts of money in exchange for tokens. But a healthy economy — real or virtual — needs to balance bursts in revenue with steady growth. Don’t they know that?
Play-to-earn blockchain economies usually rely on two crypto tokens: governance tokens and utility tokens. Governance tokens are used as a store of value and represent voting power in the DAO. Utility tokens are digital assets that are useful within the game. They’re not created for direct investment, but they provide the activity needed to strengthen the platform’s economy.
P2E games pay their players for in-game rewards with utility tokens. That’s an amazing prospect! So where do failed P2E games go wrong?
When more players join a P2E game, the game mints new utility tokens and players use them. This goes on until peak player demand stabilizes. This usually happens once the initial hype for a game subsides. After that, the daily player curve decreases. Supply and demand troubles begin. The value of the tokens decreases, and inflation takes over the in-game economy.
Token inflation is a serious problem for game developers who want to maintain healthy game economies with rewards and privileges for players.
The P2E gaming industry is growing, and it has had its growing pains. We’ve learned from them. That’s why we wanted to transform the current monetary paradigm of P2E gaming.
So, in a nutshell, here’s how we solve the problem of token inflation:
- Instead of selling tokens generated by the game, StarFall players create in-game assets through skills associated with their characters’ professions and exchange them with other players.
- Professions determine the role that each character plays in the game’s economy.
- This uneven profession hierarchy creates imbalances that promote both team play and competition while in-game supply and demand self-regulate the production and value of tokens.
- Everyone can sell the tokenized goods and services that they create to other players who need them to turn a profit, or buy what they need from other players so that they do.
- The game pays out those profits in a currency that the blockchain supports.
As a player in the StarFall Online metaverse, you’ll be able to form alliances, trade goods and services with other players, harvest resources from other planets, or join them in battle. A player who chooses the role of a miner can extract five to ten times more resources from planets than players of other professions, but they might not be the best fighters. With their earning power, they can hire mercenaries to do the fighting for them.
StarFall Online lets players earn cryptocurrency through the following in-game activities:
- Market trading, including buying and selling items at the in-game market.
- Harvesting resources that can be sold as commodities.
- Working for other players.
- Creating items using the skills associated with a profession.
- Renting out NFT-based ships or real estate.
StarFall players get rewarded in $ETH and not in $SFO. This model transforms the current monetary paradigm of P2E gaming by letting players create real economies in a metaverse and paying them with tokens of real value for their in-game assets and hours of play.
When we first envisioned StarFall, we knew that it wouldn’t be easy to solve the main challenges facing today’s P2E community. We responded to them with a game based on our core values as gamers and developers. We created a metaverse where all of your possessions and services are your property, in-game and in your crypto wallet.
But it’s not enough for us to solve the inflation problem endemic to P2E games and make way for a trailblazing new approach to GameFi.
StarFall Online lets you take part in an epic saga set in the distant future among star systems at the farthest reaches of the universe. Choose a side and battle for liberation or domination. Your spaceship awaits. Join us.
If you’d like to learn more and get updates, visit our website.
