When blockchain games step out of the speculative bubble
The blockchain game data website (Chainplay) directly stated in its 2024 industry report: ‘93% of GameFi (Gaming Finance) projects have already died.’ It even indicated that the average lifespan of GameFi projects is only 4 months.
Looking back at the GameFi craze sparked by (Axie Infinity), which allowed Southeast Asian players to earn a living from gaming for a time, the price of tokens eventually dropped by 99%. Traditional gaming giants exploring the GameFi space, such as Square Enix, announced plans to end their blockchain game project ‘Symbiogenesis’ in July this year.
After the craze subsides and traditional giants show little progress, what is the next step for blockchain games?
A blockchain game (Elemental Knights Online) that has been around for 3 years, with 80,000 wallet connections and over 350,000 community users, its CEO Guan Shaohua may provide some answers.
CEO of (Elemental Knights Online) Guan Shaohua by He Daxin Photography
Classic IP on-chain: (Elemental Knights Online) is born
(Elemental Knights) itself is an MMORPG (Massively Multiplayer Online Role-Playing Game) with a history of over 15 years, boasting many loyal players. Guan Shaohua, who has lived and worked in Japan for a long time, established a relationship with the (Elemental Knights) developer during a blockchain event in Japan and planted the idea of creating a blockchain version.
Guan Shaohua recalled that after coming into contact with blockchain technology in 2017, he began to think about how this technology could be integrated with games. ‘At that time, there were no NFTs or GameFi, we could only imagine how “game assets” should operate on-chain.’ It wasn’t until 2021, when the trend of the metaverse and blockchain games arose, that Guan Shaohua decided to collaborate with developers to launch the blockchain version of (Elemental Knights Online).
Game currency becomes cryptocurrency, and items and equipment also become NFTs (non-fungible tokens). Assets obtained by (Elemental Knights Online) players in the game can be freely traded in the market and even converted to fiat currency for withdrawal. According to project statistics, the amount withdrawn by game players has already exceeded $5 million.
As for the player distribution of (Elemental Knights Online), Japan accounts for about 50%, while Southeast Asia and Chinese-speaking regions account for approximately 30% and 20%, respectively.
(Elemental Knights Online) was included in the best blockchain game list of the evaluation website (PlaytoEarn) in 2023. Guan Shaohua admitted: ‘In fact, in the blockchain game market, (Elemental Knights Online) is already a long-lasting project.’
The secret to the longevity of blockchain games?
‘Many projects may shut down in just 3 months, branding themselves as AAA games, but without real management.’ Guan Shaohua pointed out that for blockchain games to last long, there are two key points: the game must be fun, and the economic model must be sustainable.
Having a fun game is the most basic principle. Guan Shaohua observed that many blockchain game projects on the market are quickly forgotten by players due to rough development and singular gameplay. However, Elemental Knights itself is an old IP that has been operated for over 15 years. Even after developing a blockchain version, the development team continues to upgrade graphics and create new game modes to maintain overall entertainment.
Additionally, Guan Shaohua mentioned that many blockchain game projects overlook the balance of token economics, merely issuing and speculating on tokens, ultimately leading to inflation and player attrition. The issuance and destruction mechanisms of tokens and NFTs, as well as the rules for community feedback, need to be established well, so as not to collapse quickly due to market cooling.
Is the open metaverse the future of gaming?
In addition to token economics and gameplay, Guan Shaohua emphasized that ‘openness’ is also a key core of blockchain games and (Elemental Knights Online).
‘The spirit of Web3 is decentralization, and players’ digital identities should be able to freely traverse between different projects.’ He believes that when games transition to the blockchain world, they should be viewed from the perspective of the entire ‘blockchain’ ecosystem, where every game within the same ecosystem should be able to support and influence each other, creating a healthier and more diverse environment.
Therefore, (Elemental Knights Online) has collaborated with the Web3 gaming industry association Catalyst Guild and decentralized gaming platforms like Metacade, allowing players to participate in activities hosted by different organizations and meet new gaming partners.
In addition, (Elemental Knights Online) is also actively collaborating with physical brands to create exclusive experiences, such as the large Japanese retail store Don Quijote, which once opened a store in (Elemental Knights Online), where players can participate in missions to obtain NFT exchange goodie bags, products, and more.
Guan Shaohua even revealed: ‘We are currently in talks with a Japanese insurance company for collaboration!’
This is his ultimate vision. Guan Shaohua not only wants to turn (Elemental Knights Online) into a gaming platform but also a space that integrates various aspects of adventure, economy, shopping, and socializing, encompassing diverse applications while also possessing commercial value.
‘The future metaverse will no longer be a closed platform but an open world that can seamlessly connect multiple blockchains and decentralized applications.’ Guan Shaohua cited the movie (Ready Player One) as an example, stating that such a future is not far away.
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