Is Blockchain The Future of MMORPG Games?
So you've probably seen the title of this video and thought to yourself in what way could crypto possibly have an effect on the future of the mmorpg games. Well to get to the point we think blockchain game developers will create their own crypto tokens as a way to fund gaming projects through crypto investors rather than crowdfunding platforms such as Kickstarter.
In doing this they'll raise way more money and be able to create more ambitious blockchain MMORPG gaming projects. We think crypto gaming could lead to a new business model for MMORPGs in which blockchain games can be extremely profitable.
MMORPG Games
This MMORPG Crypto Gaming Review Video explains How crypto could be the future of the mmorpg games.
In almost every current blockchain MMORPG crypto game We've seen so far is complete garbage, most of them look two generations behind non-crypto games and somehow they have market caps in the hundreds of millions of dollars. Despite having very few players there isn't a game that exists yet that uses the exact business model. I'll be describing in this video number two people are going to hear the words in-game NFT in this video and start foaming at the mouth because they read an article about NFTs being bad for the environment.
Blockchain MMORPG NFTs
NFTs built on the ethereum network are currently bad for the environment but this is a temporary issue.
The reason NFTs are bad for the environment is that the if network still uses a proof-of-work mechanism to validate transactions and therefore has high gas fees associated with it. All new modern blockchains use proof of stake which cost less than a penny per transaction and if we'll be upgrading to this system with ETH 2.0. The entire blockchain MMORPG NFTs are bad for the environment talking point won't be a thing in the future problem. MMORPGs are extremely expensive to make and crowdfunding isn't cutting it anymore.
Nobody trusts Kickstarter MMORPG and they can't raise anywhere near the amount of money needed to create an MMORPG.
Crypto MMORPGs
How does Crypto help solve this? MMORPG development teams create their own capped total supply cryptocurrency tied to their game; this allows them to sell tokens like shares so people can invest in their project with the hopes of making a profit. If the game is successful unlike kickstarter your game isn't funded by donations, it's funded by investors and due to the nature of crypto.
Anyone can get involved Crypto MMORPGs with whatever amount of money they want to invest. The use of in game NFT gives value to the MMORPG Game Tokens. Let's just take a look at some crypto games and how much they're worth. Just to get an idea of how much investment there is in the crypto gaming space Decentraland a browser game where people can buy land and create their own space in the world it runs at like 5 fps. When you play it it's hardly a game and it has nintendo wii graphics 1 billion to 1.
5 billion dollar market cap it was double that two months ago at its peak THE SANDBOX similar to Decentraland but not quite as bad 290 million to 1.2 billion dollar market cap within less than a year of their token being tradable.
My neighbor Alice basically a 3d farmville style game that seems to have launched its token with an instant market cap of about 400 million dollars on day one without a playable product literally a trailer and boom 2.3 billion dollars of trade volume for the token on day one.
MMORPG Games
Axi infinity to be fair people actually do play this game a lot in poor countries like the Philippines and Venezuela because you can earn 10 to 20 dollars per day from playing it but does this look like a game that's worth 800 million dollars with a fully diluted valuation of 4 billion dollars. Last one alien worlds this project's token launched like three months ago and in the first week had a fully diluted market cap valuation of 20 billion dollars. It's since lost over six thousand percent of its peak value but still has 48 million dollars worth of trading volume every day.
Despite looking like one percent game 99 user interface so yeah hopefully that gives you an idea of how much money games in the crypto space are apparently worth. The sheer amount of people willing to invest in them and none of these games I've mentioned are even close to what I'd consider actual good games by today's standards. So let's get to the point how could crypto be used to fund an actual decent non-pay to win MMORPG.
CryptoSwami.Net
Let's imagine I create a company called Cryptoswami.net and we want to make a WOW clone but in unreal engine 5 and design it more like WOW classic let's call it Cryptoswami.net we'd start by designing one zone of the game two or three classes with up to level 10 abilities. After a few quests basically enough assets and content for a proof of concept short playable demo and a trailer for marketing this part of the process would be self-funded we would then create a cryptocurrency called cryptoswami token. When crypto swami launches its initial coin offering we would make these tokens available to be purchased by the community with 10 to 20 percent of the token supply reserved for the MMORPG development team.
Those who are working on the game there would only ever be a total supply of 1 million CryptoSwami tokens in existence and these tokens would be used to buy capped total supply NFT cosmetics that you could wear in game. The problem I have with cosmetic cash shops in current MMORPG games is that there's nothing special about the outfits. You're not impressed or intrigued when you see someone with a cash shop cosmetic because anyone could buy one for like 20 but what if there was only ever 100 of that outfit in existence in a game with millions of players and it's all of a sudden worth thousands of dollars. Think the swift spectral tiger from WOW or runescape's party hats extremely rare limited quantity cosmetics mounts or pets nothing pay to win, we'd then create a cash shop that only sells these rare cosmetics that could only be purchased with our cryptocurrency cryptoswami.crypto.
One token once everything is initially sold out from the investor store where these in-game Nfts would be sold, players will need to trade these cosmetics between each other for crypto. In-Game NFTs of which the price would be determined by the game platform users. There'd be a one percent tax on every transaction between players that goes to the development team's wallet. This tax on transaction would be a way to have positive cash flow for the development of the game after the initial public coin sale.
So let's say cryptoswami.
crypto becomes as popular as a medium-sized crypto game such as my neighbor alice. This would result in a total trade volume of 15 million dollars on a slow day and as much as 100 million dollars on a good day with a one percent tax on transactions that's 150k to 1 million. One million dollars per day worth of tokens sent to the development team's wallet that could be then sold for usdt to pay wages; or used for marketing to further snowball the project with this amount of revenue.
There'd be very little need to add further monetization to the game it could be completely free to play in fact being a non-pay to win free to play MMORPG game would probably be for the best as the more players playing. The more money those limited quantity NFT cosmetics would be worth as there'd be rarer relative to the size of the game's population.
If you're still not understanding me literally just imagine current world of Warcraft but it's completely free to play, no subscription the cash shop contains only mounts and cosmetic outfits. However there's only say 100 of each mount or outfit that can be in circulation in the entire game across all servers to buy these cosmetics. You need to spend a cryptoswami on token crypto of which only 1 million tokens exist.
Once the cash shop has sold out of these items and they're in the players hands, the only way to obtain them is buying them on the open market. From other players every transaction that takes place using this crypto.
Read More: How NFTs Have Become a Game way to the Metaverse