Some within the Splinterlands community seem to think that art, lore, fun, and game mechanics will be the driving force behind an explosion of growth and prosperity for the game.
In my opinion, they are wrong.
There are already thousands of games with great graphics, storylines, and gameplay. But there are very few games with a highly functional, thriving play-to-earn economy. And that is where Splinterlands can separate itself as a project that could one day become a transcendent, iconic staple of business and entertainment while providing economic opportunity for countless people around the world. For example, Axie Infinity exploded in growth not because their game was fun... but because people started realizing that they could make lots of money by playing. Splinterlands can do that too, except without the crash and burn death spiral at the end (more on that later in this article).
So just how big could Splinterlands become? Let's dream together...
Could we see 10x gains for all tokens and NFT assets throughout the project within the next year or two? You're thinking too small.
How about 100x gains throughout the entire project within the next 3-5 years for everyone with the conviction to accumulate assets now while prices are low during the bear market? Let's go bigger.
Have you ever heard of the National Football League? Or Major League Baseball? Or the Premier League? These multi-billion dollar organizations were all just games at one point. Then the league organizers/owners figured out how to monetize entertainment in a highly functional economic model supported by multiple streams of incoming value.
Splinterlands is much more than just a game. It can become the future of sport, entertainment, and gaming in a way that changes the world.
This week, the Splinterlands team took a step in the right direction with a new update that changes the way rewards are earned. But there is much more work to do before the economy of the game is where it needs to be.
There is still a missing element from play-to-earn games stopping them from reaching their full potential. I believe that the key to it all is monetizing the "time and attention" (shout out to my favorite YouTuber, Infidel1258) of our community by setting up auctions for advertisers and sponsors to bid for the right to headline massive weekend tournaments on a recurring basis. Initiatives like this will help Splinterlands reach the next level. And the game already has part of that needed infrastructure within the "events" portal of the game. They just need to set up a bidding/auction element and then make it more attractive for advertisers by allowing a short video option, or some other way for a sponsor to create maximum value for whatever brand they are trying to promote.
In the beginning, this system might attract content creators looking to promote their streaming channel, or music artists looking to promote an album, or owners of small crypto projects. But over time, large brands could begin to take over the auctions, injecting insane amounts of capital into the ecosystem. Imagine half of such a bounty going towards reward pools for each separate league tier, and then the other half going towards DEC and SPS burn pools, rewards to SPS Node operators, and the game treasury.
The main problem with play-to-earn games has often been the extraction of value by users without an equal or greater amount of investment to offset what they continuously take from the game. Whether it's scholars, or bots, or just opportunistic people looking for a quick profit... the system breaks down once value extraction exceeds new investment coming in. This problem is why some liken play-to-earn games to ponzi schemes. However, the equation can be balanced by introducing advertisers/sponsors who will pay for the right to promote their services, products, and/or projects to a highly desirable demographic of crypto-inclined enthusiasts who are all earning disposable income. The scholars or opportunists should be happy to watch ads, or read through promotional material which will then generate value into the game to offset what those users are constantly taking out.
Keep in mind that sponsors/advertisers are the biggest driving force behind the economic fortunes for the NFL, MLB, and the Premier League. The most exciting difference for Splinterlands within that analogy is that WE are part owners very early in the process of working towards growth.
My next article will explore the future land-based game that Splinterlands is currently building, with speculation about how it could work (with a focus on how the in-game economy might look), and what could be done to speed development up.
Thank you for taking the time to read this article. If you enjoyed it, please consider dropping a heart for the SPT considerations. If you would like to chat with me about play-to-earn games, or in-game economy matters please reach out to me via twitter at @ kingzeus_aig or on discord at KingZeus #1017 In splinterlands, I am kingzeus12
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