Direct from the desk of Dane Williams.
Play-to-earn game devs need to better educate their communities on why the tokens people earn have value.
After all of the initial hype around Axie Infinity and its related token ecosystem, we’re starting to see things return to the mean.
The game’s Smooth Love Potion (SLP) token price is falling…
Which leads to lower earnings by players…
And a continued death spiral as both prices and game numbers race each other to the bottom.
Here is an interesting quote that I read in today’s CoinDesk email newsletter, from crypto research firm Delphi Digital:
“As SLP prices dip, players suffer as they cannot earn as much when compared to a few months back,”
“At its peak, a player could have earned $35 per day on July 21 vs $1 today at current prices (assuming 100 SLP/day). This has led many players to stop playing as the income has been reduced massively.”
The lesson here?
Create ongoing demand for your tokens.
Or they will die.
But perhaps most importantly of all, play-to-earn game devs need to educate their communities on why demand for your token will always exist.
As well as why an eventual equilibrium price point between buyers and sellers will be found.
If the hysteria around quotes like this from analysts show us anything, it’s that the play-to-earn gaming space has not done this well at all.
Yes I’ll step on a few toes saying this on a blog published via a Hive front-end, but this involves Splinterlands too.
I can guarantee that if you asked 95% of players on both Axie Infinity and Splinterlands where the rewards come from and why they have value, they couldn’t tell you.
Surely that’s a topic that needs to be talked about more?
It’s exactly the same as blogging communities here on Hive with their own token.
I’m always trying to encourage people to consider what gives your tokens value before blindly shilling.
But honestly, it doesn’t seem like they want to know.
People just want to earn free money that they can keep dumping with no care in the world about who or why someone on the other side of the trade is buying it.
Oh…
But they’re happy to loudly cry when nobody is buying the shit they were shilling and endlessly dumping though.
Questions for you to answer in the comments
It’s the weekend and as always, somewhat quiet here on LeoFinance so let’s get some discussion going in the comments section in order to answer these questions.
What drives demand behind people buying the tokens other gamers have to sell in order to ‘earn’ from their play-to-earn gaming?
If yes, what is the game doing to raise the equilibrium point between buyers and sellers of the game’s token?
There are answers.
But maybe not for your particular play-to-earn game...
Let's see what we come up with!
Best of probabilities to you.