Stylized Facts:
- Web3 games generate more transactions per user, primarily influenced by the extent to which transactions occur on-chain.
- Consequently, they also generate higher transaction fees per wallet.
There are three main ways games contribute to the ecosystem:
- Direct Support to the Infrastructure: Games financially support the network through fees collected and blockchain tokens delegated, thereby enhancing network value.
- Usage of DApps and DeFi Programs: Gameplay drives engagement with DeFi platforms, as players earn token rewards, which in turn generates fees. Players also contribute by purchasing NFTs and participating in a variety of DApps.
- Financial Influence: Games contribute significantly by purchasing MINTs and participating in pre-sales, essentially funding the growth of new projects within the ecosystem.
Each of these aspects can be studied and quantified more thoroughly.
Three key factors determine a game's overall contribution to the blockchain:
1. The level of blockchain integration: This integration can be measured on a scale.
A. Web3-Tangential: The most common type involves transactions related to depositing/withdrawing USDC and in-game rewards/assets. Some DApps may be featured, such as staking protocols and marketplaces, but on-chain integration is minimal.
B. Governance Systems and Dual Token Systems: The introduction of a governance token, often facilitated by DAOs, increases on-chain interactions. A notable example is the swap between in-game tokens and the DAO governance token, adding extra transactions.
C. On-Chain Crafting Features: Games with on-chain crafting features show a higher level of integration, significantly increasing the number of on-chain transactions.
D. Fully Integrated Games: These games record every transaction on the blockchain, encompassing all elements from A-C, plus additional in-game transactions.
2. The size and wealth of the community surrounding the game: A larger and wealthier player base inherently leads to more transactions, regardless of the level of blockchain integration.
3. The use of NFT assets within the game: Especially the presence of bots, which can significantly increase the number of transactions per player due to their continuous activity.
Each institutional feature exhibits a unique level of engagement. Understanding this relationship is crucial for our research.
For instance, the likelihood of someone selling or buying an NFT, locking a token, swapping a token for USDC, or staking/unstaking an NFT can be understood as static probabilities. However, these activities are time-varying and influenced by the game's business cycle. Given that blockchain gaming is inherently financial, financial incentives often drive the intensity of player interactions with the core institutions of a Web3 ecosystem.
The purpose of the dashboard is to provide examples of how to evaluate the importance of certain programs and protocals to any blockchain. Here we focus on gaming.
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