Gaming has consistently onboarded and engaged more users than other Web3 sectors like DeFi, NFTs, and Decentralized Social Media (DeSoc). By February 2024, gaming dApps contributed 28% of the 6.7 million daily Unique Active Wallets (dUAWs)—a 20% increase from January.
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As Web3 games evolve rapidly, the traditional gaming industry could witness lower growth rates between 2024 and 2027. It’s due to market saturation, regulatory tightening, etc. Revenues for leading Web2 game publishers like Tencent and NetEase have declined YoY.
The digital gaming industry needs Web3 to reach the projected $282 billion in 2024. Emergent on-chain games will rise to the occasion. But Web3 gaming must first overcome its mainstream adoption hurdles, i.e., volatile asset markets, technical limitations, complex onboarding processes, and sub-par UXs.
Decentralized Gaming Income Token (DGI) provides a multi-dimensional solution set for such problems. Its innovative Guild-based staking framework and a partnership with an AI-powered game engine will help Web3 gaming reach internet-scale and shape the future of interactive entertainment.
‘If You Build It, They’ll Come’
Build great Web3 games, users will come. Entrepreneurs and game developers have realized this after experimenting with disruptive but unsustainable models for a couple of years. For example, the rise and fall of the P2E model compelled builders to rethink Web3 game design and fix their priorities.
Through Web3 gaming’s journey so far, especially 2023, the difficulty and impracticality of putting every element on-chain became evident. Projects also understood that transparency doesn’t necessarily equal trust; incentives aren’t well-aligned between gaming brands and gamers; and, cross-chain gaming still has major security and performance issues.
Both macro and micro challenges hinder mainstream Web3 gaming adoption. The macro side relates to the current state of blockchain technology, while the micro aspects are often cultural. Low scalability, for instance, increases latency and cost. It particularly affects fully on-chain games where users have to pay gas fees for even minor actions like saving their progress. They also often have to wait for confirmation.
Connecting wallets, signing transactions, purchasing assets, etc., are among the other hassles for users. They’re deal breakers from a UX perspective, especially for those familiar with the seamlessness of Web2 games. Moreover, the high volatility of crypto markets increases the risks and opportunity costs for both gamers and gaming projects.
The in-game assets gamers collect over hours of grinding can lose their value to market fluctuations. The investments backing a game’s development could suffer a similar fate, forcing projects to compromise on quality or shut shop. Particularly since developing a solid game requires much time, skills, and effort.
All the factors discussed so far erect the micro—i.e., cultural—barriers Web3 gaming adoption. Investors are often skeptical of supporting blockchain games. More so, with other areas like AI booming. Traditional gamers prefer staying away, given the inferior UX and risks of active participation.
Benefits like in-game assets and data ownership don’t weigh up against the risks. Finally, developers put their skills and efforts on areas with shorter production cycles, greater certainty, and better incentives.
DGI Aligns Incentives, So They’ll Come
Solving technical limitations requires collective effort and time. Layer-2s and other scaling solutions are evolving steadily, making blockchains more performant and reliable. The Web3 tech stack will be ready to support internet-scale gaming in the next four to five years.
However, aligning incentives and building novel revenue models is possible here and now. DGI is leading on this front with its Guild-based staking framework that lets users earn passive rewards off of Web3 gaming’s progress. It offers a risk-minimized way for those waiting on the sidelines to enter and benefit from Web3 gaming.
Starting as a gaming guild, DGI is set to become a lucrative game studio token that signals membership to a vibrant community around fun, engaging, and futuristic Web3 games.
It has attracted over 10.5K dUAWs, $3 million in annual revenue, and an $80 million market cap in eight weeks.
DGI built its revenue model on a solid foundation to avoid excessive market dependence and volatility. For example, a portfolio of titles like Big Time—Web3’s most revenue-producing game with over $100 million in NFT sales—generates revenue for staking rewards.
Further, DGI has five partners, three acquisitions, and three game development projects. DGI stakers will earn passive rewards as this portfolio expands. They can start by getting $DGI from Uniswap, MEXC, or Bitget.
DGI’s in-house game development is an effort to build great Web3 games. But beyond that, the project will soon partner with a revolutionary AI gaming engine. It’ll democratize the landscape by letting anyone create high-fidelity Web3 games through English-language prompts.
Reducing the time, effort, and cost of building Web3 games will also enable developers to catch up with fast-paced trends. The risks and opportunity costs will also be lower as a result. Moreover, DGI staking helps Web3 games bootstrap communities around them without the usual, cost-intensive marketing.
DGI is establishing itself as a holistic solution. A sector as broad and multi-dimensional as Web3 gaming cannot achieve mainstream adoption via narrow methods and approaches. DGI strives to build a future where interactive entertainment is highly collaborative, community-centric, and equitable. It has started the journey, moving steadily towards its destination, one phase at a time.
