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    Web3 gaming has a token utility problem: Can this ‘studio token’ be the answer?

    2024.01.23 | exchangesranking | 148onlookers
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    Presented by Drift

    Web3 games show promise but need sustainable tokenomics to survive. Drift, a Web3 gaming studio, comes with a ‘studio token’ approach to provide versatility to address the long-standing issue of in-game token isolation.

    In the rapidly changing world of Web3 gaming, a significant and persistent challenge has consistently surfaced like an unyielding boss battle in a hardcore video game: The issue of crafting sustainable tokenomics. As Web3 gaming continues to close the gap in production value and gameplay experience with traditional games, the sustainability of in-game tokens raises new questions: Are they destined to be trapped within the confines of a specific title’s universe?

    Web3 games have introduced various in-game tokens with different market appreciation, but their Achilles’ heel has always been the tokens’ isolated nature. Unlike cryptocurrencies such as Bitcoin (BTC) or Ether (ETH), which possess real-world utility and liquidity, many Web3 game tokens are limited to their respective ecosystems. While they can be earned or purchased within the game or across exchanges, Web3 gaming tokens often lack practical application outside the confines of that particular virtual realm, often leading to a substantial drop in value after the initial hype about the game.

    Axie Infinity, a popular Web3 game, has plunged to single digits after seeing a $160 price tag. Source: CoinMarketCap

    Axie Infinity, a popular Web3 game, has plunged to single digits after seeing a $160 price tag. Source: CoinMarketCap

    This limitation casts severe doubts on the long-term value of Web3 gaming tokens and poses substantial challenges to their integration with the broader landscape of decentralized finance (DeFi) applications. As the Web3 gaming space continues to expand, addressing this issue will be critical to unlocking the full potential of these immersive experiences.

    A paradigm shift in Web3 gaming tokenomics

    Drift, a Web3 game studio, aims to retell the story of Web3 gaming tokens by introducing its studio token, DRIFT, which distinguishes itself from typical in-game tokens by offering utility outside the game. Players can tailor their gaming experiences with DRIFT tokens, accessing nonfungible token (NFT) skins and exclusive features.

    At the same time, non-gamers stake DRIFT tokens to receive a percentage of the game’s revenue. Furthermore, a portion of the game’s earnings is strategically allocated to bolster the DRIFT token’s liquidity.

    Drift envisions a self-sustainable tokenomics for its studio token, where game revenues fuel the operations. Source: Drift

    Drift envisions a self-sustainable tokenomics for its studio token, where game revenues fuel the operations. Source: Drift

    Drift’s flagship offering, Payout Pursuit, is a cross-chain racing game that invites players to compete by recording their fastest lap times to win crypto prizes. The game, which already has a playable beta version, employs the play-to-earn (P2E) model, where players can earn real-world rewards in the form of cryptocurrencies for their in-game activities and achievements.

    Bridging the Web3 gaming ecosystem

    The Drift Studio is led by a seasoned team with a background in GameFi, Web3, NFTs and the broader crypto industry. Drift CEO Josh Chand emphasized the studio’s goal of addressing the challenges that plagued Web3 gaming, stating:

    “Many Web3 games failed due to poor economic design, focusing more on Web3 integration than game quality and sustainable models. We wanted to do something entirely different.”

    The studio envisions a broader impact and plans to leverage its “Influ3nce’s Amba$$ador program” to extend support to upcoming projects within its ecosystem. This program allows everyday Web3 users and influencers to participate in presales. The DRIFT token has already completed its inaugural presale round, selling out within two hours. The second round has similarly sold out. At the time of writing, the third presale round is active.

    Amid the persistent challenge of in-game token isolation within the Web3 gaming space, Drift Web3 studio emerges as an innovative contender, featuring a delicate equilibrium designed to mitigate sell pressure while maximizing benefits for all participants. As Web3 gaming continues to evolve, solutions like studio tokens may bridge the gap between isolated ecosystems, paving the way for a new era of sustainable tokenomics and immersive gaming experiences.

    Learn more about Drift

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