RE: What gives play-to-earn game tokens value?
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Didn't we agree not to tell people where the demand is coming from? :/
Jokes aside, I ranted about this subject last week and had a great discussion about Gods Unchained in the comments with @l337m45732, if anyone is interested.
What drives demand behind people buying the tokens other gamers have to sell in order to ‘earn’ from their play-to-earn gaming?
Currently, it is almost always speculation. Most of the new games incentivize providing liduity at launch so a fictional market is all set up on a random AMM giving the uninformed false hope that it will be there for eternity.
Splinterlands is actually ahead of the game if you ask me. You need DEC to rent cards and to earn DEC rewards by climbing ranks and winning. I don't play much but during the past few weeks, my rental expenses mostly outwayed my earnings, as it should be. You shouldn't be able to jump in with a few dollars and earn more than what you put in by playing a 2-hour session.
With a few more utility additions DEC will be superior to SLP in every single aspect.
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Your Gamefi Economy is broken blog, really is a banger.
I definitely second that anyone looking for an excellent take on the economics behind play-to-earn games, needs to go and give it, and the comments, a read.
The whole Axie Infinity SLP v Splinterlands DEC comparison is intriguing.
This is the type of rabbit hole I wanted to go down with this blog, so cheers :)
I'm happy to see that the Splinterlands team do seem to get that play-to-earn game tokens need to close the loop and create an equilibrium point between buyers and sellers for DEC.
Like you said, earning a ton of tokens from gameplay that the player inevitably wants to dump so they can earn, forces supply to far outstrip demand.
A model, just like the one we see in Axie's SLP, that ends up flushing the token to zero.
PS. I can't wait for your deep dive into what upcoming additions to Splinterlands will do for the economy and ultimately the price of DEC! ;)
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Cheers mate. It's an interesting subject to explore but if a game can generate revenue consistently I don't see why it can't also have a healthy economy. Some are rushing to give out more rewards than they can handle atm.
Gonna need to do a lot more reading before I can do a deep dive on Splinterlands but it is on my to-do list. It's coming but no one knows when.