Before we start, it is worth pointing out that Koi Metaverse Article Series #3 on GameFi is a closely connected extension of the preceding two articles. Article Series #1 and #2 mainly dilated on why we game, why gaming is so meaningful to us and how we can rebuild our reality using the techniques we learn from gaming.
In this article, we are going to explore GameFi, the new prodigy in the gaming industry, to see if it is true that when a game evolves, our reality levels up too.
What Exactly is GameFi
Definitions are hard to establish in the crypto space as it is constantly changing its paradigm. However, as the name indicates, GameFi (Game + Finance) refers to decentralized applications (“dapps”) with economic incentives.
They generally involve tokens granted as rewards for performing game-related tasks such as winning battles, mining precious resources, or growing digital crops. The format of how the reward takes place is unlimited.
It’s an approach also famously known as play-to-earn. In many GameFi apps, users can earn money passively or actively by completing tasks. They can also earn interest by using techniques developed by DeFi platforms to lend game assets like digital characters or deposit them in what’s known as staking.
Why GameFi Is Better — Wholehearted Participation
After the first two articles, we can all agree that compared with games, the seemingly broken reality is hard to get into. Games motivate us to participate more fully in whatever we are doing.
And the twist is the less we fully participate in our everyday lives, the fewer opportunities we have to be happy. It is that plain and simple.
The emotional and social rewards we crave require active, enthusiastic, self-motivated participation. And helping players participate more fully at the moment, instead of trying to escape it or just get through it, is the signature hallmark of Gaming.
The real appeal of GameFi is that games are powerful enough to us, the amenable humans. And the Positive Failure Feedback mechanism reinforces our sense of control over the game’s outcome. Scientific research and common senses tell us the feeling of control in a goal-oriented environment can create a powerful drive to succeed. It turns out we love it, and when bolstered by Finance/Money, all of a sudden, it is too powerful to avoid.
The Fi Part Really Matters
As it turns out, money is a powerful emotional appeal to get people to participate and pay attention. When money flows, attention flows.
You may have heard multiple times in your life that money is the greatest tool created by human beings so far. Civilization existed way before money but probably wouldn’t have gotten very far without it. Ancient humans’ invention of money was a revolutionary milestone. It helped to drive the development of civilization, by making it easier not just to buy and sell goods, but to pay workers in an increasing number of specialized trades — craftsmen, artists, merchants, and soldiers, to name a few. It also helped connect the world, by enabling traders to roam across continents and oceans to buy and sell goods, and investors to amass wealth.
And gradually, those physical tokens are being superseded by electronic ones, ranging from credit card transactions to new forms of digital currency designed for transferring and amassing wealth on the Internet.
Money has enabled humans to survive and thrive. It will do the same to gaming.
Money follows attention. Attention follows money too. Attention follows money and success because of the in-built emotional appeal of finance.
Finally, this union between decentralized finance and video gaming has given rise to a new era of games that benefit players financially, which helps games push beyond the abstract appeal of gaming and provide gamers with actual rewards for their time and efforts.
Welcome to future gaming.
About Koi Metaverse
Koi Aims to Unlock the Next-Gen GameFi Metaverse Economies by Building the Digital Collectibles Platform for Virtual GameFi NFTs on Multichains.
Koi is a next-generation infrastructure for issuing, trading, and liquifying GameFi NFTs from different chains like Ethereum, BSC and so on. It is aimed at building a Metaverse dedicated for GameFi NFT assets.
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