An analysis of the new model Free-to-Own launched by Limit Break

Author: @0xRyze

Source: Twitter

Limit Break, the parent company of the NFT project DigiDaigaku , completed $200 million in financing, led by Josh Buckley and investment companies Paradigm and Standard Crypto, with participation from FTX, Coinbase, and Positive Sum.

The founder of Limit Break launched a new model Free-to-Own (F2O, free ownership), that is, his company minted NFT and distributed it for free. Since players start at zero, rather than losing money, players have no incentive to make money immediately, and they can become fans of the game for a longer period of time.

This new web3 model will change game monetization forever.

Gabriel Leydon specified the following principles about Free-to-Own in their press release :

(1) The community is free to start.

(2) The NFT they get is owned by them.

(3) These NFTs are factories that produce new NFTs (for games, cosmetics).

DigiDaigaku initially launched with free casting and stealth. This achieves two goals:

(a) There is no hierarchical whitelisting.

(b) There is no "revenue" in the previous period. (actually, getting investment from web3 profit driven players)

Finally, a free startup prevents scam-like behaviors:

Sell, then don't deliver. (Incentive to exit - all gains done!)

You are the best advocate for converting fans into upcoming games.

Using NFTs as incentives is reminiscent of Loot , except Limit Break also charges a 10% fee on NFT transactions, which allows them to generate revenue and put it back into game development.

So far (21 days), a transaction volume of 3900 ETH has been generated.

The second point is of course ownership.

It's a classic argument: when players own their NFTs, they invest more.

But even better, these NFTs represent some economic utility in a gaming environment.

It provides the right mix of incentives, and teams are rewarded with NFTs, so they drive all the economic relevance to the original NFT. (See: Metaversus Level 8 )

This leads to the discussion of the third aspect: Factory NFT (Factory NFT).

Gabriel Leydon's question to game designers is: How do you design a million-dollar feature?

With the cryptocurrency, and its ability to unlock over $100 in IAP spending, and Limit Break, the Factory NFT was discovered.

Scarcity and production.

Owning a factory NFT allows game economic designers to gain greater flexibility and push the benefits of the game's overall economic growth to factory NFT holders.

It becomes a practice of balancing the flow of value rather than dip protection.

"With free-to-play, developers make games for a long time and they don't know what people are going to do," Leydon said. "They put out games and hope people will spend them."

In contrast, with Free-to-Own, "the developers built a large audience that was excited about the game and owning a part of it. They became advocates for the way the game was played before it even came out. They all wanted the game to be successful because They own those assets."