Awakening the dormant NFT: From being forgotten to the rebirth of value through gamification and co-construction

Author: DawnXue

NFT was undoubtedly the focus of the last cycle. Whether it is crypto art, sports collectibles, or in-game assets, they all left footprints of NFT's success. However, after experiencing the glory of PFP projects such as CryptoPunks and BAYC, NFT eventually ended in the hype of virtual land in the metaverse. Today, these once hot assets are gradually being forgotten.

Price Bubble and Limitations of Use Value in the NFT Market

According to Opensea's historical data, blue-chip NFTs such as BAYC and Doodles have fallen by more than 90% from their peak prices. This phenomenon is not only lamentable, but also prompts us to reflect on the crux of the NFT market: the price bubble burst. In the last round of market enthusiasm, NFT prices were greatly inflated. However, as the market heat declined, the excessively high prices led to a sharp drop in buyers and a sharp decline in trading volume. Similar to other speculative markets, NFTs have experienced price surges and rapid pullbacks, and the lack of subsequent narratives or value support has caused investors' confidence to collapse. Limited use value. Many NFTs are too single-function and exist only as speculative tools. There are very few NFTs that really have long-term use value. For example, PFP (avatar) NFTs lack more practical uses besides representing the user's social identity; and although collectible NFTs have ornamental value, their attractiveness and liquidity are unsustainable.

NFT co-construction and revenue sharing

The core of Web3 is co-construction and sharing of revenue.Looking back, most of the issuance and revenue of NFTs are mainly concentrated in the hands of a single creator or platform:

• PFP NFT:Such as Punks and BAYC, their revenue is exclusively enjoyed by the project party.

• Sports collectibles:NFT represents a specific sports moment, and the issuance and circulation rights are controlled by the platform.

• Virtual land: Such as Decentraland and The Sandbox, these platforms have the dominant right to issue land.

Although there are some cases of user-defined assets in the metaverse, overall, the market has not yet truly achieved deep co-construction between players and platforms.

Exclusive and non-exclusive use: new ideas for the use of NFT

Currently, most NFTs are used in an exclusive way: only the holder can use or authorize others to use them alone.This model limits the popularity of NFTs and weakens their profitability. The exclusivity of NFT use is similar to the early stages of computer development, which mainly revolved around hardware such as chips. You can buy, sell, and rent (NFT already has relevant technical support), but it is not suitable for large-scale popularization.

In contrast, non-exclusive use is more open. The same NFT resource can be authorized to multiple parties for use, generating a wider range of value. For example, Little Ghost NFT launches co-branded products through authorized brands, and multiple consumers can purchase and pay a premium for the products at the same time, thus giving NFT a wider market value.

What other assets with more use value can be put into the NFT container? When these NFTs with use value are authorized to multiple people at the same time, can NFT holders get income during the holding period instead of when they are sold? Can the co-construction of Web3 be used on NFT? Can the forgotten and illiquid NFTs in the wallet be awakened?

NFT games may be a breakthrough. NFT is a powerful container that can hold not only in-game assets but also the game itself.

NFT Games

Why start with games?The gaming industry often leads new technologies, whether it is the emergence of computers (text adventure games, graphical interface games), the development of PCs (mouse and keyboard games, multiplayer online games), or the popularity of key-operated mobile phones (mobile key-operated games such as Snake) and smart phones (touch screen operation of "Angry Birds", tilt and move of "Temple Run"), games have played a key role in these processes, leading the innovation of user experience and interactive methods.

And it is necessary to start with small games.Because small games have low development costs and can be quickly iterated; small games are easy to get started, simple to play, more suitable for a wide range of user groups, and highly spreadable.

High threshold for game development

Although the cost of developing small games is low, most players do not have coding skills except for programmers. It is almost impossible for these players to independently develop a small game that seems simple, not to mention the creativity of the game, etc. However, the platform can cooperate with players to create and share the benefits. The platform has technical development capabilities, and players have various NFT and other resources.

Co-creation of games

Not all games are suitable for co-creation, but some games are very suitable, such as jigsaw puzzles. Because the pictures are different, it is a different game.

Co-construction ideas using jigsaw puzzles as an example:

• The platform develops the basic logic of the game and opens the NFT image upload function.

• Players can upload NFT images in their wallets, and the platform generates a customized jigsaw puzzle game.

• Each jigsaw puzzle game can be minted into NFTs. Gamers enter the game through a ticket mechanism, and the proceeds are distributed to the image provider and the platform in proportion.

This model realizes the division of labor and cooperation between developers and users, while avoiding duplicate development.Players using their own NFTs can prevent piracy and improve the composability and use value of NFTs.

The following is a comparison of physical puzzles, web2 puzzles, and blockchain puzzles, taking jigsaw puzzles as an example, and we can see the advantages of blockchain puzzles.

Awakening the dormant NFT

Some long-dormant NFTs may be revitalized by a successful game, and new NFTs can also be widely spread among users through the co-construction model. Through this gameplay, NFTs are no longer just collectibles or speculative tools, but an asset with practical value.

The financial nature and revenue model of NFT games

Financiality is one of the core features of blockchain games. NFT games can not only bring entertainment value, but also form a sustainable profit distribution mechanism:

• Initial funds and reward mechanism
      Users pay initial funds when creating games to attract players. Players participate in the game through ticket fees, and rewards are distributed according to the rankings.

• Profit distribution
      The income after the issuance of game NFT can be distributed to the platform and content contributors in proportion, and the holders can also obtain dynamic income through the right to use during the game, rather than relying solely on the premium when the NFT is sold.

• In addition to the above, project parties with conditions can also stack points, airdrops, etc. to increase the financial nature of the game.

Wide applicability of the game NFT co-creation model     

In addition to puzzles, the game co-creation model is also applicable to other games, which should have the following characteristics:

• Simple changes can generate diversity:The basic rules remain unchanged, but users can generate unique experiences by uploading pictures or modifying maps.

• Low development cost:No complex logic is required, and most of the game content can be completed by replacing pictures and adjusting parameters.

• Easy to share and spread:Each version created by each player may attract a specific interest circle.

In addition to these games, this model can even be extended to other types of assets.

Of course, NFT and games complement each other, and games may also advance with the help of NFT. In short, NFT has not been falsified, and we may have only seen the tip of the iceberg of this new world, and more needs to be explored by builders.