Gacha systems and game theory can transform NTFs for the better
|The ongoing craze surrounding Non-Fungible Tokens continues unabated for all intents and purposes. Whereas the first wave of NFTs was considered a fad, it is evident that projects and offerings are evolving. Big things are on the horizon for this industry, and I couldn't be more excited for it.
NFTs Aren't Just About The Money
Many onlookers perceive the NFT industry as a new hype where lots of money is thrown around for collectibles and digital art with no value. It is understandable where that vision comes from, as NFTs may not make much sense at first glance. Why would anyone want to collect or other items that reside on the blockchain if they can be screenshotted and copied that way?
In reality, those are the examples of "first-generation" NFTs that will attract media headlines. In my opinion, we can find the real innovation in this space elsewhere. It is not about what is visible on the surface, but about the deeper meaning and potential of NFTs. With so many companies and developers entering this space in recent months, it is a matter of time until big things will occur.
There is a lot of potential to unlock in the NFT space. Rather than focusing on traditional collectibles or even crypto art, this concept can be applied to many other ideas. I look forward to more projects bridging the gap between decentralized finance and NFTs, or the projects that allow for NFT minting and trading within and outside of their ecosystem. Those are the solutions that will bring more mainstream attention to on-Fungible Tokens to not just focus on how much is going around.
Combining Different Facets
When an NFT ecosystem is created, it is essential to look at all the possibilities it may unlock. Combining different facets into one broader project is something I am personally a fan of. While we can all appreciate the collection aspect of NFTs, it is interesting to see how creators develop new combinations. One project catching my attention combines game theory with art collecting, gacha, and anime. As a fan of Gachapon - where you receive random rewards from vending machines - the concept immediately appealed to me.
Similar to how one may be surprised when they open up a surprise egg, NFTs should maintain an aura of mystery and surprise. Doki Doki DeGacha's Chainbinders provides that solution: it is home to original IP and characters with their own backgrounds and elements from various games, anime series, and so forth. All aspects are gamified on the marketplace by providing instant liquidity, and actual value for every NFT created.
Moreover, the introduction of game theory ensures that many people can help contribute to these new NFT projects. For Chainbinders, a team of over 50 individuals contributed to this project, further confirming how everyone can play an integral part in taking this ecosystem to a whole new level. To play the Chainbinders Gacha Machine, users need hyperinflationary BND tokens, which recently raised over $6 million on the first day of its token sale through their liquidity generation event.
Under the hood, I think it great to see projects explore the creation of NFT collections backed by a reserve pool of Ethereum. Using this pool allows teams to explore options such as token buybacks and burns, creating Reserve Pools, and so forth. This is just one example of how complex one can make an NFT ecosystem yet still keep it fun through gamification and art collection aspects.
Closing Thoughts
There is a lot to like about Non-Fungible Tokens when the overarching concept makes sense. The time has come to look beyond collectible cats on the blockchain that serve very limited purposes. Teams capable of incorporating lore and elements from other industries - manga, movies, tv shows, and so forth - will - in my opinion - have a much better chance at succeeding long-term. To attract users and investors, they need to see NFTs that resonate with them. The first generation of Non-Fungible tokens focuses on "getting rich quick" rather than utilizing this technology to its full potential.
When teams start to build more appealing NFT ecosystems, exciting things are bound to happen. It is pertinent for this industry to cater to people who may not be involved in cryptocurrencies today. To do so, the NFT offerings need to strike a chord with onlookers, making them willing to take the plunge. Teams can apply several methods for this purpose, yet the game theory and gacha system will always be one of my favorites.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.