100% of $10 vs 10% of $100? Games typically monetize microtransactions via primary sales. There are a few web2 games that enable in-game items to be traded on secondary markets. In this piece, we will discuss the pros & cons of having a player-driven secondary market within a closed-loop economy. Secondary Trading Disabled …

Wagering and “Pay-to-Earn” In web3, money can flow not only from players to the developer but also (i) from the developer to the players and (ii) between players. We previously divided microtransactions into two; Pay-To-Progress/Win and Cosmetics. …

What Do Gamers Spend on? We are migrating to Substack and will use it as our main publishing platform, please subscribe to our Substack page if you haven’t already. Game monetization has evolved from selling physical copies of games to the “free-to-play” model. Instead of paying upfront, these games make…

Staking is a LOAN not REVENUE You built a Web3 game. Players are having so much fun that they are willing to spend money on pay-to-progress or cosmetic premium items (stronger weapon, extra life, skipping waiting time, premium skins, gatchas) just like in F2P games. For simplicity, let’s assume that…

a16z vs Bored Ape Owners Value accrual is an essential yet often overlooked subject in Web3. We shall delve into how the value generated within the Yuga Ecosystem is apportioned among the diverse stakeholders within the Yuga Ecosystem (Yuga Labs, $APE, BAYC, MAYC, etc.). We will be covering: Capital Structure…

Token Buyback & Burn, Staking Rewards, Incentives and More The underlying business is growing and receiving payments — how to accrue value created to the token entity so token holders can benefit from the existing or future success of the underlying business? …

VCs & Founders Shouldn’t Receive Any Tokens For 7+ Years We would like to thank Charlie Sandor at CMT Digital for his contributions & feedback. This piece wouldn’t have been written without his input. Let’s imagine a case where a crypto startup has raised capital from VCs for an equity…

Why Founders Are Misallocating Tokens to VCs? Tokenomics is typically associated with a pie chart allocation that represents what % of tokens would be allocated across team, investors, treasury and community. The figures are typically determined by what would be considered acceptable based on benchmarks for non-investor token allocation and…

Which Player Types Would You Like To Have In Your Game? Web3 games allow in-game items to be traded on permissionless decentralized marketplaces in exchange for real money. This has created opportunities for financially motivated actors to speculate and earn while also enabling game developers to incentivize certain player behavior…