Night Clubs & Web3 Games

  1. F2P Game Economics
  2. Night Club Economics
  3. VIP Night Club Economics
  4. Whales & VIPs
  5. Paid Participants
  6. Web3 Game Economics
  7. Problems with Play-to-Earn & Play-and-Earn
  8. Gold Farming Problem & Blue Collar Grinders
  9. Which Players Should Get Paid?

Web2 Game Economics

Before the mass adoption of smartphones and the growth of the mobile gaming industry, a game was sold in a box at retail outlets at a fixed price. You would pay $50 to buy the game regardless of whether you loved the game or hated it, whether you consumed the whole content in a weekend or over multiple years, whether you were willing to spend much more or could barely afford it.

F2P Game Economics

The mass adoption of smartphones led to the rise of the mobile free-to-play gaming industry. These games offered some content for free and some were premium. Mobile allowed game developers to collect, analyze and test user behavior which enabled them to optimize what % of content should be free vs paid in addition to what the pricing should be per premium content and per type of user.

Source

Night Club Economics

Non-VIP night clubs and bars have straightforward economics. There is a price list for each drink and each client would have to pay a fixed entry price and the same price for any given item on the menu regardless of whether you are a billionaire or a homeless guy, whether you are a 20 yr old supermodel or a 80 yr old grandma.

VIP Night Club Economics

On the other hand, VIP night clubs have a slightly different business model. VIP clubs enable those who want to pay more and have access to premium services to get the physiological desires they seek. The 3 main actors of a VIP night club are the club operator, participants and VIPs.

Whales & VIPs

Source

Paid Participants

Now, let’s imagine a case where the VIP club isn’t doing very well in terms of traction — VIP tables are seldomly booked, neither VIPs nor non-VIP participants don’t spend as much as at other VIP clubs. The management thinks about existing options to boost revenue; spend more on influencer marketing, offer discounted drinks/entries, etc.

  • Non-VIP to VIP conversion ratio
  • Average $ spent per VIP per night
  • VIP retention ratio

Web3 Game Economics

Web3 games enable game developers to reward players with tradable assets (tokens/NFTs) which can be sold for real money on permissionless on-chain exchanges and marketplaces. Thus, the game developer is able to incentivize certain player behavior with direct financial incentives.

Problems with Play-to-Earn & Play-and-Earn

Arguments around play-to-earn in 2021 have been around players deserving to get paid for their time and effort.

Gold Farming Problem & Blue Collar Grinders

There is a famous American quote that got popular in the Great Depression Era

Which Players Should Get Paid?

There will likely be different paid roles in the future of gaming. Content creator streamers/influencers, game developers/mod creators and esports players have already been paid in the traditional gaming industry but web3 gaming might enable them to get paid more and in a more transparent way.

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Vader Research

Vader Research

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Web3 Game Economy & Token Design Consultancy dedicated to the long-term development of Blockchain Gaming. Follow us on Twitter @DeFiVader