The Problem with the GameFi Ecosystem
(From a Gamer’s Perspective)
tldr; guilds are currently the powerhouses of web3 gaming, leaving gamers at the mercy of guilds. gamers have no autonomy over their in-game statistics & data, they lack the means to stand out from the crowd.
As GameFi season approaches and games like Illuvium, Crypto Unicorns and Ember Sword are set to launch, we see the overall Web3 Gaming space expanding massively. More big-name Web2 developers are entering the Web3 space, more gaming guilds are being formed and more gamers are entering. However, GameFi right now feels like it's getting more and more… centralized.
What do I mean? Well, let me illustrate 3 issues that I see in the GameFi space right now.
- Uneven Power Dynamics
In the current GameFi environment, power dynamics are heavily skewed towards GameFi Guilds due to their access to capital. Games like Axie Infinity and Pegaxy all have scholarship/asset rental models which pretty much puts scholars/gamers at the mercy of their guild managers. I remember at the peak of Axie Infinity, scholars did not even care about what Axie teams they were given, how much % split they would receive and how the guild community was, all they wanted was a job/scholarship.
This is compounded by the lack of information available to gamers, lack of competitiveness and lack of transparency (which we will look at deeper later). Most gamers in the Web3 Gaming community are now at the mercy of guilds, almost similar to how a Web2 organisation would operate. As Web3 seeks to remove the central authority and for individuals to regain power, isn’t it ironic that guilds have this massive power disparity?
Gamers as the core and soul of the metaverse and should be treated and respected as such. - Lack of Transparency
In the GameFi space, there exist, possibly, hundreds of Guild Management Systems — for guilds to track their pool of gamers/scholars and efficiently manage their guilds. Platforms like BlockchainSpace Asia, Salad’s GuildOS, Axie.Management etc. all aim to improve the efficiencies and data tracking for guilds. Sure, these platforms are great and provide huge value to guild managers but more often than not, these data and statistics are privatised to the guilds themselves.
What this means is that it is currently almost impossible to ascertain who are the true gamers behind each account and gamers have no way to have claims over their own in-game data & statistics. Sure, a gamer can just enter their own ronin address into axie.management, screenshot their stats and send them to their prospective employer/guild — but then, this becomes a whole “he says, she says” kind of scenario, and they are again at the mercy of the central authority (guilds).
Bottom line is that gamers have no autonomy over their own in-game data and statistics, they have no verified way to say “hey these are my achievements, my experience and my history”. This needs to change. - Difficulty in Standing Out
In the current market dominated by GameFi Guilds whose aims are to maximize yield, hiring processes remain outdated — taking the form of Google Forms, Reddit posts and Discord bots, with almost no proper means of verifying a gamer’s actual gaming acumen. Time and again, gamers with amazing achievements in Web2 games or great experience in Web3 games are lost in the crowd and noise.
I once had a former competitive Dota 2 player apply for my guild and was almost lost in the sea of over 500 other applicants. It was fortunate for us that we literally read through almost every application and spotted him. He was no.48/50 of the initial scholars that we had onboarded, went on to become one of our top earners and an invaluable team captain in the guild.
It is evident that quality gamers do not have an avenue to showcase their achievements, stand out from the rest and remain competitive in this massively growing GameFi Ecosystem. We need a system where gamers can easily receive due recognition and better opportunities for their good progress and gaming acumen.
All in all, Web3 gaming has definitely taken a huge step in terms of the variety and sustainability of games, an influx of capital from Guilds and more adoption from gamers. It has created endless opportunities for investors and gamers alike, albeit not perfect. Yet, little attention has been paid to the little guys, the people that matter most in the ecosystem, its gamers/users. I believe power needs to be brought back to the gamers, a system that promotes meritocracy, a way for gamers to become more competitive, and a way for gamers to receive the best opportunity in the space.
This is my take on some of the problems of GameFi from a gamer’s POV. Let me know what you think and if you have differing perspectives. DM me @defi_ally on Twitter.
