In early July 2024, VaaSBlock worked with the team from Deep Monolith, a reputable gaming company in Italy, to validate the credibility of their new blockchain-based game Dawnshard. The team came to the table with solid credentials in game production, though this was their first time working on a blockchain game. GameFi, like most new initiatives in crypto, has been a mixed bag. Sure, big companies like EPIC Games are building games on blockchain, though many people’s first experience will be with a game built by smaller producers with tokens that went to zero. Industry veterans build Dawnshard and want the game to stand above poor experiences, thus seeking added legitimacy.
The role of VaaSBlock and RMA™ badge in GameFi
Dawnshard’s team is very experienced in building games, they know what players like in and game and how to deliver great visuals and in-game mechanics. Their first priority is to build a game that is fun and people will want to keep playing, they took this goal and added blockchain technology to enhance the experience. The core team is also all big crypto guys and well aware of the technology and have watched closely the highs and lows of gamefi. Seeking to stand out amongst other GameFI projects and for traditional gamers may be doubtful of the blockchain components of the game, Dawnshard got in touch with the hope of gaining an RMA™ badge to help put some minds at ease. When we met the guys, our team was a little nervous about what we would find once the audit started.
While we have all played our share of games in our lives, none of us had played a blockchain game, and our perspective was shaped by the negative news the gamefi industry had generated. That was quickly put at ease once we started reviewing the audit results. The Dawnshard team, in some places, gave far more detailed answers than we expected, and in all the technical parts related to the blockchain, their answers were on a level with, large enterprises. In the follow-up, (let’s call it interrogation), the team held strong and were capable of giving extra details in every area we sought clarification. This is to say they did very well on their audit. We believe other companies working in GameFi are surely at the level needed to receive an RMA™ badge and, like Dawnshard, deserve to stand out. By undergoing a thorough audit and earning a badge of approval, these companies can not only prove their credibility but also reassure players and investors of their commitment to quality and integrity. Let’s work together to ensure your project is among those leading the way in this evolving sector and getting the recognition it deserves.
State of the Market Sentiment for GameFi
Play-to-Earn limitations
The GameFi (Game Finance) sector has been a rollercoaster, with a few highs but many regular lows. The concept of earning cryptocurrency through gameplay and owning in-game assets on the blockchain was an intriguing idea, but the reality has often been far from stellar. The primary source of the negative outlook stems from the play-to-earn model. When examined closely, the model doesn’t make economic sense. How do people earn money just by playing games? Proponents argue that investors would buy tokens from players who have earned the currency, believing in the model’s potential. However, this has rarely translated into sustainable value. At the time of writing, there are few notable success stories to mention.
Blockchain technology’s potential role in gaming was never really disputed. However, the early popularity of play-to-earn tarnished blockchain’s reputation in the gaming space. At one point, it seemed these technologies might never gain traction in gaming. I recall standing outside the GDC venue in San Francisco a few years ago, where game developers effectively protested against Web3 builders. They feared the damage blockchain could do to their industry, which was already on edge from monetization scandals, including non-crypto systems like loot boxes.
A real lack of Security and Regulations
Many players have had poor experiences with GameFi projects, facing issues such as scams, poor game quality, unstable in-game economies, and inadequate support from developers. These negative experiences have led to a general sentiment of skepticism and caution among potential users. Trust in the GameFi sector has eroded, making it challenging for new projects to attract users. Over 70% of GameFi projects launched in the past two years have fizzled out due to financial instability, lack of player interest, or outright fraud. Many players have lost substantial money due to rug pulls and Ponzi schemes disguised as legitimate GameFi projects. The volatility of in-game economies has also caused frustration as players struggle to convert their in-game earnings into stable and reliable returns. Furthermore, the lack of regulation and oversight has allowed unscrupulous developers to exploit the hype around GameFi, leading to a proliferation of low-quality and fraudulent projects. Acknowledging these past failures is essential to ensure a more informed and cautious approach in the future.
A young industry with slow Learning Curve
Additionally, the influx of amateurs into the GameFi space has exacerbated the problem. Many teams with little to no experience in game development have jumped on the GameFi bandwagon, hoping to capitalize on the trend. However, the steep learning curve often results in subpar games that fail to meet consumer expectations. These amateur projects frequently suffer from poor design, technical issues, and lack of engaging content, further tarnishing the reputation of the GameFi sector. Consumers have not been impressed, and their disappointment has only added to the skepticism surrounding GameFi.
Despite these challenges, the technology underlying GameFi continues to attract interest from major companies. Industry giants such as Ubisoft, Square Enix, and Atari are beginning to embrace blockchain technology, recognizing its potential to revolutionize the gaming industry. These companies have announced investments in high-quality GameFi projects, prioritizing security, stability, and user experience. With a renewed focus on quality and user trust, the GameFi sector may yet fulfill its promise of merging the thrill of gaming with the benefits of decentralized finance, inspiring hope and optimism. This potential, when realized, could revolutionize the gaming industry and create new opportunities for both players and investors. So how can a legitimate project wanting to work in the space build credibility?
About VaaSBlock
Founded in early 2024, VaaSBlock is a pioneering force in the Web 3.0 industry. Recognizing the need to distinguish quality organizations from the less legitimate, our three founders devised a unique system. This system audits organizations across six key areas and awards eligible ones with an NFT-Verified RMA™ badge. Projects with this badge stand out from their peers, who have yet to undergo an audit and verify their legitimacy. [LinkedIn] | [X] | [Threads].
