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Building a game isn’t easy and launching it on-chain definitely doesn’t make it easier! Here are some considerations that you would need to take into account should you ever want to make an on-chain game!
Designing an on-chain game requires a deep understanding of both blockchain technology and traditional game development principles.
The first principle is decentralization, which involves distributing power and control among players rather than concentrating it in a central authority. If a game remains centralized, then why make it an on-chain game? Game developers should use smart contracts to autonomously enforce game rules and DAOs to let players vote on important decisions, such as updates or new content. This approach prevents any single party from having too much control.
Another crucial principle is the creation of engaging gameplay mechanics. Blockchain features should enhance the gaming experience, not detract from it. A good on-chain game should be compelling to traditional gamers regardless of its blockchain elements. A lot of on-chain games came out following the success of Axie Infinity but many have failed because they emphasized the P2E aspect at the expense of creating a good game.
Lastly, user experience is a key factor in the success of on-chain games. Many potential players may be unfamiliar with blockchain technology, so the interface must be intuitive and user-friendly. On-chain developers need to understand that their audience includes not just crypto people but also actual gamers who may not know much about blockchain. Simplifying wallet integration, transaction processes, and asset management is essential to lowering the barrier to entry. Additionally, the game should provide clear tutorials and support to help players understand blockchain elements within the game.
Having a clear technical foundation is vital for building a successful on-chain game.
Choosing the proper blockchain platform can make or break a game! Each blockchain has its strengths and weaknesses which can complement each game differently. For instance, Ethereum, while having a huge network effect, has high gas fees. Other blockchains may offer better scalability but could be more centralized. You may even want to use layer 2 scaling solutions such as Polygon or Base but it's generally important to have a good view of one’s options.
Furthermore, it is also crucial to understand which programming language you are working with since different blockchains use different programming languages. You may be well-versed in Solidity but if you are developing a game on the Cardano blockchain, you would need to learn Haskell.
Another thing to take note of would be how to develop your smart contracts. With on-chain games lacking central authorities, you would need to program them to automate various game functions. These contracts must be secure and efficient to handle in-game purchases and NFT transfers. You would also need to do extensive testing on all of these to identify and fix bugs, ensuring the game works as intended. Some developers offer “bounties” to incentivize bug discovery and improvement.
Case Study: Axie Infinity successfully implemented a Play-to-Earn model, attracting millions of players and establishing a working in-game economy. However, it faced challenges with scalability and high transaction fees, underscoring the importance of choosing the right blockchain platform. To address these issues, Axie Infinity created its own Ronin blockchain to improve scalability and reduce transaction fees. Learning from such cases can improve game development tenfold!
Token Economics (Tokenomics) refers to the economic structure of a blockchain project’s token system. It defines the rules and mechanisms for the creation, distribution, and circulation of tokens. This includes details such as the allocation of tokens to founders, the community, venture capitalists (VCs), and other stakeholders. It is crucial to properly handle this with any crypto project to ensure that the project remains sustainable.
In the context of on-chain games, developers must design a balanced economy for in-game currencies and NFTs. This involves setting appropriate incentives for players to earn and spend tokens while managing inflation. For example, limiting the supply of certain items can create scarcity and drive demand, while excessive currency flooding the market can devalue in-game assets. A notable instance is Axie Infinity, which faced a similar problem in the tokenomics of its Smooth Love Potion (SLP) token. SLP token was initially given out as rewards for playing the game but soon experienced massive inflation, which drove down its value. To address this, Axie Infinity introduced a token-burning mechanism to try and reduce the supply of SLP.
Developers need to take into account various monetization strategies for on-chain games. They can implement some traditional models such as some in-game purchases for cosmetics, upgrades, or special abilities. They can also create secondary markets where players trade NFTs and other assets and generate revenue through transaction fees. However, developers need to carefully design these monetization strategies in a way that enhances player experience and avoids creating pay-to-win scenarios.
Operating within the blockchain space requires a thorough understanding of local and international laws. For example, in-game currencies and NFTs might be classified as securities or commodities in certain jurisdictions, requiring specific licenses. Developers must stay informed about these regulations and ensure their games operate within legal frameworks to avoid fines, shutdowns, or legal action.
They may also need to implement certain safeguards such as Know Your Customer (KYC) procedures to help prevent money laundering, data protection measures to safeguard user information, and clear terms of service outlining the rights and responsibilities of both players and developers. Consulting with blockchain legal experts can provide valuable guidance. Additionally, developers should address risks such as fraud, hacking, and exploitation. Implementing stringent security measures and being transparent about the risks associated with blockchain gaming, including the volatility of in-game currencies, will help create a safer gaming environment. By proactively managing these risks, developers can foster a secure and trustworthy gaming experience.
A strong community is vital for the success of any on-chain game. Developers should prioritize engaging with players through social media and forums. This goes beyond mere marketing; it involves creating a space where players feel valued and heard. Actively responding to player feedback and providing regular updates can help foster a supportive community.
Hosting events and tournaments can also significantly boost player engagement. Tournaments, in particular, can attract competitive players and showcase the game’s best features. Offering rewards such as NFTs, in-game currency, or even real-world prizes can further incentivize participation and create buzz around the game. This is something Tribally does especially well with its “Challenges” and “Showdowns”. Players can compete against each other to earn rewards and other players can wager on the outcomes.
Collaborating with other projects and platforms can expand the reach of an on-chain game. Partnerships with blockchain projects can introduce new features, such as cross-platform compatibility or shared assets, while collaborations with influencers and streamers can help promote the game to broader audiences. Additionally, integrating with other blockchain ecosystems can enhance interoperability and provide more opportunities for players to engage with the game.
DAOs give power to the player and are the heartbeat of any on-chain game. Being on-chain developers, it is very important to give your players the freedom to make decisions about the game that they are investing time in. Letting them contribute to the development of their game fosters a sense of involvement and loyalty.
While creating on-chain games may seem overwhelming and time-consuming now, this is just the beginning! There's immense untapped potential waiting to be explored in the future!
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