Read on Twitter
A beginners guide to gaming NFTs:
"How do I evaluate game NFTs and its game economy?"
Let's explore!
"How do I evaluate game NFTs and its game economy?"
Let's explore!
0) 
Why NFTs in Games?
By using NFTs in games, items become securely tradable, provably scarce, and allows you to take items to other games (interoperability).
More here: https://medium.com/@makzent/making-sense-of-blockchain-gaming-96a83035fa56
Why NFTs in Games?By using NFTs in games, items become securely tradable, provably scarce, and allows you to take items to other games (interoperability).
More here: https://medium.com/@makzent/making-sense-of-blockchain-gaming-96a83035fa56
1) How to evaluate game NFTs?
Present Value =
Future Resell Value
+
Expected Rewards
+
Speculative Future Utility
-> "Expected Rewards": PVE item drops, PVP prize money, etc.
-> "Speculative Future Utility": More games / products using the same NFT
How to evaluate game NFTs?Present Value =
Future Resell Value
+
Expected Rewards
+
Speculative Future Utility
-> "Expected Rewards": PVE item drops, PVP prize money, etc.
-> "Speculative Future Utility": More games / products using the same NFT
2) Let's have a look at some examples:
- @SorareHQ Cards
- @mycryptoheroes_ Heroes
- @AxieInfinity Axies
- @SorareHQ Cards
- @mycryptoheroes_ Heroes
- @AxieInfinity Axies
3) @SorareHQ
Card NFT Value =
Expected returns ( e.g. tournament winnings)
+
Speculative returns (Sorare offering more games)
+
Speculative collectible value (mainstream collectors joining)
+
Speculative utility of IP (e.g. all CR7 Super Rare card holders get season passes)
Card NFT Value =
Expected returns ( e.g. tournament winnings)
+
Speculative returns (Sorare offering more games)
+
Speculative collectible value (mainstream collectors joining)
+
Speculative utility of IP (e.g. all CR7 Super Rare card holders get season passes)
4) @mycryptoheroes_ @mycryptoheroes
Hero NFT value =
Speculative resell value
+
Expected PvE returns (farm items)
+
Expected PvP returns (win items by ranking high)
+
Speculative future utility (use MCH hero in @bfh_global / @mycryptosaga_ / @cryptospells_en)
Hero NFT value =
Speculative resell value
+
Expected PvE returns (farm items)
+
Expected PvP returns (win items by ranking high)
+
Speculative future utility (use MCH hero in @bfh_global / @mycryptosaga_ / @cryptospells_en)
5) @AxieInfinity
Axie NFT value =
Speculative resell value
+
Expected daily $SLP rewards
+
Speculative PvP season rewards (= rank high)
+
Speculative future utility (e.g. land gameplay)
Axie NFT value =
Speculative resell value
+
Expected daily $SLP rewards
+
Speculative PvP season rewards (= rank high)
+
Speculative future utility (e.g. land gameplay)
6) How to maximize ROI?
You can think of game NFTs as buying a "subscription for future rewards".
Game NFTs need to be played with. If you hold game NFTs but don't play the game, you're leaving $$ on the table.
This is especially true for more play2earn games like Axie.
How to maximize ROI?You can think of game NFTs as buying a "subscription for future rewards".
Game NFTs need to be played with. If you hold game NFTs but don't play the game, you're leaving $$ on the table.
This is especially true for more play2earn games like Axie.
7) It's easy to get a positive ROI during a game's growth period.
But as soon as DAUs are stagnant, you need to play the game to achieve a positive ROI.
But as soon as DAUs are stagnant, you need to play the game to achieve a positive ROI.
8) How to evaluate NFT game economies?
When looking at a game NFT ecosystem, ask yourself:
"Is this game sustainable *without* new players coming in?"
How to evaluate NFT game economies?When looking at a game NFT ecosystem, ask yourself:
"Is this game sustainable *without* new players coming in?"
9) Evaluate the "flow of value" inside a game:
- How do future minted NFTs (= rewards, future releases, etc.) affect my current NFT value?
- How do new players affect the ecosystem? (= demand for NFTs, reward inflation, etc.)
- If players leave the game, does NFT value drop?
- How do future minted NFTs (= rewards, future releases, etc.) affect my current NFT value?
- How do new players affect the ecosystem? (= demand for NFTs, reward inflation, etc.)
- If players leave the game, does NFT value drop?
10/10) Game economies are complex and get even more complex when coupled with the real world economy.
Best advice to learn: Play the games, actively trade NFTs, and join the discussions on Discord.
https://twitter.com/coin_artist/status/1351009436446429189
Best advice to learn: Play the games, actively trade NFTs, and join the discussions on Discord.
https://twitter.com/coin_artist/status/1351009436446429189
