About GameFi

In 2019, the concept of GameFi was proposed and initially defined as Game Finance, that is, adding elements of financial attributes to the game. In September 2020, Yearn.Finance founder Andre Cronje posted a related tweet to the effect:

At that time, the development of DeFi mainly tended to be traDeFi (transaction-type DeFi), and in the future, the attributes of DeFi will be more gamified.

The concept of GameFi was formed after February 2021. GameFi was defined as a comprehensive concept of Game+NFT+DeFi. Through the distributed structure of blockchain, games are used to present decentralized finance and NFT (non-homogeneous digital assets) )the value of. On the one hand, the game has the concept of financial trading and investment, and on the other hand, GameFi assets have unique and non-tamperable attributes, which guarantees the asset security of participants.

After March 2021, starting from Southeast Asia, some blockchain games of the GameFi concept have successfully attracted a large number of followers. In 7 months, the number of blockchain games of the GameFi concept has rapidly increased from more than ten to 863. The popularity of DeFi has stabilized and the liquidity of NFT has provided a living soil for GameFi, which has made the market performance of many GameFi projects more positive, and quickly formed an independent field. It is tied with DeFi and NFT as the most popular blockchain in 2021. field.

The rapid development of the GameFi field can be roughly summarized into the following categories:

• The rapid development of related industries caused by the global epidemic

The epidemic has caused great changes in people's production, life and entertainment throughout 2020 and the first half of 2021. People find it more important to meet, work, shop, and play in a non-contact virtual environment. Therefore, for low-income people, GameFi is more like a real "peach blossom garden", a beautiful and futuristic world.

• GameFi's Unique Incentive Mechanism

GameFi's incentive mechanism is different from traditional games and the blockchain digital asset market. This is different from the "spend for entertainment" advocated by traditional games and the "work for reward" adopted by the blockchain digital asset market. GameFi's incentive mechanism is more inclined to participation. In many GameFi games, there are certain thresholds for participation, but once you participate, you can almost let it go and wait for the game to appreciate as more and more users are used, and its game currency and governance digital assets will appreciate. This type of incentive attracts a sizable portion of players who "hate trouble".

• Play-to-Earn Economic Model

The core of the GameFi field is the Play-to-Earn economic model. Unlike the Free to Pay (free game) model in the traditional game industry, players in blockchain games can earn real money through encrypted assets and participate in the construction of a virtual economy. And players of the game earn rewards through their participation, and then sell them in the market for income. The change in the identities of both parties has made the original players spend money to play games into a kind of work, and blockchain game players can instead seek rewards from the market through games. Players are more like working, giving time and labor to earn income for the family.