{"id":7524,"date":"2022-09-30T21:51:45","date_gmt":"2022-09-30T21:51:45","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=7524"},"modified":"2022-09-30T21:51:45","modified_gmt":"2022-09-30T21:51:45","slug":"forget-play-to-earn-factory-nfts-are-the-new-crypto-gaming-meta","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=7524","title":{"rendered":"Forget Play-to-Earn\u2014Factory NFTs Are the New Crypto Gaming Meta\u00a0"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<h3>Key Takeaways<\/h3>\n<p>Play-to-earn gaming took the NFT space by storm in 2021, but a new group of crypto games is gaining popularity by employing a new &#8220;factory NFT&#8221; model.<br \/>\nFactory NFTs let players mint other in-game assets, incentivizing adoption without relying on inflationary tokenomics.<br \/>\nParallel, DigiDaigaku, and Anomura are three examples of crypto gaming titles that have found early success by leveraging factory NFTs. <\/p>\n<p>Share this article<\/p>\n<p><em>Crypto Briefing<\/em> goes deep on three up-and-coming crypto games using \u201cfactory NFTs\u201d to drive adoption and lower the barrier to entry.\u00a0<\/p>\n<h2><strong>The Current State of Crypto Gaming<\/strong><\/h2>\n<p>Crypto gaming is at a crossroads.<\/p>\n<p>Last summer, the concept of \u201cplay-to-earn\u201d gaming rocked the crypto world, driving adoption and making millionaires out of those who jumped on the trend early. At its epicenter was Axie Infinity, a turn-based role-playing game where players battle squads of cute creatures called Axies to earn token rewards.\u00a0<\/p>\n<p>Axie Infinity exploded in popularity thanks to its tokenized incentives, which essentially allowed players to earn a form of real money through the game. For a time, players from developing countries like the Philippines could earn many times the country\u2019s minimum wage just by playing the game. However, Axie Infinity\u2019s moment in the spotlight was short-lived. Although the game\u2019s NFTs soared in value as productive assets, it soon became apparent that its play-to-earn system was not sustainable.\u00a0<\/p>\n<p>The main problem with play-to-earn games was their inflationary tokenomics. In Axie Infinity\u2019s case, the game was able to maintain the value of its SLP reward token during its period of parabolic growth. To support all the new entrants, existing players could use SLP to breed new Axies and make a small profit for doing so. However, once the stream of new players fizzled out, demand for Axies and SLP plummeted, meaning that the amount players could earn from playing also dropped.\u00a0<\/p>\n<p>Play-to-earn games have also been held back by the reflexivity of their NFT assets. Once people realized you could make a living playing Axie Infinity, the value of Axie NFTs soared (players need three Axies for the game). In turn, this increased the barrier to entry for new players, creating a negative feedback loop that contributed to the game\u2019s declining adoption.\u00a0<\/p>\n<p>Learning from the mistakes of play-to-earn games, a new cohort of crypto games is pioneering a different model. Known in the blockchain gaming community as the \u201cfactory NFT\u201d system, this model lets\u00a0owners of so-called \u201cgenesis\u201d NFTs mass produce other NFTs and items needed to play the game. The idea is to separate a game\u2019s NFTs into two classes: valuable productive genesis assets and affordable \u201creplicas\u201d that most players will use in-game.\u00a0<\/p>\n<p>Factory NFTs let games take advantage of the things that make titles like Axie Infinity successful without any of the downsides. Genesis NFTs can still maintain significant value and act as an aspirational goal for players, while the barrier to entry stays low and doesn\u2019t inhibit adoption. Token rewards can still be given to the average player without a factory NFT. And, since the token\u2019s price won\u2019t be connected to the game\u2019s growth, developers can create more sustainable token economies.\u00a0<\/p>\n<p>Join\u00a0<em>Crypto Briefing<\/em> as we look at three up-and-coming Ethereum-based crypto games that have adopted the factory NFT system.<\/p>\n<h2><strong>Parallel<\/strong><\/h2>\n<p>Parallel is a collectible card game built on the blockchain. The game involves two players facing off against each other with self-constructed decks of cards revolving around different themes. The Parallel universe has five factions: Earthen, Marcolian, Augencore, Kathari, and Shroud. If you\u2019ve ever played Magic: The Gathering, Parallel takes a similar approach with a Sci-Fi twist.\u00a0<\/p>\n<p>The game is currently being developed by Parallel Studios, a game development company created to develop the Parallel Trading Card Game. While development has been slower than other crypto gaming projects, the company\u2019s output has consistently been high-quality. The game\u2019s card art rivals that of a triple-A game, and the company\u2019s game proposal shows a lot of thought has been put into creating a sustainable game economy.\u00a0<\/p>\n<p><em>Parallel card art \u201cInspiring Teacher\u201d (Source: Parallel)<\/em><\/p>\n<p>So far, Parallel has released cards in five pack drops to help fund its development. A buzzing secondary market for these cards has developed on NFT trading platforms, with OpenSea registering over 72,000 ETH in trading volume. Early holders have also been given the ability to start earning the game\u2019s PRIME ecosystem token by assembling full sets of cards and locking them in special vaults.<\/p>\n<p>All Parallel cards currently in circulation are part of a first edition, which, pending a vote from the game\u2019s Echelon Prime Foundation (a DAO-like group), will be used to create additional cards through a Lineage system. By winning games using NFT cards, players gain experience and can level up their cards to imbue them with permanent value. After enough experience is earned, players will also be able to spend PRIME tokens to create new copies of that card to help meet demand from new players.\u00a0<\/p>\n<p>Unlike previous crypto games like Axie Infinity, where there is an unlimited supply of the game\u2019s SLP reward token, PRIME has a fixed supply of 111,111,111. PRIME consumed to create new cards or in other initiatives is redistributed to those actively playing the game. Distribution will be based on skill, with a competitive ladder determining a player\u2019s rank and how many PRIME tokens they will receive for each game they win. By maintaining a fixed supply of PRIME, Parallel hopes to create a circular token economy that won\u2019t result in diminishing returns for players.\u00a0<\/p>\n<p>A beta launch of the Parallel Trading Card Game is set to go live by the end of the year.\u00a0<\/p>\n<h2><strong>DigiDaigaku<\/strong><\/h2>\n<p>Next on the list is a crypto gaming project that appeared seemingly from nowhere\u2014DigiDaigaku.\u00a0<\/p>\n<p>On the surface, DigiDaigaku NFTs look like nothing more than anime-themed profile pictures that borrow from a template used by countless other NFT avatar projects. However, under closer inspection, these unassuming characters could be the first chapter in a new gaming paradigm its creator calls \u201cfree-to-own.\u201d<\/p>\n<p>Little is known about DigiDaigaku so far, other than its aim to become a massively multiplayer online game. But that didn\u2019t stop the project\u2019s 2022 genesis NFTs briefing from hitting a 17 ETH floor within weeks of the collection\u2019s free mint going live.\u00a0<\/p>\n<p><em>This rare Digidaigaku NFT sold for 49 ETH, about $81,000 at the time of sale (Source: DigiDaigaku)<\/em><\/p>\n<p>The main reason for the mania is the game\u2019s creator, Limit Break, and its CEO Gabriel Leydon. Before launching DigiDaigaku, Leydon co-founded one of the world\u2019s most successful mobile games companies, Machine Zone, which excelled in free-to-play game development before it was sold to AppLovin for $600 million. Leydon says his goal is now to kill free-to-play and pay-to-win games and replace them with free-to-own games. And it\u2019s not just NFT degens who think he can do it. Shortly before the release of the Digidaigaku NFTs, Limit Break secured $200 million in funding from several leading venture capital firms, including Paradigm, Positive Sum, and FTX Ventures.\u00a0<\/p>\n<p>So far, those who own one of the limited NFTs have been airdropped \u201cDigiDaigaku Spirits,\u201d companion NFTs that can be used on their own or in combination with a genesis NFT in the upcoming game. Leydon\u2019s \u201cfree-to-own\u201d model envisions the DigiDaigaku genesis NFTs as \u201cfactory assets,\u201d meaning they will be used to generate even more NFTs in the future. Rather than selling tokens to players before the game launches, all DigiDaigaku NFTs have been given away for free. While subsequent NFTs will help expand the game\u2019s reach, genesis NFTs should hold their value as they are the only ones that can generate the new NFTs and items needed to play the game once it launches.\u00a0<\/p>\n<p>While concrete details of how the DigiDaigaku game and token economy will function have not yet been released, the pedigree of its developers has caught the attention of both the crypto and NFT gaming communities.\u00a0<\/p>\n<h2><strong>Anomura<\/strong><\/h2>\n<p>The final factory NFT game we want to highlight is Anomura. According to the game\u2019s website, Anomura is set to be a fast-paced NFT strategy game inspired by \u201cold classics.\u201d Given that the project has partnered with gaming giant Atari, this could mean Anomura gameplay will take inspiration from older arcade games such as Pong, Asteroids, and Adventure.\u00a0<\/p>\n<p>The game is being developed by Virtually Human Studio, the company behind the NFT-based horse racing game ZED RUN. To add to VHS\u2019 credentials, the company raised $20 million in a July 2021 funding round led by venture capital firm The Chernin Group, with participation from Andreessen Horowitz.\u00a0<\/p>\n<p>Like Parallel and DigiDaigaku, Anomura has successfully launched a set of genesis NFTs and is currently working toward a beta launch. Those who made it onto the Anomura mintlist were able to purchase a Anomura Mystery Bowl from which they could summon an Anomura NFT. Each Anomura NFT takes the form of a cute pixel art crustacean with various attributes. For example, each randomly generated anatomical part will have a chance of being normal, magic, rare, or legendary in rarity.\u00a0<\/p>\n<p><em>A rare Anomura NFT (Source: Anomura)<\/em><\/p>\n<p>However, the Mystery Bowls used to summon Anomura NFTs aren\u2019t just there to augment the minting experience. A look into the attributes of these NFTs shows that each one has an ever-recalculated property called \u201cstarfish.\u201d This property appears to increase over time but is frozen for bowls sold too frequently. This could mean that bowls will produce STARFISH tokens in the future, a part of the game\u2019s economy confirmed by its developers.<\/p>\n<p>Additionally, looking into the smart contract code behind the bowls reveals that the \u201chatchAnomura\u201d function can be attached to different contracts and reused for minting other items. This also suggests that bowls will have additional functionality in the future and could be used to create multiple tokens and in-game item NFTs. Although these features are yet to be confirmed, several comments made by the game\u2019s developers on Twitter and in the Anomura Discord hint that the Mystery Bowls could function as factory NFTs.\u00a0<\/p>\n<p>As for the game itself, the Anomura roadmap lists that a free-to-play game demo is due by the end of 2022. Following this, a full web browser and mobile version of the game is slated to launch sometime in 2023.\u00a0<\/p>\n<p><em>Disclosure: At the time of writing this piece, the author owned some Parallel card NFTs, ETH, and several other cryptocurrencies.\u00a0<\/em><\/p>\n<p>Share this article<\/p>\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See full terms and conditions.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/forget-play-to-earn-factory-nfts-are-the-new-crypto-gaming-meta\/?utm_source=category_feed&#038;utm_medium=rss\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Play-to-earn gaming took the NFT space by storm in 2021, but a new group of crypto games is gaining popularity by employing a new &#8220;factory NFT&#8221; model. Factory NFTs let players mint other in-game assets, incentivizing adoption without relying on inflationary tokenomics. Parallel, DigiDaigaku, and Anomura are three examples of crypto gaming titles [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7525,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[4],"tags":[],"class_list":["post-7524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7524"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7524\/revisions"}],"predecessor-version":[{"id":7526,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7524\/revisions\/7526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/7525"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}