How Can DAOs Open up Access to P2E Games?
It’s all about community
Play-to-earn games are becoming an increasingly crucial source of revenue for blockchain developers and game developers in general. It is also becoming an increasingly popular game model among gamers worldwide especially with the advent of advanced play-to-earn video games, such as CryOwar, Sidus Heros, Gods Unchained, Star Atlas and others. As these games aim to build communities around their in-game NFTs and in-game currencies, they all massively benefit from governance models that incentivise the gamers to take part in the management, development and growth of the whole project and benefit financially from their participation.
This is where DAOs come in. Every game’s inner currency commonly built as a utility token has its market value supported by in-game mechanics and demand for in-game NFTs that allow you to generate more profit. This is the inherent and basic mechanism that generates demand for the currency and makes it valuable on decentralised cryptocurrency exchanges. But the addition of the DAO mechanics offers more and different mechanisms for making profit, such as staking and passive income from fees on the sales of in-game NFTs on NFT marketplaces.
The opportunities you get with a DAO
The fact that play-to-earn games intensively use non-fungible tokens can also play its part in the DAO governance mechanism as NFTs can be equally used by DAO members to vote on proposals and get passive income from platform fees. Thus, if you are a fan of a certain play-to-earn game that is governed as a DAO, you can use both the fungible and non-fungible tokens to participate in the DAO governance. To do that, you will have to lock your assets for the period of the vote in the DAO’s smart contract. Meanwhile, you can use your other assets in the game and have a chance to get rewards for your in-game merits. Thus, a DAO allows you to manage your financial risks in a play-to-earn game by allowing you to generate passive income, while trying to earn in-game rewards for your achievements.
But even more importantly than that, a DAO gives its community collective power to steer itself to big strategic accomplishments. For example, several studios of outside game developers can make an offer to the community to build an additional gameplay mode that will attract more gamers, and the community will decide on which offer is the best and will accordingly decide on who gets the funding. Also, different groups of players can build clans, organise tournaments and quests, thus attracting sponsorships from different players from the video gaming industry. In essence, a DAO can allow the players to realise their creative potential to the fullest and allow all members to gain financially from their ideas.
Currently, the DAO concept is relatively new and ambiguous to the large masses, while the enthusiasts of decentralised technologies are their biggest social asset. But as these technologies expand, DAOs will only gain more recognition and appeal. And the gaming industry will likely be in the fore of this movement.