Pantera Partners: What does Faraway want to do when browser games meet blockchain?

Author: Pantera Partner Paul Veradittakit

Recently, Pantera invested $21 million in Faraway's Series A funding round, as Faraway is building browser-based games powered by blockchain. This article is an interpretation published by Pantera partner Paul Veradittakit on December 9.

As 2021 comes to a close, two of the most notable investment themes this year are the impressive developer momentum of Solana and the mainstream emergence of blockchain-supported gaming.

In alignment with these core arguments, Pantera recently invested $21 million in Faraway's Series A funding round, a game studio building browser-based games powered by blockchain. We are excited to collaborate with Lightspeed, Sequoia Capital, a16z, FTX, and other heavyweights in the crypto and gaming space.

1. The State of Browser-Based Games

Browser-based games typically target casual or mid-core players and can be played entirely in a computer browser. They usually do not require software downloads, account registrations, or payments; players can quickly join games with others from around the world.

This accessibility also gives browser games a unique social aspect. Through link sharing, many players can share a "room" with friends and enjoy a synchronized multiplayer gaming experience. As a result, some of the most popular browser games—such as Krunker, Shell Shockers, and Surviv.io—have gone "viral," attracting millions of users, especially during the COVID-19 pandemic.

Krunker

Shell Shockers

Surviv.io

Despite the breakthrough success of some browser games, this segment remains extremely underdeveloped. Many of the most successful browser games were developed by hobbyists as side projects rather than mature game studios.

The primary reason traditional gaming giants have largely stayed out of this space is concerns over the business model. Browser games are difficult to monetize and have historically struggled to retain players. For most studios that can spend hundreds of millions on big-budget games, investing resources into developing browser games simply does not make economic sense.

However, as crypto economics further integrates into gameplay, this dynamic may change.

The Missing Piece for Browser Games: Blockchain

The rapid rise of Axie Infinity this year has made it very clear to established gaming companies that thoughtful incentive design combined with decentralized in-game economies can unlock tremendous value.

Integrating blockchain-based game elements—such as tradable NFTs or in-game currencies—could be the key to transforming browser games from their current form into a sustainable, vibrant ecosystem. Through NFT secondary sales royalties, composability with other projects, and transforming the games themselves into collectively owned DAOs, cryptocurrencies provide browser-based game developers with many new ways to attract users and monetize through gameplay.

Faraway sees a huge opportunity in this gap. The team consists of seasoned gaming professionals from various sectors who believe there are several advantages to building browser-based games:

• Encountering wallet players, allowing users to easily use Phantom, Metamask, or other Web3 wallets.

• Avoiding distribution challenges faced by blockchain games on platforms like the App Store and Steam.

• Creating strong network effects through link sharing and other viral marketing.

• Offering players a gaming experience free from hardware or graphics card limitations.

Faraway co-founder and CEO Alex Paley says:

"We firmly believe that, at least in the medium to short term, the browser is the best place for any blockchain game. It is not controlled by any platform. We have seen what happens when Steam announces that there will be no more NFT games. We truly believe our goal is to make extremely social games. Literally, there is no platform more social than a browser. I can send you a link, and we can play together in seconds instead of installing a shooting game."

Introduction to "Mini Royale: Nations"

"Mini Royale: Nations" is Faraway's first game, a browser-based shooting game. There are several different game modes, including Team Deathmatch (the most popular), Battle Royale, and Capture the Flag. Players can play as guests or log in with an account to earn in-game items and rank on the leaderboard.

Mini Royale: Nations

Mini Royale: Nations

In just a few months, the game has gained impressive traction. Mini Royale has over 2 million registered accounts, more than 300,000 monthly active users, and hundreds of thousands of daily matches. It is clear that there is a significant demand for high-quality browser games; Faraway's mission is to build them.

When Browsers Meet Blockchain

Mini Royale: Nations is poised to become the first live multiplayer game based on Solana.

According to Paley, choosing Solana was an obvious decision for the team:

"We are making a real-time multiplayer, super social, and super complex economic game, right? Solana is the only public chain that allows us to make this type of game. It is super fast. In terms of transaction costs, it is very cheap. There is a lot of liquidity in the protocol, and the ecosystem is very dynamic."

Many of the game's on-chain elements are still in progress, but the current architecture involves various in-game "soft" and "hard" currencies (similar to the design of Axie Infinity), tradable items represented by NFTs, revenue-generating land, and more. This will make the game one of the earliest "play-to-earn" games in the shooting genre; by first building an engaging game and then designing the economics, we believe Mini Royale: Nations has the potential to become a leader in this category.

Mini Royale: Nations Whitepaper

Mini Royale: Nations Whitepaper

While some blockchain-based games require players to purchase assets before playing (such as Axie Infinity), Mini Royale: Nations is ensuring that non-crypto-native players can access the game. By ensuring there is a free-to-play path and a very low barrier to entry, the game will be able to reach a broader audience and maintain the viral spread that many browser-based games are known for.

Future Directions

The next phase for Mini Royale: Nations involves exciting changes to the current gameplay. The new game will focus on land control, with more social, complex, and strategic elements. New dynamics, such as guilds and base building, will enhance the game's functionality and ultimately expand the economy.

To learn more about the gameplay and many upcoming exciting features, be sure to check out the (very detailed) whitepaper here.

Mini Royale: Nations Whitepaper

However, Mini Royale: Nations is just the beginning for Faraway. As the studio continues to expand and build their initial game product, the company's ultimate goal is to bring millions of new users into the crypto space through the social power of gaming.

I personally believe that they are correct in seeing the browser as a huge opportunity for the next generation of gaming. With blockchain, game developers can now build a thriving player community and increase revenue, which was impossible just a few years ago. As one of the pioneers in this category, we are excited to be an early partner of Faraway as they bring their first game to the mass market.