After the Bitcoin halving, where will the next phase of dividends in the Web3 gaming sector be?
Game guilds are not just player communities; they are also the infrastructure that connects the upstream and downstream of the Web3 gaming industry chain.Written by: Bob, Plain Language Blockchain
After the Bitcoin halving, the crypto market has entered a new critical node in its cycle. Looking back at the last major market, the "explosive power" of GameFi and the metaverse, which were the most popular gaming-related sectors, left a deep impression. Not only did it give birth to phenomenon-level blockchain games with millions of users, but it also brought about the craze for P2E, leading to the emergence of a number of "gold farming" gaming guilds and platforms that remain unforgettable.
So, what form will the next stage of dividends in the Web3 gaming sector take in this major market?
The Early Bird Catches the Worm
1) The Background of the Birth of Gaming Guilds and Related Platforms
In 2021, blockchain games represented by Axie Infinity emerged, and the Play to Earn gaming model rose in the crypto space. According to data from TokenTerminal, Axie Infinity's highest daily revenue at that time could reach $17.5 million, with DAU (Daily Active Users) hitting 3 million, and its monthly revenue once surpassed that of "Honor of Kings," ranking first globally. At the same time, P2E games brought considerable income to gamers, with many earning hundreds of dollars in just 1-2 weeks, and the continuous wealth effect led to high growth in blockchain game users.
Due to the rapid rise and explosive growth of blockchain games, which mostly attracted high-net-worth players, they quickly became the "darling" of the gaming industry. However, problems also arose. As we all know, the high operational thresholds, costs, and low awareness among newcomers in the crypto industry deterred many. This naturally gave rise to industries like gold farming studios, and the traditional gaming sector's highly sought-after "gaming guilds" made their appearance. The same organizational structure was applied to Web3 games, helping players overcome high barriers to entry while also increasing overall profits.
The well-known gaming guild YGG received over $21 million in venture capital in just over a year. Subsequently, many innovative platforms emerged, such as GuildFi, which is a guild platform developed based on gaming guilds. It connects games, NFTs, and communities through the development of infrastructure platforms, elevating gaming guilds to a new level. This project has attracted considerable interest from top capital, completing a $6 million seed round financing at the end of 2021, led by DeFiance Capital and Hashed, with participation from star institutions like Pantera Capital, Coinbase Ventures, Alameda Research, and Animoca Brands.
2) Why Pay Attention to Gaming Guilds and Related Platforms
Although the heavy blow from the crypto bear market caused the high points of blockchain games to not last, the shocking scenes when the GameFi sector was "on fire" remain vivid in the minds of gamers. Currently, with the crypto market improving and the underlying infrastructure being enhanced, blockchain games could "make a comeback" at any time. Capital institutions have long been eager to get started.
The early bird catches the worm; gaming guilds that are deeply embedded in the "heartland" of Web3 games have become the best observation objects for grasping the trends of the sector. It is well-known that guilds and related platforms on the front lines of the sector have the highest awareness of blockchain games and the keenest sense of new dividends in blockchain gaming. To seize the dividends of the Web3 sector, it is essential to pay attention to the actions of gaming guilds and related platforms.
The Evolution and Iteration of the Three Giants of Gaming Guilds
Over the years of ups and downs in the crypto market, many gaming guilds and derivative projects have disappeared, leaving only strong teams with solid backgrounds to continue exploring more possibilities. For example, the three giants of gaming guilds, YGG, Merit Circle, and GuildFi, have been evolving and iterating. So, what are they up to now? Let's take a look…
1) YGG: Shifting to Funded Investment Cooperation to Expand Community Scale
Initially, YGG was a decentralized gaming guild built on ETH and Polygon, pioneering the scholarship model and driving the rise of blockchain gaming guilds. It gradually transformed to expand its territory by investing in gaming ecosystem assets and established SubDAOs to find suitable communication and marketing channels in different countries, thereby expanding its influence and building exclusive communities in various countries to further develop its ecological community scale.
2) Merit Circle: Transforming from a Single-Game DAO to a Gaming Platform and Infrastructure
Merit Circle, like YGG at the beginning, was a scholarship guild DAO. However, due to YGG's strong competitiveness, it gradually transformed and expanded into new directions over time, such as investing in quality gaming assets, incubating gold farming studios, and developing gaming infrastructure public chains and distribution platforms.
In August 2023, the subnetwork Beam, built in collaboration with Avalanche, was launched, followed by the introduction of related gaming tools and NFT markets based on that chain.
Merit Circle's transformation has been recognized by the market, with its Token MC rising significantly since the launch of Beam, peaking with an increase of over 1000% by March 2024.
3) GuildFi: From Gaming Guild 2.0 to the New Zentry Platform
GuildFi has raised over $100 million in project financing and has become one of the largest Web3 projects in the gaming sector. Although it is one of the "three giants of gaming guilds" alongside YGG and MC, its path is not entirely the same.
GuildFi was positioned as the infrastructure and platform for "Gaming Guild 2.0" from the start, providing entry, connection, and value-added services for players, guilds, games, and investors, thereby elevating guilds to a new level. By making guilds a form of infrastructure, it has created a one-stop solution for gaming/metaverse experiences through GuildFi ID, Proof-of-Play Rewards, game distribution and scholarship platforms, NFTs, and gaming tools.
In terms of infrastructure and platform development, GuildFi is actually ahead of Merit Circle, as it began refining its platform and various infrastructure services back in 2021, while Merit Circle only started its platform transformation at the end of 2023.
Recently, it was announced that GuildFi will officially change its name to Zentry, merging the digital and physical gaming worlds to create the Zentry super layer, aiming to create a unified Play economy for 3 billion players. Currently, Zentry is positioned as a super layer that integrates loyalty systems, player identities, and cross-game activities, providing players with a unified gaming experience. It will become the new foundation of the gaming economy, promoting the comprehensive integration of player networks, artificial intelligence, and Web3, leading a new era of gaming, entertainment, and lifestyle.
In short, Merit Circle has garnered a 1000% market response during its platform transformation, while GuildFi, which is ahead in platformization, is currently undergoing iteration and upgrade, potentially entering a new dividend period with the Zentry platform.
The Brand Upgrade Dividends of Zentry Seeking Change and Breakthrough
From Gaming Guild 2.0 to the new Zentry platform, what changes and dividends has Zentry brought that are worth paying attention to?
1) What Iterations Has Zentry Made?
From official information, Zentry has further deepened the concept of the "super layer," bringing a grand vision of a unified Play economy for 3 billion players across all games. It seamlessly integrates loyalty systems, player identities, and cross-world activities from countless games and platforms into a single overlay experience.
Zentry has brought four vertically integrated core components:
- A foundational blockchain infrastructure bridging Web2 and Web3 data, including identities, assets, and activities;
- A set of targeted consumer applications aimed at attracting various player segments;
- A diverse intellectual property world that deepens engagement through compelling narratives and IP partnerships;
- Over $100 million in incentive funds specifically for strategic expansion and driving ecosystem incentives.
In fact, GuildFi had already accumulated a considerable amount of resources during its period:
A. Quality projects previously invested will be integrated into the super layer.
Quality projects along the blockchain gaming industry chain that Zentry has invested in and incubated, covering areas such as gaming, AI, and social finance, including Xai, Memeland, Ronin, Mavia, Sipher, Aperion, Shrapnel, Avalon, Fnatic, Pixelmon, Ultiverse, Jambo, Tatsumekoo, Nyan, Talon, XSET, Aethir, will all be integrated into the super layer.
B. Sufficient cash flow.
It is reported that Zentry can generate over $10 million in revenue annually from activities such as partnerships, investments, staking, and node operations. This revenue will be invested in community incentives and ecological support, yielding significant results.
C. An experienced publishing platform.
After a long period of refinement and accumulation, Zentry has established a network of streamers and creators with extensive collaboration experience with companies like Riot Games, Hoyoverse, and EA, providing user acquisition support for gaming and entertainment partners.
At the same time, Zentry has enabled a new token, bringing a new token economic model, where the original GuildFi Token GF will be converted to the new Zentry Token ZENT at a ratio of 1:10.
In simple terms, Zentry will directly connect all independently operating systems of games through an upgraded GuildFi ID (player identity), Proof-of-Play Rewards (loyalty system), and distribution of all types of games across platforms, targeting 3 billion gamers. It aims to become the largest distributor of gaming, entertainment, and lifestyle, bringing mass adoption into the Web3 world and transforming various chains/infrastructures and games into a thriving ecosystem.
2) What Dividends Has the Upgraded Zentry Platform Brought?
A. Brand upgrade, project may await market revaluation.
As mentioned earlier, Zentry's reorganization of advantageous resources and deepening of the "super layer" concept brings the project into a grander vision, so it cannot be seen as a new platform starting from scratch. With a treasury of $100 million (mainly in stablecoins and Ethereum), along with a continuous cash flow, it means a solid investment of real money to incentivize community building and ecological development.
If we refer to the platform transformation of Merit Circle, Zentry's upgrade may also evoke market revaluation, entering a more appropriate market capitalization range.
B. Token split.
In the past, there have been many favorable cases after token splits, such as the earlier DOT and MC, which is also one of the three guild giants. Taking the most recent MC as an example, its token split led to a rapid market reaction, resulting in an increase of 200-300%.
The logic behind the benefits of token splits is quite simple: one is that the split event brings significant attention, guiding market value discovery; the other is that splits often come with upgrades to the token economic model, increasing adoption and empowerment. Perhaps the newly upgraded Zentry's token can also achieve good expectations.
Conclusion
The large-scale adoption of Web3 applications in the crypto industry is undoubtedly inseparable from the appeal of GameFi to the 3 billion gamers worldwide. Gaming guilds are not just player communities; they are also the infrastructure that connects the upstream and downstream of the Web3 gaming industry chain.
Platforms like Zentry, which start from gaming guilds and aim to create richer and grander gaming solutions, are expected to bring the next wave of millions of users to Web3. In this process, they will also provide users with dividends from platform development and the prosperity of the sector's ecosystem.
