The act of participating in GameFi acts as the foundation for the economy of any game and opens up a world of transactions. It can be used to emulate the currency systems that we see in every country in the world. Except this time it’s global.
Is it really that important to gamble? The simple answer is, yes. Money needs to circulate and retain liquidity to be useful, and staking encourages this by rewarding participants with more tokens. By providing incentives for players to wager more tokens over longer periods, games can organically grow a thriving economy with additional benefits for their most engaged or active players.
Reframe to improve gameplay
Built-in mechanisms designed to encourage players to delay rewards for higher payouts allow more of the blockchain to be verified, while also working to ensure players keep skin on the play. When you bet, waiting is the name of the game and the result is even more chips.
These rewards are versatile depending on the player’s vision on how to improve their profile. From statistical improvements on an NFT, the ability to purchase more NFTs, or simply the chance to get more in-game currency for other upgrades.
Staking can take various forms and provides a wide variety of ways for players to enhance their gaming experience and even improve their chances of success in the game. What follows from this is a player with more chips to reinvest in the game, which creates a snowball effect.
The Freedom to “Remove Bets”
You haven’t lost your chips once you bet them. The key to the performance of this economy is that the tokens never leave your possession and instead are stored inside a wallet that YOU own. Even if the participation period expiration date has not been met, these locks should have the ability to recover sooner (but there is a price to pay). As long as you are the sole owner making decisions with your tokens, you will make the most of this lock-up period.
What this means is that the tokens still belong to the player before the wagering period ends and they can get them back at any time, though they will sacrifice potential winnings in the process. An advantage here is that players retain the freedom to reinvest tokens as they see fit rather than being stuck in long-term bets unable to change their strategy.
An economy dependent on gambling
A dynamic gaming economy can thrive under such a model and leaves players with choices to make, whether it be to maximize their financial gains or their ability to succeed in the game. This, in turn, improves their chances of increasing returns as they hone and develop their NFTs.
Digital assets go hand-in-hand with staking, as players must choose between investing in their NFTs or staking their tokens out of circulation for profit.
This is intrinsically related to the player’s own experience: they may benefit from betting, but they may earn even more from playing. In theory, there will be incentives to do both, as users are faced with a choice between a safe bet and a riskier approach.