Learn Live ICYMI: The Evolution of Tap-to-Earn Games
Tap-to-earn games represent an intriguing evolution in the landscape of digital gaming, blending entertainment with real-world financial opportunities. Originating from earlier concepts like farm-to-earn and play-to-earn, these games simplify the earning process to basic actions such as tapping or swiping. This model appeals to a broad audience by lowering barriers to entry and offering a straightforward way for players to earn cryptocurrency, all while engaging in enjoyable gameplay.
In the seventh episode of our Learn 101 livestream, we uncover the fascinating world of tap-to-earn games.
Our new series, Learn Live ICYMI, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you missed the livestream.
Two distinguished guests joined the livestream on Jul 11, 2024: Geezee, Head of Gaming at Mantle, and Dirk Pennings, web3 enthusiast. Sabrina Chua, Crypto Evangelist and SEO Editor at Bybit, moderated the episode, which explored the evolution and mechanics of tap-to-earn games and included several successful case studies.
Key Takeaways:
Tap-to-earn games have emerged from earlier models, such as farm-to-earn and play-to-earn games, offering a simpler and more accessible way for players to earn cryptocurrency through minimal actions like tapping or swiping.
These games are designed to be easy to play yet strategically engaging, with low barriers to entry. Players can start earning without significant up-front investments, making the games accessible to a broader audience.
Successful tap-to-earn games like Catizen, Hamster Combat and Notcoin have demonstrated the potential of this gaming model through effective user acquisition strategies, innovative game design and strong community engagement.
The Evolution of Crypto Gaming
The livestream begins with a historical overview of the evolution of crypto gaming, a journey that began with farm-to-earn games (such as CropBytes and The Sandbox) in which players would cultivate digital farms to collect coins. These early games laid the groundwork for more complex models, including play-to-earn games like Axie Infinity, which combines strategic gameplay with economic incentives and allows players to earn real cryptocurrency through in-game activities. This model revolutionized the gaming industry by introducing a new dimension in which virtual achievements translated into tangible financial rewards.
As Geezee succinctly put it, “The model that we've seen so far is honestly not something very new to the gaming industry: tap idle games (or before, we just called them idle games), where tapping is a mechanic where you can earn from or to kind of grow and progress through the game. This kind of game has already existed probably for at least 10 to 15 years.”
Emphasizing the fundamental divergence from earlier games, he continued, ”But one kind of unique element for tap-to-earn games is that now instead of just growing your character, or growing your own in-game assets, you're actually able to convert some of these in-game assets at certain proportions through certain mechanisms into real cryptocurrencies that have value in the real world and can be, you know, off-ramped through various different exchanges like Bybit.”
Unlike their predecessors, tap-to-earn games are designed with simplicity and accessibility in mind. The onboarding process for these hyper-casual games is extremely simple, allowing players to start quickly without needing to buy NFTs or spend money up front. While these games are easy to play and get involved in, earning within them takes time, calculation and a deep understanding of their mechanisms.
Deep Dive Into Tap-to-Earn Game Mechanics
Chua shifted the conversation to the mechanics of tap-to-earn games. The panelists reasoned that these games are fundamentally businesses aiming to monetize, often through user data, ads and sponsorships, rather than direct user payments. To generate revenue and provide earnings for players, they design tasks like quests, daily check-ins and spending challenges to prove user engagement, attract more users, and retain valuable players.
The games often involve simple actions, such as tapping, merging in-game items or completing basic tasks to progress. This simplicity makes them appealing to a wide range of players, including those who may not have the time or resources to invest in more complex gaming models.
“They need to generate revenue first. And so that's why you would see that in the game design there's always going to be quests involved, there's always going to be different tasks or daily checking activities involved,” Geezee argued.
These games aim to prove they have real users for bigger sponsorships and ads, attract more users through referrals and social media, and encourage spending within the game. Accomplishing these tasks generates value for the ecosystem, making players valuable users who are then retained through airdrops and other incentives. Earning in these games is more about completing tasks and side quests than just playing.
Geezer concluded: “So for tactical games, one of the most important parts of actually being able to earn from the game is … not actually playing or tapping away, but accomplishing all the different tasks and side quests that are part of the game, because then you become somewhat valuable to them and then to be able to keep you around, they’ll be giving you airdrops and giving you different ways to keep you inside their ecosystem.”
Spotlight on Success: Case Studies of Tap-to-Earn Games
Some of these tap-to-earn games have really taken off, grabbing the attention of players all over the world and showing the potential of this gaming model.
Catizen: Catizen, highlighted extensively by Geezee during the livestream, is a prime example of a successful tap-to-earn game. Since its launch, Catizen has experienced remarkable growth, attracting over 22 million users and generating substantial revenue. The game’s success can be attributed to its simple yet engaging mechanics, strategic game design and robust user acquisition strategies. Players take on the role of managing a virtual cat café, where they can combine different cats to increase their levels and value. Unlike typical tap-to-earn games, Catizen's swiping feature adds a layer of strategy, making it more immersive and fun. As players advance, they earn an in-game currency called vKITTY.
Hamster Kombat: Another successful tap-to-earn game, Hamster Kombat takes a unique approach, allowing players to earn HMSTR coins by tapping on digital hamsters, compete in various challenges and earn rewards. What sets Hamster Kombat apart is its emphasis on fun and engagement, rather than immediate financial returns. The game’s design encourages players to invest time and effort into building their virtual businesses, creating a rewarding experience that goes beyond simple earnings.
Notcoin: Pennings mentioned Notcoin as a notable example of effective integration of social elements and referral systems. Notcoin leverages the power of community and social engagement to drive its success. In addition, by implementing a robust referral system the game incentivizes players to invite others to join, thus organically expanding its user base. This approach boosts user engagement and forges a strong sense of community among players. Notcoin’s success demonstrates the importance of effective marketing and community incentives in the tap-to-earn model.
Closing Thoughts
The panelists agreed that while tap-to-earn games are currently thriving, their long-term sustainability will depend upon continuous innovation and strategic enhancements. The simplicity and accessibility of these games make them an excellent gateway for onboarding new users into the crypto space. However, maintaining economic balance and preventing market saturation are critical challenges that developers need to address.
Developers must ensure economic sustainability by creating balanced reward systems that benefit both new and existing players without exhausting resources. Additionally, integrating complex game mechanics can maintain interest and reduce bot prevalence, while strong security measures are essential for guarding against scams. The future success of these games hinges on their ability to innovate and adapt, leveraging blockchain technology to enhance player engagement and financial rewards.
The session wrapped up with a reminder to stay cautious and informed while exploring the exciting world of tap-to-earn games.
As part of the livestream, Bybit is holding an exclusive event that offers you a chance to participate in our pop quiz and earn a share of the 500 USDT prize pool. The event period is through Jul 18, 2024, 11:59PM UTC.
Stay tuned for more discussions on the dynamic world of cryptocurrencies!
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