Do you remember the last time you went to the arcades? How you had to exchange your cash for those little coins that allowed you to play the games there. Well, that’s pretty much what game tokens are.
If you have had the chance to also play Fortnite or Roblox. You’d remember how you smartly purchased and spent your V-Bucks and Robux game tokens.
You buy and use them for stuff in the game. Now, imagine, not being able to buy the weapons you so much desire in Fortnite because you do not have enough VBucks. It could be frustrating, right?
That’s because vBucks had a huge value to the economy of the game you played.
So whether it’s the little coins from the arcades, Vbucks from Fortnite or Robux from Robox, these in-game currencies or gaming tokens all have value to the economy of the game they represent.
Web3 game tokens are similar to them. They also have huge value to the economy of the game they represent, but with a twist — they have real-world value outside the economy of the game.
That means you can trade them or sell them for fiat (USD) if you want.
But, are game or studio tokens that important, especially in Web3 Games?
Web3 Games like Axie Infinity; you can use your AXS or SLP in the Axie game to buy, trade and upgrade items, and also sell them if you want. Currently, One AXS is worth 5.8$ and one SLP is worth 0.002958.
With Fortnite, you never had to worry about the value of your vBucks falling to zero. But with Web3 games like Axie Infinity or other games like Illuvium, you would have to be concerned.
Why? The game tokens can be volatile, and their value can change in a short time because the tokenomics are sometimes flawed in the context of the demand supply and actual value of the token.
This has created an argument for Studio tokens, rather than Game tokens.
Studio tokens serve as a unified currency across multiple games and platforms within their ecosystem. And they are fast becoming the go-to option for in-game currency.
Below we explore the difference between these two types of tokens, understand their difference and look at different use cases between both token types, starting with Studio Tokens.
What are Studio Tokens?
Studio tokens serve as a unified currency across multiple games and platforms within a gaming studio ecosystem. These tokens offer broader utility and are potentially more stable value than game tokens due to their wider application across a studio’s entire portfolio.
$QORPO token is a good example of what studio tokens entail. QORPO World is a game studio, that is building top games like Citizen Conflict and Aneemate. The $QORPO token powers both games and the entire QORPO ecosystem.
This token serves multiple functions within the studio’s ecosystem, making it quite valuable.
In $QORPO’s case, the token actively functions across multiple games, not just one. It serves both games, and the studio ecosystem, and is also essential via:
- In-game currency: Players can use $QORPO across all games developed by the studio.
- Governance: Token holders can participate in decision-making processes for the studio’s projects.
- Staking: Users can stake their tokens to earn rewards and gain access to exclusive content.
- NFT marketplace: $QORPO can be used to buy, sell, and trade NFTs related to the studio’s games.
With all these functionalities within the ecosystem, the $QORPO token — like all other Studio or game token in web3 — still has a tokenomics value. Currently, the value of one $QORPO is 0.224 and it has experienced a steady increase in value. But, the real question is,
What makes studio tokens valuable and Important?
Studio tokens serve as the backbone of a game development studio’s ecosystem. They are designed to be used across multiple games and platforms, providing a unified experience for users with key characteristics that include:
Improved Tokenomics
Studio tokens offer a more advanced and sustainable token economy across multiple games. They reduce inflationary pressures, maintain balanced token velocity, and facilitate cross-game economic synergies.
Enhanced Utility
Studio tokens provide users with diverse engagement options, exclusive content, DAO governance opportunities, and special rewards across the studio’s portfolio.
They can also be used for trading, liquidity provision, and participating in tournaments or challenges with token-based rewards.
Robust Value Proposition
Studio tokens’ value is backed by collective project success, reducing risk compared to single-game token. Like other tokens, they offer passive income through staking, governance participation, and ecosystem growth.
However, the biggest selling point with studio tokens seems to be the multi-pronged utility of the token and how it is positioned within the demand and supply curve.
A token used across two or more games like $QORPO and within the QORPO ecosystem would likely have more increased demand and usage compared to a single game token. Regardless, single-game tokens have exciting advantages, which makes them still special.
What are Game Tokens?
Game tokens, in the context of modern gaming, are digital assets used within video games and virtual environments which have become more prevalent in games.
In Web3 games, these digital assets take the form of tokens, representing in-game items like currency, weapons, characters, and even virtual real estate.
As mentioned earlier, and as with Studio Tokens, these tokens add value to the economy of the game. But they also have real-world value outside the economy of the game which makes them special.
The $SAND token is a good example of what a game token entails. It’s a token within the Sandbox, a virtual world where players can create, own, and monetize their gaming experiences using non-fungible tokens (NFTs) and the SAND token.
$SAND is the native utility token of The Sandbox ecosystem. It serves multiple functions:
- Medium of Exchange: $SAND is used to purchase land, assets, and avatars within the game.
- Governance: $SAND holders can participate in the governance of the platform through a decentralized autonomous organization (DAO).
- Staking: Players can stake $SAND tokens to earn rewards, including exclusive NFTs and more $SAND token.
What makes game tokens valuable and Important?
Game tokens serve as the backbone of a singular game ecosystem. They are designed to be used in one game alone and are usually not interoperable across multiple games and platforms. They do not offer a unified experience for users but hold strong value for the game that includes:
True Ownership:
Game tokens provide players with true ownership of their in-game assets. Unlike traditional gaming models, where games confine items and currencies, blockchain-based tokens allow players to transfer, sell, or trade them outside the game environment. This ownership transforms in-game assets into tangible investments, providing players with greater control and financial benefits.
Enhanced Security and Transparency
Blockchain technology ensures that all transactions involving game tokens are secure and transparent. They are designed for use in a single game and typically do not operate across multiple games and platforms. This level of security builds trust among players, knowing that their assets are safe and transactions are fair.
Incentivised Gameplay
Game tokens often come with built-in incentive mechanisms that reward players for their participation and achievements. Whether through earning tokens for completing tasks, winning battles, or simply spending time in the game. These rewards encourage continued engagement and enhance the overall gaming experience.
Economic Opportunities
By enabling the trade of assets game cryptocurrency on exchanges, players can convert their in-game efforts into real-world economic opportunities. This aspect is particularly significant in play-to-earn models, where players can potentially earn a livelihood through gaming. It also opens up new revenue streams for game developers through token sales and transaction fees.
Both tokens have their place in the blockchain gaming ecosystem. Studio tokens offer advantages in terms of stability, broad utility, and long-term value proposition, while game tokens can create unique, focused gaming economies.
The SAND token is functional in the Sandbox game and ecosystem only, which is different from the QORPO token is functional in Citizen Conflict, AneeMate and the QORPO ecosystem.
The choice between them depends on the goals of the development team, the scope of their projects, and the type of ecosystem they wish to build. As the industry evolves, we may see more hybrid models emerging, potentially offering the best of both worlds.
Both tokens play different roles and are equally important
Regardless of the token type, Web3 gaming represents a significant shift in how players interact with games, offering unprecedented levels of ownership, transparency, and economic potential.
As the gaming space continues to develop, it will undoubtedly reshape the landscape of digital entertainment and virtual economies. So, the distinction between both highlights the growth and diverse approaches to creating digital economies within gaming ecosystems.
The choice between both ultimately depends on the development team’s goals and the desired scope of their projects. As the industry continues to evolve, we may see the emergence of hybrid models that combine the strengths of both approaches.