1/ Five years of F2P game economy & (IAP) monetization design has taught us a thing or two. Here's what can be applied to web3 games to make them sustainable 🧵👇

2/ The argument that F2P game economy can’t be applied to web3 games because of the in-game currency having no real value holds no truth. This comes usually from someone with 0 experience in F2P. To cover the UA costs and to profit, recurring sinks & sustainable economy is a must

3/ Same way F2P becomes profitable will web3 game become sustainable: 1) High entertainment value, i.e. good retention! 2) In-App Purchases to increase the entertainment value, without decreasing retention (breaking the economy) 3) Recurring sinks to repeat the previous

4/ web3 games has huge advantage over F2P because the IAPs can increase the entertainment value but also earning potential Vanity items, skins, customization are examples of IAP adding entertainment value. Consumables to boost production are IAPs that add earning potential

5/ Consumables can also be recurring sinks. In our F2P games the returning buyer % was always higher than initial buyer conversion %. I.e. easier to resell recurring IAP than a single IAP to a new player. This is related to retention, most important KPI!

6/ In sustainable economy spent and earned tokens are in balance i.e. average spend-to-earn ratio is equal or above 1, otherwise there's a flux in game treasury. Likely STE will be distributed according to Gaussian distribution with values between zero and ∞

7/ STE can be optimized by adjusting the size of the rewards, IAP’s effect on earning, or designing IAPs with entertainment value only, with the last one being most efficient. In the end, it comes down to game and IAP design, just like in F2P

8/ Spending tokens should increase the entertainment value. While some can earn more than they spend and even make a living out of it, others will happily spend more than they have earned. For most, gaming is entertainment, not a job and it is the first that enables the latter.

9/ Thanks for reading! For the full game economy article or to find out how a web2 gaming company navigates through the web3 gaming space check out @ParadiseTycoon and #avalanche #avax #avaxnft #nft 🏝🚀

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