GameFi Executives Acknowledge the Permanence of Airdrops, Yet Highlight Their Limitations in Salvaging Flawed Games

Gaming studios are expected to continue utilizing airdrops and other incentives to attract players, despite some resistance from gamers regarding “tokenomics,” according to industry executives. Kieran Warwick, the founder of gaming studio Illuvium, stated that airdrops are an easy way to gain market share. However, Warwick emphasized that games must also deliver on the fun and gameplay aspect to succeed. Shi Khai Wei, founder of venture capital firm LongHash Ventures, stressed the importance of making games enjoyable. Axie Infinity, a blockchain game, has been a success story, but its creator, Sky Mavis, faced challenges retaining users after a bridge hack and other issues. Wei stated that games with sustainable economics, proper emission schedules, the right players, and incentivized gameplay are the ones that will survive. Although token incentives may attract airdrop farmers rather than genuine gamers, Warwick believes it is necessary to grow the player base. Illuvium recently released 200,000 ILV tokens for its Play-to-Airdrop initiative. Gabby Dizon, CEO of Yield Guild Games, argues that while airdrops can accelerate GameFi adoption, not everyone is seeking financial returns. Dizon and Warwick believe that GameFi is still behind traditional games but expect the gap to close rapidly. The pace of innovation in blockchain is faster than in traditional gaming, according to Warwick. Yield Guild Games hopes to see a dominant GameFi project emerge, similar to the impact of Clash of Clans and Candy Crush in the early 2010s. Warwick stated that building intellectual property takes time, but he believes that a AAA-standard GameFi game will be released in 2024.