The Development and Innovation of GameFi: The Rise of ServerFi

The emergence of blockchain games has brought a new economic model to the gaming industry, combining traditional gaming with decentralized ownership and financial incentives. Although these games are innovative, they still face significant challenges in terms of market stability, player retention rates, and the sustainability of token value.

This article explores the development history of blockchain games and analyzes the main defects of the current token economic model using the entropy increase theory. We propose two innovative models: ServerFi and a model focused on continually rewarding high-retention players. These models are formalized through a mathematical framework and validated through group behavior simulation experiments. The research results indicate that the ServerFi model is particularly effective in maintaining player engagement and ensuring the long-term viability of the game ecosystem.

The Rise of GameFi

Blockchain games primarily create crypto assets in two ways: by marking in-game items as NFTs and using fungible tokens as in-game currency. The introduction of the colored coins concept in 2013 sparked interest in virtual asset ownership. The launch of the CryptoPunks NFT series in 2017 became a significant milestone in the development of NFTs.

CryptoKitties, as the first Ethereum blockchain game, realized the purchasing, breeding, and trading of virtual cats through NFT technology. The game leveraged the appeal of true ownership and potential financial gains, attracting a large number of players.

Axie Infinity further developed this concept by allowing players to collect, breed, and battle fantasy creatures called Axies. Each Axie is a unique NFT with attributes and abilities that can be enhanced through gameplay. Axie Infinity introduced more complex game mechanics and a robust in-game economy, setting a new standard for future blockchain games.

Challenges and Solutions of Token Economics

Despite the innovation brought by blockchain games, they still face some challenges. Taking CryptoKitties as an example, its breeding mechanism inadvertently increased the supply, leading to a decrease in the rarity and value of individual "cats" over time. Axie Infinity also faces similar issues, including token oversupply, price fluctuations caused by speculative behavior, and a lack of sustained participation incentives.

To address these issues, we proposed two improvement suggestions:

ServerFi: Achieving privatization through asset synthesis

ServerFi allows players to combine in-game assets to ultimately gain control over the game server. This approach not only incentivizes players to invest more deeply in the game, but also aligns with the spirit of Web3 decentralization and community-driven initiatives. By granting players ownership of the servers, it can foster a more engaged and loyal player community.

continues to reward high-retention players

This approach continuously identifies and nurtures high-retention players through complex algorithms and data analysis, providing them with targeted rewards and incentives. This ensures that the most loyal players remain engaged, driving ongoing interaction, thereby supporting the overall stability and growth of the game's token economy.

Experimental Results and Analysis

We conducted group behavior simulation experiments on the two proposed models and compared their differences in value capture capability. The experimental results show that:

1. ServerFi Model: As the number of iterations increases, the total contribution value of players shows a continuous upward trend, indicating that this model can effectively maintain player participation and promote long-term value growth.

2. Continuous rewards model for high-retention players: Player contributions significantly increase in the early stages but then decline noticeably, indicating challenges in maintaining player engagement over the long term.

Analysis shows that the ServerFi mechanism introduces a certain degree of randomness through the fragment lottery process, enhancing social mobility within the player community. This approach ensures that top players need to continue contributing while also providing opportunities for new or less contributing players, thereby promoting a more sustainable ecosystem.

Conclusion

This study delves into the challenges of token economics present in blockchain-based games and proposes two innovative models. Through extensive simulation experiments, the ServerFi model demonstrates significant potential in maintaining player engagement and ensuring the long-term sustainability of the gaming ecosystem.

ServerFi effectively promotes social mobility among players by creating a dynamic and competitive environment, fostering a more vibrant and inclusive community. This approach provides a scalable and resilient framework for the future of blockchain gaming, representing a significant shift in the structure of token economics and offering a more sustainable development path for the integration of decentralized technology in gaming.