Move over, Kickstarter: NFTs are the newest way for indie games to fundraise - When NFTs and crowdfunding meet, investors and game developers can both win
The blockchain-based indie game was sold out, just two days after its NFT-backed "card pack" sale. On January 6, Alien Worlds was marketed out of packs that raised $250,000. The 15-man team from the Dacoco development studio was behind the creation of "Alien Worlds".
You may presume more petite about earning a quarter million, it might look inadequate in this vast game world. We could find many prominent games like The Sandbox and Decentraland that raise millions consistently. But look at the bright side, for indie game developers, it's the raise that will ensure their victory in their project. According to Play To Earn editor-in-chief Robert Hoogendoorn, the distinctive set of incentives for buyers denotes that it will become a part of a massive trend.
“Finding smaller games, investing early, and hoping they blossom is very similar to cryptocurrency investing,” Hoogendoorn said. “You hope to find that game that grows into the next Minecraft and makes that investment go 100x.”
During the centuries, the so-called believers of video games swore their money in exchange for rewards like in-game characters named after their original name, and also they would receive invitations to elite launch parties. These were the traditional crowdfunding efforts established by the time-honored companies. Likewise, the NFT-backed games also spin the same concept into a true investment.
“For centuries, land ownership has been a privilege of the upper classes,” says Alien Worlds co-founder Michael Yeates. “Now in crypto, everyone has the chance to earn passive income by owning land which is truly theirs.”
If the game becomes popular, digital assets like in-game items and resources will have substantial resale value. According to the Alien Worlds team, the complex games with eminent potential can convert them into yield-bearing assets.
“The [Alien Worlds] NFTs are unlike pure collectible NFT cards because they have actual characteristics that are recognized by the gaming smart contracts,” explains Alien Worlds co-founder Saro Mckenna. “One NFT might yield you more Trilium (Alien Worlds’ in-game currency) when you use it, another might be capable of being used more frequently [...] This is pretty sophisticated by blockchain standards, where oftentimes functionality is still somewhat basic even if immutability and decentralization are in place.”
Though Alien Worlds has propelled itself as 'DAO and DeFi in space' It is one among the handful of other forefront monetizing in-game NFTs for players. But Hoogendoorn predicts there will be more indie to come.
“For developers, it might sound weird to give players ownership over assets. But what if developers receive 5% over every in-game / on-chain transaction? They will create a new revenue stream. On top of that, they create a community that has a stake in their game world. Engagement will be much higher because of the economical incentive.”
The developers should accomplish their research first, before setting their game development and peeking for incentives, precautioned Hoogendoorn.
“Understand scarcity, and build the game's economy around that, and [make sure] you've got a game economy that's interesting for players to put lots of time and effort in.”