The fatal flaw of crypto games

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30 Dec 2023
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Crypto games have been a hot topic in the gaming industry in recent years. These games offer players the opportunity to earn cryptocurrency while playing, which has attracted a lot of attention from gamers and investors alike.

However, there is a fatal flaw in the design of many crypto games. This flaw is that they are designed to be a zero-sum game. This means that for every player who wins, there must be another player who loses.

In traditional games, this is not necessarily a problem. In a game of poker, for example, the house takes a cut of the pot, which ensures that there is always a winner. However, in crypto games, there is no house. The only way to make money is to take it from other players.
This creates a number of problems. First, it leads to a lot of toxicity and cheating. Players are constantly trying to find ways to gain an unfair advantage over their opponents. This can make the games less fun and less fair.

Second, it makes the games unsustainable. If too many players are losing money, then the game will eventually collapse. This is because the game's economy is based on the premise that there will always be winners.

There are a number of ways to address this flaw. One way would be to introduce a house into the game. This would allow the game to generate revenue without relying on players taking money from each other. Another way would be to design games that are not zero-sum. This could be done by introducing cooperative elements into the game, or by allowing players to earn cryptocurrency in other ways, such as by completing quests or challenges.
Until these issues are addressed, crypto games are likely to remain a niche market. They may attract a few early adopters, but they are unlikely to achieve mainstream success.

Here are some specific examples of how this flaw has manifested itself in crypto games:

  • In the game Axie Infinity, players can earn cryptocurrency by breeding and battling digital pets called Axies. However, the game has been criticized for being pay-to-win. Players who are willing to spend more money on Axies have a significant advantage over those who are not.

  • In the game CryptoKitties, players can collect and breed digital cats. The game was initially very popular, but it quickly became clear that the game was a zero-sum game. For every player who made money, there was another player who lost money. This led to a decline in interest in the game.


These are just a few examples of how the fatal flaw of crypto games can lead to problems. It is important for developers of crypto games to be aware of this flaw and to design games that address it.

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