4.2. A2E, P2E & Crypto Markets

Cryptocurrencies have experienced significant growth and volatility since the inception of the Bitcoin blockchain network in 2009. The cryptocurrency market has demonstrated its potential for rapid expansion, with notable milestones in market valuation over the years. This dynamic nature underscores the evolving and potentially lucrative aspects of the digital asset ecosystem. The continuous innovation and adoption in this space highlight the transformative potential of blockchain technology and digital currencies.

The innovative applications of blockchain technology have catalyzed the widespread adoption of Web3, introducing revolutionary concepts such as Decentralized Finance (DeFi), Decentralized Autonomous Organizations (DAOs), Non-Fungible Tokens (NFTs), and GameFi. While the Metaverse concept extends beyond blockchain technology, it has gained substantial traction through the integration of NFTs and blockchain-based crypto assets, further solidifying the transformative potential of these technologies in reshaping digital ecosystems.

The achieve-to-earn (A2E) GameFi model, a cornerstone of the Gameness platform, incentivizes users through goal-oriented rewards and skill development. This approach fosters a more sustainable and enriching user experience by emphasizing meaningful engagement over simple gameplay rewards. Consequently, the A2E model cultivates enduring user value and promotes a more robust ecosystem, aligning with Gameness's commitment to long-term user satisfaction and platform sustainability.

Rationale for Gameness's Achieve-to-Earn Model: Gameness has strategically implemented an Achieve-to-Earn (A2E) model, prioritizing goal-oriented and skill-based incentives. This approach is designed to foster user engagement through tangible rewards and opportunities for personal development. The following points elucidate the strategic advantages of the A2E model over the traditional Play-to-Earn (P2E) approach:

• Enhanced User Engagement: The A2E model emphasizes goal-oriented gameplay, fostering intrinsic motivation and sustained engagement beyond mere economic incentives.

• Sustainable User Retention: A2E cultivates long-term user loyalty by implementing a goal-oriented approach, facilitating an extended user journey within the Gameness ecosystem.

• Ecosystem Sustainability: Unlike play-to-earn models, which may attract short-term participants, A2E promotes a sustainable environment that encourages prolonged user engagement.

• Skill Development Incentives: A2E rewards skill progression, enabling users to increase their earnings by enhancing their strategic capabilities, knowledge base, and overall proficiency.

• Alignment with Core Mission: This model seamlessly aligns with Gameness's objective of fostering inclusivity in esports and gaming by rewarding users based on their achievements and contributions to the ecosystem.

Play-to-Earn (P2E) Market Potential and Relevance to Gameness:

Gameness recognizes the substantial impact and market potential of the play-to-earn (P2E) model within the GameFi sector while maintaining its focus on the achieve-to-earn (A2E) approach. P2E games, characterized by tokenizing in-game assets as NFTs and integrating tokens for payments and rewards, have significantly influenced both the NFT and cryptocurrency markets. The continued relevance of the P2E model underscores the considerable financial opportunities within the GameFi ecosystem, which Gameness aims to capitalize on through its innovative A2E strategy.

DappRadar's State of Blockchain Gaming Report for Q3 2024 (3) reveals continued growth in the sector, with blockchain gaming transactions reaching 1.1 billion, marking a 27% increase quarter-over-quarter. The report highlights a significant rise in unique active wallets (UAW) interacting with game apps, with a 12% increase to 1.22 million UAW compared to the previous quarter. This growth underscores the increasing adoption and engagement within blockchain gaming ecosystems, reinforcing their relevance to Play-to-Earn (P2E) and Achieve-to-Earn (A2E) models.

Despite challenging market conditions, blockchain gaming projects have demonstrated resilience and continued growth. The integration of gaming and blockchain technologies continues to drive innovation in the industry. This is evidenced by data from the DappRadar State of the Dapp Industry Report Q3 2024 (4), which highlights several significant metrics:

• Blockchain gaming accounted for 36.45% of all blockchain activity in Q3 2024, maintaining its position as a dominant force in the ecosystem.

• The sector saw an average of 776,000 daily Unique Active Wallets (UAW) interacting with game dapps in Q3 2024, showcasing sustained user engagement.

• On-chain game transactions reached 1.09 billion in Q3 2024, a 27% increase quarter-over-quarter, indicating continued growth and user activity.

• Investment in Web3 games and metaverse projects totaled $739 million in Q3 2024. While this represents a 15% decrease from the previous year, it reflects a stabilizing market after the initial hype, with investors now focusing on projects with proven potential and sustainable business models like Gameness's A2E approach.