Web3 gaming had promised a revolution, a playerowned paradise. Let’s be real, the loyalty programs—the supposed foundation of this new universe—are usually a disaster. We’re watching active wallets in web3 games increase five fold, while player retention continues to falter. Why? Because these programs are failing to deliver on their core promise: rewarding loyalty.
Broken Tokenomics Kill Long-Term Value
Think about it. How many web3 games have you played only to watch as the reward token inflates to oblivion? It's the digital equivalent of a grocery store handing out coupons that are only valid on the day they're printed. Just like that, the wealth disappears quicker than you can say “play-to-earn.” That’s a dangerous race to the bottom inspired only by unsustainable tokenomics. It’s the legislative equivalent of awarding someone a gold star made of chocolate – super cool on the surface, totally impractical in reality.
Traditional loyalty programs aren't perfect, sure. Leaderboards and daily bonuses? Meh. However, at the very least, they don’t do negative things like actively work to devalue the time and effort you put in. With web3, the promise was different. It was about taking control of your rewards, about creating tangible value. Unfortunately, what good is ownership if that value is being eroded everyday by some bad tokenomics.
So let’s move beyond a culture built on short-term model speculation and pump and dump. Consider Forgotten Runiverse, which is attempting to create a true player-driven, persistent economy. On transportation, that’s a good thing in the right direction, but it is the exception and not the rule. We need better sustainable models, ones that benefit and reward long-term engagement and contribution, rather than early adopters and speculative trading. Consider it more like contributing to a retirement account and much less like buying a meme stock.
Transparency? More Like Opaque Contracts
Web3 was always supposedly about transparency, no? Decentralization? Most web3 gaming loyalty programs run like a black hole of transparency. You're often left wondering: How are rewards distributed? What are the rules, really? Is it all just smoke and mirrors?
This lack of transparency breeds distrust. If players can't understand how rewards are earned or distributed, they're less likely to engage. It’s as if you were trying to play a game without knowing the rules. Why bother? This is where traditional gaming has the distinct advantage. At least in that case you typically know how many points you need to achieve that discount.
The solution here is clear: auditable smart contracts. Deployments such as Mojito Loyalty, which allow brands to plug in on-chain loyalty capabilities, are a promising step in the right direction. We really need to know on-the-ground things, like how the system works, how rewards get calculated, what the governance looks like. This isn’t only a matter of fairness — this is a matter of fostering trust. Think of it as reading the nutrition label on your food. You care about what you’re putting into your body, just like you care about how you’re spending your time.
Community Input? More Like Lip Service
Web3 promised player governance, a world where players have a real say in the direction of the game and its economy. However, how many web3 game loyalty programs take the time to really hear their players out? And of those, how many have meaningful mechanisms for community input built into them?
The answer, sadly, is not enough. In this sense, many of the decentralized projects out there are giving it lip service, but then making all the decisions in closed doors. This is infuriating. We’re continually promised that we have a seat at the table, but then condescended to as passive consumers. It's like being invited to a party where you're not allowed to choose the music.
DAOs – Decentralized Autonomous Organizations. We should be using DAOs to govern loyalty programs to provide players with a meaningful voice in how those programs are implemented and operated. This isn't just about giving players a seat at the table, it's about empowering them to shape the future of the game. Decentraland's Marketplace Credits system, rewarding players for participation, shows a glimpse of what's possible. Picture it as a democratic town hall meeting for your most beloved video game, where everyone gets an equal voice.
Web3 gaming has incredible potential, but it’s wasting that potential on shiny yet careless loyalty programs. We need sustainable tokenomics, radical transparency and community governance that is real and not performative. Only then can we develop loyalty programs that actually benefit players and produce flourishing, enduring game ecosystems. Otherwise, we’re just on our way to repeating the same mistakes of yore, in shiny new blockchain livery.
Developers and policy makers can no longer afford to neglect ethical governance in pursuit of web3 gaming loyalty. They need to normalize player protection and establish sustainable economic models.
