A project out of Korea may have overcome a major hurdle.
One of the hardest parts of establishing a play-to-earn gaming enterprise is getting users to identify strongly with the platform rather than an individual game. But South Korean game developer Wemade might have found a way to do it, by unifying in-game currencies into one synthetic token. Because this innovation is intended to get players to reflect on the value of the WEMIX Play ecosystem as a whole, the team settled on REFLECT as the name of that token.
When the testnet of WEMIX3.0 launches in July, it will be based on a novel, hierarchical approach to tokenomics. At the bottom are the individual game tokens. These can be converted into REFLECT tokens and traded among participants. Ultimately, the entire blockchain is fueled by the native WEMIX utility token.
REFLECT is minted through a process dubbed “fusion,” because it combines individual game economic units to form the new token. Breaking down a REFLECT token for use in a game, then, is known as “fission.”
And just as nuclear fusion and fission are not that simple, neither is tokenomic fusion and fission. Wemade has a detailed explainer video, which goes into such methodological inputs as the “fusion ratio,” or the relationship among the various REFLECT components.
Blockchain games begin their participation as REFLECT components via an initial membership offering. During its IMO, a new game joins REFLECT, then injects its tokens into the existing game token pool, thus benefiting REFLECT holders.
An equally important element of WEMIX Play’s tokenomics is what the team has dubbed “heritage.”
“When users redeem game tokens through fission, they leave behind 5% of their redeemable game tokens as heritage. Through 5% heritage accrual, the ratio for both fusion and fission” essentially increases the market value of REFLECT organically, according to a Wemade spokesperson.
“The unique tokenomics design of REFLECT – with key functionalities including fusion and fission, fusion ratio, heritage and IMO – is based on our experience of development and servicing of the world's first and largest blockchain gaming platform, WEMIX, and is completely original,” they said.
While heritage as described above may sound like a new way of describing transaction fees, the Wemade team looks at it differently.
“Since heritage is a concept of leaving behind a portion of the goods for those that will follow in your footsteps in the future, this is a model that allows community members to impact other members of the community in a positive chain reaction,” according to the explainer video.
Likewise, heritage would not only spur return on investment, but also benefit individuals within the community because each IMO would in effect be another airdrop to current REFLECT holders.
The resultant REFLECT is essentially an ETF-style market basket of the various in-game currencies. The platform also provides for a staking option that gives WEMIX holders the chance to earn REFLECT in addition to rewards denominated in WEMIX tokens. Rather than mandating a lockup period, though, Wemade uses incentives rather than strict adherence to time commitments.
“Today, all cryptocurrencies are facing a question of where and how they can be used, called 'utility test,’” said Wemade CEO Henry Chang. “WEMIX, which already proved its function with the coins as the key currency in games, will become the most useful, sustainable and scalable coin through the establishment of its own mainnet, WEMIX3.0.”
Any high-functioning currency exchange is predicated on the efficient market hypothesis, which requires both the buyer and seller to have perfect access to all material information. Of course, perfection is out of anybody’s grasp; still, WEMIX Play makes a noble effort to collect and share data on the in-game currencies. The team considers it particularly important that players have access to real-time conversion rates arrayed in a library table for easy filtering, sorting and comparing.
Finance with the gamer in mind
Of course, there’s more to launching a successful gaming platform than tokenomics. The appeal must start with the games themselves, in terms of both user experience and the variety of offerings. With that in mind, Wemade has worked to curate dozens of games, each with its own features and formats – and its own economy which can be fused with the others in the WEMIX Play portfolio.
Also, REFLECT’s entire reason for being is as a reward for WEMIX’s P&E community. It’s not enough just to play and earn – one must be able to actually spend what was earned. REFLECT is designed from the ground up to complete that cycle.
“The virtuous circle of play-and-earn-and-pay is built on the philosophy of empowering gamers with the ability to not only earn through gameplay, but also to pay with what they have earned, which will allow them to play better and earn even more,” according to the explainer video.
“Wemade is a true pioneer in the uncharted territory of P&E blockchain games, and already the biggest and arguably best global blockchain gaming platform,” the spokesperson said.
“REFLECT is not your average token. It combines elements of gaming and finance to form a revolutionary GameFi utility token that will impact the macroeconomy of the gaming ecosystem.”
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