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Let's talk about how traditional P2E models tend to fail and how newer 'P2E' like @MaplestoryU is changing it up.
Traditional P2E like cryptoblades, axie, cryptomines and farmers world tend to be very simplistic in terms of their rewards structure.
'The Great Beginning'
Rewards pools were created to manage currency to be given out, with an initial seed from their IDO and topped up by people cashing in.
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This causes a huge issue - what happens when the playerbase, who have invested enough to maintain a good income, suddenly stop?
'The Great Plateauing'
With lesser new players in as the first big wave have settled down, the inflow of funds and the outflow due to payment to older players tend to plateau out.
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This plateauing of rewards pool tend to be a warning sign of things to come almost immediately - with a gradual slow down of newer players together with an ever growing amount of older players with 'mouths to feed', you end up with a very quick decline.
'The Great Decline'
Usually at this stage, the developers still have hope of recovery despite the very obvious signs of collapse. Developers would reduce the amounts of rewards provided to the older players, try to spur newer investment by releasing half-baked content or giving out more to new players to attract new funds.
But it's always too late by now.
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Older players would sell all their assets to cash out, some players would hold onto hope of a revival and play on. With almost 0 new funds into the pool due to negative social media and funds rapidly being withdrawn by players, it's not uncommon to see the entire game collapse in mere hours.h
Older players would sell all their assets to cash out, some players would hold onto hope of a revival and play on. With almost 0 new funds into the pool due to negative social media and funds rapidly being withdrawn by players, it's not uncommon to see the entire game collapse in mere hours.
'The Great Collapse'
The rewards pool will be completely dry within a day or 2, sometimes within hours. The whole project goes insolvent and the players are left with a sour taste in their mouths. Even till now, there are players that still remember what happened on that Great Collapse.
5/
So what happened?
This is usually a result of programmers acting without consulting economists/financial consultants about reward structures. This is not a new problem at all.
In fact, an apt description of a p2e game would be: A rapid staking pool. The same mechanisms are at play, just wrapped in different crypto clothes and a lot faster.
Look back at Luna collapse and you'll recognise the same mechanism at play there.
When
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