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Journal – kawlet / GameFi  / Tap-to-earn on Telegram: Revolution or Passing Trend?
15 September 2024 In GameFi

Tap-to-earn on Telegram: Revolution or Passing Trend?

The world of video games is changing rapidly. Tap-to-earn games on Telegram are a striking example of this shift. With 950 million active users, Telegram is becoming an essential platform for Web3. In just a few months, around 300 million users have shown interest in these games, representing nearly a third of the user base.

Games like Catizen, which has generated $27 million through in-app purchases, and Notcoin, with 35 million players, exemplify this enthusiasm. However, questions remain about the sustainability of this model.

Table of Contents

Tap-to-earn vs traditional games: a comparison

Tap-to-earn games, an emerging subcategory of GameFi, stand out for their accessibility and ease of use. Operating through a basic interface like Telegram, these games rely primarily on quick tapping actions, providing an immediate and uncomplicated experience. Unlike traditional games, which often require hours of gameplay to master their mechanics, tap-to-earn games aim to be minimalist and mobile-friendly, attracting a community familiar with the world of cryptocurrencies seeking quick rewards, as well as casual novice players.

However, the promise of financial gains remains to be nuanced. While these games allow players to collect tokens through repeated interactions, the volatility of their value limits profitability for the majority of players. In fact, few manage to generate substantial or consistent profits. Additionally, the economic model of these games often relies on the constant increase of rewards, which dilutes their value over time.

In comparison, traditional games focus more on immersive and narrative experiences. While they typically do not offer direct income, they provide deeper universes, sophisticated gameplay mechanics, and engaging storylines, creating intrinsic value for the player that goes beyond mere financial aspects. This richness of experience often comes with a sense of personal satisfaction and accomplishment, which tap-to-earn games, despite their immediate reward-based model, struggle to match.

Thus, the comparison between these two models reveals a duality: on one hand, the appeal of simplicity and potential gains from tap-to-earn games; on the other, the emotional engagement and gameplay quality of traditional games. For cryptocurrency enthusiasts, tap-to-earn games provide access to airdrops (distribution of tokens proportional to in-game actions), but the question of their long-term viability remains open against the rich and sustainable ecosystem of traditional video games.

Depth Issues and Player Retention

Tap-to-earn games, while innovative in their approach, are often criticized for their lack of depth. Their concept relies on simplistic and repetitive interactions, which, while conducive to attracting a broad user base at launch, typically fails to sustain long-term engagement. This approach is reminiscent of the satire Cow Clicker, a game that served as a deconstructive satire of Facebook games. These games leverage ease of access and instant gratification, but once the novelty wears off, many players lose interest and stop participating actively. This phenomenon highlights a fundamental problem: without richer and more engaging gameplay mechanics, long-term player retention remains challenging.

In contrast, some Web3 games—more commonly labeled Play-to-Earn—such as The Sandbox, Gods Unchained, or Splinterlands manage to find a better balance between accessibility and complexity. These games incorporate mechanics borrowed from traditional games, such as elements of strategy, card collection, or tactical combat, while leveraging the strengths of Web3, such as the ownership of digital assets and the ability for player-to-player transactions. This combination creates a deeper and more rewarding gaming experience, encouraging players to invest long-term and develop a stronger connection with the proposed universe.

These games leverage blockchain technologies to introduce a genuine sense of digital ownership, where each card or game item holds real value and can be traded or monetized. This model not only encourages engagement but also investment from players, who view their progression not just as a pastime but also as a potential opportunity for financial gain. It is evident that the future of Tap-to-Earn gaming will depend on developers’ ability to integrate these depth elements while maintaining the accessibility that made the initial titles successful.

Thus, the question is not so much whether tap-to-earn games are viable in the long term—social games (Facebook) like Zynga’s Farmville already took this path—but rather whether they can evolve to provide an experience that goes beyond mere instant rewards. By enriching their gameplay, these games could hope to compete with more complex titles in the Web3 space while capturing users’ long-term interest beyond the initial novelty effect.

Market saturation and future challenges

The rise in popularity of tap-to-earn games has led to a rapid market saturation, characterized by an influx of projects adopting similar models. This proliferation has not only diluted the offering but has also resulted in a decline in the appeal of the tokens associated with these games, as the oversupply of available rewards reduces their perceived value. This phenomenon directly impacts player engagement and prompts doubts among players, who become more selective about the projects they support. In such an environment, the challenge for developers is to stand out in a crowded market where the mere promise of quick gains is no longer sufficient to capture and retain an audience.

To sustain long-term interest, these games must evolve by offering experiences that go beyond mere token accumulation. The strategy involves finding a balance between immediate accessibility—which has driven the success of tap-to-earn games—and the integration of more immersive and engaging gameplay mechanics. Elements such as evolving progression systems, captivating narratives, and multiplayer features could enhance the user experience. These innovations would provide players with not only financial rewards but also a sense of gratification related to progression and skill mastery within the game.

At the same time, developers need to explore more sustainable economic models. Web3 games—such as The Sandbox or Illuvium—that have successfully introduced elements of digital ownership and scarcity, for instance by making certain items or characters truly unique and tradable on secondary markets, have managed to generate lasting enthusiasm. By following this path, tap-to-earn games could diversify their revenue streams while providing tangible value to the digital assets they offer.

The real challenge ahead will be to innovate in a rapidly standardizing sector. The evolution of the tap-to-earn model towards more sophisticated formats, while maintaining the accessibility that has driven its success, will be essential to attract a broader and more diverse audience, extending beyond the simple crypto community. Games that can rise to this challenge will not only stand out but also stabilize their internal economy and retain players for longer-term experiences. It is about transforming the initial excitement into a solid and immersive model, ensuring not only player retention but also the economic sustainability and long-term appeal of tap-to-earn games.

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