3-2. Differences between DeFi and Blockchain Games
Differences in Indicators Between DeFi and Blockchain Games
Games and DeFi Applications require different capabilities from a blockchain since they operate differently.
TVL(Total Value Locked)
TVL refers to the total amount locked to a particular contract and is the primary measure of DeFi’s traction. Considering DeFi’s characteristics of locking funds, TVL is a rational indicator of DeFi’s reliability and popularity. On the other hand, locking funds is less common in blockchain games, so TVL is not an appropriate measure for many blockchain games.
The transaction volume of blockchain games is massive compared to DeFi. The transaction volume will be incomparably more significant than DeFi’s for widely acceptable full-scale blockchain games. The blockchain needs to be designed to withstand this.
Are we really becoming a DAO?
Foundations and developers develop DeFi Applications with the end goal of having them managed by a DAO eventually. The ultimate plan is to have a perfect system that is bug-free, secure, and stable.
On the other hand, blockchain games require continuous updating of game contents and service operations. The goal is to improve the game continually. Daily content updates, new playable characters, or item drops are essential to maintain the user engagement high and the churn rate low.
For these reasons, DeFi can become a DAO, decentralized autonomous organization. However, blockchain games cannot become a DAO, since a game cannot be automatically developed or updated.
Similarly many game developers developing blockchain games will have a plan to monetize their games over time as it runs. Therefore, they are expected to offer games based on tokenomics and community, but not necessarily DAOs.