Decoding 404's: How an Activated NFT Activates GameFi

Author: Jerry@TPDAO

Introduction

Even without 404's (ERC-404 and the iteratively evolved protocols inspired by it), GameFi will become an important and popular track in this cycle. You may be confused - the topic of this article is to discuss the story after 404's activates NFT. Why does it say that GameFi will be active without 404's?

Because AI and Web3 are ready for the metaverse, DePIN such as decentralized computing power and storage is constantly improving, highly immersive hardware devices such as AR/VR/XR are constantly iterating, traditional finance and The encryption market is gradually integrating, and AI elements such as Sora are promoting the construction of the metaverse. DeepLink has even emerged to provide ultra-low latency cloud game rendering services for the metaverse. It can be defined as a project that redefines remote gaming in the Web3.0 era. , has remote control function, provides shared GPU and cloud traffic bandwidth, and can serve various application scenarios related to the metaverse, cloud games, etc.

Based on all this, mankind is ushering in the blockchain A digital society that reconstructs the economic order at the bottom level. But all of this requires the most suitable Metaverse application scenario. In the narrative of metaverse construction, GameFi is the most important component of the metaverse application space.

After getting through the memo of the metaverse concept in 2021, in the past two years, we have entered the process of multi-dimensional coordinated development and steady advancement of the metaverse construction. It seems that only GameFi is slightly less popular. The reason is the dilemma of the last round of GameFi track - under the X-earn mode, GameFi was unable to complete NFT value capture in the later period and became a short-term takeover game.

In this grand narrative context, we can enter the theme of this article - NFT in the post-404 era will become the basic element of the Metaverse world based on the value capture logic given by GameFi, coupled with liquidity issues NFT will become a mainstream asset in the crypto market.

1. 404 and NFT

Since the wave of Pandora memo triggered by 404, the introduction to 404 has been very detailed. We will only briefly review it: ERC-404 is a protocol standard that mixes ERC-20 and ERC-721. Under the 404 protocol, NFT and Token can be converted into each other, allowing NFT to be split and traded like tokens, achieving native liquidity and fragmentation.

Achieving native liquidity and fragmentation is crucial. This is fundamentally different from the previous fragmented implementation of NFT liquidity - under the ERC-404 protocol, NFT can be represented as a fungible homogeneous token under certain conditions, while under other circumstances it can remain Non-fungible tokens. This kind of flexibility has the possibility of interoperability in a wider range of scenarios - whether it is a trading scenario that requires high liquidity, or an asset management/basic element that requires personalization and uniqueness in chain games/GameFi or even the metaverse world. Scenes.

The most basic value that 404 brings to NFT is to release liquidity. Take Pandora, the leading project of the ERC-404 protocol standard, as an example. Its market transactions basically come from FT, and the NFT transaction volume is 1 of the FT transaction volume. At around %, the core liquidity of the Pandora series is currently almost entirely priced by Uni v3 AMM.

To sum up: NFT assets in the post-404 era have the characteristics of “card drawability”, “native fragmentation” and “AMM liquidity”. GameFi, which is constantly iterating on the 404 protocol, is also constantly surprising the market. For example, Project Matthew's first ERC-404 token built on the BNB chain (BSC) aims to become the core of the Project Matthew game ecosystem and provide NFT utility and value in Project Matthew.

The latest news is that MB4 holders participate in a guessing game and win rewards based on the similarity of their NFT to the winning NFT:

1. Airdrop activity structure: The activity is divided into three stages: previewing rewards, guessing any 3 MB4 NFTs and holding at least one NFT with similar properties, and guessing the correct NFT image and receiving rewards.

2. Prize pool: The total prize pool of the current MB4 airdrop is US$1 million, including Epic Matthew Land, $MC tokens, land upgrade scrolls, game coins, game props, etc. award.

3. Reward distribution: Rewards will be distributed based on the similarity between the attributes of the winning NFT and the NFT held by the participant. The more similar the attributes are, the more rewards a participant may receive. The prize pool will be distributed equally to all winners, and if no one wins at a certain level, the remaining prize pool will be distributed in the next event.

4. Legendary quality: Users holding 404 NFT of legendary quality can also share the legendary prize pool, which accounts for 10% of the current prize pool.

5. Receive rewards: Users must have received BinaryX IGO Matthew Box 404 to be eligible for airdrop rewards.

2. GameFi and Metaverse

We judge that the logical starting point for NFT activation of GameFi after 404's is the result of the previous The internal reason for GameFi's dilemma - GameFi cannot complete NFT value capture in the later stage under the We have factual support for the narrative judgment at the beginning - after the last wave of Gamefi receded, gaming is still the most active part of the entire industry, and the gaming industry still maintains hundreds of thousands of independent active wallets every day.

However, if the root cause of the GameFi track’s overall high death rate in the previous round is not solved, this wave of GameFi will still only add some practical samples to the industry - NFT assistance that has not been activated GameFi conducts trial and error for metaverse application scenarios, but it cannot carry the heavy task of building the metaverse economic system.

In the last bull market, Yuanverse memo and NFT were just speculation on PFP and X-earn’s GameFi was booming. In 2021, we established based on defi, gamefi, and socialfi , Analyzing the Construction of the Metaverse Economic System" investment research theme. After discussing the first part "DeFi: from data asset management to production factor allocation", we previewed the second part, defining GameFi as version 0.01 of Metaverse application scenarios and reconstructed production relationships.

But soon the GameFi track was almost completely wiped out in the last round, and the second part of the investment research analysis was put on hold. In the post-404 era, even NFT assets in the veteran GameFi will be activated. In this article, we take the "Project Matthew" before the 404 era as an example to introduce the basic essential functions of its NFT assets in the Metaverse after the liquidity empowerment in the post-404 era. It can be regarded as a review of " Based on defi, gamefi, and socialfi, analyze the construction of the metaverse economic system"The continuation of the theme. This is a space-themed simulation game on the Ethereum blockchain. In this game, players take on the role of space explorers and must build and manage their own space base, mine resources, recruit soldiers, and engage in battles to expand their territory and power. Players can earn virtual currency "Matthew Coins" by completing tasks, participating in activities and transactions, and can purchase assets and trade for cash; players can also obtain NFT assets (virtual items and props) in the game; NFT interoperability has also been Being developed, digital assets obtained from other games can also be used in the Matthew Project.

Project Matthew can be seen as an "NFT before the 404 era" activated by 404's, and is a typical example of how to activate GameFi. Taking Matthew Land as an example, there are three main types of Matthew Land NFTs: operating area, fault area and overload area. Each type has its own unique benefits that can have a significant impact on development progress; lands also have five quality levels: Shabby, Common, Rare, Epic and Legendary, with higher quality providing more various benefits, e.g. Increase resource production, improve the functional level of Matthew's laboratory, lower energy consumption, faster transactions, etc.; the high quality of Matthew's land can have a significant impact on the overall efficiency. Each piece of Matthew's land has a different set of attributes. This can significantly impact your simulation strategy, ultimately lengthening or shortening your payback period. Note: This comparison chart shows an estimate of the "maximum" $MC yield difference between different qualities of land to help players better understand the land The impact of quality on payback cycles.

In the post-404 era, NFT land has both asset attributes and liquidity. The complement of this factor allows its complete economic system to be activated - you can both carry out construction and development to obtain your in-game benefits. For long-term strategic planning, NFT land can be used to realize assets through FT, and important assets and equipment can be crowdfunded and co-constructed to allocate rights and interests...

We discuss the "Matthew Project" in the post-404 era (Project Matthew)", we must fully understand that in addition to unlocking liquidity, 404 also brings more possibilities for users to realize their rights and interests in chain games/GameFi and even the metaverse world, such as the concept of partial ownership, This allows multiple users to jointly own the same NFT (large equipment such as land, buildings, space vehicles, etc.) and share corresponding ownership rights based on the number of tokens held.

Therefore, we can predict that the GameFi practice in the post-404 era will become a basic application of the Metaverse that reconstructs the economic order with blockchain as the bottom layer. Of course, after GameFi, we can also look forward to more implementation paths that give metaverse residents users the status and contribution rights to build, such as socialfi. Our third part of the topic preview in "Based on defi, gamefi, socialfi, analyzing the construction of the metaverse economic system" is "From socialfi to AllFi: the material basis of human digitalization and the construction of the metaverse" the basis of value”. All of this is achieved through the basic essential functions of NFT in the post-404 era.

Here, we want to further clarify that without the "basic requirements for NFT in the post-404 era" that have been gradually determined based on GameFi practice, would it be so important to the Metaverse?

We have elaborated on this in "Discussing the Value Logic of "Bear Market Bottoming" Using "Civilization to Stop"" - we have gathered the power of technology and industry to construct the Yuan In space, it is necessary to use high-end chip technology, integrated circuit systems that may break through the Moore effect, more efficient network communication technology (5G/6G) and VR/AR/MR/XR hardware and the development of advanced virtual engines and interactive technologies, Wearable biosensor hardware and adapted precise motion capture software and hardware can achieve somatosensory responses, movement rules and a highly immersive experience in the virtual space of the metaverse world. If the Metaverse is just a highly immersive digital space, is it all worth it?

Even if it can be a complete social operating ecosystem, if the digital society is not reconstructed with blockchain/Web3 decentralization, Token (FT/NFT) mechanism and DAO organizational governance, it will give human evolution The destination of a better social system and governance structure will diminish the significance of this transformation in the advancement of human society.

Conclusion

To briefly summarize, we will find that the basic essential functions of NFT for the construction of the metaverse are realized in application scenarios such as GameFi. This topic has already been covered in the KOL-style article creation I did for Wang Feng during the preparation of Element in 2021. The leading conclusion such as "Don't talk about the Metaverse without NFT" also came from this discussion. But in that cycle, NFT was ultimately just a narrative supported by the memo and speculative attributes of PFP, and Metaverse and GameFi soon disappeared from the mainstream market.

Until the appearance of 404, it was just right. Of course, at this stage, 404 is just an inspiration, and there are still flaws. It has been transferred indiscriminately and may even be burned under attempts to improve the 404 protocol, which will destroy the uniqueness, non-tampering, rarity, and construction of the metaverse that are important and precious. The basic essential attributes.

As mentioned in this article, I believe that the protocol itself will have more iterations and innovations, the application layer will have more room for imagination, and the metaverse construction narrative will bring greater development potential to participants.