NFTs in Gaming: Why You Should Want Them Even if you Don't Game

There is no doubt that NFTs have been the talk of the town in recent months, seeing their boom in 2021 with a market value of $17 billion, which has been increasing in value even further in 2022. Although the NFT industry is booming, mass adoption has not taken place just yet, with many having a very basic understanding of NFTs - often being labelled as “digital art”. Although this assumption is not wrong - NFTs can take the form of any digital product on a blockchain, ranging across music, images, and more, having the ability to expand into any and every industry imaginable.

NFTs in Gaming

Expanding into other spaces, the gaming industry has seen NFTs infiltrate the space with many promising utilities. NFTs in the blockchain gaming world are mainly utilised as in-game assets, where one can purchase an NFT in the form of skins, avatars, weapons, and more. These in-game NFT purchases can then be up-skilled within the gameplay (ultimately increasing their value), or be traded on the relevant NFT marketplace. The utilities of these assets are truly endless. Keeping this in mind, there seems to be a misconception that NFTs in gaming is for gamers or gaming enthusiasts only - which is far from reality. The utilities of these in-game assets go far beyond the gameplay, offering non-gamers an opportunity to reap the benefits.

NFTs as an Investment

Like all NFTs, in-game NFTs is viewed as a lucrative investment, with the possibility of skyrocketing in value. Looking at some successful NFTs such as Mutant Ape Yacht Club (MAYC) and Bored Ape Yacht Club (BAYC), which saw a crazy jump of 160% and 60% respectively, in the space of seven days. What makes these NFTs so valuable is their rarity - not everyone has the opportunity to get their hands on them. Looking at up-and-coming NFTs in gaming projects, Reign of Terror, a cyberpunk-themed blockchain game is looking to attract non-gamers into the world of gaming NFTs. Their highly anticipated Genesis NFT drop, which features a total of 7,000 Genesis NFTs will be launching soon, promising investors and gamers extremely high-quality NFTs that are unique, rare, and - most importantly - valuable.

Voting Rights

When purchasing an in-game NFT, the process is done through the relevant marketplace, where the investor will need to acquire the game’s local governance token to make NFT purchases. Investors can also use governance tokens to purchase NFTs through secondary marketplaces. A mass majority of blockchain games give investors, (who hold the governance token), the power of voting. NFT and token holders can then play a big part in the decisions made by gaming developers. Going back to Reign of Terror, the staking pool for the local $ROT token allows for the production of $sROT which are used for DAO proposals and voting, allowing users to participate in decision-making regarding monetary policies, treasury and token allocations, community management, and having a say in their product roadmap. In addition to that, RoT focuses on giving their players more ways to play together in the game through the use of their $sROT token and the SocialFi mechanics of the game.

Social Functions

The rise of SocialFi sees social media, finance, and DeFi integrating into one, allowing social influences to have the potential to be tokenized. This system allows influential figures to receive monetary rewards for being active on SocialFi platforms. SocialFi mechanics have been added in the Reign of Terror ecosystem in a number of ways, including giving guilds and alliances to have access to special missions and allowing alliances to capture land from other alliances. The DAO of RoT gives alliances the power to vote regarding the development of the game and its future. The function of SocialFi is a great addition to monetize through NFT games.

Final Thoughts

When deciding on which blockchain game NFTs to invest in, it is important to understand the full economic model of the game. Although it may seem that many blockchain games are looking to merely attract gamers into their ecosystem, emerging games such as Reign of Terror are giving investors and gamers alike, an opportunity to enter the world of GameFi through their multiple attractions including the opportunity to lend NFTs to earn a passive income, immortalize oneself into an NFT as well as having the ability to trade, craft and upgrade NFTs. Earning an income through active gameplay while focusing on improving skills is yet another reason that many have been attracted by the world of RoT. Will you be joining the revolution of NFTs in gaming?