[Exclusive Interview] 93% of GameFi Projects Fail, with an Average Lifespan of 4 Months for Blockchain Games: How Does “Elemental Knight Online” Break the Cycle of Short Lifespan?

When Blockchain Games Move Beyond the Speculative Bubble

According to the 2024 industry report by the blockchain gaming data website “Chainplay,” it directly states: “93% of GameFi (gamified finance) projects have already died.” It even mentions that the average lifespan of GameFi projects is only four months.

Looking back at the GameFi boom sparked by “Axie Infinity,” which allowed Southeast Asian players to earn a living from gaming, the token price eventually plummeted by 99%. Traditional gaming giants, such as Square Enix, which ventured into the GameFi field, even announced this year that they plan to end their blockchain game project “Symbiogenesis” in July.

With the hype subsiding and little success seen from traditional giants, what comes next for blockchain games?

A blockchain game that has lasted for three years, with 80,000 wallet connections and a community of over 350,000 users, is “Elemental Knights Online.” The CEO, Guan Shaohua, might have some answers.

CEO of “Elemental Knights Online” Guan Shaohua

Photo by He Daxin

Classic IP on the Blockchain: The Birth of “Elemental Knights Online”

“Elemental Knights” itself is an MMORPG (Massively Multiplayer Online Role-Playing Game) with over 15 years of history, boasting a loyal fan base. Guan Shaohua, who has lived and worked in Japan for a long time, established a relationship with the developer of “Elemental Knights” at a blockchain event in Japan, planting the seed for a blockchain version of the game.

Guan recalls that after being introduced to blockchain technology in 2017, he began to think about how the technology could be integrated into games. “At that time, there were no NFTs or GameFi, and we could only imagine how ‘game assets’ could work on the blockchain.” It wasn’t until 2021, when the metaverse and blockchain gaming trends began to rise, that Guan decided to collaborate with the developers to launch the blockchain version of “Elemental Knights Online.”

The game’s currency was transformed into cryptocurrency, and in-game items and equipment were turned into NFTs (non-fungible tokens). Players can freely trade assets obtained in the game on the market and even convert them into fiat currency. According to the project team, the amount withdrawn by players has now surpassed $5 million.

As for the player distribution of “Elemental Knights Online,” Japan accounts for about 50%, Southeast Asia for 30%, and Chinese-speaking regions for about 20%.

In 2023, “Elemental Knights Online” was listed in the best blockchain games ranking by the blockchain gaming review website “PlaytoEarn.” Guan admitted, “In the blockchain gaming market, ‘Elemental Knights Online’ is already a long-lived project.”

What’s the Secret to the Longevity of Blockchain Games?

“Many projects go offline in just three months. They boast about having AAA game titles but fail to run properly,” Guan Shaohua pointed out. He emphasized that for a blockchain game to endure, the key lies in two factors: the game must be fun, and the economic model must be sustainable.

Fun gameplay is the fundamental principle. Guan observed that many blockchain games are quickly forgotten by players due to rough development and single gameplay modes. “Elemental Knights,” being an IP that has been around for over 15 years, continues to upgrade its visuals and create new game modes, maintaining its overall entertainment value, even after transitioning to a blockchain version.

Additionally, Guan mentioned that many blockchain games neglect the balance of token economies. They simply issue and speculate on tokens, leading to inflation and player attrition. It is essential to establish sound rules for token and NFT issuance, destruction mechanisms, and community feedback, to avoid a rapid collapse when the market cools down.

Is an Open Metaverse the Future of Gaming?

Beyond token economy and game enjoyment, Guan emphasized that “openness” is also a key core of blockchain games and “Elemental Knights Online.”

“The spirit of Web3 is decentralization, and players’ digital identities should be able to travel freely between different projects.” He believes that when a game enters the blockchain world, it must be viewed from the perspective of the entire “blockchain” ecosystem. Every game within the same ecosystem should support and influence each other, creating a healthier and more diverse environment.

As a result, “Elemental Knights Online” has collaborated with Web3 gaming industry guilds like Catalyst Guild, as well as decentralized gaming platforms such as Metacade, to give players the opportunity to participate in events organized by various entities and meet new gaming partners.

Furthermore, “Elemental Knights Online” has actively partnered with real-world brands to create exclusive experiences. For example, Japan’s large retail chain Don Quijote once opened a store in “Elemental Knights Online,” where players could complete in-game tasks to earn NFTs, redeemable for lucky bags and products.

Guan even revealed, “We are currently in talks with a Japanese insurance company for collaboration!” This is part of his ultimate vision. Guan aims to transform “Elemental Knights Online” into not just a gaming platform but an integrated virtual and real-life space encompassing adventure, economy, shopping, and socializing, offering both diverse applications and commercial value.

“The future metaverse will no longer be a closed platform but an open world that can seamlessly connect multiple blockchains and decentralized applications.” Guan cited the movie “Ready Player One” as an example and believes that such a future is not far off.