Following the rise of the metaverse, gaming is now heralded as the next great frontier for Web3 technologies. The likes of Axie Infinity have shown how NFTs can turn in-game items into investable assets. But in the Web 2 era, in-game items were static digital objects that didn’t exist outside the game. However, despite their potential, in practice, implementing Web3 technologies and creating a sustainable ecosystem has proven to be a challenge for game developers everywhere. “60% of all Web3 games die within 30 days in the market,” states Co-Founder and CMO of Acxyn, Jason Loh, describing the problem the startup has set out to solve.
Acxyn is a Web3 startup on a mission to empower game developers to build games with Web3 technologies effortlessly. Doing so allows developers to unlock new sources of revenue while enhancing the community for their players. To accomplish this, the startup has built a Unity-based platform that enables developers to integrate Proof of Fun algorithms to create uniquely engaging experiences that reward players for their effort and skill.
The big picture: A glimpse at Acxyn’s history
Initially, Acxyn’s founders planned on making their own Web3 game as they identified gaming as its next big frontier. However, they soon realized the broken ecosystem that prevented game developers from fully maximizing the disruptive potential of Web3 technologies. Thus, Acxyn was born in 2022. Over their impactful existence in the industry, Acxyn has already been part of two accelerator programs. One is the MYStartup Accelerator powered by Cradle, and the other is the Tezos APAC Ecosystem Growth Grant (EGG) Web3 Incubator.
Further, the startup is already collaborating with over 60 game developers, many of whom have built an established presence with their indie games. Acxyn’s focus is on rewarding these developers while enabling them to build fun experiences for their players. The company does so by helping game developers build scalable blockchains and maximize the commercialization of their games by turning their IPs into investable asset classes.
Understanding Acxyn: Unlocking the intrinsic value of games
Today, building software using Web3 technologies is complex and expensive. Acxyn’s first layer is solving these complexities and reducing these costs for game developers. In doing so, the platform enables them to enter the Web3 world and create new revenue streams without these fundamental issues. For players, this means they can enjoy a seamless experience akin to Web2 games but now with the assets and tools of Web3. Elaborating further, Chief Blockchain Officer at Acxyn, John Schneider, explained, “Today’s blockchain technologies require a high degree of technical expertise, which isn’t ideal for game developers or players. So our focus at Acxyn is to abstract that technical complexity for both parties so blockchain technology can shine.”
Proof of Fun for sustainable in-game economies
At its core is Acxyn’s Proof of Fun algorithm, which acts as a platform-based engine similar to GDP in the real world. It creates the ultimate metagame – an economic game that all game developers can build atop and benefit from. With its alternative yield-bearing strategies, Acxyn allows developers to focus on the most important thing about their games: creating engaging experiences that players enjoy.
It all starts with game developers joining the Acxyn ecosystem and sharing data about their games. The Proof of Fun algorithm tracks metrics such as player engagement, in-app purchases, and more. Based on this data, it utilizes a decentralized valuation framework to calculate the value of the game using the data provided by the developers and a range of secondary sources. Game developers then receive a transparent valuation score and are rewarded with Acxyn tokens for their participation.
These tokens can be used as an in-game currency or traded on crypto exchanges. They can also be utilized as liquidity incentives, player bribes, provide a liquidity denominator for in-game currencies, participate in Acxyn governance, and pay Acxyn fees. Notably, this isn’t restricted to Web3 game developers, as Web2 developers can also join the Acxyn ecosystem and enjoy its benefits. Thus, it opens the doors for developers to explore unique game monetization opportunities.
Tapping into the revenue potential of Web3
A direct example of a new monetization opportunity Acxyn opens up can be seen with its Unity integration. “Game developers on Unity will be able to code any type of in-game asset and tokenize it within the blockchain,” John added. In doing so, turning in-game objects into assets, which players can sell on a vibrant secondary market. At the same time, Acxyn is working on providing a secure wallet with social login features and a suite of analytics tools for developers to grasp player behavior to optimize their games.
“Our tools provide valuable insights, enabling developers to enhance the visibility and value of their IPs. In addition, our innovative approach helps game developers increase revenue and makes their IPs more attractive to investors. Over the last few months, we have been shaping the future of game development and investment with our cutting-edge solution.” These features of the Acxyn platform collectively allow developers to unlock new revenue streams while still satisfying gamers’ demand for fresh experiences.
Ultimately, Acxyn seeks to drive the growth and success of the Web3 gaming industry by rewarding developers and delivering fun experiences to players. Towards realizing this vision, it’s focused on helping developers diversify their revenue streams while providing innovative financial tools to help them value their IP and access liquidity. Crucially, its decentralized valuation framework ensures greater levels of transparency that guarantee game developers are rewarded fairly. Thereby it confirms players and investors can make informed decisions about the games to play or invest in.
The role of Web3 in an ever-evolving industry
In conversation with Arteculate, John highlighted that game development is primarily an art form, with monetization coming second. “Developers create games and push them to the market, driven by a passion for creation. Their reward for these efforts is watching players enjoying their game.” Web3 technologies, he states, open the possibility of an entire economy to be built atop these games.
To that end, Acxyn’s Proof of Fun algorithm offers a pioneering approach toward realizing this possibility. Particularly for smaller independent game development studios, it allows them to build new worlds and explore new business models. Crucially, it also offers them the chance to earn additional rewards for their development efforts. Its underlying decentralized valuation framework also promises better transparency and fairness in gaming. In doing so, Acxyn is empowering players, developers, and investors to drive the growth and success of the industry.
In the near future, John observes that the economic systems brought about by Web3 will result in enhanced in-game mechanics. “It sets the foundation for an extremely vibrant secondary marketplace where in-game items are now investable assets. Whereas previously, they were digital expenses. Once this penetrates the consciousness of gamers, we believe it will be a massive value driver,” he explains. As the costs of building games rise, their creators will have to keep a keen eye on the potential of these technologies to remain competitive in a fast-evolving market.