Despite FTX Woes, Game7 is Still Investing in Web3 Gaming

Vanessa Obioha writes that investment in a new gaming format looks promising despite apparent challenges

Web3 gaming is still in its infancy stage, and critics believe it will take a while before it becomes mainstream. The reasons for this are not far-fetched, from lack of trust about ownership and lack of fixed models to unfriendly government policies limiting cryptocurrency transactions, Web3 gaming, which incorporates blockchain technology, is not at its zenith yet. Add to the list the recent collapse of the crypto giant FTX, the most promising crypto platform, which bankrupted many companies.

However, Game7, a San Francisco-based decentralised autonomous organization (DAO) supported byBitDAO and Forte ecosystems, is optimistic about Web3 gaming. It recently announced that it would give a $100 million grant to Web3 game developers in the next five years.

As reported in VentureBeat, the programme will enable developers to build tools, create educational programmes, host events, and perform research to make the Web3 video game industry more diverse and accessible.

Integrating blockchain into video games comes in different paths. The most popular are resaleable in-game items represented as NFTs, crypto token rewards for achievements, and ad revenue redistribution to players. However, some gamers find the popular play-to-earn (P2E) move too complex and expensive and simply want to have fun. Due to this, developers are always looking for ways to modify the games available in Web3.

In a survey of 100 Web3 game developers, Game7 said challenges related to chain election, wallet custody, sustainability issues, and more should be addressed. Therefore, the DAO said the funds, which will be distributed $20 million a year, will target projects that offer lasting solutions to these obstacles. The grants will be distributed to Web3 gaming projects across five categories: technology, events, diversity, education, and research.

“Improving smart contract standards, tooling, interoperable wallets, and scaling solutions will be crucial on the path to global adoption of Web3 games,” said Game7 core contributor Ronen Kirsh in a statement. “We have allocated 20 per cent of our committed treasury to fund each of these crucial components so the gaming industry can focus on building sustainable game economies.”

The grant is also in alignment with Game7 vision to accelerate the adoption of blockchain-enabled game economies. It strongly believes that blockchain technology can advance games into the future. 

The company is not alone in this assertion as Cassava Network, a blockchain infrastructure ecosystem providing Africans with inclusive financial services, partnered Play1st, a Web3 gaming app store and a subsidiary of Africa’s largest mobile games publisher, Carry1st, to launch the continent’s Web3 esports gaming league with an inaugural tournament, the ‘Cassava x Play1st Cup’.

Also, Binance Football Fever 2022 became the first-ever Web3 game and fan experience initiative for FIFA World Cup 2022, fully powered by blockchain technology. The game allows users to earn an opportunity to win limited-edition NFTs, premium football club experiences such as player meetups and training ground tours, and cash prizes worth more than $1,000,000.