News28 July 2022

Web-3 winter respects only the strongest

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Crypto winter is slowly coming on the heels of projects unable to think through their budget for the next quarters. The bitcoin's value often fixes the market's level; it has fallen by as much as 70% in recent months.

The most unpleasant thing for most projects is the euphoria of the market, which at one moment turns into incredible fear, suddenly stopping the constant money flow.

Even GameFi giants like Axie Infinity have faced difficulties, namely the prices of their AXS (the main project token) and SLP (the farming token) tokens. We see x’s, but in reverse…

Now a new PAE model is being proposed instead of P2E; instead of the play-to-earn model, PAE shifts the focus to gameplay and joy, with earning as an afterthought.

So far, this approach only prophesies two things:

- With a lower income level from the game, farming good amounts won't be easy if earning is a secondary process. And the "people in third world countries are quitting their jobs to play crypto games" reports can be forgotten forever

- On the other hand, we can say that the same project with different income levels for players will also live on different timelines. The more a project gives, the bigger amount of players is needed. 

But PAE cannot be called a panacea for GameFi. It is only an extension of the project's life, not a healthy business model that has to survive on its own and also pass many external and internal challenges.

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