The rise of NFT gaming has taken the industry to a new realm, where player ownership, decentralization, and community-driven development are kept at the forefront. Such progress has become possible through different governance models that allow players to collaborate with developers while they are creating their products and shape a game’s future together. It’s hard to come up with a better approach to engage customers and help them access new income-generating opportunities. Hence, players can get more NFTs and then exchange them for real money to place bets on GGBet and win even bigger amounts. In this article, we will define governance and how it impacts NFT gaming.
What Is Governance in NFT Games?
Governance in blockchain gaming refers to the processes and systems that allow players to influence game development and management. Unlike traditional gaming projects where developers hold control over all the decisions, blockchain projects are driven by regular people – they have a chance to vote on the key issues, propose changes, and influence the overall game creation process.
Principal Features & Technical Aspects of NFT Game Governance
Token-Based Voting
Players often use governance tokens to vote on community proposals regarding blockchain games. The tokens can be purchased or earned right in the titles they play, which makes the procedure more convenient. Here are the three most common voting mechanisms:
- Single token voting: the simplest voting model, where one token serves as one vote. Gamers can vote against or for a proposal, and the most voted option wins. Despite its straightforwardness, the model often leads to token concentration since players with a greater number of NFTs have an unfair advantage over others.
- Quadrating voting: the model is designed to address token concentration, as the cost of each subsequent vote a player makes increases quadratically. Therefore, it becomes much more expensive to dominate the process.
- Weighted voting: in this model, the number of NFTs a gamer holds defines the weight of their votes. Such an approach implies that those who have made more contributions to the game have a bigger influence on its development.
Decentralized Decision-Making
In NFT games, decisions are not dictated by the dedicated authority but made collectively by players. This became possible thanks to blockchain-based Decentralized Autonomous Organizations (DAOs) operating according to the rules and terms encoded in self-executing smart contracts. These contracts govern proposal submission and automatically implement decisions based on the player’s votes. This ensures that the process is transparent, fair, and secure.
Community Proposals
The process of implementing proposals typically involves three steps:
- Proposal submission: any community member can submit their proposal anytime they want developers to add new features or modify the game for a better playing experience. The process is usually done through the DAO’s governance platform.
- Community voting: the community votes on the proposal to ensure it aligns with their interests. The voting period is typically set for a specific duration.
- Implementation: if the proposal gets the needed number of votes, it’s approved and implemented automatically through smart contracts.
How Governance Impacts Gaming Experience
Decentralized governance empowers player experience in a variety of ways. Since blockchain gaming continues to thrive, businesses involved in the industry develop advanced models that prioritize community engagement, so we expect to see even more sophisticated solutions in player-driven game development. Here’s how governance impacts NFT gaming so far:
- Developers can leverage the creativity and collective intelligence of the player community to craft more innovative and appealing gaming products.
- Player engagement and commitment increases, as those participating in game development are more likely to contribute to its growth over time.
- Recording governance decisions on the blockchain builds trust and transparency within the community since gamers can track all transactions and see who and how voted on the proposals.
- Governance models may also ensure that all the game incentives and rewards are distributed fairly.
- The value of NFT tokens is likely to increase alongside their demand, making it easier for players to get a profit and participate in governance processes.
