Web 3.0, or the so-called next version of the Internet, enabled the growth of the Web through its value. right or not? Well, most will agree, although many have questioned the very aspect of Web3 tokens other than the value of Web3 games that capture value.
Doubting your motives
A data-focused venture capital firm released a report in July showing that Web3 developer interest remained strong despite the bearish cryptocurrency market.
While it may contain water, many have questioned the usefulness aspect of the Web3 network in alliance with related tokens.
In addition, Messaris had analysts Share the same story In a thread posted on August 30th. While web 3 Infrastructure protocols have succeeded in creating value, as they all face the challenge of adapting the use of their networks to the price of the token.
The question here remains – how does Web3 tokens capture value?
Consider the table that showed Web3 Infra tokennomics and the value capture mechanism of the leading Web3 tokens.
Despite the popular belief (if the token supply is fixed, the price will rise with increased demand), investors ignore another key aspect. They do not take speed into account, which means that the longer the token stays, the higher the price.
Maybe a solution?
To counter this problem, protocols implement additional tools, banks, and incentives.
The most popular symbol models, Burn-and-Mint Equilibrium (BME) and Stake-for-Access (SFA) are featured in He stated the path analysis.
Essentially, the BME model worked by translating the use of the protocol into token purchase leverage.
Whereas, the SFA model translated network sharing into token purchase pressure.
Both SFA and BME addressed the speed issue and created a correlation between network usage and token price. But here is a concern- analyst pointed,
“The downside to this relationship is that if network usage decreases, the price of the token will also drop.”
But that’s not the only hole in the wall. Even Web3 games are not immune to potential doom.
Lifan Kverkvelya, founder of Jigger, an anti-bot protection program, had subscriber Insightful insight. The founder released a report claiming that 40% of the player base for Web3 games were bots.
In addition, the study found evidence of 20,000 bots in more than 60 web3 games. A screenshot from Kvirkvelia affiliate Jigger provides a visualization of linked accounts, as shown below.
Robots are everywhere! Just everywhere!
over here Tweet embed symbolic diagram. Introduce a referral program and voila! 13 thousand robots.
The funny thing is that we found this code by analyzing it at random and only then did we realize why bots exist. pic.twitter.com/jlegTczwdb
– Levan (LevanKvirkvelia) August 29 2022