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© 2023 Tempura technologies inc. All Right Reserved.
© 2023 Tempura technologies inc. All Right Reserved.
We are excited to introduce Sakaba’s latest innovation — the Subscription NFT Launcher. In this blog post, we will dive into the world of Subscription NFTs and explore their compatibility with one of the hottest trends in gaming — Battle Passes. Join us as we unravel the possibilities and advantages of combining these two concepts. Whether you’re a gamer or a game developer, this is an article you don’t want to miss!
It is a monetization system where players purchase a Battle Pass to unlock in-game rewards by completing quests within the game. For example, by reaching certain stages or levels within a specific period, players can obtain skins, in-game currency, and other items. The requirements to reach these stages can vary, including earning pure in-game experience points or fulfilling specific conditions.
Battle Passes often have the following characteristics:
Seasonal Format: Typically, Battle Passes operate within a specific timeframe, such as 15 to 30 days. Players aim to complete quests and climb stages to unlock rewards.
Exclusive Reward Opportunities: Higher stages offer better rewards, and Battle Passes often include limited-time exclusive skins and other items.
Free and Premium Versions: Free Battle Passes also provide a certain level of rewards, and they are often displayed alongside the paid version. Stages are the same for both the free and premium versions, and by purchasing the premium Battle Pass, players can instantly claim rewards corresponding to stages they have already reached in the free version. This encourages the purchase of the premium Battle Pass.
When considering the drawbacks of loot boxes in the Free-to-Play model’s revenue generation through microtransactions, the benefits of Battle Passes become evident. Here are some advantages:
Transparent and Mild Monetization: Players can make purchasing decisions while being informed about the costs and the rewards they will receive.
Progression through Gameplay: By completing quests, players earn rewards, providing a sense of achievement and progression. It allows users to immerse themselves in the game world rather than instantly becoming powerful or obtaining everything through monetization. Regular and active gameplay is encouraged, leading to increased engagement, not just monetization.
The concept of Battle Passes can be traced back to the Compendium, an event-related initiative by Dota 2 in 2013. Purchasers were provided with unique in-game content and other features, with 25% of the revenue contributing to the prize pool of esports tournaments.
In 2018, Fortnite popularized the use of Battle Passes and generated significant revenue, becoming a topic of discussion. This expansion can be attributed, in part, to the growing concerns about the gambling nature of loot boxes during that time. Battle Passes emerged as an alternative monetization method.
Today, Battle Passes are commonplace in various games. Popular titles like Genshin Impact, Honkai Impact 3rd, Apex Legends, League of Legends, VALORANT, Honor of Kings, Clash Royale, and Candy Crush Saga feature Battle Passes. Many readers may have already experienced purchasing and playing with a Battle Pass.
Battle Passes are also adopted in Web3 games. Among the games featured on Sakaba’s Medium platform, titles like
“資産性ミリオンアーサー”
(Asset Million Arthur),
“Cross The Ages”
, and
“クリプトスペルズ”
(Crypto Spells) incorporate Battle Passes.
Subscription NFTs are used for streaming payments. They allow payments to be made in increments per second, enabling the NFT to be utilized during that time. Sakaba is developing a launcher that enables game developers to provide subscription NFTs without code.
As a specific example, let’s consider the transformation of a Battle Pass into a subscription NFT. By purchasing a Battle Pass NFT (which could also be available as a Free Mint, depending on the business model) and applying it in the game, players gain access to special rewards in exchange for paying a set fee per second. Essentially, players have the flexibility to join and leave the premium experience whenever they want.
In this case, due to the nature of the payment, the accumulated points obtained for accessing rewards in the free pass, which are typically seen in traditional Battle Passes, might not directly apply to the rewards accessed by purchasing the premium pass. It is likely that a different set of points would be introduced, accumulated only during the Battle Pass NFT’s application in the game.
We will discuss the potential from the perspectives of both Web2 and Web3 games.
Streaming Payments: Participants can join and exit the premium experience at any time. The granularity of time and cost allows for lower entry barriers and affordability.
Enhancing Ownership and Interoperability: By turning the Battle Pass into an NFT, the supply can be clearly defined and publicly disclosed, providing proof of ownership to users. Users can have a sense of ownership and premium experience just by purchasing the Battle Pass itself. They can indulge in possessing highly special Battle Passes or enjoy collecting intricately designed Battle Passes sold each season. It is also possible for game studios to issue a shared pass that allows holders to access the pass across multiple games.
Trade-In of Battle Passes: Unused Battle Passes can be resold in secondary markets. While it may not result in receiving more money than the total amount spent on purchasing the Battle Pass and paying the subscription fees, the ability to trade them in is a step toward fairness, considering that digital goods have traditionally provided no return.
Enabling the functionality of Battle Passes by utilizing streaming payments provides various benefits. Considering the need to “pay specifically for the playtime in addition to owning the NFT to enjoy a premium experience,” we believe this concept can yield several advantages:
Increased Percentage of NFT Holders Who Actually Play the Game: Since holding the NFT alone does not grant any rights or privileges, the percentage of people willing to pay to play the game would likely increase.
Reduced NFT Price Volatility: Considering the subscription costs, the price of NFTs tends to stabilize. Compared to NFTs with numerous perks attached solely to ownership, this model reduces speculative fervor and promotes the creation of stable prices.
Easy Entry and Exit for Users into/from the Initial Community: With the price appreciation of NFTs being somewhat controlled, it becomes easier for users to join the community, even if they join at a later stage, by acquiring 1st Collection NFTs. Additionally, the absence of upfront lump sum payments for a premium gaming experience makes it more accessible for users to give it a try. In a growing community, people come and go based on individual circumstances and preferences. By avoiding excessively high prices for early NFTs, which can be seen as tokens of early support, the flow of participants entering and exiting the community can be maintained.
Facilitating the Establishment of an Ecosystem through Stable Revenue: In addition to the secondary market transaction fees for NFTs, the subscription fees for the Battle Pass contribute to the overall revenue. This creates a steady stream of income that allows game operators to plan and sustain the ecosystem more effectively.
Leveraging Subscription NFT Battle Pass for Post-Mint Marketing of Free Mint NFTs: From a Web3 perspective, it is worth considering the use of the Subscription NFT Battle Pass for post-mint marketing strategies of Free Mint NFTs commonly seen in game projects.
In summary, we have proposed that the Battle Pass transformed into a Subscription NFT holds potential for both Web2 and Web3 games. It introduces new styles of Battle Pass in Web2 games and explores novel utility for NFTs in Web3 games. We are eager to hear your thoughts and ideas. If you have any interesting insights, we invite you to join our Sakaba community. We look forward to receiving your feedback and potential collaborations. 🍻
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#Web3Game
