1.1 Why did previous GameFi projects fail?

High development barriers: Traditional games are dominated by large studios, making it difficult for long-tail creators to participate due to the lack of tools that enable “everyone to create.”

Players as mere consumers: Centralized platforms control virtual assets and rules; players can only pay to play and cannot participate in value co-creation.

Lack of asset ownership: In-game items and points cannot be truly owned on-chain, and once a player leaves a game, all value drops to zero.

Economic imbalance: The first generation of GameFi relied on a single incentive model that led to token inflation, lacking a stable peg and value recirculation mechanism.

These structural defects caused GameFi 1.0’s short-lived boom to rapidly collapse.