The gaming industry is at a crossroads. With rising development costs and an increasingly saturated market, both indie and AAA developers are struggling to stay afloat. Traditional revenue models are under pressure and are shifting towards pay-to-win mechanics that alienate players. But what if there was a new way forward? A model that not only provides financial support for developers but also enhances the gaming experience for players? This is where I believe Sanctum’s LSTs can be used to provide funding and reshape the gaming landscape.
The Problem:
Game Devs Need Funds!
Every year, thousands of games hit the market, but only a tiny fraction (4%) actually turn a profit, according to the Electronic Entertainment Design and Research Institute. This harsh reality makes it difficult for indie developers to support themselves.
Without adequate funding, developers can’t afford to take creative risks or learn from mistakes. Many end up abandoning their projects after a single failure, leading to a loss of potential innovation and creativity in the industry. To create a successful game, developers need resources not just for development, but also for marketing, distribution, and post-launch support. Without these, even the most promising ideas can fail.
Games Are Becoming Expensive
The cost of developing games, especially AAA titles, has skyrocketed, with budgets often reaching into the hundreds of millions. This puts immense pressure on developers to turn a profit in a market that’s already crowded with competition.
The “free-to-play” model, which was once a way to attract a large player base, has increasingly shifted towards pay-to-win mechanics as developers look for ways to generate revenue. Monetization strategies like battle passes, loot boxes, and microtransactions have become common, but they often come at the cost of player experience. This approach can make games feel more like cash grabs, alienating players and threatening the future of quality game development.
Proposal
The Sanctum team could explore an innovative partnership with a smaller game development company to showcase the potential of SOL LSTs. By creating a custom gaming SOL LST as a proof of concept, they could demonstrate the benefits of this model to other developers.
Here’s how it could work: Players stake their SOL, retaining their initial capital while earning yield. This yield would then be shared with game developers, providing them with a new revenue stream.
This approach could lead to a new “Stake-to-Play” model, where players enjoy games without incurring extra costs, while developers accumulate the funds needed to bring their dream projects to life. With adequate funding, developers would have the freedom to take more creative risks, resulting in better, more innovative games. It’s a win-win: players keep their SOL, avoiding typical gaming expenses, and developers gain the resources to push boundaries.
Additionally, holders of the LSTs could be offered exclusive perks, such as in-game currency, unique assets, or other rewards tied to their SOL deposits. This model not only benefits the gaming community but also enriches the overall gaming experience, making it more rewarding for both players and developers alike.
Is this a no-brainer for game developers, especially those already in Web3 and Solana ecosystems? What other benefits do you think LSTs could bring to players? Let me know what you think in the comments.
I love this idea, because this is exactly what I think LSTs can be used to do – not just a way to get more SOL, but to fund new projects and create stuff that wouldn’t otherwise happen.
I think the key to making this idea a success is finding aligned, earnest game developers that 1) can ship something people want and 2) are OK with taking a stream of SOL to fund their development.
The Pathfinders team is doing something like this with their no-loss mint, and I’d like to see more projects do the same too.
This idea actually works! When I heard this for the first time, this model made a lot of sense. This will also open up a lot of possibilities.
Some of the use cases we are planning around this:
Holding an LST-backed NFT can grant access to tailored subscription plans, offering a more personalized and engaging experience for players.
Get access to our comic series mints for almost free.
Access custom characters in the game.
Discounts on the fees within our game and infrastructure, etc.
The possibilities are endless. Since the risk factor is very low for the holders, this will alter the whole experience of the NFT market. Excited to see this take shape and live in the market.
Oh man. This is perfect. I wish I’d read this earlier cuz its right in line with my feelings for how teams can utilize these LSTs. Especially smaller ones.
We need projects that utilize SOL vs underlying tokens.
This is what inspired us to convert our collection to LST-backed NFTs. We believe this is where communities can truly connect with the team through continuous evaluation of progress. If people are burning the NFTs, it is a sign that something is off, allowing us to evaluate the situation which is something not possible with traditional marketplace NFTs. The market and noise influence traditional NFTs significantly more compared to these collections, even if they are tradable to an extent, in my opinion. But yes, this can be a game changer in the NFT space, and I’m happy to be a part of this journey as much as I can.
I love this idea. I remember as a young kid, visting the arcades, depositing a token, and then play my favorite games. I think the “stake to play” can bring holders from many generations. I would like to see it as a concept of an on-chain arcade built within the LST team page, and maybe recreate some of those games from old consoles too such as street fighter, mortal kombat, old need for speed, etc. Then LST holders can also play against each others regardless of location. The amount of LSTs held, could determine the type of game a person has access too, something as simple as tetris, to even games such as the ones mentioned above. This will be awesome as i hate playing games with a lot of commercials because they are free, or having to pay for something that I will get tired and had my money waster on. Great proposal brother.
is it possible for us to set up a tele group / discord channel to discuss with them on future implementation?