The Most Successful Web3 Game?
Breaking down the success of Dookey Dash by Yuga Labs...
In today’s edition of the Ground Floor we will be diving into the success of Dookey Dash, and what made this simple token gated game such a smash hit in the Web3 World.
The Most Successful Web3 Game?
$1,500,000 million for winning a Web3 game.
Let’s dive into the details:
The Big Number
Mechanics > Money
This might sound slightly counter intuitive, however, this size of this sale matters a lot less than the underlying mechanic that enabled this valuable prize to be sold in the first place ~ shoutout to Serg for planting this idea in my head.
By providing participants with the opportunity to attach their top score to the same token that enabled them to access Dookey Dash, a score that corresponds to the value of the prizes participants will receive ~ Yuga Labs created the required conditions for perfect price discovery of these assets they airdropped their token holders to occur.
In the Web2 gaming world today such price discovery is intentionally restricted as companies are keen to capture all the profits by monopolizing the means they sell the digital assets they create ~ a strategy that netted Fortnite a cool $5 billion in 2022.
The Most Important Number
Why is this number so important?
In 2023, the most important question every executive developing Web3 games needs an answer to is whether to invest in providing value to their existing token holders, or to focus on investing in onboarding new users to their eco-system.
Dookey Dash, a simple tunnel racing game created by Yuga Labs is a very unique example, perhaps the only example of a Web3 company successfully ticking both of these boxes.
From a value creation standpoint, Yuga Labs provided their token holders with a token worth 2.45 ETH at a minimum, and beyond the monetizable value of the asset they airdroped their token holders, Yuga Labs created an engaging game that allowed many of their collectors to invite their family members to participate in playing Dookey Dash.
Simultaneously, Yuga Labs successfully expanded the size of their ecosystem by 40% as many Web3 participants were eager to experience this game.
This in massive achievement, and it showcases Yuga Lab growing competencies in creating token gated games that consumers inside & outside their eco-system want to engage with.
Progress Over Perfection
Yuga Labs has lofty ambitions of becoming one of the top gaming companies in the world.
Moreso, Yuga Labs metaverse platform "Otherside" is arguably the biggest bet this billion dollar startup has made in its short history.
Having raised $450 million dollars, hired Daniel Alegre ~ the current COO and president of one the largest gaming company in the world, Yuga Labs ability to turn this dream into a reality for their token holders continues to edge ever closer.
Despite these positive developments, building the Otherside into a platform that's ready for millions of consumers is something no amount of money can complete over night.
As such, while Yuga Labs current token holders eagerly await the opportunity to experience the Otherside ~ it's essential Yuga Labs creates opportunities to showcase its ability to create high quality token gated games.
Dookey Dash is the perfect example of this.
📡 Looking Forward
It's easy to envision a world in which Yuga Labs would preach patience to its token holders as they build the capabilities needed to develop their metaverse platform, Otherside.
Instead of perusing this path, Yuga Labs took a tried and tested game format and added a simple, but brilliant on chain mechanic whereby the passes participants needed to unlock access to this game simultaneously severed as an on chain score card ~ an amazing example of the 3% rule in practice.
Does this success story mean Yuga Labs will become the #1 gaming company in the world?
No, however, Dookey Dash exemplified Yuga Labs growing capabilities in creating token gated games people are willing to pay for ~ a very significant milestone for a company who's success to date has comprised of creating valuable digital goods.
💡 Web3 Roundup
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See you next time! — OB1👋
This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity.