
Exploring On-Chain Gaming: Finding New Perspectives in Deus Ex DAO
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Exploring On-Chain Gaming: Finding New Perspectives in Deus Ex DAO
In the field of on-chain gaming, significant challenges remain, and the process of onboarding new players into these games can be both complex and difficult.
Compiled & Translated by TechFlow

On the July 5, 2023 episode of "Deus Ex DAO," JACL and Kepler discussed the current state of the onchain gaming ecosystem, the layers of onchain games, and the challenges they face.
Below is a summary of the discussion, compiled by TechFlow:
Topic: The State Of Onchain Games: How And Where It Is Going?
Program: Deus Ex DAO
Date: 2023/07/05
Podcast Link: Link
Host: Kepler, member of Deus Ex DAO.
Guest: JACL, researcher at Delphi Digital.
Deus Ex DAO – An investment community, angel group, and advisory firm dedicated to advancing cryptocurrency development.
Delphi Digital – An independent research firm providing professional analysis of digital asset markets.
Current State of Onchain Games
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JACL stated that onchain gaming is still in its early stages, with fewer than 10 truly playable onchain games currently available.
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He believes the blockchain gaming industry remains in its infancy and has substantial room for growth and development.
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He noted that onchain games are developed faster than typical 3A games because they are simpler. Unlike complex 3A titles requiring extensive resources and time, onchain games are lightweight and thus quicker to build.
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JACL expects the onchain gaming space to grow rapidly over the next 12–24 months.
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He believes blockchain games can be categorized into subtypes: some are entirely off-chain but include NFTs; others are partially on-chain, incorporating both NFTs and fungible tokens; and fully on-chain games, where all game logic and data reside on the blockchain.
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He believes onchain games will not become mainstream consumer products but will attract a segment of players who demand permanence and accountability from game developers.
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Kepler mentioned that as daily active users of onchain games increase, we will see more infrastructure develop to support broader use cases. JACL added that onchain gaming isn’t as large as some might imagine yet.
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He said new genres may emerge in onchain gaming that could also appeal to older generations of gamers.
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He believes onchain games can connect to a global liquidity layer, enabling a small number of players to spend significant amounts within games.
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JACL believes onchain games can offer a fairer and more sustainable model compared to traditional gaming.
The Layered Structure of Onchain Games
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JACL described three layers of onchain games: the asset layer, participation layer, and structural layer. Each represents different aspects of onchain gaming and how individuals interact with and benefit from them.
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He explained that the asset layer involves NFT investment—these are in-game assets typically represented as NFTs, which can be bought, sold, and traded, offering investment opportunities for players and investors.
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He said the participation layer includes guilds, DAOs, or individuals who actively engage in these games and industrialize certain activities. This layer encompasses playing, contributing to game development, and even forming and managing in-game organizations like guilds or DAOs.
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He noted that the structural layer focuses on which network tokens may appreciate as onchain games grow. This refers to the underlying blockchain networks supporting onchain games—whose native tokens may increase in value as adoption rises.
The Role of DAOs in Onchain Games
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JACL emphasized the importance of DAOs or sub-DAOs in onchain gaming. He said these DAOs participate so effectively in virtual worlds that they generate profits and treat them almost like full-time jobs.
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He believes DAOs can play a significant role in the onchain gaming ecosystem, potentially driving game economies and influencing their evolution.
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When referring to guilds, he meant not scholarship-based play-to-earn models but rather DAOs or sub-DAOs. He stressed this distinction to highlight the different roles and business models present in the onchain gaming space.
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He said onchain games can provide economic opportunities for players and organizations beyond traditional game development roles.
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He believes onchain games resemble UGC (user-generated content), indicating significantly higher levels of user and community involvement compared to traditional games.
Challenges Facing Onchain Games
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JACL acknowledged significant challenges remain in onchain gaming, particularly around onboarding new players, which can be complex and difficult.
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He noted that technical issues such as throughput, cost, and speed are common in blockchain—transaction fees and processing speeds can hinder user experience and gameplay performance.
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He pointed out that tools for developing onchain games are not as user-friendly as traditional game engines. For example, Unreal Engine is widely known and used, but tools for building onchain games are neither accessible nor intuitive.
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However, he believes these challenges will eventually cease to be obstacles as technology advances. While important, these issues are solvable, and ongoing progress in tech and the industry will likely resolve them.
The Role of Bots in Onchain Games
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JACL stated that bots are an inherent feature of onchain games and cannot be avoided. Bot usage is built into the nature of onchain games, and attempts to eliminate them may be futile.
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He mentioned that in games like Dark Forest, top players build their own bots. Using bots can become a strategic element, with elite players leveraging them for competitive advantage.
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He believes the more complex the game mechanics, the less susceptible they are to bots.
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He suggested it might be wise to embrace botting as a game feature. Game designers could encourage and integrate botting into gameplay rather than resist it, making onchain games stand out.
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Kepler noted that bot usage could be a natural evolutionary path for onchain games.
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JACL said onchain games can leverage the unique role of bots. Rather than trying to eradicate bots, onchain games can embrace them as a feature that further distinguishes them from traditional games.
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