Redefining the New Paradigm of Web3 Gaming: Xterio's AI-Driven Innovation
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Redefining the New Paradigm of Web3 Gaming: Xterio's AI-Driven Innovation
Xterio's innovative practices are reshaping the development paradigm of Web3 gaming.
Navigating Web3 tides with focused insightsAuthor: Biteye
1. The Dilemma and Opportunity in Web3 Gaming
After the hype of the previous cycle, GameFi has fallen into a slump. The root cause lies in early X-to-Earn models that overly relied on token and NFT issuance, lacking depth in content and gameplay, making it difficult to sustain long-term user retention. Even the small games that recently gained popularity on TON merely rode the wave of rising Ton prices and short-lived novelty.
To give Web3 games true longevity, two paths exist: first, transitioning established Web2 games into Web3—but this involves complex on-chain integration and new asset management; second, supporting native Web3 developers in building high-quality games—but this comes with extremely high technical barriers. This highlights a pressing market need for a well-backed, experienced team to build foundational infrastructure and act as a platform enabler.
2. Top-Tier Team and Strong Backing
Xterio was born to address this very challenge. Founder Michael Tong previously served as COO of NetEase and played a key role in launching blockbuster titles like *Dream Journey Online*. The core team hails from elite gaming companies including FunPlus, Electronic Arts, Zynga, Activision Blizzard, Krafton, Jam City, and NetEase, with an average of over 15 years of industry experience.
In terms of funding, after its seed round led by FunPlus, Xterio secured $80 million in total investments from top-tier institutions such as Binance Labs, Makers Fund, and Foresight Ventures—making it the largest game investment by Binance Labs to date. These resources and expertise are set to bring much-needed standardization and innovation to the nascent Web3 gaming market.
3. Leading AI Technology Matrix
AI agents are currently one of the hottest narratives, sparking widespread discussion on how they can be integrated into GameFi. Xterio is already pioneering a unique path in this space, establishing a comprehensive AI technology matrix within Web3 gaming. In deep collaboration with Reka—an elite AI team composed of former members from DeepMind, Google Brain, and FAIR—Xterio co-developed the "Emotional Engine." By enabling precise emotion recognition and natural dialogue generation, this engine allows NPCs to exhibit unprecedented levels of interactive depth.
On the content creation front, Xterio’s AI-powered graphics generation engine is redefining the production pipeline for game assets. The project provides dedicated AI creation tools for both developers and players, enabling efficient generation of personalized in-game assets that can be minted as NFTs. Additionally, Xterio has built an intelligent AI agent system that delivers data-driven support across community operations, market analysis, and user behavior research. Notably, all AI model training processes occur on-chain, ensuring transparency and traceability of community contributions.
4. Diversified Game Portfolio
Xterio’s game portfolio demonstrates its full-spectrum capabilities in technological innovation and game design. In self-developed titles, *Age of Dino* achieved top rank on DappRadar for daily active users thanks to its strong gameplay. *Palio*, powered by the “Emotional Engine,” attracted over 8 million wallet addresses through its deep AI interaction experience, with 400,000 users completing purchases—validating the immense value of AI in enhancing player engagement.
The latest AI interactive game, *Befriend*, presents a distinctive vision of the future. In this AI-driven environment, players learn to converse with AI characters, gradually increasing mutual affinity through interaction. This narrative and AI-integrated title quickly gained market traction, reaching 7 million users across more than 200 countries and generating an astonishing 28 million social shares in a short time. As the final pre-TGE opportunity to earn tokens, *Befriend* rose to the top of the DappRadar games chart, clearly reflecting user enthusiasm for AI gaming and high expectations for the Xterio project.
Beyond in-house development, Xterio has formed deep partnerships with nearly 100 global games. Collaborators include industry leaders like FunPlus and Com2us, as well as numerous creative independent studios. These games span global markets, multiple platforms, and major genres such as MMORPG, sandbox, strategy, MOBA, and shooter, showcasing Xterio’s global vision and professional strength in ecosystem building.
5. Innovative Blockchain Architecture
Xterio takes a unique approach in blockchain architecture, focusing on building a specialized Rollup solution tailored for gaming. The project employs an innovative dual-chain design: XterioChain ETH based on OP Stack and XterioChain BNB built on opBNB Stack. This architecture not only ensures seamless cross-chain asset transfer but also provides robust scalability for the entire ecosystem.
As a gaming-specific Layer 2 solution, Xterio Chain is deeply optimized for the unique demands of the gaming industry. Xterio is the first restaking Rollup to adopt MACH (Microseconds for All Confirmations via Hardware) technology, enabling transaction finality in under 10 seconds without compromising security. Its distinctive technical framework offers clear advantages in high-frequency transactions, rapid confirmation, and low fees.
To date, the Xterio (BNB) chain has accumulated over 18 million wallet addresses and facilitated more than 160 million transactions.
6. Comprehensive Ecosystem Services
Xterio has built a complete ecosystem service system centered around two core stakeholders: players and developers. For players, the project partnered deeply with Particle Network to launch a modular smart wallet, simplifying asset management, while significantly improving user experience through a decentralized identity system. Xterio enables true cross-game NFT interoperability, allowing players to use their digital assets across different games—including flexible integration of external NFTs.
For developers, Xterio offers a one-stop Game-as-a-Service (GaaS) platform. Through standardized APIs and smart contract toolkits, developers can focus on creativity and content rather than getting bogged down in complex blockchain intricacies. AI-assisted development tools further lower the barrier to entry, while comprehensive operational support services ensure effective marketing and user growth. Moreover, the platform empowers developers to issue their own in-game tokens, enabling each game to design a unique economic model aligned with its identity.
7. Token Economy Model
One of Xterio’s most anticipated recent developments is its TGE on January 8, with multiple exchanges—including Bybit and Mexc—announcing support for the token listing. Xterio has designed an innovative token economy centered around XTER. As the unified utility token of the ecosystem, XTER serves not only as a payment medium but also as a vital link connecting players, developers, and the platform. With a fixed supply of 1 billion XTER, the token will serve the ecosystem through a carefully structured distribution mechanism.
Players can use XTER to purchase in-game digital assets, participate in NFT trading, and gain exclusive benefits such as governance voting rights and access to special events. For developers, XTER provides a unified value exchange medium, allowing them to concentrate on innovation and game development.
Furthermore, Xterio supports developers in issuing independent game tokens. This two-layer token structure enables each game to design a customized economic model while remaining tightly integrated with the broader ecosystem. For example, developers can distribute game tokens via airdrops to XTER holders, effectively targeting engaged users.
To ensure sustainable ecosystem growth, Xterio has implemented a meticulously planned token allocation strategy.
This allocation reflects Xterio’s long-term vision:
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A significant portion allocated to community and ecosystem (54% combined), ensuring ongoing vitality
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Strict lock-up periods for team and investors, demonstrating long-term commitment
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Reserve treasury to secure funding for future development
This multi-dimensional economic design not only fuels continuous ecosystem growth but also ensures every participant receives fair rewards as Xterio evolves. As more high-quality games join and the user base expands, the utility of XTER will grow richer, ultimately fostering a thriving Web3 gaming ecosystem.
8. Conclusion
Xterio’s innovative practices are reshaping the development paradigm of Web3 gaming. With core strengths in AI integration, end-to-end development and operations, and a leading-edge technology platform, the project demonstrates potential rivaling traditional gaming giants. Xterio is not just focused on technological advancement—it aims to build a truly open, inclusive, and sustainable gaming ecosystem that creates lasting value for both players and developers. As the project continues to evolve, Xterio is poised to emerge as an industry leader in the next market cycle, becoming a driving force behind the transformation of the Web3 gaming industry.
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