Overview
GameFi (Gaming Finance) refers to the intersection of decentralized finance (DeFi) and the gaming industry. It involves the integration of financial incentives, such as yield farming, staking, and asset ownership, into the core mechanics of video games.
Key Concepts
- Gamified DeFi: Using game-like interfaces to perform financial actions like lending or providing liquidity.
- Asset Tokenization: Representing every in-game item as a unique or fungible token on a blockchain.
- Economic Incentives: Designing game loops that reward players for contributing to the ecosystem's liquidity or governance.
Components
GameFi projects typically include a native utility token, an NFT marketplace, and often a DAO for community-led development.