The Tides Are Turning

I've felt it brewing all summer, but as of this week, I'm convinced that Web3 gaming has hit a real inflection point in its life trajectory.

Over the last few years of building KOMPETE, I've had front-row tickets to watch blockchain fight to find its footing in gaming culture. I'll be the first to admit it hasn't always been easy. If you've been paying attention, you know there are some real extremes to the conversation. On one hand, you have those who fully embrace and even proselytize the decentralized tech as revolutionary. These beliefs are built on foundational principles like ownership, player autonomy, and decentralization—none of which should be objectionable and all of which are (in my opinion) a net positive for players. However, the overwhelming majority of traditional gamers have been hesitant to embrace this new path forward. A sizable number will even go out of their way to disparage and obstruct progress however they can. Nonetheless, I believe that the Overton window has shifted this week, and we're seeing our first glimpse of what mass adoption looks like for the Web3 gaming industry. So, what's changed?

Our Teenage Identity Crisis

In my opinion, Web3 gaming has spent the last few years working through a stage of life we're all likely familiar with—the teenage identity crisis. As early adopters of blockchain in gaming, we've been responsible for deciding how we present ourselves and what we stand for as we look to enter the 'real world' of the mass market. In these early years, that testing has taken place largely within the digital hallways of a sheltered enthusiasm bubble. Here, we have been free to experiment with how to best capitalize on this new freedom and opportunity that blockchain provides.

As we move from teenage experimentation to life in the real world, two distinct archetypes have formed. On one side are the Nerds, those 'here for the tech' with a passion for leveraging blockchain to genuinely enhance gaming for its players. Their approach, which I've previously termed the 'Game with Web3' strategy, centers on building an engaging game where blockchain elements are smoothly integrated to enhance gameplay and ensure genuine digital ownership. The objective is to avoid overburdening the core mechanics or exploiting the technology, instead focusing on creating real, ownable value for players.

Opposite them stand the Degens, reminiscent of those kids sneaking away to get 'high on the fumes' of crypto under the bleachers. They chase quick, speculative gains, often ignoring the sustainable applications of blockchain in favor of immediate boom-or-bust opportunities. Their strategy, which I've termed 'Web3 with a Game,' treats the blockchain as the main attraction, with the game serving mostly as a veneer to add legitimacy and intrigue. This approach leverages blockchain primarily as a marketing tool, targeting hyper-speculative interests while sacrificing the quality, depth, and sustainability of the ecosystem for a flashier front-end offer. Degens will tell you they value ‘ponzinomics’ and consider getting rugged a right of passage. I fully support a free market, but gamers deserve better.

The Problem with 'Web3 with a Game'

While it might initially seem thrilling to hang with the Degens and sneak off for a quick sesh, it's no secret that the real world demands more substance. As the teenage years wane and the realities of adulthood set in, a more balanced approach becomes necessary. What was once considered cool in high school can quickly become childish in the real world—a kind of Peter Pan syndrome. The mass market understands this principle: not all that glitters is gold, and it's wise to see past the shine to recognize when something is too good to be true. Unfortunately, everyday players initially saw Web3 gaming adopting this Degen approach. This cast a lingering shadow over the entirety of Web3 gaming, making it seem like the notorious 'Make Money Online' niche—full of promises but short on real value.

Consider dropshipping as a parallel example; initially appealing as a fast track to wealth with minimal effort, it has largely been debunked as an unrealistic grift. Are there winners? Certainly. But most profits in dropshipping are not from selling products, but from gurus peddling their strategies in 'idiot's guides' on YouTube. The field has more self-proclaimed experts than genuine success stories, and the average person, seeing through this veil, understands it's not a viable path forward, no matter how simple and guaranteed the latest video tries to make it seem. What began as a promising opportunity has been so misrepresented for exploitative reasons that it has become the butt of the joke. The real world is tough and unforgiving, leading people to develop a keen bullshit detector. It's no wonder that 'Web3 with a Game' has been as maligned by the gaming community as it has.

It Pays To Be A Nerd: Off The Grid

So, where does that leave us? For some time, I've been vocal in my belief that for our industry to be accepted in the mass market, we must embrace our inner Nerd and pursue the 'Game with Web3' approach. This strategy, which KOMPETE has diligently aimed to embody, has never been the path of least resistance within the safe confines of the 'enthusiasm bubble.' Despite this, we've remained true to our identity, and with the recent rollout of Off The Grid, it has become evident that it truly pays to be a Nerd.

This past week marked the beginning of Off The Grid’s mainstream introduction, and there's no doubt it's captured the attention of the broader gaming community—including the Web3 Degens. In my opinion, the game's early breakthrough success has hinged on its steadfast commitment to the 'Game with Web3' philosophy. If you look at their game itself, it's obvious they've put a high priority on creating a quality product. They've found creative ways to integrate blockchain while simultaneously emphasizing that it's an optional feature, not the main focus of the product. Their marketing and branding, much like KOMPETE's, adhere to this Nerd identity, emphasizing the underlying game experience that the average gamer finds most important. This isn't an endorsement of their long-term potential, but the initial traction should be celebrated.

As a result of their 'Game with Web3' strategy Off The Grid has secured endorsements and streaming partnerships with industry giants like Ninja and TimTheTatman, who had previously steered clear of Web3 games that pursued a more Degen identity. This has led to millions of views across streaming platforms and additional promotions by major players like Epic Games, along with successful listings on consoles like PlayStation and Xbox. Most notably, TimTheTatman has made significant efforts to engage with viewers about the game's Web3 features, such as the marketplace, making a case for their potential value to those who are interested. His endorsement serves as a powerful signal to the gaming world that this new technology deserves reconsideration when it's done right.

Final Thoughts

It's clear we're hitting a major turning point in Web3 gaming, sparked by the breakout success of Off the Grid and our own traction with KOMPETE and traditional gamers. This isn't just about blockchain anymore—it's about making better gaming experiences for everyone by using this new tech for the right reasons. It's a validation for us Nerds, proving that deep, thoughtful integration of blockchain can enrich gameplay—a stark contrast to the quick-fix tactics favored by the Degens of the scene.

This week, Off the Grid capitalized on our industry's first serious opportunity. It demonstrated to the gaming world that this tech adds valuable depth to gameplay, far beyond just being a hype gimmick. By maturing our approach, we've evolved from niche appeal to mainstream potential, demonstrating that player-centric games are redefining success in our industry. It's an exciting time: the question is no longer if 'Game with Web3' works—it's about recognizing the new standards it has set and exploring how far we can take it.

The Nerd's Revenge: How Web3 Gaming Is Finally Cracking The Mainstream