GameFi Poised to Play a Key Role in the Next Cycle of Cryptocurrency – Why You Should Keep an Eye on This Project

As the cryptocurrency market faces challenges, GameFi has demonstrated resilience, maintaining user engagement even during downturns. Projects like PepeNode strive to revolutionize the GameFi space by addressing previous issues that plagued early crypto games, promising a more sustainable economic model.

Key Takeaways

Resilience of GameFi: GameFi has shown strength during market downturns, retaining user interest while other sectors falter.
PepeNode's Innovation: PepeNode introduces a new type of GameFi experience focused on an engaging mining simulation rather than traditional play-to-earn models.
User Engagement and Investment: The project has already attracted significant early investment, with a presale offering potential long-term rewards for participants.

During the cryptocurrency winter from 2022 to 2023, many sectors slowed down due to plunging prices. However, the gaming sector, specifically GameFi, maintained its resilience. Unlike other areas in the crypto industry that struggled to keep users, GameFi successfully attracted ongoing engagement, although some early projects did not survive due to issues such as hyperinflationary token economics and reliance on continuous capital inflow.

Recognizing these challenges, PepeNode (PEPENODE) is developing a new type of GameFi project aimed at addressing the inefficiencies exposed by earlier crypto games. PepeNode is described as the first "mine-to-earn" game in the industry, which gamifies the real-world mining processes that support Bitcoin (BTC). Although it does not mine BTC directly, it allows players to control a mining system to earn rewards in meme coins, such as Pepe (PEPE) and Fartcoin (FARTCOIN).

Players' success in this mining simulation depends on their resource management, upgrade decisions, and system efficiencies, rather than passive clicking. This innovative approach has attracted significant funding, with early backers already investing $2.36 million. They are betting that a game designed with a management depth similar to Factorio or Zoo Tycoon—rather than a typical play-to-earn model—can sustain crypto rewards without repeating past mistakes.

For early investors, the timeline is clear. There are 22 days left in the presale, with the token priced at $0.0011968. After the presale, the token will be listed on exchanges, and its price will be determined by market liquidity and demand rather than predefined discounts.

In ChainPlay's report titled "State of GameFi 2022," the market was still reeling from the impact of the Terra-Luna collapse, with widespread mistrust entering a prolonged crypto winter. The study found that despite discouraging conditions, GameFi still served as the entry point for many users into the crypto arena.

State of GameFi 2022 Insights Source: https://chainplay.gg/state-of-gamefi-2022/

Despite a decline in token values, participants reported spending an average of 2.5 hours per day on blockchain games, maintaining this engagement level even amidst deteriorating financial performance, with 89% noting a decrease in their profits compared to the previous year. Many respondents (58%) attributed this downturn to poorly designed in-game economies, with high inflationary reward structures and uncontrolled token issuance viewed as contributors to worsening issues rather than solutions. With 73% of players expressing concern over rug pulls and Ponzi-like mechanisms in the industry, market confidence has further eroded.

Data shows that while the industry could retain users during downturns, its economic models began to falter once momentum faded. As the crypto industry experiences another familiar slowdown, gaming remains one of the few sectors consistently attracting user attention. Whether this momentum can be maintained will depend on rectifying the mistakes that weakened early GameFi cycles.

PepeNode aims to do just that by transforming mining into a virtual system, creating a gaming experience comparable to operating a mining operation. Players use PEPENODE tokens to purchase nodes, each with distinct characteristics, and the challenge lies in effectively combining them to ensure the system works harmoniously rather than merely stacking nodes blindly.

Next, tokens must be allocated among various competitive objectives, such as expanding facilities, upgrading infrastructure, and optimizing performance. The aim is to maintain efficient operations while maximizing computational power and securing a meaningful share of the overall network computational output for a higher chance of mining more tokens.

Future mechanisms are set to deepen this experience. Real-world tradeoffs such as power consumption and heat dissipation may be introduced into the game, compelling players to make decisions reflective of actual mining operations. This design choice is intentional, moving away from earlier crypto games that simplified gameplay to mere clicking, answering irrelevant questions, completing shallow mini-games, or battling generic monsters purely to cash in on daily token rewards.

This shift aligns with broader player preferences. The "State of GameFi 2022" report indicated that 81% of GameFi investors prioritize "fun" over rewards when evaluating future projects—an essential requirement for games aiming for long-term viability, not just an added bonus.

GameFi Player Preferences Source: https://chainplay.gg/state-of-gamefi-2022/

While token rewards remain important, they cannot exist in isolation. Players need compelling reasons to spend value within the game instead of immediately cashing out, which only happens when adhering to a core game design principle: the gameplay must be engaging enough.

Once this foundation is established—using PepeNode as an example, where gameplay is anchored in a realistic mining system—there's room for the in-game economy to stabilize. In this context, tokenomics serves as a support structure rather than the sole focus, reinforcing long-term retention instead of attempting to create retention artificially.

Token economics cannot simply layer on top of games without addressing the root causes of past failures. The promise of play-to-earn—earning profits simply by playing—remains a powerful draw for players, especially in a market environment where most participants are still motivated by financial incentives.

People play for cash, and this reality won't disappear even if a game is "fun." PepeNode's strategy is to elevate the most substantial rewards to a higher level, where the native token PEPENODE is linked to actual utility rather than passive value extraction.

As players allocate PEPENODE tokens wisely to expand and optimize their mining operations, the more they invest, the higher the likelihood of obtaining in-demand assets, including meme coins like PEPE and FARTCOIN. Depending on the game's subsequent development and adoption, these rewards may even extend to BTC in the future.

However, this still leaves the inflation issues that early GameFi projects faced. PepeNode opts to confront this head-on with proactive supply-reduction mechanisms. Approximately 70% of tokens used for upgrades will be permanently burned, removing them from circulation.

Mechanism of PepeNode

With a total supply fixed at 21 billion tokens, the system allows rewards to gradually decrease over time, echoing Bitcoin’s halving model. Players can track imminent adjustments to rewards within the game, while the burning mechanism adds further deflationary pressure.

The result is a system where growth does not necessarily equate to dilution. Game progress aligns with tokenomics rather than contradicting it. It is the combination of functional gameplay mechanics and constrained supply models that set PepeNode up for a long-term vision from the start. The project does not rely on continuous capital inflow but aims for stability as participation increases.

This forward-thinking design approach has already garnered market attention, with crypto commentator Michael Wrubel highlighting PEPENODE as one of the tokens to watch this year. PepeNode stands at the forefront of the new cycle, offering early participants a chance to secure an entry point ahead of overall market momentum.

For those looking to join before the presale ends in 22 days, you can visit the presale website to purchase PEPENODE tokens using ETH, BNB, USDT (ERC-20 and BEP-20), or even credit and debit cards. Buyers can connect their preferred wallet, such as Best Wallet, regarded as one of the top cryptocurrency and Bitcoin wallets in the industry. PepeNode is featured in Best Wallet's new token screening tool, "Upcoming Tokens," making it easy for users to purchase, track, and claim tokens once the project launches.

The project's smart contract has been audited by Coinsult, providing investors with added security regarding code safety. To stay updated with the latest news and developments, follow PepeNode on X and Telegram.

Visit PepeNode to learn more.

GameFi's Potential Impact on Crypto