About this video

• Video Title: How Mythical Games Hit 1M+ Users by Making Web3 Invisible
• Channel: Bitcoin Suisse AG
• Speakers: John Lindon (Mythical Games), Dominic (Host)
• Duration: 00:57:16

Overview

This video features a discussion with John Lindon from Mythical Games about their strategy for integrating Web3 technology into mainstream gaming. The conversation highlights the challenges in the traditional gaming industry, Mythical Games' approach to making Web3 "invisible" for players, and the success they've achieved with games like NFL Rivals and Pudgy Party. They also touch upon user adoption, the importance of cultural resonance over speculation, innovations in their platform, tokenomics, and their choice of the Polkadot ecosystem for their blockchain infrastructure.

Key takeaways

• Web3 as an Enhancement, Not a Genre: Mythical Games focuses on using Web3 technology to improve existing Web2 games, making them stronger and differentiated, rather than creating a new Web3-specific genre.
• Focus on Consumer Empowerment: Web3's potential lies in giving consumers more power and control over in-game assets, shifting the focus from pure speculation to asset ownership and freedom of choice.
• Addressing Gaming Industry Flaws: Traditional gaming faces challenges like high player concentration, difficult customer acquisition, overlooked markets, and tough app store regulations. Web3 offers leverage and new monetization possibilities.
• IP Integration is Key: Successful collaborations with IPs like NFL and Pudgy Party are crucial. The IP must have strong community resonance and be adaptable to current trends.
• Seamless User Experience: The success of Mythical Games' titles, like NFL Rivals achieving a higher app store rating than Madden, demonstrates that Web3 elements can be integrated without compromising the core gaming experience. A significant portion of their users (around 88%) have no prior Web3 experience.
• Cross-Ecosystem Strategy: Mythical Games utilizes multiple blockchains (Ethereum, Solana, Polkadot) for different assets, aiming for broad accessibility and user acquisition across the Web3 space.
• Tokenomics Focused on Utility and Deflation: The MYTH token is designed for utility within the ecosystem, with users buying it for in-game use regardless of price fluctuations. A significant portion of tokens remain within the ecosystem, and transaction fees contribute to burning tokens, creating deflationary pressure.
• Polkadot Ecosystem Choice: Stability, scalability, and the ability to build their own L1 chain with their own gas token were key factors in choosing Polkadot, ensuring a reliable platform for their high-throughput gaming needs.
• AI as a Force Multiplier: AI is expected to significantly impact gaming through asset generation, world-building, and cost reduction, though human creativity will remain central.

The MYTH token is designed with a focus on utility and deflation, aiming to create value beyond mere speculation. Here's how:

• Utility-Driven Demand: Consumers purchase the MYTH token primarily for its in-game utility—to acquire favorite players, open packs, or get cosmetic items. This demand is largely price-agnostic; users will buy what they need regardless of whether the token is priced at 10 cents or $10. This also means user spending is less affected by market volatility.
• Consumer Retention: A significant portion of the tokens purchased by consumers (around 76% historically) remains within the ecosystem. These users don't typically sell their tokens but continue to spend them, generating transactions.
• Deflationary Mechanism: Transaction fees generated from these ongoing token uses are used to burn MYTH tokens. This process progressively reduces the total supply of tokens over time. Mythical Games has already burned millions of tokens, making the supply rarer.
• Long-Term Economic Model: With more games, more players, and new features being added, the utility of the token increases. This, combined with the deflationary burning mechanism, creates a scenario where demand grows while supply shrinks, putting upward pressure on the token's value.
• Focus on Ecosystem, Not Single Game: The MYTH token is positioned as an ecosystem token rather than a single-game token. This aligns with the idea that users are investing in the broader Mythical Games platform and its future development, not just one specific title.
• Future Developments: While the long-term tokenomics are considered strong, Mythical Games is actively working on improving short-to-mid-term economics. This includes exploring options like buybacks, treasury protocol fees, and rewarding long-term holders, pending regulatory clarity in the US. They are also focusing on increasing token liquidity and exchange listings.

The MYTH token's value accrual strategy extends beyond speculation by focusing on utility, deflation, and ecosystem growth:

• Utility-Driven Demand: The primary driver for MYTH token acquisition is its direct use within the Mythical Games ecosystem. Players buy the token for in-game items, player packs, cosmetic upgrades, and other functional purposes. Crucially, this demand is largely "price agnostic," meaning players purchase what they need for gameplay rather than speculating on price movements. This consistent utility demand provides a stable base for the token.
• Consumer Retention & Ecosystem Spending: A high percentage of tokens purchased by consumers remain within the ecosystem (around 76% historically). Instead of selling, these players continue to spend MYTH on various in-game activities. This continuous cycle of spending generates ongoing economic activity within the platform.
• Deflationary Mechanism via Transaction Fees: As players transact with MYTH tokens, transaction fees are generated. A portion of these fees is used to "burn" MYTH tokens, permanently removing them from circulation. This deflationary pressure, coupled with the consistent purchasing for utility, aims to make the token scarcer over time. Mythical Games has already burned millions of tokens, contributing to this supply reduction.
• Focus on Ecosystem Value: Unlike tokens tied to a single game, MYTH is designed as an ecosystem token. This means its value is linked to the overall health, growth, and interconnectedness of all games and services within the Mythical platform, rather than the fluctuating popularity of one specific title.
• Addressing Short-to-Mid-Term Value: While the long-term deflationary and utility-based model is robust, Mythical Games is actively working on enhancing short-to-mid-term token value. This involves exploring strategies like treasury protocol fees and buyback mechanisms, which are becoming more feasible as the regulatory landscape evolves. The goal is to create more direct benefits for token holders and the ecosystem.
• Increased Liquidity and Accessibility: Efforts are underway to increase the token's liquidity and accessibility by pursuing more exchange listings and exploring staking mechanisms, making it easier for users to acquire and utilize MYTH.

In essence, the MYTH token aims to accrue value by ensuring it's consistently needed for gameplay (utility), actively reduced in supply (deflation), and integrated into a growing ecosystem, making it more than just a speculative asset.