Market Challenges and Strategic Opportunities

The sustainability crisis of GameFi 1.0

The core of the first generation of P2E games, including Capverse 1.0, was the "Play-to-Earn" and "Invite-to-Earn" model. Players earned in-game points (such as LAND) through gameplay (such as combat and completing quests), and then exchanged them for governance tokens (such as $CAP) with market liquidity, essentially resulting in an unlimited supply of tokens.

The fundamental flaw in this model lies in its endogeneity of economics. Token generation originates from gameplay, while its value depends entirely on market expectations of future new player inflows. This creates a fragile, reflexive cycle:

• The more players there are, the more tokens are generated (inflation).

• To maintain prices, more new players (new buyers) are needed to absorb this inflation.

• Once new player growth slows, selling pressure will outweigh buying demand, causing the token price to spiral downwards and destroy the game's economy.

Its fundamental flaw lies in the fact that without the injection of real external value, the economy cannot achieve a sustainable closed loop.

RWA's "High Value, Low Reach, Low Stickiness" Crisis

Real-world asset (RWA) tokenization is widely recognized as the next trillion-dollar market in Web3. It brings illiquid but high-value traditional assets (such as real estate, private credit, and US Treasury bonds) onto the blockchain, enabling 24/7 global liquidity, transparency, and composability.

While the RWA market is booming, it has also become extremely fragmented. BlackRock (BUIDL), Franklin Templeton (BENJI), Ondo (OUSG), Centrifuge (CFG), and others issue their own assets, operate on different chains, and have different compliance standards and technical interfaces. For ordinary users, this presents a huge cognitive burden: "Which one should I choose?"; "Which is more secure?"; "How do I build a diversified portfolio spanning multiple issuers?"

While the feasibility of putting institutional assets (such as US Treasury bonds and structured loans) on the blockchain has been successfully verified, these products are designed for institutions and high-net-worth individuals. For the vast majority of ordinary retail users in the market, RWA means:

• High entry barriers Complex KYC/AML processes and “accredited investor” certification.

• Poor user experience The user interface is designed for finance professionals and is filled with complex terminology and legal documents.

• Lack of participation Buying a government bond fund is a passive, infrequent, and tedious activity. It cannot provide the sense of community, accomplishment, and interactivity that Web3 native users seek. It cannot create a highly sticky community like a game, nor can it drive users to engage in continuous daily or weekly interactions.

The industry is facing a paradox: the most valuable Web3 products (RWA) have the worst user experience and the lowest user adoption rate. We believe that the next breakthrough for RWA lies not in "issuing" more assets, but in "distributing" and "packaging" existing assets. The market urgently needs an "RWA aggregation layer" and a "gamified interaction layer."