Pixels: Next Axie Infinity
“Have fun staying poor” — every crypto-freak
I was looking for a game based on NFTs, Blockchain, and other crypto bullshit, Pixels caught my eye, it stands out as the top #1 Blockchain Game, and it has nothing innovative in it that I haven’t seen in another game before.
Today it is in first place in this ranking (July 21, 2024, 6:53 PM CEST): https://dappradar.com/rankings/category/games.
What is Pixels?
Pixel is a blockchain-based metaverse game where players can own virtual plots of land, engage in farming, complete quests and participate in the game’s dynamic economy. Using $PIXEL tokens for transactions and rewards.
Astronomical Land Cost
How much do you think land costs in a game like this, regarding a place where you can farm and enjoy the game?
Around $3,600 for the cheapest single plot of land, is a significant investment, and IT IS a barrier for many players.
Imagine going on a date with a girl you just met or casually chatting with your buddies at work and bragging about buying a piece of land for $3600. LOL 🤣 Maybe you can make a deal with them so you get most of their profits and everyone will be happy.
Okay, so we have the benefits and potential profits if you own land, but it creates a toxic environment where wealthier players have a distinct advantage. What fun is it to play a game where you know not everyone has an equal chance?
“I happily played World of Warcraft during 2007–2010, but one day Blizzard removed the damage component from my beloved warlock’s Siphon Life spell” — Vitalik Buterin
Vitalik Buterin was unable to adapt to changes in a centralized game, and here we have a worrying pattern that is present in every NFT game. If something is decentralized, there is no mechanism to implement the necessary improvements, potentially disrupting the enjoyment of other players and leading to abuse in the form of HEAVY PAY TO WIN.
In games, a too-powerful Warlock ability reduces the enjoyment of the game for everyone else.
Similarly, in real life, constant adaptation is essential. Without it, systems — decentralized or not — fail to meet the changing needs and fairness expected by their users.
At this point questions occurred to me:
- Why play a game where all that matters is money?
- Isn’t it better to buy something in real life, like a car for the price of a plot of land in Pixels?
- Why play a game without balance?
- What’s the point of playing a game where NFTs remain overpowered and unbalanced?
And most important:
- In real life, we adapt all the time — why should it be different in gaming or decentralized systems?
Limited Land
“Pixel Farm Land” (source: https://marketplace.skymavis.com/collections/pixels-farmland 21 July 2024, 7:26 PM CEST) is a collection of 5,000 unique NFT plots in the Pixels metaverse.
This artificially increases the value of the Lands, but also limits their availability, making it even harder for new or less affluent players to participate in the game’s economy fully.
It’s worth noting that there are currently 1,761 owners, 50% of which are unique owners, indicating that many are speculating and buying multiple plots. We currently have a similar phenomenon in the real estate world, where a basic good has become a commodity.
Pixels Economic Mechanisms
The official whitepaper describes several key economic mechanics that differentiate players based on their level of investment (now consider whether you want to play the game to invest, or to have a job after work, or a full-time job like Axie Infinity).
TL;DR
- Free-to-Play Users: Limited earning potential, occasional rewards for tasks.
- VIPs: More challenges to take on, exclusive prize pools.
- Landlords: Access to exclusive resources and “additional earning potential”.
Doesn’t that sound like a Ponzi Scheme?
Will people be exploited in Pixels?
TL;DR
Honestly, IMO yes, especially players from less affluent regions who may want to make a living from the game (as was the case with Axie Infinity).
The imbalance of power and influence will affect the exploitation of players.
This structure is similar to a “Ponzi scheme” or speculative cryptocurrency model, where early adopters reap the rewards while new participants face risks.
In Pixels, those who invest in land and VIP status stand to gain the most, potentially at the expense of those who cannot afford to participate at the same level.
The free-to-play model of the game further deepens the economic divide. Players who do not invest in land or VIP membership are relegated to a lower category with limited opportunities to earn money. These free-to-play users perform tasks that primarily benefit the landowners, similar to historical labor practices where peasants worked under the control of landowners.
The picture below remindes me of Free 2 Play players and one Landowner.
In the context of Pixels, Free-to-Play players can be seen as modern-day workers, working in a system that extracts value primarily for the benefit of those who have invested in the land. If these players feel undervalued or exploited, they may stop playing, leaving the system dependent on a steady influx of new participants to maintain its economic model.
The landowners and VIPs in Pixels have a significant influence on the game’s economy and resource distribution. This concentration of power solidifies their dominant position, reinforcing their advantage and making it harder for free-to-play players to compete on equal terms.
Axie Infinity: Modern Slavery in the NFT World
Developed by Sky Mavis in 2017, Axie Infinity became a wildly popular NFT game, particularly in developing countries, promising financial relief through cryptocurrency rewards. The game peaked in popularity in 2021 but faced significant criticism for its high entry costs and exploitative scholarship system.
The game’s economy relied on new players purchasing pricey Axie NFTs and using in-game cryptocurrencies like SLP and AXS. The high initial investment led to a pyramid-like structure, causing economic instability as player interest waned and token values plummeted.
There have been reports of wealthier individuals demanding high percentages of the earnings of those who were loaned creatures to play and charging unreasonable amounts. Some managers have even resorted to unethical practices, such as requesting nude photos to identify persons and loan creatures.
Examples of scholarship requests are available here: https://www.reddit.com/r/AxieScholarships/
In March 2022, a major security breach orchestrated by North Korean hackers led to the mass theft of funds from Axie Infinity. This event severely damaged player confidence and contributed to a sharp decline in player count and in-game currency value to this day.
Described as a simple turn-based card game, Axie Infinity’s gameplay has been criticized for being bland, repetitive, and heavily pay-to-win. Despite its initial success, the game was seen by many as a financial trap rather than an enjoyable gaming experience, just like any cryptocurrency-related project, right?
Will Pixels follow the same path as Axie Infinity?
TL;DR
In my opinion, YES, taking into account the high entry costs and economic mechanisms in Pixels.
Much like Axie Infinity requires a significant upfront investment to get started, Pixels’s high land prices create a barrier to entry that could lead to economic exploitation.
Pixels, with its clear advantages for wealthier players, risks creating similar economic inequality to that seen in Axie Infinity, where less affluent players become dependent on wealthier landowners for opportunities and rewards.
Pixels’s land lease model could easily mirror Axie Infinity’s exploitative stipend system, with free-to-play users completing tasks for minimal rewards while “early adopters” reap significant rewards.
In my opinion, Pixels will face the same economic instability and eventual collapse as Axie Infinity.
Conclusion: Game or Scheme?
The economic structure of the Pixels project raises my concerns about exploitation and inequality. There are many red flags, such as the lack of information about who is behind the project.
The game design favors those who can invest heavily, potentially marginalizing players from less affluent regions and turning free-to-play players into employees who benefit the wealthy, not to mention that the Crypto itself does not generate any real value, and being a Pixels player is not a profession.
“A profession is a set of tasks (set of activities) identified as a result of the social division of labor, performed constantly or with little variation by individuals (including employers or individual entrepreneurs) and requiring appropriate competencies (knowledge, skills, and social competencies…”
Do you think being a Pixels player meets this definition?
If you are considering playing Pixels, think twice whether you are attracted to the game for its immersive experience or if you want to earn money from it and participate in this exploitative economic model that reflects historical injustices.
Maybe it is better to play a better alternative where you do not have to pay for the game all the time. For example, Stardew Valley, which currently costs $14.99 including tax on Steam, and already includes Land, which is worth at least $3600 in Pixels.
In my opinion, the money wasted and squandered by investors could have been invested in more noble causes than pumping another bubble that will burst anyway.
Pixels is yet another speculation that will benefit the few who may have known what they were getting into and invested in it, so it may be part of a plan that YOU simply don’t know about.
At the end, I’m attaching a screenshot of the “Team” tab from the Pixels Whitepaper and that’s the end of this story.
