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<div class=text-justify>The promise of Web3 has been bold and exciting: decentralized ownership, transparent economies, and a more equitable experience for users. But as we continue to watch the space evolve, it’s becoming increasingly clear that the path forward isn’t as smooth as many once hoped. We’re seeing more and more Web3 projects shut down—even those that seemingly had everything going for them.<p>
A recent and surprising example is The Walking Dead: Empires, a game developed within the Gala Games ecosystem. On paper, it had all the right ingredients for success: a globally recognized IP, backing from a known Web3 platform in Gala Games, and one of the larger financial development pools in the industry. Yet, despite all of that, the project is now being shut down.
This wasn’t an isolated incident. It's becoming a pattern in Web3 gaming and development—one that’s raising a number of important questions.
The Core Challenge: Economic Sustainability
At the heart of the issue is a simple but hard-to-solve problem: how do you build a sustainable economy in Web3 where value is freely distributed and exchanged?
In the early days of Web3 gaming, the Play-to-Earn (P2E) model gained a lot of traction. The idea of being paid to play was revolutionary. But the mechanics behind it were often deeply flawed. When value is distributed at scale—especially to early adopters or investors—the pressure to generate new value (or attract new users to fund it) becomes immense.
The earnings and value curve in these models is often inversely proportional: when more users join and earning opportunities peak, the actual long-term value tends to erode. Once earnings outpace utility or fun, and speculation replaces engagement, the system quickly collapses.
The Velocity Problem: Users Move Faster Than Builders
Another major issue is the velocity of capital and users. Participants in Web3 move quickly between projects, often chasing the next big token or airdrop. This rapid churn makes it difficult for any project to build lasting value. Most tokens get dumped as fast as they’re earned, and developers can't iterate fast enough to keep up with that pace.
It’s not just a game development problem—it’s a Web3-wide ecosystem problem. Building anything meaningful takes time, but most projects are judged within months, if not weeks, of launch.
Why Survival Matters: The Case for Splinterlands
In this harsh environment, survival becomes the most underrated feature of any Web3 project. That’s why I continue to view Splinterlands as a staple in the space.
It hasn’t been a smooth ride, and like any long-term project, it has faced (and continues to face) tough decisions, economic adjustments, and community feedback loops. But it’s still here. And that matters.
Persistence allows for iteration. Iteration leads to refinement. And refinement is what will eventually lead to the economic models that actually work—both for developers and users.
A Web3 Future Worth Building
Despite the recent shutdowns, I remain optimistic. We’re in a space where innovation is happening out in the open. These aren’t just failed projects—they're live experiments with real data, real people, and real consequences.
Eventually, someone will find the balance. A model that isn’t just extractive or speculative, but fun, rewarding, and sustainable. And when that happens, Web3 adoption will surge—not because of hype, but because of value.
Until then, surviving projects like Splinterlands deserve more credit. Not just for hanging on, but for helping Web3 evolve, one tough decision at a time.</div>
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<sub><sup>Disclosure: Please note that for the creation of these blog posts, I have utilized the assistance of ChatGPT, an AI language model developed by OpenAI. While I provide the initial idea and concept, the draft generated by ChatGPT serves as a foundation that I then refine to match my writing style and ensure that the content reflects my own opinions and perspectives. The use of ChatGPT has been instrumental in streamlining the content creation process, while maintaining the authenticity and originality of my voice.</sup></sub>
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