Web3 Gaming Sector Faces Crisis Amid Unsustainable Economics and Lack of Engagement

The decline of the Web3 gaming sector has been a gradual process, but recent developments have accelerated its downward trend. Meta's Horizon Worlds metaverse project is shutting down due to lack of mass adoption, and Solana Foundation President Lily Liu has stated that blockchain gaming is dead.

One reason for the failure of these projects is their focus on earning rather than gameplay. Most Web3 games were built around the idea of 'earn while you play' instead of 'play because it's fun.' As a result, users came not for the experience but for income, which disappeared once rewards declined.

Another factor contributing to the crisis is unsustainable economics. Many projects had inflationary models that relied on constant user growth, which collapsed once new players stopped joining.