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The psychology of giving users tokens upfront is detrimental to a trad micro-transaction / ROAS business model.
If a user is paid to play, the expectation is set that the game is about getting money.
This creates an environment where users won't spend money in the game, unless they expect to get more money in return. So far only 2 business models have worked to a reasonable degree from that point:
1. Turn the game in casino where some users might get more money than they put in
2. Lean into it until it implodes
Axie infinity worked for a while because it was all about users getting money. Users were willing pay the fees on transactions, because they were making money.
The pitfall of users expecting that money earned > money spent is that the entire thing has to constantly grow, because in reality the money to existing players will only come from the new players coming in.
If at any point growth stops and new players coming in start losing, the entire chain of users collapses. Without a way to inject external stimulus, the game fails as no one wants to 'play' if they're not making money.