The game demonstrates robust technical risk management through its integration with Etherlink and SKALE, which enhance security, reduce gas fees, and minimize scalability risks.
Bit Hotel employs effective economic risk management strategies, including a ticket system with intelligent capping, BTH token burning, and staking incentives, promoting economic stability.
The game showcases a comprehensive community risk management approach, utilizing referral systems, regular updates, and social features to encourage engagement and retention.
Proactive measures, such as smart contract audits and fast, secure blockchain integrations, help prevent hacking and exploitation attempts, ensuring the game's long-term sustainability.
Introduction
In the evolving landscape of Web3 gaming, effective risk management is crucial for the long-term sustainability and integrity of a game’s ecosystem.
Bit Hotel, a social open-world hotel game on the blockchain, faces a range of potential risks, including security vulnerabilities, economic imbalances, technical challenges, and community engagement issues.
This report will cover:
The technical strategies employed to mitigate security and scalability risks.
The economic mechanisms in place to maintain liquidity and prevent market manipulation.
The community engagement strategies aimed at maintaining player retention and addressing potential backlash.
Technical Risk Management
Bit Hotel has taken significant steps to mitigate technical risks, particularly in terms of security and scalability, through its integration with blockchain networks such as Etherlink and SKALE.
[1a][2a]The integration with Etherlink, an EVM-compatible Layer 2 blockchain, has addressed scalability and gas fee challenges that were previously a major concern.
[1b][3a]Furthermore, Etherlink and SKALE provide fast, secure, and cost-effective environments for in-game transactions, reducing the risk of network congestion and performance issues:
[2b][1c]
Etherlink’s low gas fees and scalability have made it easier for new users to join Bit Hotel, with the game covering gas costs for 60% of its users, reducing barriers to entry.
[1d]
SKALE’s zero gas fee environment ensures that in-game transactions remain cost-effective and scalable as the player base grows.
[2b]
The integration with these blockchains also enhances security, reducing the risk of smart contract vulnerabilities and hacking attempts.
[1c][2b]
Economic Risk Management
Bit Hotel employs several strategies to manage economic risks, ensuring the stability and sustainability of its in-game economy.
The game’s ticket system is designed to balance inflationary pressures by capping the number of items available in the shop based on daily active users, preventing oversupply and maintaining item rarity.
[4a]Additionally, the game includes burning mechanics for its native token, BTH, to reduce supply and maintain long-term economic balance:
[5a]
The intelligent capping of in-game items ensures that the economy remains stable even as the player base grows, preventing devaluation of assets.
[4a]
Burning 25% of transaction fees in BTH helps to reduce token supply, mitigating inflationary pressures and maintaining token value.
[5a]
The game’s staking model for BTH with APY boosts for room NFT holders incentivizes long-term investment, contributing to economic stability.
[5c]
Community Risk Management
Bit Hotel places a strong emphasis on community engagement, fostering a sense of belonging and inclusivity among its players.
The game’s social and cooperative nature encourages players to form smaller, more elite groups or larger, inclusive communities, catering to diverse player preferences.
[6a]Bit Hotel also actively addresses potential issues like bugs and glitches, with regular updates and bug fixes to improve the player experience:
[7a]
The game’s referral system rewards both the referrer and the referred player with 100 tickets, incentivizing community growth and player retention.
[7b]
Regular updates, such as the introduction of new playable characters and bug fixes, demonstrate the team’s commitment to improving the player experience and addressing community feedback.
[7c]
The game’s clubhouse feature for DAOs and communities enhances social interaction, fostering a sense of community and reducing the risk of player disengagement.
[2e]
Conclusion
Bit Hotel demonstrates a proactive approach to risk management, addressing technical, economic, and community challenges to ensure the sustainability of its Web3 gaming ecosystem.
The game’s integration with Etherlink and SKALE has resolved scalability and gas fee issues, while its economic mechanisms maintain liquidity and balance in the game’s economy.
[1b][2b]To further strengthen its risk management strategy, future research could focus on:
The effectiveness of its community engagement strategies in maintaining long-term player retention.
The potential impact of external market conditions on the game’s economy and liquidity.
The adaptability of its technical infrastructure to evolving blockchain technologies and security threats.
