The ROI in Pixels is inconsistent across different investment levels, with higher rewards given to VIP members and landowners, while free-to-play users have limited opportunities to earn PIXEL.
The Return on Reward Spend (RORS) ratio is currently 0.5, indicating that more tokens are being distributed as rewards than are being spent in-game, which suggests an unsustainable ROI model.
The PIXEL token price has declined by 76% in 2024, adding significant sell pressure and making it difficult for players to achieve a positive ROI, especially given the token's volatility.
The game's focus on data-driven reward targeting and player segmentation shows potential for improving ROI sustainability, but these measures are still in development and have yet to yield significant results.
The earning potential for casual players is limited, with the process of earning PIXEL being time-consuming and competitive, making it difficult for new players to achieve consistent earnings.
The game's revenue has shown steady growth, but the high token volatility and current RORS ratio significantly impact the stability and long-term projections of the ROI.
Introduction
Return on investment (ROI) is a critical metric in Web3 gaming, determining the viability and sustainability of play-to-earn models.
In the case of Pixels, analyzing ROI involves understanding the balance between initial costs, earning potential, and the time investment required for players to achieve a positive return.
This report will cover:
The game's reward system and its impact on player ROI.
The role of tokenomics in shaping the sustainability of player earnings.
The measures taken by the development team to optimize rewards for committed players.
Reward System and Earning Potential
Players can earn PIXEL tokens by completing tasks on the taskboard, but the process can be time-consuming and competitive.
[1a]Pixels' Return on Reward Spend (RORS) ratio ended 2024 at 0.5, meaning that for every 100 PIXEL given out as rewards, only 50 were spent in-game.
[2a][2b]The ratio indicates that the game is not yet generating a net positive return for the ecosystem, as more tokens are being distributed as rewards than are being spent in-game:
[2c]
Higher rewards are given to VIP members and landowners, who have more opportunities to earn PIXEL through additional taskboard slots and premium tasks.
[3a]
The game aims to optimize rewards by targeting players who are more likely to reinvest their earnings in the game rather than selling tokens off.
[2d]
The emphasis on reward targeting aims to improve the RORS ratio, which is critical for achieving a sustainable ROI for players.
[2e]
Tokenomics and ROI Stability
The PIXEL token price declined by 76% in 2024, partly due to the sub-1 reward ratio adding constant sell pressure.
[2f]The volatility of the token has a direct impact on the ROI for players, as the value of their earnings can fluctuate significantly over short periods.
[4a]However, the game has seen steady growth in monthly revenue, with December 2024 hitting an all-time high of 10 million PIXEL spent in-game:
[2g]
The game has introduced measures to stabilize the token economy, including in-game coin purchasing, which represents the largest PIXEL burn.
[5a]
The Community Treasury has grown to nearly 40 million PIXEL, with plans to unveil governance plans to empower the community.
[5b]
These measures aim to reduce token volatility and improve the long-term sustainability of the game's economy, which is critical for achieving a stable ROI for players.
[5c]
Optimizing Rewards for Committed Players
The development team is using data science and predictive modeling to target rewards towards players who are more likely to reinvest in the game rather than selling tokens.
[5d]This approach helps to optimize the Return on Reward Spend (RORS) ratio, which is critical for achieving a sustainable ROI for players.
[2e]The team is also experimenting with reward distribution mechanisms, focusing on four main player personas: free-to-play users, VIPs, landowners, and Pixels Ambassadors:
[6a]
Free-to-play users may receive occasional taskboard tasks that offer PIXEL, while VIPs and landowners have access to more opportunities to earn tokens.
[6b]
The rewards dashboard allows for flexible reward distribution, including tasks based on leaderboard rankings, login streaks, and social media sharing.
[3b]
The goal is to create a system where 95% of users are net zero or net positive in terms of earnings, while 5% monetize like a traditional free-to-play userbase.
[7a]
Conclusion
In conclusion, Pixels shows potential for offering a reasonable and sustainable ROI for players, but challenges remain in achieving net positive returns.
The game's reward system, tokenomics, and data-driven reward targeting are key factors in shaping the viability of player earnings.
Further optimization of the RORS ratio and reduction of token volatility are critical for achieving long-term sustainability:
Players can earn PIXEL through tasks, but the process can be time-consuming, and the current RORS ratio of 0.5 indicates that more tokens are being distributed as rewards than are being spent in-game.
[2a]
The PIXEL token price has declined by 76% in 2024, partly due to the sub-1 reward ratio adding sell pressure, which impacts the ROI for players.
[2f]
The development team is focusing on data-driven reward targeting and player segmentation to improve the RORS ratio and achieve a sustainable ROI for players.
[5d]
