About the Author

Andrew Saunders is the Chief Marketing & Growth Officer at SKALE, the Ethereum-compatible modular AppChain network designed to scale gaming, AI, and high-performance dapps to the masses. He previously served in executive positions at Arbitrum and Hashflow, and before that was part of the leadership teams at Amazon, NBCUniversal, and Creative Artists Agency.

The views expressed here are his own and do not necessarily represent those of Decrypt.

The rapid ascent of tap-to-earn games on Telegram underscores a transformative moment in the Web3 gaming sector. As Telegram's user base swells to 950 million monthly active users, these games have seized the spotlight, reportedly engaging over 300 million users in a matter of months.

This remarkable uptake has effectively dethroned play-to-earn games—the trend popularized by Axie Infinity back in 2021—with notable successes like Catizen, which has already earned approximately $27 million from in-app purchases, and Notcoin, which conducted the largest gaming airdrop of 2024 in May after amassing 35 million players.

While tap-to-earn games excel at attracting new users with their easy accessibility and engaging mechanics, they often lack the depth needed for sustained long-term engagement. This presents a significant challenge: While they are exceptional at onboarding users, their retention strategies must evolve to maintain user interest beyond the initial allure.

Tap-to-earn games have rapidly captured the attention of the crypto community, largely due to their simple, intuitive gameplay that allows players to earn points and tokens with minimal effort. These games, which are seamlessly integrated into Telegram, require nothing more than a smartphone and the free Telegram app to get started. The appeal is further heightened by the low entry barriers and the immediate gratification of earning rewards just by tapping.

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Hamster Kombat further illustrates this trend, with the tap-centric crypto exchange simulation reportedly gathering over 300 million users, and even drawing controversial attention from Iranian officials amid their presidential election. This easy accessibility aligns well with the growing trend of users seeking quick, rewarding experiences, similar to the model seen in platforms like Roblox where users can monetize their in-game creativity.

However, while tap-to-earn games excel at drawing users in with their straightforward mechanics and social features, they often lack the depth required to sustain long-term engagement. And after the token drops, what’s left to keep players hooked?

Onboarding users in the Web3 space is pivotal for broadening adoption and engagement. Effective onboarding bridges the gap between traditional experiences and the emerging world of Web3, making complex concepts more accessible. For example, users transitioning from simple tap-to-earn models to more intricate crypto ecosystems can illustrate this process.

Games like Gods Unchained and Splinterlands—both long-running, NFT-driven competitive card games—provide low-cost entry points, allowing users to experience Web3's potential without sizable financial barriers. This approach not only simplifies the initial engagement but also fosters a smoother transition to more advanced blockchain interactions.

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By lowering entry costs and leveraging familiar gaming mechanics, onboarding strategies can significantly enhance user experiences and facilitate a broader embrace of Web3 technologies.

Tap-to-earn games, particularly those based on Telegram, face several notable shortcomings that undermine their long-term viability. First, the nature of these games attracts users with short attention spans, akin to those drawn to meme coins. These users are often driven by fleeting interests and quick rewards, leading to high churn rates and a lack of consistent engagement.

Tap-to-earn games also generally lack depth and complexity in their gameplay. The simplistic mechanics—which involve merely tapping and accumulating points, and perhaps interacting with menus—fail to offer the engaging and immersive experiences needed to sustain long-term interest. This results in limited user retention and minimal progression beyond initial excitement.

Finally, the market for tap-to-earn games has become quickly saturated, leading to diminished value and decreased user interest. As more games flood the market with similar reward structures and gameplay that lightly riffs on what came before, the novelty wears off quickly and the rewards become less attractive, contributing to a decline in overall enthusiasm.

In the rapidly evolving gaming industry, the key to creating games with real value lies in understanding and addressing the fundamental needs of both gamers and developers.

Gamers seek engaging, high-quality experiences that provide genuine enjoyment and meaningful progression. Gaming is emerging as a prime example of how Web3 technologies can be utilized effectively, emphasizing the need for immersive and valuable gameplay rather than mere speculative rewards and little reason to stick around otherwise.

On the other hand, developers aim for user retention and long-term success. To achieve this, it’s essential to focus on creating games that are entertaining and offer lasting value and interaction.

By prioritizing depth and quality in game design, developers can foster sustained player engagement and loyalty, ultimately achieving a more robust and enduring presence in the market. This approach enhances user satisfaction and aligns with the broader goals of Web3 innovation, ensuring that both gamers and projects benefit in the long run.

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The meteoric rise of tap-to-earn games on Telegram represents a seismic shift in the Web3 gaming landscape, demonstrating the immense potential of simple, accessible gameplay to capture mass attention. But while they’ve onboarded millions with easy rewards and engaging mechanics, they’re often failing in keeping players hooked long-term due to superficial design.

To revolutionize the gaming experience, developers must create games that not only offer instant rewards, but also incorporate deeper, more engaging gameplay to ensure long-term player retention and satisfaction. The future of Web3 gaming hinges on this evolution, promising a dynamic and immersive experience that transforms casual play into sustained engagement.

Edited by Andrew Hayward

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