Why Are There So Many Bots In Web3 Games?

GM. This is Lootbox. Today we are bringing you bots for your loot. Here's what we've got

• What drives the proliferation of bots in Web3 games

• We asked a bot about Web3 games in today's sneakies

Why Do We Have So Many Bots?

As anybody searching for a WL (whitelist) or playing an early access Web3 game will tell you, the competition is fierce, and loaded with bots. Mints are often botted to the point of selling out in seconds, games are broken within days, and bots are used to farm and extract value from their ecosystems.

So who is really at fault here? Is it the people using technology to gain an unfair advantage over the average user? Or is it developers who continue to incentivize value extraction? The author Shin Murata at Cointelegraph had a few things to say about this.

Before we get to that, how would you use bots if you were a profit-seeking, opportunistic maniac?

• Whitelist farming - So you want to be in that private mint. First, you need to get on the whitelist. For that, you need to participate early in the community, fill out an application or complete some tasks. Ain't nobody got time for that, so make a bot that automates these tasks to score yourself a few private mints to flip onto retail.

• Scalper bots - Need to get a lot of that public mint and flip it for profit? A scalper bot is for you. Not like it's new to the internet shopper. Just ask anyone still waiting 2 years later for a new Xbox X. Use it to front-run unsuspecting buyers excited about the project, then flip it at a higher price.

• Token farming - Once a game has launched its ecosystem and begun its move to attract users, an earning mechanism, either with NFTs or ERC-20 currency tokens, is created. This is where you come in. Build a bot that automates the tasks that the game rewards with tokens. Once you have the tokens, dump them in your nearest DEX or CEX (if they end up continuing to exist).

Now you know how to game the system, let's get back to the opinion piece. Shin argues that GameFi is a breeding ground for bots, and the problem is structural. Here is the main point made.

How fundraising is done

So how do early-stage Web3 gaming projects raise funds?

Generally, a project will sell an NFT collection before raising VC capital.

Why is that?

VCs usually look for strong communities as a signal for potential, among other things. Often, sold-out NFTs and the community's size can be a strong signal for a strong fan community. This creates incentives that breed the "Sell By Any Means" mentality to get enough cash to get through the initial hoop.

This leads to other problems

• Creating empty hype - Getting influencers to spread the word about a blockbuster game using a trailer that costs $10,000 while making unrealistic promises. We've seen this in projects where NFTs and tokens were sold and 3 years later, there's still no game.

• Building fragile communities - Using incentives to attract community members that are not excited about the project but are in it for the rewards. Hiring shills to prop up the community. This makes for communities that look alive on the outside but are dead inside.

• Pump and dump campaigns - Remember Squid crypto? They used hype that many projects try to generate to get their token to $2,800, then abandoned the project.

•  Bots - We humans are activated and motivated by our emotions. If we drive humans with incentives with no emotional attachment to the game beyond cashing out, we get the profit-seeking behaviours that breed the creation of extraction bots.

Check out this tweet analyzing over 60 Web3 games.

200,000 bots. That number is pretty unreal.

Our take

Bots aren't going anywhere anytime soon. In fact, they are tools, and like any tool, they can be used for productive or destructive use. We can use bots to make Web3 games more productive or even use them to counter bots that seek to extract.

When it comes to building a community, the initial people that are allowed in the community determine the culture of the community. If a community is initiated with people that want to extract from the game, the game users would assume that mindset.

The Sneakies

We got to play with the AI that has taken over the news during the weekend. It is called ChatGPT. We asked it a few questions about Web3 games. Here's what it had to say.

Wait no blockchain??

That's a relief it thinks Web3 gaming will be around for a while.

Some good strategies.

This one was rather disappointing. I was expecting an elaborate plan that would scare the crap out of everyone.

Want to try playing around with it? You can find it here.

Did you enjoy today's edition? Share the link below with a friend that you think would love it.

https://lootbox.gmfrens.games/

Until Next time...

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