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GameFi Has a cheating Problem

GameFi is routinely pitted as a scourge among most gamers for a variety of reasons revolving around a greater emphasis on microtransactions over entertainment value which has not helped grow the userbase for blockchain-based games. 

At the beginning of 2023, Yuga Labs made an attempt to break this mold with the release of their game Dookey Dash which gave BAYC holders the opportunity to play a skill-based game that rewards the highest-scoring players. 

Unfortunately, Yuga Labs had to announce the inevitable - people were cheating. Although this was largely overlooked by most in the NFT community, it still presents a major issue that needs to be addressed before GameFi can continue.

Cheating in GameFi

Cheating in GameFi possess a lot of issues for the industry as it not only disrupts the enjoyment of the game, but also creates a larger problem because of the financial assets involved. While many people want to convince us that GameFi is meant to make gaming more enjoyable, the simple truth is that most people interested in blockchain gaming are seeking financial rewards which creates a lot of potential for exploitation. 

In the month following Dookey Dash’s release, Yuga Labs put out a tweet stating that cheating had occurred and that those cheaters were removed from the leaderboards and were banned from participating in the game. 

Although it is good to see Yuga Labs taking action to stop this from happening, no information was given about any punishments or penalties concerning the cheaters’ membership status within the BAYC, which highlights a bigger concern. 

When taking the financial rewards of Dookey Dash into consideration, red flags should be raised everywhere as the ugly side of decentralization begins to show itself. Despite these cheaters being known, they are unable to be removed from the BAYC community which possesses greater risks in the future for the community as more GameFi opportunities are created. 

GameFi and Gambling

One of the largest criticisms surrounding GameFi is its similarity to gambling. The concept of a game that is used to earn a direct profit with implied risks is akin to casino games which is something that most gamers have a right to oppose. 

Video games and gambling are two distinctly different types of gameplay that are only related in the sense that they are games. The added inclusion of profit and risk is something that requires additional protections as it can create legal issues and many players are simply not interested in gambling when they turn on a console or PC.

However, because GameFi is such a new concept and has yet to be fully explored, there is not much in terms of regulations or laws that exist as we see with gambling which has many regulatory bodies that are responsible for maintaining integrity.

Nevada's Gaming Board and GameFi

With so many similarities between gambling and GameFi, an obvious question begins to surface - how can current state gaming boards be used to influence new regulations and laws regarding GameFi? 

The best example would be the Nevada Gaming Control Board which overlooks all of the gambling activities in the state of Nevada, including Las Vegas which has the highest density of casinos in the United States. 

The board has extensive control of regulations and law enforcement. Their experience with gambling and cheating is some of the best in the world and could lead the way towards improved oversight in web3 where play-to-earn is still developing. 

However, as qualified as they are, asking the Nevada Gaming Control Board to assist in handling GameFi regulations to mitigate cheating can be seen as a clear admission that GameFi is in fact gambling; but maybe that’s what needs to happen.

As it is, Gamefi is still being marketed as the next best thing to happen to video games, but gamers aren’t buying into that belief because it’s clear that the entire concept is financially motivated. By switching the emphasis to what GameFi clearly is - gambling - the web3 industry could position itself into a place where it can pursue stronger innovations without operating under the illusion that they are developing games purely for the sake of entertainment.