- December 11, 2025
- Category: Crypto
At Yellow Capital, we spend every day speaking with founders who are building the next generation of digital economies. Among all the sectors we explore, blockchain gaming continues to be one of the most misunderstood and most promising.
To get a clear and grounded view of what’s really happening in the space, we recently hosted an AMA with Flavien Defraire, Director of Global Development at the Blockchain Game Alliance (BGA). The BGA, formed in 2017, now represents over 300 companies working at the intersection of gaming and Web3. Few organisations have as broad a view of the industry.
The conversation revealed an ecosystem maturing quickly, learning from past hype cycles, and pushing toward more sustainable models. Below is our perspective on where blockchain gaming stands today, based on that discussion.
Why Mainstream Adoption Still Feels Slow
Although blockchain gaming has advanced significantly, mass-market adoption remains uneven. Flav pointed to three main realities shaping that trajectory.
1. Psychological barriers still matter
The broader gaming community still carries the scars of the speculative NFT boom. Many players hear “blockchain” and immediately think “scams” or “cash grabs.” Even when a game uses blockchain purely for utility, perception can overshadow reality.
2. The UX isn’t seamless yet
Players don’t want to handle gas fees, wallets, and network switching. These are friction points that break immersion. Traditional gaming experiences feel smooth; Web3 experiences are getting better but aren’t uniformly there yet.
3. Cultural resistance slows experimentation
Many Web2 studios remain cautious, worried about reputational risk. Yet the tone of conversations is shifting not toward hype, but toward practical problem-solving.
These challenges don’t signal weakness. They simply show that blockchain gaming is maturing from concept to infrastructure, a process that requires time.
Why We’re Outgrowing the Term “Blockchain Game”
One of the strongest takeaways from the AMA was Flav’s argument that “there is no such thing as a blockchain game, there are only games that use blockchain.”
This shift in vocabulary mirrors a deeper shift in mindset.
Developers are no longer trying to build “Web3-native” experiences just for the sake of it. Instead, they’re asking:
“Where can blockchain solve real problems that already exist in gaming?”
Examples of this new mindset include:
- Distribution innovation, like YOM’s decentralised compute network that lets players access games on any device.
- Hybrid loyalty systems that combine off-chain behaviour with on-chain validation to fight bots.
- Creator monetisation models where asset contributors earn revenue based on usage.
- New microgame formats, such as degen casual games, enabled by tokenised value flows.
The trend is clear: blockchain is becoming a silent enhancer, not a marketing headline. That realism is a sign of industry maturity.
A Smarter, More Disciplined VC Environment
At Yellow Capital, we’ve watched the investment environment evolve sharply and Flav’s perspective echoed our own.
Three years ago, capital was abundant and expectations were loose. Today, VCs want:
- Real retention metrics
- Sustainable tokenomics
- Clear revenue paths
- Gameplay-first product design
This shift has filtered out weaker projects and rewarded teams with solid fundamentals. Flav highlighted Voya Games which raised $5M for Angry Dynamite as an example of a studio succeeding not because of hype, but because of thoughtful economic structure.
While fundraising is more selective, many investors are preparing to ramp up activity again around 2026, when the next wave of polished titles arrives.
A slower market is not a weaker market, it’s a healthier one.
What It Takes to Stand Out in Today’s Landscape
With thousands of games launching every month, Web3 studios can no longer rely on novelty to turn heads. According to Flav, the projects gaining traction right now all share a few important qualities:
They treat blockchain as a feature, not the foundation.
No one downloads a game because it is “Web3.” Players who care about fun, competition, community, ownership, and progression blockchain should support those goals, not overshadow them.
They iterate like traditional game studios.
In Web2 gaming, prototypes fail all the time; that’s a normal part of creative development.
In Web3, failure is often interpreted as a flaw in the technology itself. This is a mindset the industry must outgrow.
They understand their players deeply.
Blockchain adds value only when it’s integrated into a clear gameplay loop or economic need. The successful teams keep their designs grounded in user behaviour rather than token speculation.
The message is simple: good games win. Blockchain helps them win sustainably.
How Web2 Studios Should Approach Web3
Flav shared an important insight from his years of meeting studios at GDC, Gamescom, and other global events:
Web2 teams that start with blockchain usually fail. Those that start with a problem almost always find the right solution.
A studio struggling with user retention, distribution, or UGC monetisation doesn’t need a token — it needs clarity. Once the core problem is defined, blockchain’s role becomes obvious.
This is where the BGA’s network shines. By connecting studios with infrastructure partners, distribution platforms, and economic experts, they help teams integrate blockchain gradually and sensibly.
What’s Next for the Blockchain Game Alliance
Despite market fluctuations, BGA’s direction is steady and pragmatic. Their focus remains on:
- Supporting founders
- Publishing research
- Facilitating cross-industry collaboration
- Bridging Web2 and Web3 understanding
Their recent Stablecoins in Gaming report hints at where the space is heading toward more reliable, predictable systems that reduce volatility and protect players.
As momentum builds, the BGA aims to be the connective tissue helping studios transition from curiosity to implementation.
To understand how token stability impacts long-term game ecosystems, explore our How Market Makers Help Tokens After TGE article.
Looking Ahead: A More Grounded Future for Web3 Gaming
The blockchain gaming industry is entering a new era, one rooted in strategy over hype and sustainability over short-term wins.
At Yellow Capital, we believe the next generation of blockchain games will be shaped by thoughtful token design, sustainable liquidity planning, meaningful player ownership, and transparent, fair economic structures.
Builders who adopt these principles now are already influencing the direction of the industry, and our AMA with the Blockchain Game Alliance highlighted just how quickly this future is taking shape. Want to see where it’s headed? Explore our AMA with the Blockchain Game Alliance and Read the new State of the Industry report.