Application of Betting Models in Encryption Games: GGR Applicability and Profit Control Strategies

The encryption gaming sector is undergoing a paradigm shift. The past belief that "games must be playable" is no longer the only rule. Nowadays, understanding the gambling nature of encryption users has become the key to a project's success. When launching new encryption gaming projects or considering investments, it is crucial to study the GGR model of the gambling industry in depth.

GGR (Gross Gaming Revenue) is a key indicator of the performance of the gaming industry, representing the total net loss of players over a specific period. The calculation method is the total amount wagered minus the total amount won by players. The related NGR (Net Gaming Revenue) takes into account additional factors such as bonuses and taxes.

GGR can also be calculated in another way: total bet amount multiplied by the kill rate. The kill rate refers to the proportion of the player's bets that ultimately result in losses. Even in theoretically relatively fair games, such as blackjack or baccarat, the dealer still enjoys an advantage ranging from 0.5% to 20%.

Gambling operators typically want players to continue participating and increase their betting amounts to boost turnover. Therefore, they carefully control the actual advantage rate, especially in the online gambling environment. This requires a balance between profitability and player experience: a rate that is too low will not yield profits, while one that is too high may lead to player attrition.

The main difference between encryption games and traditional gambling lies in the variability of odds. Traditional gambling usually has a fixed odds framework, while the odds in cryptocurrency trading can fluctuate at any time. This explains why many gambling-type encryption products are functionally very similar, all offering similar game combinations.

The gambling industry emphasizes mechanism consensus and odds frameworks, with its target audience seeking an advantage within established rules. This mindset differs from that of cryptocurrency traders. The gambling industry does not require countless games, but rather a mechanism that can be widely adopted.

In terms of controlling the kill rate, different types of products have different characteristics:

1. Betting: Fixed odds, no liquidity, kill rate is fully controllable.
2. Contract trading: Odds are relatively stable (mainstream currencies), limited liquidity, and the kill rate is relatively controllable.
3. Niche Token Trading: Odds are not fixed, highly liquid, and the kill rate is difficult to control.

The less stable the odds, the higher the liquidity of the chips, and the harder it is to control the killing rate. This also explains why most games, even if they are not traditional gambling, rarely use completely random mechanisms.

In terms of user growth, the experience of the gaming industry is worth learning from. High-end customers typically contribute to over 80% of a casino's profits. Casinos attract and retain these customers through intermediaries ("Diemazai"). Chips are divided into redeemable cash codes and non-redeemable betting chips. Each bet generates a rebate, and players can even receive cashback.

This mechanism is similar to the rebate system of cryptocurrency contract exchanges. The liquidity is locked by the mud code (such as the experience gold in contract trading), encouraging trading activities. The wash code and rebate mechanism promote growth through aligned interests, enhancing the unit lifecycle GGR.

For encryption game development teams, the key is:

1. Understanding the motivations of encryption players is not just for entertainment, but for the expectation of returns.
2. Assess whether the GGR model is suitable for the project, clarifying the profit model and control strategy.
3. Learn customer acquisition and retention strategies from the traditional gambling industry.

In conclusion, encryption game developers should fully leverage the mature experience of the gambling industry rather than reinventing the wheel. Understanding and applying these strategies will help projects stand out in the highly competitive encryption game market.