Tokenomics Models in Blockchain Gaming: Single vs Dual Tokens

The gaming industry has always been at the forefront of innovation. Each year brings new technological advancements to the games, and with the rise of blockchain, it was only a matter of time before games started to adopt it. With blockchain gaming, we have seen growth in engagement and a financial boom like never before.

In fact, one of the latest studies revealed that the current global blockchain gaming market was valued at around $13 billion in 2024. Experts anticipate that the worldwide blockchain gaming market could surpass $301.53 billion in total valuation by 2030.

This shows the ever-rising need for a secure, open, and decentralized gaming ecosystem. All these crypto games have one thing in common: they use one of the tokenomics models, namely, the single-token or dual-token system, to assist in-game economies.

Are you interested in learning more about these tokenomics models? This blog is for you!

In this, we’ll talk about tokenomics in detail, the main differences between their two token models, what they are good at, what drawbacks they have, and more.

Understanding Tokenomics

The word “tokenomics” is made by combining two words, namely, “token” and “economics”. In blockchain gaming, it refers to designing a sustainable game economy by implementing a token system in the game’s ecosystem. It defines the creation, distribution, utility, and value of a token within the specific ecosystem of that platform.

In simple terms, we can say that tokenomics is the economics behind any token that makes a blockchain game run efficiently. Some core key components of tokenomics are as follows:

• Distribution and Allocation of Tokens.
• Token Supply
• Periods of Lock-up and Vesting
• Utility of Tokens
• Mechanics of Token Demand

What is the Single-Token Model

A blockchain game with a single-token model typically centers on a single primary cryptocurrency that is used to perform several tasks. This token acts as the primary medium of exchange within the game, allowing players to purchase, sell, and trade in-game assets.

This straightforwardness makes it easier for new players to understand and engage with the game, as they only need to care about one token. Some popular examples of games that use this model are CryptoKitties and Gods Unchained.

Pros:

• Players get to have a straightforward economic model that is simple to navigate.
• It reduces the cognitive complexity of managing numerous tokens.
• This model helps create a more unified and deep liquidity pool for the game.

Drawbacks:

• The economy of the game can be severely impacted by price volatility in this model.
• Because the game only has one token for its in-game currency, players may not be able to do everything they want to do.

What is the Dual-Token Model

The dual-token model in blockchain gaming is an ecosystem that adds a second token. This token usually splits the utility and governance functions between the two. In this system, one token is the main currency for buying and selling things, while other tokens are used for governance or staking rewards.

This separation of currencies can make the game’s economy more stable, since each token has its own job. Axie Infinity is an example of a dual-token model. In this game, SLP is the in-game utility token, and AXS is the governance/staking token, which has a limited supply.

Pros:

• The dual-token structure enables each token to fulfill a specific role.
• It makes the ecosystem more stable by separating roles for transactions and governance.
• Gamers can be incentivized to hold different tokens for distinct purposes.

Cons:

• The complexity of this model can discourage new players who are not familiar with all these various tokens.
• The success of this model is inherently dependent on balancing the values of both tokens.

Single-Token vs. Dual-Token Models

Making a choice whether to go with a single-token model or a dual-token model system when you develop a blockchain game project is one of the most important decisions. To help you make an easier choice, here’s a table outlining the key differences to help you make a more informed choice.

Parameter	Single Token Model	Dual Token Model
Total Number of Tokens	A single token serves all the purposes.	There are two tokens used.
User Incentives	Users have limited staking rewards.	Enhanced incentives according to the type of token
Token Functionality	Staking, utility, and governance can all be done with a single token.	Governance and utility are handled by different tokens.
Development Cost	It is typically less expensive to build.	The creation and management of two tokens could result in increased building costs.
Complexity	It’s easy to manage and design.	More difficult to balance, implement, and design.
User Experience	Easier for people to understand and use.	Needs to know what two different tokens are and what they do.
Community Building	It can help build a strong community, but it might not allow users to have direct influence.	It can make the community more involved and invested because of governance rights.
Market Fluctuations	Changes in price can affect all of a token’s functions.	Price fluctuations in utility tokens have a lower direct impact.
Scalability	It may have less flexibility for future platform features.	It may be more flexible to integrate additional functionalities with dedicated utility tokens.
Ideal Projects	It is suitable for simple token economies with a low user participation focus and few governance requirements.	Complex platforms with high user engagement and strong community governance work well with it.

Key Factors To Consider When Choosing A Tokenomics Model

Here are some additional factors that you must consider when deciding if a dual tokenomics model is right for you or if you should go with a single token model:

Project Complexity

The dual-token model will be more suitable for a blockchain game that requires managing a comprehensive governance structure and addressing diverse user needs, providing a more precise and manageable framework. If your project values simplicity and ease of use, the single-token model is the best choice.

Long-Term Vision

Dual-token systems will be your best option if your gaming project has a long-term plan with room for growth and expansion in the future. They will give you the wonderful flexibility to meet your needs as they arise. In a single-token model, users may experience an intrinsic conflict that can diminish the token’s value.

Target Audience & User Experience

If your blockchain game serves a wide audience, then a dual tokenomic model can help you simplify the user experience by providing a dedicated utility token for everyday transactions. This enhances the game’s intuitiveness for regular players, while long-term investors and community members can utilize the governance tokens.

Liquidity and Volatility

A dual-token model significantly improves efficiency by distributing its value among two distinct tokens, which creates fragmented liquidity. This can make it challenging to achieve liquidity from both assets. This aspect is where the single-token model shines, as concentrating all economic activity into a single token creates a deep and unified liquidity pool.

Stimulus

The single-token model’s incentive structure can be a problem because players may not want to spend the token they think will go up in value, which hurts the game’s economy. The dual-token model incentivizes players to spend utility tokens regularly, while governance tokens encourage holding.

Conclusion

To wrap up everything, we have seen the two tokenomics models, namely, single and dual tokens, and how they work and help build a thriving economy inside blockchain games. These models help boost the economic activity of any game that requires blockchain. 

If you have a vision for a game, then the right time to start developing is now. But building a blockchain game is no simple task. It’s best for you to go with a company that can help to make your game vision come true.

Technoloader specializes in turning your game idea into a successful blockchain gaming platform from concept to launch.

Get in touch today!