Xterio's innovative practices are reshaping the development paradigm of Web3 games.
Author: Biteye
1. The Dilemma and Opportunities of Web3 Games
GameFi has fallen into a slump after experiencing a boom in the previous cycle. The reason lies in the early X2Earn model's excessive reliance on the issuance of assets like tokens and NFTs, coupled with insufficient content depth and poor playability, making it difficult to maintain long-term user retention. Even the mini-games that exploded in popularity on TON this year only leveraged the rising price of Ton coins and the short-term hype brought by novel gameplay.
To give Web3 games true vitality, there are two possible paths: one is to transition mature Web2 games to Web3, which involves complex on-chain processes and new asset integration; the other is to support Web3 native developers in high-quality game development, but the technical barriers are extremely high. This indicates a pressing need for a team with strong backing and rich experience to build the infrastructure and play a platform role.
2. Top Teams and Strong Backing
Xterio was born to address this issue. The project's founder, Michael Tong, previously served as COO of NetEase and participated in the release of iconic games like "Fantasy Westward Journey." The core team comes from top gaming companies such as FunPlus, Electronic Arts, Zynga, Activision Blizzard, Krafton, Jam City, and NetEase, with an average of over 15 years of industry experience.
In terms of financing, Xterio has secured a total of $80 million in investments from top institutions including Binance Labs, Makers Fund, and Foresight Ventures, following a seed round led by FunPlus, making it the largest gaming project investment by Binance Labs. These resources and experiences will bring norms and innovations to the nascent Web3 gaming market.
3. Leading AI Technology Matrix
AI agents are currently the hottest narrative, sparking many discussions on how to integrate them into GameFi, and Xterio has already pioneered a unique AI integration path in the Web3 gaming field, building a complete AI technology matrix. Xterio has engaged in deep collaboration with top AI teams from DeepMind, Google Brain, and FAIR to jointly develop the "Emotional Engine." This engine enables NPCs in games to exhibit unprecedented interactive depth through precise emotion recognition and natural dialogue generation.
On the content creation front, Xterio's AI graphic generation engine is redefining the production process of game assets. The project provides exclusive AI creation tools for developers and players, supporting the efficient generation of personalized game assets and minting them as NFTs. Additionally, the project has built an intelligent AI agent system that provides data support across multiple dimensions such as community operations, market analysis, and user behavior research. Notably, all AI model training processes are conducted on-chain, ensuring data transparency and traceability of community contributions.
4. Diversified Game Matrix
Xterio's game product matrix showcases the project's comprehensive strength in technological innovation and game design. In the self-developed game sector, Age of Dino has achieved the top daily active user count on DappRadar due to its outstanding gameplay. Palio, as an innovative work featuring the "Emotional Engine," has attracted over 8 million address visits through deep AI interactive experiences, with 400,000 users completing payments, validating the immense value of AI technology in enhancing gaming experiences.
The project's latest AI interactive game, Befriend, presents a unique future world. In this AI-driven game environment, players need to learn to engage in dialogue with AI characters, enhancing mutual affection through interaction. This work, which combines narrative innovation with AI technology, quickly gained market recognition, covering 7 million users across over 200 countries in a short time and achieving an astonishing record of 28 million social shares. As the last token acquisition channel before Xterio's TGE, Befriend topped the DappRadar game rankings, fully demonstrating users' enthusiasm for AI games and their expectations for the Xterio project.
In addition to self-developed games, Xterio has established deep partnerships with nearly 100 games globally. Partners include well-known industry players like FunPlus and Com2us, as well as many creative independent game development teams. These games are distributed across global markets, covering multiple terminal platforms and spanning mainstream genres such as MMORPG, sandbox, strategy, MOBA, and shooting, showcasing Xterio's global vision and professional strength in building a gaming ecosystem.
5. Innovative Blockchain Architecture
Xterio has taken a different approach in blockchain architecture design, focusing on creating a dedicated Rollup solution for gaming. The project employs an innovative dual-chain design, developing XterioChain ETH based on OP Stack and XterioChain BNB based on opBNB Stack. This architecture not only ensures the free flow of cross-chain assets but also provides strong scalability support for the entire ecosystem.
As a Layer2 solution dedicated to gaming, Xterio Chain has been deeply optimized for the unique needs of the gaming industry. Xterio is the first re-staking Rollup to adopt MACH (Fast Transaction Qualifying) technology, capable of compressing transaction confirmation times to under 10 seconds without compromising security, showcasing significant advantages in key areas such as high-frequency trading processing, rapid confirmation, and low fees.
Currently, the Xterio (BNB) chain has over 18 million wallet addresses and has initiated over 160 million transactions.
6. Complete Ecological Service System
Xterio has built a complete ecological service system centered around two core roles: players and developers. For players, the project has launched a modular smart wallet service in deep collaboration with Particle Network, simplifying asset management processes and significantly optimizing user experience through a decentralized identity system. Xterio has achieved true cross-game NFT interoperability, allowing players to use their digital assets across different games and even supporting flexible access to external NFTs.
In terms of developer services, Xterio has launched a one-stop Game-as-a-Service platform. The platform provides standardized API interfaces and smart contract toolkits, enabling developers to focus on game creativity and content creation without delving into complex blockchain technical details. Accompanying AI-assisted development tools further lower the creation threshold, while comprehensive operational support services provide strong guarantees for game marketing and user growth. Additionally, the platform supports developers in issuing independent game tokens, allowing each game to design unique economic models based on its characteristics.
7. Token Economic Model
Xterio's most notable recent news is the TGE on January 8, with several exchanges including Bybit and Mexc announcing TGE issuance. Xterio has designed an innovative token economic system centered around XTER. As the unified token of the ecosystem, XTER not only carries payment functions but also serves as an important link connecting players, developers, and the platform. With a fixed total supply of 1 billion XTER, it will serve the entire ecosystem through a carefully designed distribution mechanism.
Players can use XTER to purchase in-game digital assets, participate in NFT transactions, and gain unique rights by holding tokens, such as participating in ecological governance voting and enjoying exclusive events. For developers, XTER provides a unified medium for value exchange, allowing them to focus more on game development and innovation.
On this basis, Xterio also supports developers in issuing independent game tokens. This dual-layer token structure allows each game to design economic models that fit its characteristics while maintaining close ties with the entire ecosystem. For example, developers can accurately reach target user groups by airdropping game tokens to XTER holders.
To ensure the sustainable development of the ecosystem, Xterio has meticulously planned its token distribution.
This distribution plan reflects Xterio's long-term development philosophy:
A significant proportion of community and ecological distribution (54% in total) to ensure the vitality of the ecosystem
Strict lock-up periods for teams and investors to demonstrate long-term commitment to the project
Establishing treasury reserves to provide financial guarantees for future development
This multidimensional economic design not only provides sustainable development momentum for the ecosystem but also allows every participant to receive corresponding returns in Xterio's growth. As more high-quality games join and the user base expands, the application scenarios of XTER will continue to enrich, ultimately creating a prosperous Web3 gaming ecosystem.
8. Conclusion
Xterio's innovative practices are reshaping the development paradigm of Web3 games. Through core advantages such as AI integration, integrated R&D and operations, and a leading technology platform, the project demonstrates the potential to stand shoulder to shoulder with traditional gaming giants. Xterio not only focuses on technological innovation but also aims to create a truly open, inclusive, and sustainable gaming ecosystem, generating continuous growth value for players and developers. With further development of the project, Xterio is expected to establish a leading position in the new market cycle, becoming a core force driving innovation in the Web3 gaming industry.
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