Dimensionals Drops Blockchain Features, Shifts to Web2 Model

Dimensionals, a roguelike deck-building game developed by Mino Games, has officially transitioned to a purely web2 model, marking a significant departure from its initial integration with blockchain technology and NFTs.

After launching a non-blockchain version on Steam in March 2024, Mino Games explained the challenges that led to this decision, emphasizing that the project ultimately proved to be a substantial financial loss.

This shift has sparked a range of reactions within the gaming community, highlighting broader implications for the web3 gaming industry.

What led to the decision?

According to Sash MacKinnon, CEO at Mino Games, the journey of Dimensionals into the web3 space began with the launch of its Genesis Stone collection in March 2023 as a free mint.

The goal was to raise awareness for the upcoming game and to attract mainstream gamers by offering free Hero NFTs. However, the mint was plagued by issues from the start. The whitelist giveaway was overwhelmed by bots, and the project suffered multiple DDoS attacks.

Moreover, a change in the NFT marketplace landscape—where platforms like OpenSea and Blur made royalties optional—caused a sudden collapse in the revenue stream that Mino Games had counted on. “The revenue that we had begun generating from royalties immediately went to zero,” MacKinnon noted.

As the bear market set in, the web3 aspect of the business became increasingly challenging. The community, initially supportive, grew frustrated as the value of their NFTs plummeted, and some members even turned to scamming others within the community. Despite these setbacks, Mino Games pressed on, launching a second mint and a closed alpha test. However, the conversion rate from their audience to active gameplay was dismally low, and the market conditions further deteriorated.

Faced with these realities, Mino Games consulted with investors and advisors, ultimately deciding that continuing in the web3 space was untenable. “We had picked the wrong horse,” MacKinnon admitted, acknowledging that the timing and strategy had failed. The company shifted focus entirely to making Dimensionals a web2 game, aiming for a broader audience and launching on Steam.

How did the community react to this shift?

The shift away from web3 was met with mixed reactions with many in the Web3 community expressed frustration and disappointment, particularly those who had invested in the game’s NFTs.

MacKinnon acknowledged that the communication of this pivot, which was initially done through Discord town halls, only exacerbated tensions. In hindsight, he recognized that a more transparent and public explanation was needed earlier.

Even after the transition to web2, the game’s past association with web3 continued to cause problems. During an early streamer playtest in March 2024, the game received positive feedback from players, but the reaction from larger streams was unexpectedly hostile.

Many streamers refused to engage with the game due to its web3 ties, fearing backlash from their audiences. “It became clear… that the average gamer’s perspective of web3 is not just apprehensive—it is a complete and utter rejection of the technology,” MacKinnon observed. This negative perception made it clear that any association with web3 could be detrimental to the game’s success in the mainstream market.

What this means for web3?

The issues faced by Mino Games, such as the collapse of the NFT market and the difficulties in managing bot activity, are not unique to Dimensionals but are part of broader concerns within the industry.

The move also underscores the significant differences in audience motivation between web2 and web3 gamers, with the latter being more focused on trading and profit rather than gameplay itself. Whilst the decision to abandon web3 features in Dimensionals might be seen as a setback, it also provides valuable lessons for other developers in the space.

The experience of Dimensionals illustrates the importance of timing, market conditions, and community management in the success of web3 games. In addition, this also raises questions about how web3 gaming can evolve to bridge the gap between its current niche and the broader gaming audience.