The Application of Betting Models in Encryption Games: Revenue Strategies from GGR to NGR

When starting a new encryption game project or considering an investment, it is crucial to understand the GGR model in the gaming industry. GGR (Gross Gaming Revenue) is a commonly used performance indicator in the gaming industry, referring to the total net loss of players over a certain period, which is the gross profit for the casino. The calculation method is: total bets minus the total amount won by players.

NGR (Net Gaming Revenue) takes it a step further, with the formula: total bets minus the total amount won by players, additional bonus chips, and gaming taxes.

GGR has another calculation method: total bets multiplied by the house edge. The house edge refers to the percentage of the total bets that is won by the casino. Even in relatively fair games, such as blackjack, baccarat, or craps, there is a house advantage ranging from 0.5% to 20%.

Gambling venues typically want players to continue participating and increase their betting amounts. Therefore, they will adjust the actual house edge, especially in online gambling. The key is to find a balance between profitability and maintaining player engagement: a too low kill rate will result in losses, while a too high rate will lead to player attrition.

The main difference between encryption games and traditional gambling lies in the variability of odds. The odds framework in traditional gambling games is relatively fixed, while the token odds on cryptocurrency trading platforms can change at any time. This explains why most gaming halls for gambling-related encryption financial products are designed similarly, all including classic items such as sports betting, baccarat, fishing, and roulette.

The gambling industry focuses more on mechanism consensus and odds frameworks, with its user base primarily concerned about how to gain an advantage under fixed rules. This does not completely overlap with the characteristics of cryptocurrency speculators or traders. The gambling industry does not require a large variety of games, but rather a widely adopted mechanism.

Online gambling often adopts a代理制, where game providers share GGR with online casinos. The excessive variety of games can increase costs, which is why NGR usually remains around 3%.

The control of the kill rate is a core issue in the gambling industry. Different types of games have varying degrees of liquidity and controllability of the kill rate:

1. Traditional gambling: fixed odds, no liquidity, and the kill rate is completely controllable.
2. Contract trading: The odds are relatively fixed (for major currencies), with a certain level of liquidity (settlement at any time), and the kill rate is relatively controllable.
3. Small-cap token trading: Odds are not fixed, liquidity is high, and kill rate is difficult to control.

The less stable the odds, the higher the liquidity of the chips, and the more difficult it is to control the kill rate. This also explains why most games, whether they belong to the gambling category or not, do not adopt an absolute random mechanism.

The kill rate directly affects the lifespan GGR of players' units. From traditional gambling to low market cap token trading, user stickiness has gradually decreased, which directly impacts user growth and conversion strategies.

In traditional casinos, the VIP room is the most profitable part, accounting for over 80% of the casino's total profit. Casinos attract high-end clients through intermediaries ("dice agents"). How casinos share profits with intermediaries and track customer betting activities involves the casino's chip management system.

There are two types of chips: cash codes and mud codes. Cash codes can be exchanged in both directions, while mud codes can only be used for betting. Each bet is considered "code washing," where intermediaries can earn commissions, and players may also receive rebates. This model is similar to the commission system of encryption cryptocurrency contract exchanges.

The trial funds in contract trading are equivalent to dummy coins, and the benefit is that they can incentivize users to trade without actually investing funds. The main advantages of this mechanism are:

• The mud code locks liquidity, directly facilitating betting (trading).
• The wash code and rebate mechanism create a key growth node of interest consistency, with larger turnover leading to greater profits, while also helping to control the kill rate and increase the unit lifecycle GGR.

In summary, the three core elements of the gambling industry are: a fixed odds framework, controllable kill rate, and growth conversion. These principles also apply to the encryption gaming field.

Suggestions for encryption game teams:

1. Understanding the motivations of encryption gamers is different from traditional gamers; they place more value on profit opportunities rather than purely entertainment experiences.
2. Consider how to apply the gambling model to the project, determine an appropriate revenue model and methods to control the kill rate.
3. Learn customer acquisition and retention strategies from the traditional gambling industry.

Encryption game developers should draw on the experience of the mature gambling industry, rather than starting from scratch.