Querent: Mia, ChainCatcher

Respondent: Jeremy Horn, Co-founder and COO of Xterio

Editor: Marco, ChainCatcher

With the recovery of the BTC ecosystem and the successive waves of enthusiasm in the AI and meme sectors, the voice of "sector rotation" has gradually emerged in the crypto community. As a leader in the last bull market, the GameFi sector has also begun to attract attention.

During the bear market, the GameFi sector has incubated some promising chain game developers and projects, and Xterio, the subject of this dialogue, is one of them.

According to the Web3 asset data platform RootData's April hot search list, Xterio has firmly held a place in the top of the hot search list.

In early April, Xterio announced a groundbreaking Layer 2 network, Xterio Chain, in collaboration with AltLayer, supported by the stacks of Optimism and EigenDA, aiming to define a growing AI-based Web3 gaming world. At the end of April, Xterio announced a collaboration with BNB Chain and AltLayer to launch a brand new L2 chain with games at its core, which will use BNB as the Gas Token.

With the support of BNB Chain, Xterio's development momentum has reached new heights.

As early as 2022, Xterio completed a $40 million financing round, with FunPlus, Makers Fund, and XPLA leading the investment, and WEB3 investment institutions such as Animoca Brands, HashKey, and Foresight Ventures participating. In 2023, Binance Labs invested $15 million to support its AI and Web3 game development capabilities and the launch of tokens.

Currently, the Xterio platform has launched four self-developed chain games, including Overworld and AGE of Dino, and has launched 50 games, including collaborative projects.

Xterio also launched the game-centered marketplace, Xterio Marketplace, in October last year.

Recently, ChainCatcher invited Jeremy Horn, co-founder and COO of Xterio, to provide us with an in-depth understanding of how Xterio has entered the Web3 field from the Web2 gaming industry and to share its insights as a rising star project in the GameFi track.

Jeremy Horn graduated from Asas University and has been involved in the gaming industry for over ten years. He has previously participated in the production of Web2 games such as "Harry Potter: Hogwarts Mystery," "Star Wars: Smuggler's Run," "Family Guy: The Quest for Stuff," and "Marvel: Avengers Academy," and has rich game development experience.

From Traditional Games to the GameFi Track

ChainCatcher: Why did you transition from the traditional gaming industry to the Web3 GameFi track?

Jeremy Horn: In my 15-year career in the gaming industry, I have witnessed the rapid development and significant changes in the industry, especially the rise of the free mobile game market and the challenges that followed. With the introduction of privacy policy changes by tech giants such as Google and Apple, along with the rising cost per install (CPI) and increasing market competition, game publishing and operations have become increasingly complex.

However, the rise of Web3 games has brought revolutionary changes to the industry. Web3 games have built a new bridge between developers and players, characterized by driving persistent user engagement, digital asset ownership, and cross-game asset liquidity. This model not only enhances user engagement and retention but also stimulates asset trading, encourages players to explore new games, and improves the cost-effectiveness of player acquisition.

ChainCatcher: Xterio was shortlisted in RootData's 2023 GameFi Top 20 projects. As a popular project in the GameFi track, how does Xterio empower the GameFi track?

Jeremy Horn: The recent awards received by Xterio, including being recognized as a popular project by RootData and a leading GameFi project, highlight Xterio's significant influence in the gaming industry.

Currently, Xterio's technical stack includes features such as simplified wallet accounts, launchpad functionality, integrated marketplace, and bridging solutions. By combining with AI technology, Xterio is able to innovate the gaming industry by creating immersive, AI-enhanced experiences, attracting players to enter the Xterio Web3 ecosystem and maintaining user engagement and activity.

We aim to establish Xterio as a platform for accelerating AI-driven interactive experiences and developing an AI toolkit for generating consistent, high-quality 2D and 3D assets. The "artificial intelligence emotional engine" aims to provide users with meaningful companionship, elevating the gaming experience beyond traditional gameplay, making Xterio comparable to traditional free games while embracing the transformative potential of AI-driven game development.

ChainCatcher: As a cross-platform instant play and earn developer and publisher, Xterio has produced and is currently developing game projects including Overworld and Age of Dino. In game development, which type of game projects does Xterio lean towards?

Jeremy Horn: Xterio's development philosophy is based on innovation and quality, with a particular emphasis on exploring AI-driven game development. Xterio is committed to supporting teams by providing publishing and organizational resources.

Although Xterio has achieved significant success in 4X strategy and RPG game genres, the team continues to be driven by innovation, pushing Xterio beyond traditional boundaries. In the years of dealing with games, we have realized that groundbreaking games often come from creators who dare to challenge the status quo, and innovative game projects are the preferred choice for Xterio.

ChainCatcher: From the perspective of a game developer, how do you create a perfect in-game economic model to avoid the death spiral?

Jeremy Horn: Regarding the so-called "death spiral," I firmly believe that this phenomenon will not exist in Xterio's architecture. In designing the in-game and Web3 economic models, we rely on deep industry experience and market insights to build a model that not only ensures a delicate balance between economic input and output but also provides users with a comprehensive and meaningful gaming experience.

In the Xterio ecosystem, the lifetime value (LTV) of each product is crucial, and we are committed to ensuring the sustained attraction and vitality of products by balancing the consumption of practical value with user rewards. Excessive rewards may lead to inflation, while insufficient rewards may weaken user engagement. Therefore, in designing the economic model, we always consider this balance as a core factor.

To ensure the sustainable development of the ecosystem, we will focus on supply-demand balance in monitoring and operating games. Through data analysis and market feedback, we will continuously adjust economic parameters and strategies to ensure the reasonable allocation and effective utilization of resources.

At the same time, we will actively communicate with the community, listen to their voices and suggestions, and jointly promote the healthy development of the ecosystem.

Launching the Layer 2 Network Xterio Chain

ChainCatcher: Xterio is collaborating with AltLayer to create the Layer 2 network Xterio Chain. What impact will Xterio Chain have on Xterio?

Jeremy Horn: Xterio's close strategic collaboration with AltLayer has not only made Xterio Chain stand out among many blockchains, with its daily transaction volume ranking fourth among all chains, but also firmly established its leading position among many Layer 2 solutions.

In addition, Xterio Chain has won widespread market recognition with its extremely fast transaction speed and extremely low gas fees. This advantage has not only attracted the attention of a large number of users but has also prompted over $25 billion worth of ETH to choose to re-stake on our chain.

Integrating Xterio Chain into our ecosystem is a strong signal from Xterio to the market: Xterio is committed to using the latest technology to provide users with a seamless and smooth gaming experience. The introduction of Xterio Chain, combined with Xterio's continuous innovation in AI technology, provides developers within the Xterio ecosystem with creative space. Game developers can utilize these advanced technologies to create engaging and highly scalable game projects, offering users a more diverse and enriching selection of games.

Through Xterio Chain, we provide developers with one of the most comprehensive technical stacks for creating immersive gaming experiences and scalable Web3 games. This technical stack not only includes core blockchain technology but also integrates cutting-edge technologies such as AI and cloud computing, providing developers with powerful technical support and vast innovation space. Therefore, the integration of Xterio Chain will bring in many outstanding developers to the Xterio ecosystem, collectively driving the rapid development and significant growth of the gaming industry.

ChainCatcher: According to the team's roadmap, what are the next steps in the plan?

Jeremy Horn: Our development plan aims to continuously consolidate Xterio's leading position in the market and further expand the influence of Xterio Chain: the release of the Overworld web3 experience version will bring players a broader and more realistic gaming world; the AI game debut of Palio will showcase the infinite possibilities of AI technology in the gaming field; and the launch of the test version of the new game City Shadow indicates that we will continue to bring players more exciting and diverse game content.

In addition to providing players with opportunities to earn rewards in the game, Xterio is more focused on creating long-term holding value. We deeply understand that only by allowing players to truly enjoy and feel satisfied in the game, while also retaining the rewards they have worked hard to earn, can we create a deep emotional connection with the game for them. Therefore, Xterio will continue to strive to create more attractive game content for players, allowing them to enjoy the game while also realizing their own value growth.

2024 Could Be the Next GameFi Year

ChainCatcher: Currently, the industry is discussing the possibility of 2024 being a new year for GameFi. Will Xterio also make corresponding adjustments and accelerate project development in response to the development of the GameFi field?

Jeremy Horn: We are extremely optimistic about Xterio's core role in the growth of the GameFi field in 2024 and beyond, mainly due to the outstanding value of our flagship games. Take "Age of Dino" as an example, this high-energy strategy experience game, as the first AAA strategy mobile game integrated with Web3 features, has achieved significant innovation in the gaming field, providing players with on-chain transactions, rewards, and trading experiences.

In the rapidly evolving Web3 environment, adaptability has become a key factor for market success.

ChainCatcher: Additionally, what do you think the development trend of GameFi will be this year?

Jeremy Horn: We foresee a significant shift, where using incentive measures to reduce player acquisition costs will become mainstream. This trend has already begun to emerge and is expected to accelerate in the future.

Xterio focuses on the integration of AI and blockchain technology, and the combination of these two technologies will bring revolutionary changes to the gaming industry.

As the industry continues to develop, games in the GameFi field will become more immersive, providing players with unprecedented gaming experiences through the enhancement of AI and Web3 technologies. Players will be able to immerse themselves in more realistic virtual worlds, engaging in deeper interactions with game characters and scenarios. At the same time, these technologies will also provide players with more meaningful interaction and growth opportunities, allowing them to enhance their self-value in the digital realm.

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