According to research firm Caladan, the GameFi sector is effectively collapsing, with 93% of projects deemed "dead" and most metrics down by over 90%, despite $12-15 billion invested since 2020.
The peak was in 2022, followed by a crypto winter, the Ronin hack, and capital outflows to AI and other sectors. Even leading projects lost users, for example, Axie Infinity's active users dropped from 2.8 million to around 100,000.
The main issue is tokenomics: investor-focused models collapse when growth slows.
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WLFI fell 17% after a vote on unlocking 62.28 billion tokens, with 99.9% support. The final vote is set for May 6.
The plan includes a 2-year cliff plus 2 years linear unlocking for early investors, and a 2-year cliff plus 3 years unlocking for team, founders, and partners.
10% of their allocation (~4.52 billion WLFI) will be burned.
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