Envisioning the new narrative of RWA + games: Will it become the engine of this bull run?

Is the bull run here?

If we stand in November 2025 and look back at the spectacular cryptocurrency market over the past two years, we might be surprised to find that October 23, 2023, could be a typical mark for the start of this bull run: within 24 hours, BTC jumped directly from 30,000U to 34,000U. Many friends around me who had already heavily invested around 20,000U are overjoyed: Look, I told you the crypto bull run would definitely come! Meanwhile, some friends who missed out and are still conflicted still insist: The current on-chain data shows no new money entering, and the total amount of stablecoins is still at a low point. This is a false bull created after the Bitcoin ETF news hype, and there will be a wave of correction!

The positive viewpoint of "The Bull is Coming" is very clear; the three major benefits in the future are enough to support the bull run:

1. Bitcoin ETF accelerates the entry of funds from traditional financial institutions;

2. Bitcoin's halving in May 2024 will raise mining costs to over 28,000;

3. The United States does not raise interest rates and may even lower them;

Regardless of whether it’s a true bull or a fake one, what I have been pondering is: for a true bull that can last at least 12 months, a new narrative for the entire industry must emerge to support it. Among the three favorable factors supporting the bull run, the first and third are external forces, while the second is the four-year halving rule that everyone on Earth knows since the BTC white paper was released. So what exactly are the new narratives in the industry that can support this bull run? If we don’t develop ourselves properly and only rely on external information and policies, it’s highly likely to be just a fleeting moment.

Let's take a look at the development trajectory of the last bull run: starting from the summer of DeFi in July 2020, Bitcoin began to take off from around 10,000 U. DeFi is a major innovation in the industry, using smart contracts to simulate some functions of the real-world financial system, allowing for collateralized earning, decentralized trading, derivatives, and more; then influencers like Musk began to promote it; subsequently, the application products of NFT and Gamefi 1.0 appeared, allowing many novice users to enter the space without needing to learn the knowledge-intensive DEFI, enabling them to participate and, importantly, also become wealthy; finally, the concept of the metaverse gained popularity, with Facebook rebranding as Meta. The bull run peaked in November 2021, with Bitcoin prices reaching 69,000 U.

2. The New Narrative of This Bull Run

Did you see it? At least DeFi, NFT, Gamefi 1.0, and the Metaverse are the four innovations that represent the evolution of the crypto industry in the last bull run. So what are the new evolution points in this round of bull run, or the new narratives that we often talk about? Let's summarize:

1. SocialFi decentralized social, an example is the recently emerging Friend.Tech;

2. Chain Game 2.0, which is a web 2.5 chain game: assets are on-chain while the game is centralized, focusing on highly playable games, and then working on the on-chain assets.

3. RWA(Real World Asset), a huge track that can connect the vast old money of WEB2 and the crypto industry. The Depin that has been repeatedly mentioned in the HK crypto circle these days is also one of the RWA tracks;

4. The rise of the Bitcoin ecosystem; after all, whether in WEB2 or WEB3, BTC has been regarded as a value store similar to gold. Why can't we do something with it? Gold can play various tricks in the financial industry with all sorts of derivatives.

Today, let's focus on the third point, RWA, because I've always felt that RWA is an extension narrative of the previous bull run's engine, Defi. Think about it, DEFI generates a bunch of virtual coins using code, then plays with smart contracts, simulating the real financial system. It's like children playing house, with a dad and a mom, pots and pans, rice, oil, and salt, BUT, what impact does this have on the real world? None! Currently, among virtual coins, only BTC has a certain consensus in the WEB2 world, while other coins appear to outsiders as mere air. So what does it mean to have a bunch of extremely complex operations based on air?

Does that mean Defi is meaningless? Not at all! You could say that the DEFI at the beginning of the previous bull run is just the first half of this new narrative. It laid the groundwork for participation, the rules, and the direction. It's like preparing a full-course banquet; DEFI has set up the kitchen, the utensils, and the chefs, and now we just need the ingredients to officially start cooking. Therefore, I understand RWA as the second half of DEFI, much like the two parts of "A Chinese Odyssey", "The Moonlight Box" and "The Monkey King Takes a Bride"; both need to be viewed together to appreciate their beauty.

3. How to Navigate RWA

What is RWA? The full name is Real World Asset, and the complete translation is "tokenization of real-world assets". Corresponding to assets in the real world, RWA can also be divided into tangible assets and intangible assets based on the type of underlying assets. Tangible assets mainly include real estate, commodities, artworks, etc.; intangible assets include bonds, stocks, carbon credits, etc. Since RWA is based on real-world assets, it requires an off-chain operational process supported by law for asset confirmation and value recognition, followed by tokenization through DeFi protocols and circulation in on-chain markets, while monitoring the value changes of off-chain assets through oracle.

RWA has actually already had some practical application cases. The stablecoins we often use, such as (USDT and USDC, are examples of RWA. For instance, the "Satoshi Island" of physical assets and the RWA U.S. Treasury bonds, which are the hottest this year in financial assets, are all cases of on-chain token issuance supported by physical assets. In fact, the idea of a Bitcoin ETF is a reverse financial RWA, where WEB2 funds participate in Bitcoin investment through a compliant ETF financial product; while RWA U.S. Treasury bonds allow WEB3 funds to invest in U.S. Treasury bonds without needing to withdraw funds, obtaining about 5% annual returns.

The STO craze in 2018 was a vigorous wave, marking an early attempt for RWA. During that period, a number of attempts emerged to make traditional assets compliant and put them on the blockchain, giving rise to several Web3 startup projects aimed at this goal, such as tZERO, Polymath, Aspen, and others. There were also some case attempts, such as Aspen REIT, Resolute.Fund, and Fundament Group. However, due to various reasons such as market conditions, economic cycles, and regulations, the STO market did not develop as smoothly as expected.

![Imagining RWA + new narrative in games: Will it become the engine of this bull run?])https://img-cdn.gateio.im/webp-social/moments-84849b92715a67404ad221c1eb38df2e.webp(

The current mainstream approach to RWA is quite simple, which is to tokenize it in a manner similar to securitization, allowing funds in the crypto space, such as various stablecoins, to have ownership or income rights over real-world physical or financial assets through )Tokenization(. This is a straightforward one-to-one correspondence, and ownership is also subject to the constraints of real-world laws. If we want to diversify the ways RWA can be utilized and encourage more users to participate, it is necessary to design better application scenarios for RWA. We believe this will shine in the current bull run and can be defined as the basic application infrastructure for RWA.

Imagine this: if in a game scenario similar to "Monopoly" or "The Sims", you enter a stock exchange, link your wallet, and can really use the game tokens or U in your wallet to purchase Tesla stocks, and then enjoy the benefits that Musk provides to you. Or when we take a virtual tour of a city through gamified scenarios, we can conveniently purchase REIT shares of the city's landmark buildings, becoming one of the investors in physical assets. Isn’t that awesome? Of course, we are only considering the user product experience here; as for the legal regulations and how to connect with the real securities sector, that will require a project team skilled in navigating such matters.

![Envisioning RWA + New Narrative in Gaming: Will it Become the Engine of This Bull Run?])https://img-cdn.gateio.im/webp-social/moments-e21d0f2fd1e7311f58ec197bf8e528e3.webp(

In fact, the RWA basic application settings described above can be considered a part of the metaverse in a broad sense. However, its security and connection to WEB2 are more hardcore, so it needs to be singled out as a new narrative. Currently, it seems that gamified RWA should be able to attract more users to join. Not only can it link the tokens in WEB3 players' wallets to the real world, but it also allows WEB2 players to experience the uniqueness of WEB3 products: there is no need to complete so many document signings in the real world; a wallet connection is sufficient. The holdings are always reflected on the chain and can be traded at any time.

So the question arises, how can we enable Web2 players to transition more smoothly into Web3 and accept the new gameplay of RWA+ games? We can put ourselves in their shoes and think about what difficulties a Web2 user from the real world would face when trying to enter the virtual world of RWA+Web3 or even the metaverse prototype, and what demands they might have internally.

First, they will be overwhelmed by the previously unfamiliar Web3 information coming at them, such as public chains, wallets, DeFi, and other basic knowledge that seems simple and clear, but is actually unfathomable. Learning it feels chaotic, and they don't know how to get started. Then, they will be attracted by various innovative projects and models in Web3, seeing one wealth myth after another, always eager to jump in but fearing they might end up like leeks being cut, left with nothing. Therefore, they seek advice from others, hoping to learn the true principles of Web3 investment or find reliable investment suggestions. Furthermore, they hope to find a genuinely enjoyable gaming experience in the virtual world of Web3, and they also wish that the noble identity in the virtual world can extend to the real world, allowing them to participate in some high-end activities that have a sense of ritual, achieving a full integration of online and offline.

The imagination mentioned above may seem overly optimistic, but it is indeed the most genuine and fundamental desire in the hearts of most players transitioning from Web2 to Web3. So, are there any products or games in the market now that can fully or partially meet the above demands? We specifically searched the market and found the following cases for your reference.

) Four, RWA+ Game Case

(# 1. DeFi Kingdom

If you want to learn about Web3 knowledge but find it too boring to read articles, study white papers, or do desktop research, is there a product that allows you to learn Web3 knowledge while playing games? There is indeed such a project, DeFi Kingdom is one of them.

DeFi Kingdom is a product from the last bull run, a Play2Earn game based on the Harmony blockchain. But it is not just a game; it is also a Dex and an NFT marketplace. The entire game map can be said to visualize and gamify the functions of Dex and NFTs. For example, in the Gardens, players can provide LP through Druid and receive Jewel token rewards. In the Marketplace, users can purchase the main game token Jewel and stake it in the Jeweler bank to earn xJewel tokens, enjoying a series of rights and governance privileges within the project, including participation in votes. Players can also use Trader to exchange Jewel tokens, Harmony tokens, stablecoins, and various other mainstream coins.

![Envisioning RWA + New Narrative for Games: Will it become the engine of this bull run?])https://img-cdn.gateio.im/webp-social/moments-d4429ccf2b81cd2bebeae9b46e19cf61.webp###

Another game