Justin Sun Ventures Into GameFi Projects With USD 300M TRON Arcade Fund
Tron (TRX) and its partners said they have established a USD 300m fund called TRON Arcade, which will invest in and incubate GameFi projects over the next three years.
GameFi (‘gaming’ + ‘DeFi’) is described as the gamification of monetary mechanisms that make earning profits an “exciting experience.” It merges non-fungible tokens (NFTs), decentralized finance (DeFi), and gaming – a new trend that has arrived with the growth of more digitized generations of gamers.
“By leveraging the interests of gamers in various genres, the play-to-earn mechanism suits players’ tastes while offering them a host of attractive activities and the value to match,” said the announcement.
TRON Arcade has been created in collaboration with blockchain enterprise APENFT and decentralized oracle on the TRON network WINKLink. Its primary goal, per the announcement, is to “empower developers to create and execute GameFi projects and build a robust DeFi content and entertainment community across TRON, APENFT, and WINKLink’s communities.”
Per the team, APENFT and WINKLink have an ongoing prototype scheduled to be completed in this third quarter, while the joint product is estimated to be available to users in the fourth quarter of 2021.
“GameFi is going to be the next big thing that makes the DeFi, NFT, and larger crypto space easy to understand and be involved in,” the Tron founder Justin Sun said.
New technologies drive new gaming experiences, said the partners: for example, augmented reality (AR) and virtual reality (VR) technologies have been growing over the past few years, and with it came a tenfold increase in VR and AR games, they said, adding that the same thing is happening with blockchain.
“Decentralized environments offer endless opportunities for developers to launch entire universes [and] even internal economies,” with the value being in the underlying construct of GameFi – where “play” turns into “work,” rewarding players with digital assets that have real value for themselves or someone else in the marketplace, the team said.
Meanwhile, in March this year, Justin Sun announced the establishment of a high-priced NFTs-dedicated fund, called JUST NFT Fund, the goal of which is to register world-class artworks as NFTs on a blockchain. Core members of the Fund hail from traditional art space and auction houses such as from Christie’s and Sotheby’s, he said.
Earlier, in February, Sun said he was going “all in” on DeFi, while last year he announced plans to create a new ecosystem for DeFi on Tron, dubbed “JUST DeFi.” He also launched JustSwap, Tron’s token swap protocol, and JustLink, a decentralized blockchain oracle.
At 14:39 UTC, the 27th coin by market capitalization, TRX, trades at USD 0.074 and is up by 1% in a day and 15% in a week.