- Pixels CEO recommends moving away from game-based models to make money and towards sustainable revenue models.
- RORS measures economic health by comparing rewards to expenses.
- Chubkins app tests novel economic strategy and Web3 economic indicators.
Luke Barwikowski, CEO of Pixels, outlined a practical roadmap to ensuring the economic survival of Web3 gaming. He called for a move away from the “play to earn” dogma towards operational metrics such as RORS and hybrid strategies that prioritize sustainable revenues. The presentation took place at ul YGG Play Summit in Manila and focused on monetization and adopting proven Web2 tactics.
Barwikowski formulated a fundamental problem: early models of playing to make money created unsustainable economies. In these systems, approximately 1% of users consumed half of the rewards, leading to the devaluation of the token and the collapse of the project.
To measure economic health, Pixels has developed a Return on Reward Spend (RORS) metric, which ties rewards awarded to in-game spend. According to the presentation, Pixels achieved a positive RORS in the range of 1 to 1.05 and maintains an operating margin of 5% for the ecosystem.
This structure also provides targeted reward models, while “Associations” – free factions with lightweight competitive loops and active rankings – provide rewards with a commission of 5-10% of in-game spend.
A notable operational element was the investment in a targeted rewards offer system. The team spent 18 months and almost half of the company dedicated to building a rewards platform that acts as an advanced loyalty program designed to segment users and maximize RORS by re-engaging and converting shoppers.
Adapting Web2 tactics and product testing
Barwikowski defended the pragmatic adoption of incentives for Web2 acquisitions. He argued that classic rewards (gift cards, Robux, V-Bucks) are more effective at attracting novel users than cryptocurrency rewards. “Cryptocurrency rewards often seem inconvenient for regular users,” he commented, adding that the results of the offering system “exceeded our expectations.”
To test the hybrid hypothesis, they launched Chubkins, a regular Tamagotchi-like app with early access and geo-locked in the US It is designed specifically as a testbed for Web2 monetization – referrals, content rewards, and milestones – while its primary reward mechanism remains Web3.
Barwikowski emphasized the return to rapid iteration. After a period dedicated to “perfect systems”, Pixels has again prioritized rapid updates and constant experimentation to refine economic mechanics.
The context of the announcement at the YGG Play Summit focused on the connection between the player and the product. References to related initiatives included the YGG Play Launchpad and the debut of LOL Land, which the presentation said generated multi-million-dollar revenues and exemplifies the trend toward models that connect gamers with sustainable revenue streams.
Pixels’ proposal presents a hybrid operating model that replaces dependence on speculation with measurable revenue metrics and levers. The next verifiable milestone will be Chubkins’ early access test results and the conversion and RORS data they provide to validate the scalability of this strategy to other Web3 projects.
