Pixels Reveals Updates on Tokenomics

The recent AMA held by the Pixels team (Heidi Christine and Luke Barwikowski) on June 25, 2025, offered a comprehensive update on the game’s direction, covering a range of topics including tokenomics adjustments, ecosystem plans, and upcoming gameplay changes. The discussion provided the community with clearer insights into the current development phase, challenges being addressed, and future steps.

Pixels Reveals Updates on Tokenomics

Current State of Tokenomics and Gameplay Loop

One of the primary focuses of the AMA was the state of tokenomics within Pixels. While recent updates such as the taskboard changes have been implemented, the team acknowledged that further refinement is needed. The developers expressed some internal challenges with decision-making processes and outlined plans to streamline workflow by bringing more team members into key discussions. They also emphasized the importance of completing the core gameplay loop before prioritizing monetization. The goal is to ensure that player feedback is considered and that future features align with community expectations.

Progress Toward Pixels Chapter 3

The development of Chapter 3 is currently in the planning stages. The team is still evaluating different directions and wants to ensure the next chapter meets the needs of the player base. The roadmap includes refining existing systems, particularly addressing experience curve imbalances in areas like mining, forestry, and pet care. Chapter 3 is expected to introduce a stronger sense of competition and collaboration, potentially incorporating a faction system that works in tandem with the existing guild structure.

UGC Showcase and Shorelime Event

The annual Shorelime event continues to serve as a unique community celebration. This year, a football field within the game is being transformed into a User-Generated Content (UGC) Showcase Fair. Artists with three or more approved UGC items are encouraged to apply, although space is limited due to the growing volume of over 1,300 approved UGCs. During the event, the Shorelime Chibi NFT was awarded to Ramen, adding to the community engagement surrounding the celebration.

Pixels Reveals Updates on Tokenomics

Expansion of the Pixels Ecosystem

Pixels is preparing for additional web3 games to join its ecosystem. While the team is enthusiastic about this growth, they also noted a key challenge: many web3 games struggle to generate sustainable revenue. To address this, Pixels is considering models that can include web2 players who engage without necessarily using crypto wallets. The pets game, which is expected to launch soon as a mobile-first app, will serve as an entry point for web2 users while maintaining a web3 infrastructure in the background. The team believes that for the ecosystem to thrive, a blend of web2 participation and web3 mechanisms is essential.

Introduction of vPixel and Future Token Strategy

A major topic of discussion was the rollout of vPixel, a new in-game currency backed 1:1 by $PIXEL. Unlike $PIXEL, vPixel cannot be sold or traded but can be staked or spent within the ecosystem. This change is part of a broader plan to phase out $PIXEL as a reward currency and shift toward a stake-only model. The full transition is expected to take about a year and will involve increasing return-on-reward-spend (RORS) metrics across all associated games. The team is also exploring the possibility of enabling vPixel purchases through simple payment systems like Apple Pay or Google Pay, which would lower the barrier for casual players to participate.

Pixels Reveals Updates on Tokenomics

Staking System and Governance Updates

The staking system has become a central mechanism for governance within the Pixels ecosystem. Currently, 28 million $PIXEL tokens are allocated monthly for ecosystem distribution. Staking allows players to influence which games receive funding based on how much is staked in each one. Initially, core Pixels projects will be protected, but over time they will need to compete on equal footing with other games for allocations. This system aims to create a more balanced and transparent reward model across the ecosystem.

Monetization and Revenue Sustainability

During the AMA, the team addressed concerns about monetization, particularly the need for some players to spend more $PIXEL than they earn. While this has drawn criticism, the team reiterated that positive RORS is necessary for ecosystem sustainability. They are working on mechanics that allow spending to feel optional and fair. In addition, there are plans to open monetization options to USDC or fiat payments, which would reduce reliance on crypto platforms and make the game more accessible. Revenue generated from fiat could also potentially be used to reward stakers, which would support long-term token sustainability.

Pixels Reveals Updates on Tokenomics

Community Feedback and Gameplay Balance

Several community concerns were addressed, including the difficulty some high-level players faced in earning $PIXEL after recent taskboard updates. The team noted that taskboard settings are being adjusted daily and encouraged players to check for the latest changes. There was also discussion about the need for new quests, missions, and competitive gameplay elements. These features are already in development as part of Chapter 3 planning. Adjustments to systems like guilds, farmlands, and specks are being considered but will likely be tied to the broader release of Chapter 3.

Bot Detection and Platform Security

The issue of bot activity was also raised. While completely eliminating bots remains challenging, the team has implemented various detection and prevention methods, including VIP gating and user reputation systems. These measures have shown more effectiveness than traditional IP or behavior-based filters. The team acknowledged that combating bots will continue to require a multifaceted approach, especially as automated systems grow more advanced.

Pixels Reveals Updates on Tokenomics

Mobile Strategy and Web2 Onboarding

The upcoming pets game will be the first mobile-first release from Pixels, targeting a web2 audience. The app is being designed to allow players to engage without needing to connect crypto wallets, lowering barriers to entry. The team hopes to rank highly on app store charts at launch and may introduce group incentives tied to download milestones. This strategy is part of a broader goal to expand the audience base and encourage web2 users to participate in a blockchain economy in a seamless way.

Broader Industry Perspective

The AMA concluded with thoughts on the broader state of web3 gaming. The team acknowledged the decline of several web3 games and emphasized the need for innovation and growth outside of current market limitations. They are exploring distribution platforms such as Roblox, which has a large daily user base and potential for user acquisition. While there are no immediate plans, the team is closely studying these models as possible future strategies.