Fake World Assets Take Ethereum by Storm with Onchain Gacha Phenomenon

A new phenomenon is sweeping through Crypto Twitter - Fake World Assets (FWAs), the latest iteration of onchain gacha. Users pay to spin an onchain 'gacha' machine for a chance to win a randomly selected NFT, with prizes coming from dozens of well-known collections.

Within four days of launch, FWAs became Ethereum's largest gas consumer by fees over a 24-hour period, generating approximately $1.53 million in daily fees at its peak on July 25. TokenWorks' TVL reached over $6.15 million on July 31, with fee revenue easing to around $350,000 per day.

Simon Dedic, founder of Moonrock Capital, is skeptical about the long-term viability of FWAs, attributing much of the current activity to generous token incentives rather than genuine demand. However, he's 'very bullish on gamified commerce' and sees potential in selling assets people already want to own in a gamified way.

Meir Statman, behavioral finance pioneer, compares onchain gacha to lotteries, stating that people value the experience itself, not just the chance of winning. 2Lambroz notes that LPs are hoping their NFT stays in the pool long enough to earn fees, while players are chasing the chance of landing a prize worth far more than the cost of a spin.