In a bid to turn around its lagging momentum, UAE-based team shooter Farcana has introduced a new FAR token staking program.
Offering 60% APR on staked FAR, the program is one of the highest incentives among current web3 games. But as with a large majority of tokens launched in 2024, FAR has not performed well, down 96% since its February 2024 launch.
“The decline (of FAR) reflects early listing decisions that, while initially driving momentum, highlighted the need for more robust utility within the ecosystem,” commented Farcana founder and CEO Ilman Shazhaev in a post on X.
“Until the game goes live, our token has been predominantly driven by speculation – a model that, while effective in the short term, does not build sustainable growth,” he continued. “That’s why FAR has also underperformed in the current market.”
As a result of releasing its new staking system, FAR has jumped by 24%. It’s also reached number two as the most traded asset on crypto exchange Bybit. Although good news for the project short-term, there’s a larger trend plaguing altcoins more generally, and web3 gaming tokens in particular.
As the following graph shows only six of the top 20 gaming tokens haven’t declined in price during 2024.
This issue was also recently addressed by Animoca Brands chairman Yat Siu, who’s plainly stated that these tokens have failed to gain traction. Despite of – or rather because of – an increasing market cap for altcoins, the sheer number of new tokens in 2024 has “greatly diluted overall attention” for individual altcoins, causing weak price performance.
Siu goes on to suggest that institutional participation, such as in the case of Bitcoin, is imperative for the longevity of these diluted tokens, as it could both increase “trust” and bring in “substantial long-term capital”. A far cry from the speculation-driven trading that’s overshadowed most of crypto gaming tokens so far.
Meanwhile, Shazhaev added, “Staking is just the first step in creating long-term stability and utility for the token.”
“We want our holders to put their tokens to work while we continue to build out the Farcana ecosystem, slowly but surely.”
Users wanting to stake their FAR tokens need to connect their wallet to Polygon, which is also one of Farcana’s seed investors. Among others participating in the $10 million seed round announced at the end of 2023 were Animoca Brands, Fenbushi Capital, and Merit Circle.
