Dialogue between Xterio Co-founder Jeremy Horn: The "AI+GameFi" Journey of a 15-Year Game Veteran from Web2 to Web3

Questioner: Mia, ChainCatcher

Answerer: Jeremy Horn, Co-founder and COO of Xterio

Editor: Marco, ChainCatcher

With the recovery of the BTC ecosystem and the successive waves of enthusiasm in AI and meme sectors, the voice of "sector rotation" has gradually emerged in the crypto community. As a leader in the previous bull market, the GameFi sector has also begun to attract attention.

During the bear market, the GameFi sector has nurtured some promising chain game developers and projects, and Xterio, the subject of this dialogue, is one of them.

According to the Web3 asset data platform RootData's April hot search list, Xterio has consistently ranked high on the hot search list.

In early April, Xterio announced a groundbreaking Layer 2 network, Xterio Chain, developed in collaboration with AltLayer, supported by the stacks of Optimism and EigenDA, aiming to define a growing AI-based Web3 gaming world. At the end of April, Xterio announced a collaboration with BNB Chain and AltLayer to launch a new L2 chain centered around gaming, utilizing BNB as the Gas Token.

With the support of BNB Chain, Xterio's development momentum has reached new heights.

Back in 2022, Xterio raised $40 million, with FunPlus, Makers Fund, and XPLA leading the investment, and WEB3 investment institutions like Animoca Brands, HashKey, and Foresight Ventures participating. In 2023, Binance Labs invested $15 million to boost its AI and Web3 game development capabilities and token launch.

Currently, the Xterio platform has launched four self-developed chain games including Overworld and AGE of Dino, and has introduced 50 games including collaborations.

Xterio also launched the game-centered marketplace, Xterio Marketplace, in October last year.

Recently, ChainCatcher invited Jeremy Horn, Co-founder and COO of Xterio, to delve into how Xterio transitioned from the Web2 gaming industry to the Web3 domain and share its insights as a rising star project in the chain game sector of GameFi.

Jeremy Horn, a graduate of Asas University, has been in the gaming industry for over a decade, previously involved in the production of Web2 games such as "Harry Potter: Hogwarts Mystery," "Star Wars: Smuggler's Run," "Family Guy: The Quest for Stuff," and "Marvel: Avengers Academy," possessing rich game development experience.

From Traditional Games to the GameFi Track

ChainCatcher: Why transition from the traditional gaming sector to the Web3 GameFi track?

Jeremy Horn: Throughout my 15-year career in the gaming industry, I have witnessed the rapid development and significant changes in the industry, especially the rise of the free mobile gaming market and the challenges that followed. With tech giants like Google and Apple introducing privacy policy changes, along with the rising CPI costs and increasing market competition, game publishing and operations have become increasingly complex.

However, the rise of Web3 games has brought revolutionary changes to the industry. Web3 games build a new bridge between developers and players, characterized by driving persistent user engagement, digital asset ownership, and cross-game asset liquidity. This model not only enhances user engagement and retention but also stimulates asset trading, encourages players to explore new games, and improves the cost-effectiveness of player acquisition.

ChainCatcher: Xterio was shortlisted in RootData's 2023 GameFi Top 20 projects. As a popular project in the GameFi track, how does Xterio empower the GameFi track?

Jeremy Horn: The recent awards received by Xterio, including being recognized as a popular project by RootData and a leading GameFi project, highlight Xterio's significant influence in the gaming industry.

Currently, Xterio's tech stack includes features such as simplified wallet accounts, launchpad functionality, integrated marketplace, bridging solutions, and more. By combining with AI technology, Xterio is able to innovate the gaming sector by creating immersive, AI-enhanced experiences to attract players to the Xterio Web3 ecosystem and maintain user engagement and activity.

We aim to establish Xterio as a hub for accelerating AI-driven interactive experiences and develop an AI toolkit that generates consistent, high-quality 2D and 3D assets. The "AI Emotional Engine" aims to provide users with meaningful companionship, elevating the gaming experience beyond traditional gameplay, making Xterio comparable to traditional free games while embracing the transformative potential of AI-driven game development.

ChainCatcher: As a cross-platform instant-play and earn developer and publisher, Xterio has already produced and is developing games like Overworld and Age of Dino. In game development, which type of game projects does Xterio lean towards?

Jeremy Horn: Xterio's development philosophy is based on innovation and quality, with a strong emphasis on exploring AI-driven game development. Xterio is committed to supporting teams by providing publishing and organizational resources.

While Xterio has achieved significant success in 4X strategy and RPG game genres, the team continues to be driven by innovation to push Xterio beyond traditional boundaries. Through years of engaging with games, we have realized that groundbreaking games often come from creators who dare to challenge the status quo, and innovative game projects are Xterio's top choice.

ChainCatcher: From the perspective of a game developer, how do you create a perfect in-game economic model to avoid the death spiral?

Jeremy Horn: Regarding the so-called "death spiral," I firmly believe that this phenomenon will no longer exist in Xterio's architecture. When designing in-game and Web3 economic models, we rely on deep industry experience and market insights to build a model that not only ensures a fine balance between economic input and output but also provides users with a comprehensive and meaningful gaming experience.

In the Xterio ecosystem, the Lifetime Value (LTV) of each product is crucial. We strive to ensure sustained user attraction and vitality by balancing the consumption of practical value with user rewards. Excessive rewards may lead to inflation, while insufficient rewards may weaken user engagement. Therefore, in designing the economic model, we always consider this balance as a core factor.

To ensure the ecosystem's sustainable development, we focus on supply-demand balance in monitoring and operating games. Through data analysis and market feedback, we continuously adjust economic parameters and strategies to ensure the rational allocation and effective utilization of resources.

Additionally, we actively communicate with the community, listen to their voices and suggestions, and collectively drive the healthy development of the ecosystem.

Launching Layer 2 Network Xterio Chain

ChainCatcher: Xterio collaborates with AltLayer to create the Layer 2 network Xterio Chain. How will Xterio Chain impact Xterio?

Jeremy Horn: Xterio's close strategic collaboration with AltLayer has not only distinguished Xterio Chain among many blockchains, ranking fourth in daily transaction volume among all chains, but also firmly positioned it as a leader among many Layer 2 solutions.

Furthermore, Xterio Chain has gained wide market recognition for its extremely fast transaction speed and low gas fees. This advantage has not only attracted a large number of users' attention but has also led to over $25 billion worth of ETH being staked on our chain.

Integrating Xterio Chain into our ecosystem sends a strong signal to the market: Xterio is committed to providing users with a seamless, smooth gaming experience using the latest technology. The introduction of Xterio Chain, combined with Xterio's continuous innovation in AI technology, provides a creative space for developers within the Xterio ecosystem. Game developers can leverage these advanced technologies to create engaging, highly scalable game content, offering users a more diverse and enriching gaming selection.

Through Xterio Chain, we provide developers with one of the most comprehensive tech stacks for creating immersive game experiences and scalable Web3 games. This tech stack not only includes core blockchain technology but also integrates cutting-edge technologies such as AI, cloud computing, providing developers with robust technical support and vast innovation space.
Therefore, the integration of Xterio Chain will attract many outstanding developers to the Xterio ecosystem, collectively driving rapid growth and significant development in the gaming industry.

ChainCatcher: According to the team's roadmap, what are the next steps in the plan?

Jeremy Horn: Our development plan aims to continuously strengthen Xterio's leading position in the market and further expand the influence of Xterio Chain: Overworld we

The beta version of b3 is released, bringing players a broader and more realistic gaming world; Palio's AI game debut will showcase the infinite possibilities of AI technology in the gaming field; and the launch of the test version of the new game City Shadow indicates that we will continue to bring players more exciting and diverse gaming content.

In addition to providing players with opportunities to earn rewards in the game, Xterio is more focused on creating long-term sustainable value. We understand deeply that only by allowing players to truly enjoy and feel satisfied in the game, while also retaining the rewards they have worked hard to earn, can we create a strong emotional connection with the game. Therefore, Xterio will continue to strive to create more attractive game content for players, enabling them to enjoy the game while also realizing their own value growth.

2024 Could Be the Next GameFi Era

ChainCatcher: Currently, the industry is discussing whether 2024 will be a new era for GameFi. Will Xterio also make corresponding adjustments and accelerate project development in the GameFi field?

Jeremy Horn: We are extremely optimistic about Xterio's core role in the growth of the GameFi field in 2024 and beyond, mainly due to the outstanding value of our flagship game. Take the game "Age of Dino" as an example, this high-energy strategy experience game, as the first AAA strategy mobile game integrated with Web3 features, has achieved significant innovation in the gaming field, providing players with on-chain transactions, rewards, and trading experiences.

In the rapidly evolving Web3 environment, adaptability has become a key factor for market survival.

ChainCatcher: In addition, what do you think the development trend of GameFi will be this year?

Jeremy Horn: We foresee a significant shift, where using incentive measures to reduce player acquisition costs will become mainstream. This trend has already begun to emerge and is expected to accelerate in the future.

Xterio focuses on the integration of AI and blockchain technology, the combination of these two technologies will bring revolutionary changes to the gaming industry.

As the industry continues to develop, GameFi games will become more immersive, providing players with unprecedented gaming experiences through the enhancement of AI and Web3 technologies. Players will be able to immerse themselves in a more realistic virtual world, engaging in deeper interactions with characters and scenes in the game. At the same time, these technologies will also provide players with more meaningful interactions and growth opportunities, allowing them to enhance their self-worth in the digital realm.