Table of Contents

1. Nexon's Two-Decade Journey: The Challenges for Longevity

2. Envisioning a New Wave of Growth through Web3

3. NXPC Tokenomics and Ecosystem: The Cornerstones of MSU's Success
3-1. Incentivizing content creation
3-2. Ongoing content upgrades
3-3. Decentralized content play and enhanced user engagement

4. How Does NXPC Differ from Other P2E Models?
4-1. NXPC focuses on creator rewards and secures strong demand through item minting
4-2. Leveraging a powerful IP base to cultivate user demand for item purchases

5. Tokenomics Announcement and Future Directions

1. Nexon's Two-Decade Journey: The Challenges for Longevity

Nexon, Korea’s largest gaming company, has maintained an unbroken trajectory of growth over the past 30 years, a feat attributable to two key factors: 1) its pioneering spirit and 2) its mastery in live game service operations. Nexon’s introduction of Korea’s first online RPG game, ”Nexus: The Kingdom of the Winds”, and its innovative free-to-play model revolutionized the industry, driving the explosive growth of the domestic gaming sector. Over time, Nexon’s acquisition and development of core intellectual properties (IPs) like MapleStory, FIFA Online, and Dungeon Fighter have propelled the company to reach annual sales of KRW 3.9 trillion by 2023. The remarkable longevity of these IPs, thriving for more than 20 years, stands as a testament to Nexon’s exceptional operational capabilities—unparalleled within the industry.

However, Nexon is not without its challenges. While the company has successfully built and sustained a long-lasting game over the past 20 years, the next 20 years are far from guaranteed. Although Nexon has excelled in operating core live services and growing its ecosystem by leveraging its deep understanding of the community, it has recognized the need for change to ensure continued growth. Specifically, Nexon has realized the limitations of content production when solely driven by the game company and has felt the that its well-established IP royalties are limited to the gaming sector. Additionally, there have been internal concerns about the existing free-to-play model's limitations in generating revenue growth. These considerations are what led Nexon to establish a new subsidiary, NEXPACE, and to incorporate Web3 elements into MapleStory, one of its flagship IPs.

2. Envisioning a New Wave of Growth through Web3

Nexon’s "pioneering DNA" has been the bedrock of its innovations—from launching online games and adopting free-to-play models to acquiring new IPs and swiftly adapting to mobile gaming trends. Now, with the advent of Web3, this innovative spirit is set to be reignited.

source: MapleStory Universe Medium

The rationale behind Nexon’s decision to launch MapleStory Universe (MSU)—which integrates the beloved MapleStory IP with Web3 elements like blockchain, tokens, and incentive structures—is clear: “unlimited content supply” and “the introduction of new business models.” MSU aims to increase incentives for content creation by providing token-based rewards to users who act as creators. These creators will be compensated with tokens for their contributions to the in-game ecosystem, a system that promises to be more transparent and rewarding compared to the existing revenue-sharing models. This strategy is expected to establish a foundation for a significantly expanded content supply.

As the volume of content grows and new users enter the ecosystem, NEXPACE (Nexon’s subsidiary) will have the opportunity to explore various Web3 business models. For instance, NEXPACE could earn tokens by participating as a creator and also collect fees from core infrastructure services within the MSU ecosystem, such as item exchanges through an NFT marketplace fee model. Additionally, by leveraging the interoperability of blockchain technology, Nexon can explore long-term business models that extend customer loyalty to MapleStory IP across various external ecosystems.

Beyond increasing content supply and exploring new business avenues, blockchain technology offers another significant advantage: transparency. The transparent nature of token and NFT transactions on the blockchain mitigates concerns over issues like probability manipulation and item inflation—controversies that have plagued the industry in the past. By building trust in the game’s operations, Nexon can foster a stronger connection with its user base. The recent unveiling of Xangle Explorer and MSU Navigator—two of the five synergistic apps introduced by NEXPACE this week—underscores the importance of transparency in building user trust.

3. NXPC Tokenomics and Ecosystem: The Cornerstones of MSU's Success

Among the various Web3 elements introduced to expand content supply and establish new business models, the most critical is the role of the NXPC token. NEXPACE recently revealed the overarching direction of NXPC’s tokenomics to the public for the first time. This announcement was a significant milestone, given that the success of the MSU hinges on the effective implementation of the NXPC token and its economic model. As outlined in the announcement, NXPC is expected to play a role far beyond that of a simple utility token—it will serve as a fundamental pillar supporting the entire economic structure of MSU.

With a total issuance of 1 billion tokens, NXPC Tokenomics is designed around two primary objectives: incentivizing content creation and enhancing user engagement. These dual objectives are intertwined, forming the foundation for MSU’s long-term sustainability and success.

3-1. Incentivizing content creation

One of the key components of NXPC’s tokenomics is its robust creator incentives. NEXPACE has structured the reward system in MSU to ensure that creators receive tangible rewards directly linked to their contributions. Creators will earn NXPC tokens based on their content’s impact within the ecosystem, a system that promises greater transparency and faster rewards compared to the existing creator revenue-sharing models in the existing MapleStory platform. 

3-2. Ongoing content upgrades

Beyond merely functioning as a reward, NXPC tokens play a crucial role in providing creators with the resources needed to develop content. Creators can use NXPC to mint key items, integrating them directly into their content. Instead of cashing out NXPC, creators can reinvest it into items from NEXPACE's item pool to expand their creations further. This reinvestment not only elevates the quality of the content but also offers users a richer, more engaging experience. Consequently, the system of purchasing content creation items with NXPC establishes a strong demand for the token while enhancing the MSU content ecosystem, keeping both creators and users actively engaged.

3-3. Decentralized content play and enhanced user engagement

Creators incentivized by NXPC will build their own planets, producing and delivering unique content to users. Initially, NEXPACE plans to release MapleStory N games, led by Nexon, and make them available to users, with a roadmap to gradually expand the pool of creators. This decentralized approach allows users to explore a variety of creator-built planets, potentially addressing the longstanding issue of stagnant gameplay that plagues traditional RPGs.

For instance, a specific item acquired on the MapleStory N planet might have entirely different effects on other planets. Individual planet creators can adjust the specific stats of each item to align with their content’s concept and design. This decentralized development environment motivates users to engage with multiple ecosystems, offering a dynamic gameplay experience even if they don't remain within a single ecosystem. Ultimately, this ensures that new players can enjoy a wide variety of content, on par with seasoned players.

Games incorporating tokenomics have often been criticized for their short life cycles due to the prevalence of exploitative players, commonly referred to as "farming users." However, it's also been noted that retention metrics, such as reconnection rates, tend to be relatively high because users own NFT items and tokens that can be cashed out. Results from the MSU Pioneer test conducted in July and August indicated a noticeable increase in user engagement. While further validation is needed due to the limited scale of the test, especially to determine whether Web3 elements genuinely enhance player immersion, the initial findings are promising and suggest a meaningful impact.

4. How Does NXPC Differ from Other P2E Models?

Although MapleStory N is a blockchain game, like other P2E (Play-to-Earn) models, there may be concerns about the balance of tokenomics supply and demand, which could potentially shorten the game cycle. While further detailed tokenomics announcements, including a whitepaper, are needed, we believe NXPC can establish a sustainable tokenomics model distinct from other P2E games for the following reasons:

4-1. NXPC focuses on creator rewards and secures strong demand through item minting

A key differentiator of NXPC is its strong demand generation, anchored by item minting, which serves as a clear and sustainable source of demand. Unlike conventional in-game rewards, NXPC is not just a simple incentive for gameplay—it functions as a vital resource for diverse activities such as content creation and item minting within the MapleStory Universe. This structure helps maintain a stable demand for NXPC, and as the number of creators and the need for items increase, the demand for NXPC is expected to grow organically.

4-2. Leveraging a powerful IP base to cultivate user demand for item purchases

source: MapleStory Universe Medium

Another significant differentiator for NXPC is its foundation on the strong and well-established IP of MSU. For over 20 years, MapleStory has been a beloved and proven IP, and NEXPACE aims to expand this legacy by integrating NXPC tokens, extending the loyalty of MapleStory fans into a broader, diverse ecosystem. In contrast to other P2E games that have often relied on entirely new IPs or have tried to overcome their limited user base by incorporating Web3 at the end of their game cycle, NXPC is built on the existing fanbase and robust IP of MapleStory, enabling it to generate a relatively steady and enduring demand from users. In particular, key items within MSU will be highly valued as they are utilized across various content within NEXPACE. Users are expected to use NXPC to acquire these important items, driving further demand for the token. Ultimately, this demand reinforces the value of NXPC, solidifying its role as a crucial element within the ecosystem.

5. Tokenomics Announcement and Future Directions

It has been several years since Axie Infinity sparked the P2E boom, and in the intervening years, many companies have either withdrawn from blockchain gaming or significantly scaled back their efforts, often with limited success. However, Nexon, which has consistently led the industry and embraced new challenges, is now just beginning to embark on its Web3 gaming journey. The company has invested substantial time and resources into thoroughly exploring the integration of blockchain and tokens into gaming, backed by extensive testing and validation processes that distinguish it from others. Nexon’s measured and deliberate approach indicates its readiness to forge a unique path, leveraging deep industry expertise and a commitment to sustained innovation. This journey mirrors the legacy of MapleStory, which has thrived and evolved over the past two decades. Now, with the integration of Web3 into MapleStory Universe, there is hope that this could pave the way for another 20 years of growth. As a member of the Web3 community, I sincerely hope this new venture succeeds in driving the industry forward.