Redefining Game User Acquisition: The Rise of the KGeN Platform

1. Introduction

The gaming industry has surpassed the film and music industries in scale, but it has faced severe challenges in recent years. From 2023 to 2024, the industry has experienced layoffs and consolidation, rising development costs, and reduced investment. Publishing and distribution have become more difficult, making it hard for new projects to stand out.

However, opportunities still exist. The generation of digital natives will continue to drive market expansion. Emerging markets that have long been overlooked are experiencing explosive growth, and are expected to become an important incremental market for the gaming industry in the next decade.

This report will explore the latest challenges in game publishing, analyze high-growth opportunities in emerging markets, and focus on KGeN, a blockchain-based game platform, assessing its potential to reshape the incentive mechanisms between publishers and players.

2. Challenges Facing Issuance

One of the biggest challenges currently facing the gaming industry is distribution. Changes in consumer habits, regulatory adjustments, lowered entry barriers, and content saturation have made it increasingly difficult to successfully promote games.

Players tend to spend time on familiar games, making it difficult for new releases to break through. The top ten games of 2023, based on monthly active users, have all been released for over seven years. 60% of players' gaming time on new games is still concentrated on series that release sequels each year.

The mobile gaming market once had a mature distribution model, but the privacy policy adjustments in 2021 impacted user acquisition strategies and business models. Although some publishers have found new ways to scale, the market is increasingly favoring well-funded companies.

AI may improve delivery efficiency, but it can also lower the entry barrier and exacerbate content oversupply. UGC platforms have become a testing ground for independent developers, but they also face challenges in content curation and promotion.

Web3 games still need to overcome additional obstacles, such as stricter platform policies and bans in certain markets. However, the situation is changing, as "Off The Grid" sets a precedent for Web3 games entering console platforms.

The Web3 gaming market is still niche, with around 6-7 million active wallets interacting with over 3,000 on-chain gaming protocols. However, there are only about 200 protocols that actually have more than 100 active on-chain accounts.

In this context, a number of Web3 companies are exploring new user acquisition models based on blockchain. Innovative incentive mechanisms and on-chain reputation systems may become their means of gaining competitive advantages, especially in emerging markets.

3. Global South Market

The Global South market is rapidly emerging as an important growth engine for the gaming industry. These regions are characterized by a large player base and a primary reliance on mobile devices for gaming, but the overall willingness to pay is relatively low. As the younger generation grows and the economy develops, these markets are expected to produce a new generation of paying players.

India

India is rapidly emerging as the largest gaming market in the Global South. The number of players was only 44.9 million in 2017, and it has now increased to approximately 466 million, with expectations to exceed 640 million by 2027. Market revenue is projected to grow by 13.6% in 2024, surpassing $1 billion in 2025, and reaching $1.4 billion by 2028.

The Indian market has a strong preference for mobile games, benefiting from the rapid spread of 5G and digital payment infrastructure. The internet penetration rate has increased from 14% in 2015 to the current 52%, with significant growth potential in the future.

India's gaming preferences are unique: mobile games account for 77.9% of total revenue, while PC and console games only account for 22.2%. Real money gaming is the largest submarket, with an annual revenue of $2 billion, followed closely by casual gaming.

Southeast Asia

Southeast Asia is one of the most mature gaming markets in the Global South. In 2023, the gaming revenue in the region reached $5.1 billion, and it is expected to grow to $7.1 billion by 2028. In 2023, there were 277 million gamers, and this number is projected to increase to 332 million by 2028.

Indonesia has the highest mobile game downloads, while Thailand has the highest in-app purchase revenue. Community and competitive culture are common features of the region. The popularity of smartphones and the development of broadband infrastructure are driving market growth, with an average penetration rate expected to reach 90.1% by 2026.

Latin America

Latin America is another market worth paying attention to, with a large population and a strong gaming culture. It is estimated that there are 316 million gamers in 2022, with Brazil contributing the most, having 101 million players and $2.7 billion in gaming revenue.

The Brazilian market shows a clear preference for mobile games, with 43% of players engaging in in-game purchases. Brazil is expected to continue leading the growth of the Latin American gaming industry, thanks to support from higher education, the growth of game studios, and a favorable legal framework.

Africa

The African gaming market is at a critical development stage, with expected revenues to exceed $1 billion in 2024. Mobile games account for nearly 90% of the market share. Major challenges include high data costs, hardware prices, and network connectivity issues. Payment systems are both a challenge and an opportunity, with significant differences in payment methods across different regions.

Middle East and North Africa

The MENA region is the fastest-growing gaming market in the world, with a revenue growth of 4.7% in 2023, reaching $7.1 billion. The compound annual growth rate is expected to reach 9.4% from 2024 to 2030. Saudi Arabia, the UAE, and Egypt are the core markets, with revenues expected to reach $2.9 billion by 2027.

4. Introduction to KGeN platform

KGeN is a blockchain-driven gaming platform that leverages on-chain and off-chain data, an incentive-based task platform, and a decentralized reputation system to promote cross-game user participation. The core of the platform is a decentralized player data network that encompasses millions of micro-game communities.

KGeN adopts the "Player Proof" ( PoG ) engine to create a cross-chain player reputation layer, providing publishers with a highly engaged target user group. Since January 2024, the total number of registered accounts has increased by over 700%, monthly active users have grown by 1333%, and the total amount of data attributes has increased by 992%.

4.1 Grassroots Growth

The core of KGeN's growth lies in its grassroots tribes and tribal leader network. The tribes represent thousands of micro-communities that have joined the ecosystem. As of December 2024, KGeN reports having 2,525 tribes, with 152 of them having more than 100 members.

The tribe is the core way KGeN promotes user acquisition based on recommendations. Approximately 1.7 million KGeN accounts that have passed KYC verification were acquired through tribes. Tribe leaders are not only incentivized to bring in new members, but also need to coordinate tribe activities to maximize profits.

KGeN's largest market currently is India, but over 30% of independent active wallets and transactions occur on LINE's proprietary blockchain Kaia, indicating that KGeN has strong growth potential in Asia.

4.2 KGeN Play

KGeN Play is the front-end interface where most players on the platform participate, and all reward tasks are published here. Users earn rewards by completing K-Drops and K-Quests tasks. K-Drops provide automatic real-time verification, while K-Quests go through a manual verification process.

4.3 PoG Engine

The PoG engine is a decentralized player rating system composed of five core pillars, each containing multiple attributes. These data points track players' skills, "humanity", engagement, wealth, and social networks, building a multifaceted cross-chain reputation system.

The PoG engine currently consists of over 270 million data attributes, sourced from more than 13 million registered accounts and 4.4 million monthly active users. KGeN utilizes the PoG engine to implement the "Effective Customer Acquisition Cost" ( eCAC ) framework, charging only active users who reach the middle or bottom of the user funnel.

4.4 Token Economics

KGeN economy consists of two core assets: KCash and KGEN. KCash mainly serves as an off-chain asset for reward currency, while the KGEN token is a utility token that drives the growth flywheel of the ecosystem.

rKGEN airdrop event. The token is primarily used for incentives, and over time, it is expected that more users will use the token to enjoy discounts in the KGeN Store.

4.5 oracle network

The KGeN oracle network is a distributed network composed of permissioned nodes, forming the backbone of the PoG engine. Oracle operators will receive KGEN tokens and stablecoin rewards as compensation. The network will gradually achieve decentralization, which is expected to take at least three years.

5. Competitive Landscape Analysis

5.1 Web2 Advertising Technology Giants

Facebook and Applovin are typical cases of synergy with the KGeN model in the Web2 market:

• Facebook has successfully utilized user data to optimize game advertising placements, becoming the mobile advertising platform second only to Google.
• Applovin has achieved a leading position in the mobile advertising market through end-to-end data integration and the AI engine AXON.

Mystplay is one of the fastest-growing reward-based UA platforms in the Web2 space, enhancing user engagement through rich social features and an AI-driven recommendation engine.

5.2 Web3 Competitive Landscape

The competitors in the Web3 market can be mainly divided into two categories: publisher ecosystems and task platforms.

Publisher ecosystems like Ronin and Immutable support UA optimization through token subsidies and inflation incentives. Their profit models are primarily based on the fee structure of developer activities and do not compete directly with KGeN.

The task platform competes with KGeN in terms of user attention. KGeN's strong community base in India and Brazil has given it a first-mover advantage, but this does not guarantee continued success in the future.

5.3 Competitive Analysis

The competitiveness of the task platform is primarily reflected in two key indicators: total potential rewards ( TPR ) and platform locked value ( LPV ).

KGeN is leading in terms of registered accounts and monthly active users, which provides it with a significant LPV advantage. In terms of TPR, KGeN's community reward distribution ratio is as high as 40%, placing it at a high level in the industry.

In order to be competitive in the global market, KGeN needs