How Zerosum Works

ZeroSum is a GameFi platform that changes how gaming, competition, and revenue distribution are approached in the Web3 space. Built with the help of Entangle Labs, ZeroSum focuses on a Compete-to-Earn (C2E) model. It is designed to expand the reach of blockchain gaming far beyond the limitations of traditional Web3 models, which have struggled due to flawed liquidity structures like Play-to-Earn (P2E).

P2E Failures: Why Web3 Gaming Hasn’t Worked (Yet)

The P2E model has largely failed due to its reliance on unsustainable economic structures that resemble Ponzi schemes. Many P2E projects depended on continuous player investments to maintain token value, creating a fragile system where token prices inevitably collapsed. Players are more interested in making a quick buck than in actually playing or contributing to the game. This inherent instability made the model untenable in the long run.

ZeroSum addresses this issue by shifting the focus from P2E to Compete-to-Earn (C2E). Unlike P2E, C2E emphasizes financial sustainability, transparency, and the natural competitiveness of gaming, providing new revenue streams and aligning more closely with the principles that make games successful. 

C2E ensures that the liquidity within its ecosystem is driven by genuine user engagement and participation, rather than speculative investment and value extraction. In simple terms, everyone can win, but not everyone will—just like in traditional gaming.

ZeroSum: Any Game, Anywhere, Anytime

ZeroSum leverages Entangle's Chain Abstraction to streamline user onboarding and enable seamless omnichain participation. By removing the complexities of Web3, this technology allows users to sign in and compete effortlessly from any location across multiple blockchain networks. Moreover, ZeroSum’s versatile API supports both Web2 and Web3 games, ensuring inclusivity for all players and developers, making it easy for anyone to engage and earn within the ecosystem.

The Three Modules of ZeroSum

ZeroSum’s platform is built around three key modules that drive competition and engagement —Tournaments, Challenges, and Predictions.

• Tournaments: Players compete in structured events with prize pools. Winners earn a share of the pool based on their performance.
• Challenges: Players engage in one-on-one or group challenges with varying stakes, offering quick competitive gameplay.
• Predictions: Viewers wager on tournament and challenge outcomes, earning rewards based on accurate predictions.

ZeroSum - Revenue For Everyone

To foster an ecosystem that’s built on natural competition, it is essential to take a deeper look into the overall revenue model. In traditional gaming models, the majority of the review is typically confined to game sales and in-game purchases. While this may be fine for Web2 gaming, Web3 gaming requires a deep rethink. 

To create a truly decentralized web3 gaming experience, it is essential to have a system, where every single participant will have skin in the game. Whether you are a player competing in a tournament, a viewer placing a bet, or a developer creating the next big game, your engagement must be rewarded to incentivize you to keep on participating within the ecosystem.

This is one of the core philosophies behind ZeroSum’s C2E. It democratizes access to esports, rewarding participants at all levels for their engagement. This approach enhances user experience and creates a more sustainable gaming community.

Rewarding Gamers

The value generated by gamers on ZeroSum is directly tied to their skill, strategy, and success.

By participating in tournaments and open challenges, players can wager their assets and compete for a share of the prize pools. The more skilled a player is, the higher their chances of winning and earning rewards. These earnings come directly from the prize pools that are funded by the wagers of all participants in the competition. 

Consistently performing well can lead to invitations to higher-stakes tournaments or sponsored events with larger prize pools. 

Rewarding Viewers

The following shows the progression of eSports enthusiasm and casual viewers from 2020 to 2025 (projected).

Source

Traditionally, these viewers have been passive participants, contributing little more than their attention. However, given that this is an ever-growing sector, more should be done to reward their participation.

ZeroSum rewards viewers by allowing them to earn through its Predictions feature, where they can wager on game outcomes while watching their favorite streamers. Using AI-driven odds, viewers can make informed bets and potentially earn money. 

Rewarding Developers

Game developers have a tough time in the Web3 space, often facing the pressure to deliver quick profits rather than quality games. Plus, even in web2, independent devs are usually too strapped for cash to fully realise their ideas.

ZeroSum’s revenue models guarantee a predictable income flow for developers. Unlike the farming-prone pay-to-earn or player-unfriendly pay-to-join models, ZeroSum ensures that developers earn a consistent percentage of every prize pool, whether through direct player wagers or sponsored events.

Here are some income sources for developers on ZeroSum:

• ZeroSum’s tournament module allows developers to easily integrate competitive events into their games using a low-code API. For every bet placed in an on-platform tournament, developers earn a commission ranging between 7-9% of the prize pool.
• Developers earn a portion of the fees collected from fan wagers made by the game viewers in the Prediction Module. 90% of these fees go directly to the game’s developers. 

By giving gamers, viewers, and developers real stakes in the ecosystem, ZeroSum creates a more engaging and profitable environment for everyone involved. This approach moves beyond the speculative nature of traditional Web3 models, offering a clear path forward for the future of decentralized gaming.

ZeroSum’s integration with Omnipoints further enhances the Entangle ecosystem by rewarding users across various activities, including tournaments, challenges, and predictions. By participating in these modules and staking assets, users can boost their earning potential, making every action within the platform even more valuable and interconnected.