🔵Part 3｜Market and Narrative Contexts

Part III｜Market and Narrative Contexts

3.1 Industry Trend: From Financial Assets to Entertainment Assets on the Chain

Since 2020, blockchain technology has been widely applied to DeFi, NFT, GameFi and other scenes, giving rise to a series of infrastructure innovations. However, with the gradual fading of the narrative dividend, the active users and real transaction behaviors on the chain have dropped dramatically, and a large number of public chains have fallen into the predicament of “idle transactions and false ecological activity”. Meanwhile, the real-world online entertainment, interactive entertainment and digital entertainment markets continue to expand:

• The size of the global entertainment digital market has exceeded US$3.5 trillion;

• The digital gaming market is growing at a CAGR of 11.7%;

• Web3 participants are increasingly shifting to high-frequency, lightweight interactive assets.

The next stage of the Web3 public chain ecosystem will shift from a “financial asset-based” to an “entertainment asset-driven” ecosystem.

3.2 Market Pain Point: “False Prosperity” and Practicality of Public Chain Ecology

Current Problems	Descriptions
📉 Interaction on the chain is falsely high	Serious data distortion due to the use of robotic trading, script swiping, and repetitive operations
👻 Low user participation	The number of wallet activations is much higher than the number of real users on the chain.
⛽ Gas model imbalance	The number of wallet activations is much higher than the number of real users on the chain in order to attract users to lower the handling fee, long-term lack of real revenue model support.
🧱 Lack of Consumption Scene in the Public Chain	Lack of on-chain scenarios that allow users to “consume and interact frequently”.

StarChain was created to solve the above structural pain points and to promote “Real Transactions + High-Frequency Entertainment + Revenue Closing Loop” as a new paradigm of public chain value.

3.3 New Trend Directions：RWE（Real World Entertainment）

RWE = Real World Entertainment Assets on the chain.

StarChain proposes a new Web3 trend paradigm, RWE, which defines the main direction of the next cycle:

RWE	Descriptions
Real	Real Transactions, Real Users, Real Consumer Demand
World	Targeting 4 billion entertainment consumers worldwide, covering cross-border interactions
Entertainment	Games, Guessing, IP Interactive, Live Streaming, Tickets, NFT Entertainment Assets

In the future, on-chain assets will no longer be just “investment targets” but will also be tokenized expressions of real-world entertainment interactions.

3.4 RWE and current trends（RWA / GameFi / L2）

Model	Representative trend	User frequency	Application Lifecycle	Market Capacity
RWA	Real estate, bonds, and gold on the blockchain	Low Frequency	Long cycle	Trillion-level (Finance)
GameFi	P2E game assets on-chain	Medium frequency	Very short cycle	High volatility, short life cycle
L2 Rollup	Optimization for scalability	No focus on asset class	Medium cycle	Depends on the main chain application density
RWE-StarChain	Entertainment assets on the blockchain (lottery/poker/IP)	High frequency	Strong viscosity	Unlimited consumer market

RWE is a new narrative thread that possesses the triple advantages of “real on-chain value + frequent user behavior + wide consumption scenarios”.

3.5 RWE real market capacity and ceiling estimates.

• Global Online Gaming Market: Annual Value > $500B

• Global digital game market (including IP licensing) > $300B

• The NFT potential of global cross-border medical care, tourism, ticketing, performances and other scenarios is huge

• The estimated value of "entertainment trading assets" that can be mapped into the chain exceeds $1 Trillion+

Compared with RWA's institutional, closed financial market, RWE targets 1 billion C-end users, with more than 10 million daily on-chain transactions.