Hamster Kombat turns to DAO model in bid to revive struggling crypto game

The announcement comes at a time when the project is grappling with declining user interest and investor confidence


News Desk December 12, 2024

Listen to article

Hamster Kombat (HMSTR), the Telegram-based crypto game that surged in popularity during the meme coin boom, is taking a bold step towards decentralisation with the launch of a Decentralized Autonomous Organization (DAO).

The move, which aims to give HMSTR token holders governance rights, is seen as an effort to revive the platform’s community engagement and to restore confidence in a project that has faced a significant decline in value.

New Era for Hamster Kombat

In a recent post on X (formerly Twitter), the Hamster Kombat team revealed its plans to integrate a DAO into the ecosystem. The transition to a DAO model is designed to empower HMSTR token holders with decision-making power, allowing them to influence the future direction of the project.

While the platform has not yet provided specific details on the DAO’s structure or implementation timeline, the move signals a shift towards decentralisation and aims to promote transparency and community trust.

The announcement comes at a time when the project is grappling with declining user interest and investor confidence.

By involving the community in governance, Hamster Kombat hopes to differentiate itself from other crypto games that are still under centralised control. This is also viewed as a response to criticisms of the platform’s perceived lack of accountability.

From Viral Sensation to Struggles

Hamster Kombat initially made waves in the crypto world with its tap-to-earn gameplay model and promises of high returns. Following the launch of its token earlier this year, the HMSTR cryptocurrency peaked at $0.01004 in September, attracting attention from meme coin enthusiasts.

However, the excitement was short-lived. By November, the token’s value had plummeted, dropping to an all-time low of $0.003362—a 66.57% decrease from its peak. Over the past month, the token has faced a 33.82% decline, with a 15.60% drop recorded in the past week alone.

Google Trends data further underscores the platform’s struggles, with search interest for Hamster Kombat sharply declining. Analysts suggest this downturn reflects broader disillusionment among both users and investors.

Can the DAO Turn the Tide?

The introduction of a DAO represents a potential turning point for Hamster Kombat. By decentralising control and involving the community in decision-making, the platform could rebuild trust with its existing user base and attract new investors.

The move towards decentralisation may also address long-standing criticisms about the project’s lack of transparency and accountability.

While the DAO could offer a path forward, its success will largely depend on its execution. If the platform can deliver on its promises of greater community control and improved governance, it may yet have a chance to regain its former popularity.

However, without a clear plan for implementation and sustained investor interest, the future of Hamster Kombat remains uncertain.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ