Challenges in the Market

Despite these advancements, several pain points remain unaddressed in existing virtual pet projects:

Lack of true AI - Many current blockchain pet projects rely on static NFTs, and NFT-based pet projects tend to emphasize collectibles over meaningful, interactive, learning-based AI companions, limiting long-term user retention.

Unsustainable economies - Many P2E models collapse due to hyperinflation and poor economic design, unsustainable reward structures and a lack of deep interaction and sustainable economic models.

Limited User Engagement - Without dynamic pet behavior and long-term development, many AI projects are not a true pet engagement platform, and user retention in virtual pet ecosystems remains low.