Gamification involves using game mechanics and design principles to engage and motivate users. It focuses on play, creativity, communication, and rewarding users. There are three important factors for effective gamification: engagement loops, onboarding new users, and avoiding empty progress bars. Engagement loops keep users motivated through a cycle of motivating actions and feedback. Onboarding introduces new users to the system gradually through tutorials and challenges. An empty progress bar with no visible progress can discourage users.