Play-to-earn (P2E) gaming is a new model in the gaming industry that allows players to earn cryptocurrency and non-fungible tokens (NFTs) as rewards for playing and progressing in games. It is also referred to as play-to-earn or play2earn.
P2E games typically use blockchain technology and are built on platforms like Wax, Flow or Polygon. Players can earn crypto and NFT assets by completing tasks, winning contests, and simply playing the game. These assets can then be sold for profit on NFT marketplaces.
The P2E model represents a shift away from the traditional model where game developers monetize through in-app purchases and advertising. Instead, the value generated by players through gameplay is shared back to them in the form of cryptocurrency or NFT rewards.
How Does Play-To-Earn Gaming Work?
Here is a quick overview of how play-to-earn games work:
- P2E games are built on blockchain networks that support crypto transactions and NFTs. Popular blockchains used are Ethereum, WAX, Flow, etc.
- Players can earn ownership of in-game assets like characters, lands, artifacts, etc in the form of NFTs.
- These NFT assets can be traded on marketplaces for cryptocurrencies or money. Their value is often linked to their utility and rarity within the game.
- Players earn cryptocurrencies like SLP, AXS, MANA, etc for playing, winning contests, and completing tasks. These are native tokens that have value due to game popularity and utility.
- Players can sell these crypto token rewards on exchanges for real money. Active players can often recoup their initial investment and also earn income.
- P2E games often incorporate DeFi elements like liquidity mining and staking to further incentivize players and increase earning potential.
- The game developer profits by taking a cut of transaction fees and selling limited NFT assets at higher prices to fund development.
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Top 7 Play To Earn NFT Games
Here are some of the most popular and promising play-to-earn NFT games that allow players to earn crypto tokens and NFTs:
1. Axie Infinity
Axie Infinity is the most popular P2E game built on the Ethereum blockchain. Players collect, breed, raise, and battle creatures called Axies. Winning battles earns tokens called Smooth Love Potions (SLPs) that can be sold for money.
Players need at least 3 Axies to start playing Axie Infinity. The minimum investment is about $300-$1000 to get started. It has over 1.5 million daily active players and generated over $1.3 billion in revenue in 2021.
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2. Splinterlands
Splinterlands is a collectible trading card game similar to Magic: The Gathering and Pokemon. Players can earn tokens through battle wins daily quests, and tournaments. Cards won can also be sold as NFTs. It uses its own blockchain called the Hive blockchain.
Initial investment is low at about $10 to get started. It has over 250,000 daily active players and is one of the most played P2E games.
3. The Sandbox
The Sandbox is a virtual gaming world where players can own virtual lands as NFTs and create gaming experiences on them. Popular IPs like Snoop Dogg, and The Walking Dead have partnered with Sandbox.
It has its own SAND token that is used for transactions in the game. Players can earn by selling NFT assets like lands, avatars, collectibles, etc. in the Sandbox marketplace.
4. Decentraland
Similar to Sandbox, Decentraland is also a shared virtual world where players can buy lands as NFTs, explore the world, create content, and monetize game experiences. MANA is the native token used in Decentraland for trading NFTs and paying for transactions.
5. Illuvium
Illuvium is an open-world RPG adventure game built on the Ethereum blockchain. Players battle creatures called Illuvials and earn rewards like NFTs, crypto tokens, and in-game items. The 3D graphics and gameplay have been compared to Pokemon and Skyrim.
ILLV is the native utility token that powers the decentralized gaming ecosystem. The game is set to launch in 2023 and there is a lot of hype around it.
6. Gods Unchained
Gods Unchained is a competitive trading card game where players can earn NFT cards with unique abilities and strengths. These cards can be sold for real money or collected. The gameplay mechanics are similar to Hearthstone and Magic The Gathering.
It is completely free-to-play and considered one of the more accessible P2E blockchain games for beginners.
7. Coin Hunt World
Unlike other games on this list, Coin Hunt World is played in the real world. It is a location-based augmented reality game playable via mobile. Players earn cryptocurrency by hunting for vaults, signing in daily, and answering trivia.
Cryptocurrencies earned include Bitcoin and Ethereum. While not as profitable as other games, it has a much lower barrier to entry and is a more casual game.
Benefits Of Play-To-Earn Gaming
Here are some of the benefits that play-to-earn gaming offers to players and the gaming industry:
- Players can monetize their time and effort spent on games. Axie Infinity players in the Philippines and Venezuela earn a livelihood through P2E gaming.
- P2E games create true digital asset ownership for players via NFTs secured on the blockchain. Players fully own in-game assets.
- Blockchain transparency allows players to verify drop rates and rarity of NFT assets. This reduces the potential for exploitation.
- Enables new funding models for game developers based on cryptocurrencies and NFT transactions rather than advertising.
- Play-to-earn mechanics give incentives for long-term retention rather than short-term monetization goals. This results in better gameplay.
- Players become stakeholders in the game’s success and contribute to the ecosystem as a result. User-generated content is encouraged.
Concerns Around Play-To-Earn Gaming
While P2E gaming is rapidly evolving, there are some concerns as well:
- Highly volatile – Both cryptocurrency and NFT prices see wild swings making returns inconsistent. For example, the SLP token price crashed in 2021 significantly reducing Axie Infinity’s earnings.
- Requires upfront investment – You need to purchase NFTs to start playing most titles, pricing out some players.
- More gritty gameplay – Critics argue that P2E games are designed to make players grind more rather than focus on fun.
- Legal gray area – Having an unregulated asset class like cryptocurrencies be a core monetization method raises regulatory questions.
- Long-term sustainability – If token prices crash or players lose interest, the earnings potential could nosedive quickly.
While the business model shows promise, there are still challenges around making P2E games truly mainstream. The space is rapidly maturing however and mainstream adoption is picking up pace.
Final Thoughts On Play-To-Earn Gaming
Play-to-earn gaming represents an interesting evolution in the gaming industry by empowering players to monetize their efforts and skills into real economic value. While still early, games like Axie Infinity showcase the strong potential of this model.
For true mainstream adoption, P2E games will need to focus on making earning potential sustainable and steady while still maintaining an enjoyable core gaming experience. Striking this balance will be key to unlocking mass market appeal beyond just crypto enthusiasts.
With billions of dollars being poured into the blockchain gaming industry, the pace of innovation will only accelerate further.
For now, P2E gaming remains a high-risk, high-reward proposition where the biggest winners are often the earliest adopters and believers in the technology.
How Much Can You Make From Play-To-Earn NFT Games?
The earning potential varies greatly depending on the game, dedication, and skill level. For top games like Axie Infinity, earnings of $300-$500 per month are common with 8-12 hours of daily gameplay. Some power players earn over $1000 per month. Lower-tier games may only make $30-50 per month.
Is Play-To-Earn Gaming Profitable Long-Term?
It depends on the continued popularity of the game and the growth in the user base. If the underlying tokenomics hold up, P2E games can remain profitable in the long run. However, most P2E titles see a sharp earnings drop-off over time as competition increases. So long-term profitability and sustainability remain uncertain.
Conclusion
Play-to-earn (P2E) gaming has emerged as a groundbreaking concept that blends entertainment and economic potential.
In this gaming realm, players can earn real-world rewards by engaging with virtual worlds, creating a symbiotic relationship between fun and finance.
As P2E continues to grow, it represents a unique fusion of technology and economics, reshaping how we perceive and engage with video games.
The future of gaming holds exciting opportunities for players and investors alike within the P2E landscape.
