P2E (Play-to-Earn) is a new word for video games in which players may earn cryptocurrencies and NFTs by playing. Over the last several months, the play-to-earn concept has acquired a lot of traction.
Gaming is a massive worldwide market in and of itself. Globally, there are about 2.7 billion players. At the same time, economists predict that the industry’s worth will approach $300 billion in the next several years. This industry is growing rapidly. However, the sector is plagued by two major issues:
- In the strictest sense, players do not own their purchases. In-game objects (equipment, weaponry, power-ups, and so on) improve a player’s performance and pleasure of the game, but they have no other function. As a consequence, they are classified as entertainment costs rather than investments.
- There is a lack of options for company models. Free-to-play games account for 80% of all digital gaming income. This restricts creators and the sorts of gameplay techniques they may use, as well as the industry’s overall growth. New types of gaming will arise when new revenue models for game producers emerge (such as NFT resale commissions).
The new Play-to-Earn strategy has the potential to alter the gaming industry’s current environment. This tendency welcomed the creation of a range of blockchains very quickly. The number of games has already surpassed 200, and they account for up to 45 percent of total decentralized application traffic. As a consequence, the trend has been designated as a distinct GameFi area (Game Finance).
The idea is straightforward: players may earn real money or other benefits just by playing the game!
The most straightforward approach to grasp this is to use the example of Axie Infinity. Axie Infinity is a fantasy character blockchain game built on Ethereum, similar to the popular CryptoKitties. Players nurture, breed, and battle their Axie characters as part of the game’s gameplay. At the same time, players may make money by breeding animals or by winning battles.
Furthermore, each Axi is a non-transferable token (NFT). As a result, each Axi has unique qualities that set it apart from other species. It is possible to cross an axis. As a result, new creatures enter the game. Some of them have distinguishing traits that enable them to be marketed commercially.
It’s vital to note that in order to begin the game, you’ll need money to buy Axi on the Axie Infinity marketplace. Animals are sold as adults and at various stages of development (in the egg). They will eventually mature into full-fledged Axi. It takes 5 days from the egg stage to the emergence of a person. Pets (NFT) may then be traded for Ethereum.
The goal of the game is to gather Aksi’s strongest and most distinctive army. You may achieve this by forming a team with other players. The army may either go to battle against other players or go on an expedition throughout the game world (Lunation).
There are two cryptocurrencies in the project. Small Love Potions is the first (SLP). Players may produce and enhance pets using SLP. SLP is a cryptocurrency that can be purchased and traded on a cryptocurrency exchange. It’s worth noting that the value of a currency in the earn-to-play model is determined by the amount of players who need it.
The project’s second coin is AXS, Axie Infinity’s native token. By delivering liquidity to decentralized exchanges, its holders might receive passive income. In addition, it may be used to contribute to the project’s development (governance). AXS may be utilized for staking in the future.
As a consequence, earning money with these and similar Play-to-Earn gaming features has grown very popular. Giving gamers the possibility to earn more than the monthly minimum wage, especially in poor nations.
The blockchain enables you to continually develop new Play-to-Earn gaming concepts. As a result of programs like Yield Guild Games and others, where Axie holders lend their NFTs to other players to use and earn, there are thousands of “Axie Fellows.” The profit is split between the two parties in this situation.
Along with Axie Infinity, several P2E games like CryptoBlades, Gods Unchained, Star Atlas, Zed Run, and others have grown in popularity in recent months. These games are currently being developed by blockchain developers and are largely utilized by bitcoin users.
We believe the money-playing revolution is too promising to be ignored by established game creators, especially after the overwhelming success of Axie Infinity. We believe that large game creators will begin incorporating these concepts into their games, or will establish distinct blockchain studios and initiatives.