Play2Earn (Play-to-Earn)

Play2Earn (play-to-earn) games have emerged as a new gaming model where players have the opportunity to earn valuable in-game assets that can be converted into real-world resources. This concept has gained traction with the increasing accessibility of technology to the general public. In the past, games were limited to arcade machines in specific locations where players competed for high scores using quarters. However, with the advancement of technology, games can now be played on smartphones, computers, and gaming consoles like PS5 and Xbox.

One of the latest gaming models to emerge is play2earn, particularly in the blockchain realm. This model allows players to generate income by participating in games. By engaging in the in-game ecosystem, players contribute value to other gamers and developers and earn assets in return. These digital assets can range from coins to accessories, all tokenized on the blockchain. As a result, the play-to-earn business model aligns well with blockchain games.

A notable example of play2earn games is Axie Infinity. Axie Infinity is a game where players acquire, breed, and battle with adorable creatures called Axies to earn rewards. Each Axie is a unique digital collectible known as a non-fungible token (NFT). Non-fungible tokens are tokens that represent ownership of a unique item or piece of content. In the context of Axie Infinity, these NFTs represent ownership of a specific Axie with its own traits and characteristics.

Within the game, there is a complete economy called Lunacia. In Lunacia, users can obtain land and breed Axies using in-game tokens such as Smooth Love Potion (SLP) and Axie Infinity Shard (AXS). These tokens have real-life utility and can be traded on cryptocurrency exchanges.

Play-to-earn games, like Axie Infinity, have already provided a significant source of income for people worldwide, especially in countries heavily affected by the current pandemic. For instance, individuals in the Philippines are earning $1,500-$2,000 per month by simply playing Axie Infinity as a hobby. Many individuals in Vietnam have even quit their full-time jobs due to the substantial earnings from these games.

Aside from Axie Infinity, there are other notable play2earn games in the blockchain space. These include Lost Relics, a game where players can explore dungeons, fight monsters, and discover rare items to earn cryptocurrency rewards. Splinterlands is a trading card game where players can battle with their cards and earn cryptocurrency rewards based on their performance. CryptoBlades is an NFT game where players can train and equip their characters to fight in battles and earn cryptocurrency rewards. DogemonGo is a play2earn game inspired by the popular Pokemon Go game, allowing players to catch and trade virtual dogemon characters. Sorare is a fantasy football game where players can collect, trade, and manage virtual soccer players to compete in global leagues and earn rewards.

The NFT market has experienced exponential growth in 2021, with sales exceeding $2.5 billion. This surge in the NFT market is primarily driven by the popularity of NFT games and digital collectibles. NFT games provide players with the ability to earn valuable assets while enjoying the gameplay experience. These assets can be traded on various NFT marketplaces, allowing players to monetize their in-game efforts. With the increasing adoption of blockchain technology and the growing interest in NFTs, it is expected that the play2earn model will continue to expand, providing more opportunities for players to earn income through gaming.