The gaming industry is growing rapidly, with innovations being unveiled in the industry each day. For example, the new play-to-earn model, together with the Metaverse and blockchain, is the future of gaming.
In the past, the gaming industry was synonymous with fun. However, it has developed in the recent past, and there is a lot of money mentioned whenever gaming comes up. The concept of money gaming has gained traction attracting many people to the industry. From the time Web 3.0 was introduced, the industry has experienced a massive transformation.
For example, Web 3.0 games are growing and getting a lot of attention. As a result, the gaming sector generates a lot of money, making it very attractive to developers.
Moreover, gaming was a one-sided relationship where developers and game owners were the only ones getting financial gains in the past. On the other hand, players were left to spend and have fun. For instance, reports suggest that in 2020, customers spent 143 billion USD on games, with a huge chunk of this amount going to gaming apps.
A new economic model has come to the fore changing the industry completely. The model is referred to as play-to-earn. Studies have revealed that this gaming model became popular as the world was struggling with the COVID-19 pandemic. This is also true concerning the virtual worlds or metaverses that these games are hosted on.
What Is The Metaverse?
The word Metaverse is an amalgamation of “Meta,” which means beyond, and “Universe.” Therefore, the Metaverse is a world beyond the universe. The Metaverse is a different worldly place having virtual lands, avatars, and buildings that players can buy and sell.
In many cases, the business in the Metaverse is done using Cryptocurrencies. Moreover, you can move around with your friends freely, buy goods and services and attend events. In essence, gamers can do the same things they usually do in the real world.
The global pandemic resulted in lockdowns which forced people to look more into the potential of the online world. In the process, they realized that they could have fun and do business simultaneously—the blockchain technology powers most of the Metaverses available today.
Moreover, it would help if you had non fungible tokens or Cryptocurrencies to transact in the virtual worlds. For example, many play-to-earn games available today have their own metaverses and native Cryptocurrencies, which gamers need to transact and receive in-game assets and rewards.
What about Play-To-Earn Games?
This gaming model uses the concept of an open economy. It offers financial rewards to users who add value by playing and spending time in the gaming ecosystem.
Initially, games were viewed as a way of having fun. However, this notion is gradually changing as a new breed of games emerges. These emerging games are not just fun to play; they also offer attractive investment opportunities. This trend has attracted notable venture capital firms that have invested up to 9.6 billion USD in the global gaming industry.
Studies have revealed that play-to-earn games such as The Sandbox have become very popular in 2021. Moreover, these games have their own economic system, allowing players to buy in-game assets using in-game currency. But, these assets and currency don’t have value in the real world. This is because there is no infrastructure for liquidity.
How Do Play-To-Earn Games Work?
Take the Axie Infinity game as an example. The game attracts over one million users every day. The game’s main attraction is the in-game creatures referred to as Axis. Gamers can buy, breed, and train these Axis, which you can also use to carry out tasks and engage in battles.
Every Axie Infinity player aims to attain an in-game token dubbed Smooth Love Potion (SLP). When you have the SLP, you can breed your Axis which gives you the benefit of earning more. Additionally, SLP is a cryptocurrency that you can buy and sell on cryptocurrency exchanges.
Reports suggest that the best-performing gamer was making around 1500 SLPs per day. This could translate to around 250 USD, considering volatility. You can also sell the Axie creatures as NFTs in an open marketplace. Other in-game assets you can sell as NFTs include real estate and flowers.
Therefore, in the Axie Infinity play-to-earn economy, you get rewarded for your time by earning SLP. You can then sell your SLPs on a cryptocurrency exchange. Moreover, players acquire Axis and other in-game assets which they can sell in open marketplaces.
Play-to-earn games are the new trend in the gaming sector. Their quick rise to popularity suggests that they will be around for a long time. They also offer a win-win situation where it is not only game owners and developers who are making money from the gaming industry. Instead, gamers also have an opportunity to make money from the in-game economy, which is linked to the real world using blockchain technology and Cryptocurrencies.