GameFi, also known as “play-to earn” gaming, is a new method of game monetization. It rewards players with in-game assets and cryptocurrencies for their skill and time. This is an alternative to traditional videogame monetization which usually involves players making microtransactions or paying upfront for the game.
Play-to-earn games allow players to earn real value by completing in-game challenges or participating in activities. These rewards can come in the form of cosmetic or weapon items, as well as trading on external markets for fiat currencies or other cryptocurrencies.
Axie Infinity is a game that allows players to breed, raise and fight Axies. It’s a blockchain-based game. The game allows players to earn cryptocurrency by participating in tournaments and completing challenges. These cryptocurrencies can be traded on the external markets or used to buy in-game items and other Axies.
Gods Unchained is another example. This collectible card game uses blockchain technology to create unique cards that can be traded. The game allows players to earn cards through tournaments and purchasing cards packs. They can trade these cards on other marketplaces or build decks that will compete in matches.
Both players and developers can benefit from play-to-earn gaming. The ability to earn real money for their skills and time can make gaming more enjoyable and rewarding. This allows players to potentially make passive income through their in-game activities.
The play-to-earn model is more sustainable than traditional monetization models that are dependent on small numbers of players buying large amounts. This model can foster an active and engaged player community by allowing players to earn rewards for participating in in-game activities.
The play-to-earn system has its challenges. The potential for players who have more time or resources to devote to the game to have a greater advantage in earning rewards. External marketplaces for trading in-game items and cryptocurrencies come with their own risks. There is the possibility of fraud and market instability.
Play-to-earn gaming is a novel and innovative way for players earn value for their time, skill, and has the potential for creating a more sustainable, engaging gaming experience for both developers and players. It will be fascinating to see how the play-to earnn model shapes the future gaming industry.