Play-to-earn (P2E) games have been the talk of the gaming community for quite some time now. As the number of P2E games increases, those who believe that crypto-games will change modern gaming are outnumbered by those who don’t.
However, some people don’t have a firm opinion yet when it comes to the impact of P2E games. If you’re looking for a piece that will enlighten you about play-to-earn games and how you can earn from them, you have come to the right place.
Discover more about play-to-earn games and how to make money from them by reading on!
What are play-to-earn games?
Players can now earn money by playing and participating in video games, thanks to the concept of play-to-earn games. Play-to-earn is a business model based on blockchain technology that allows players to earn money while playing. Simply said, you can participate in a game and perhaps earn cryptocurrency in exchange for your efforts.
In P2E games, you have the opportunity to gain possession of potentially valuable in-game assets. These assets can be anything from skins or trading cards to a specific sort of cryptocurrency or a combination of both. With each game session, you can accumulate more assets and make them increase in value.
In traditional video games, the assets are only valuable inside the particular game being played. On the other hand, assets from P2E games have real-world value. You can also transfer these assets to the real world at any time and sell them for digital currencies or real money under your conditions.
Furthermore, P2E games are decentralized, meaning the developer is unable to control everything from its central command station.
In P2E games, assets are dispersed among players in order to encourage them to continue playing. By participating in the in-game economy, players add value to the game for both themselves and other players, as well as for the game’s developer. Thus, combining enjoyment with the opportunity to earn extra cash.
How do play-to-earn games work?
Play-to-earn games allow players to earn cryptocurrencies by just participating in the game. Here’s how these games operate:
Essentially, gamers that participate in crypto-based games are rewarded with small amounts of cryptocurrency. They earn cryptocurrency by completing tasks, winning battles or engaging in any other activity that the game provides. There are two primary ways that developers approach this situation.
First are the tokens created by developers to represent a game’s native cryptocurrency. In order to accomplish this, the developers must first develop a blockchain project, then design tokens using smart contracts.
In terms of functionality, these tokens are similar to traditional in-game money, but with real-world value. The most well-known example of this comes from Axie Infinity. It has two native cryptocurrencies in it, SLP and AXS. The Ethereum blockchain is where these currencies are stored so their values fluctuate as other cryptocurrencies do.
On the other hand, developers can follow another method and rely on the already-existing cryptocurrency ecosystem like Bitcoin, Ethereum, and other cryptocurrencies. As a result, many games based on cryptocurrencies are also named after cryptocurrencies, like Bitcoin Tycoon, Bitcoin Pop, and so on.
Despite the fact that these games immediately reward players with some of the most popular cryptocurrencies, it can take a long time to acquire a considerable sum of money. To put it another way, the monetization process is typically lengthy, and the rewards are few.
If you wish to learn everything about how play to earn works and get more tips on how to earn money by playing games, we have another article for you.
How to start earning money through play-to-earn games
When it comes to discussing play-to-earn games, the subject of non-fungible tokens (NFTs) will often come up as well. NFTs are virtual collectible assets that can take on a variety of shapes and forms, ranging from photos to music and video.
In video games, they are typically represented as items that players would naturally acquire like characters, skins, items, or lands. NFTs are one-of-a-kind, meaning they are irreplaceable and are nearly impossible to recreate in any way. With that in mind, some in-game NFTs will have more value than others. It’s up to the players how they can improve the value of their NFTs by breeding, upgrading, or trading these assets.
When it comes to P2E games, NFT ownership is essential. The NFTs are owned by the players, not the developers of the game itself. Thus, the NFTs will stay in your possession even if the game is terminated.
You can trade your NFTs or take them outside of the game to sell them on various dedicated marketplaces. If you successfully sell them, you will be compensated in cryptocurrency.
In this context, players and developers are treated as if they were business partners. The players’ role in the partnership is to accumulate valuable assets and then share them through trading activities. This will encourage more people to participate in the game. As a result, when the demand for the game’s NFT increases, the profit margin for the developers will increase as well.
Of course, the production of NFTs comes at a price, and that price must be recouped. Remember that the developer earns money by taking a part of the transaction fees. So every time an NFT is traded, sold, or bought, it means profit for the developer.
For example, if the in-game NFT has a 5% royalty fee, the developer will receive money every time the NFT changes hands. This will be applicable not just for the first transaction but indefinitely. This is why developers encourage players to trade or transfer the ownership of the NFT assets.
What is it about play-to-earn games that makes them so popular?
The introduction of play-to-earn games has triggered a significant shift within the crypto and gaming industry. It made a major impact on the way games are created and how players perceive them.
Now, players are beginning to recognize the importance of their contributions. They have the chance to have a more prominent role in the game by which they can claim ownership of the things that they have worked so hard to earn.
In developing countries like the Philippines, P2E games are popular since they are regarded as a legitimate means of earning a living. When the unemployment rate in the country soared as high as 40% during the pandemic, many have found P2E games like Axie Infinity a great way to earn extra income.
But how did Filipinos be able to afford to buy the required NFT assets to play the game? This is where crypto gaming guilds, such as Play It Forward DAO offers, come into the picture. Within the guilds are Axie owners who rent out their NFTs to gamers for a fraction of the game earnings.
List of the top play-to-earn games this 2022
The market competition is becoming increasingly challenging as the number of play-to-earn projects grows. To help you have an idea of the P2E games worthy of your time and resources, here are some of the top games you should check out below. Take note that some of these games are still in the development stage.
- Blockchain Monster Hunt: A game where players explore a plethora of locations in pursuit of monsters that they can capture or fight, similar to the gameplay of Pokemon.
- Cyball: A football-themed turn-based card game where you can collect, trade, and battle using the game’s primary asset, CyBlocs.
- Mirror World: A game where you can participate in various game scenarios and play multiple games within an independent and integrated environment.
- Ethlas: A collection of blockchain-based casual games that can be played on PC and mobile devices.
- HappyLand: A game inspired by Facebook’s Farmville. Here, you will run your own farm by taking care of farm animals and planting crips.
Find out the list of the Trending Play to Earn Games: The Popular Games to Play and Earn on this next article.
Start your play-to-earn journey today
Are you interested in entering and exploring the play-to-earn space? Start by being a part of a huge crypto gaming guild through Play It Forward DAO!
Find out more information about PIF DAO by joining our growing social media channels on Twitter, Facebook, LinkedIn, YouTube, and TikTok. You can also ask inquiries and concerns via Telegram and Discord.
Don’t miss out on the latest Play It Forward DAO trends by following us and checking out our articles on Medium!