The gaming industry has seen significant advancements in recent years, with the introduction of blockchain technology opening up new possibilities for developers and players alike. One such development is the emergence of GameFi and P2E (play-to-earn) models that aim to revolutionize the gaming experience.
GameFi and P2E enable players to not only enjoy games but also earn rewards and even generate a passive income. Continue reading as we explore four ways GameFi and P2E could modernize the gaming industry and change the way we play and interact with games.
Giving Priority to Players
Players have a significant impact on a game’s success, which is why they deserve recognition. The implementation of P2E models aims to address this concern. Axie Infinity is a popular Web3/P2E game that has seen characters sold for up to 300 ETH (equivalent to $600,000 at the time), creating a new source of income for players and altering the way people play globally.
The P2E Revenue Model
Players want to feel like an important part of the game; many contribute hours daily. If players are to be fairly rewarded for the time spent online, the traditional method of playing to win may no longer be sufficient.
Instead, gamers are becoming attracted to what GameFi projects offer — a unique play-to-earn model that provides economic incentives to users while allowing players to own a piece of what they worked so hard for.
The GameFi approach aims to bring value to the lives of gamers that expands beyond the games themselves. Usually, rewards come in the form of in-game cryptocurrency or NFTs.
In Web2 gaming, success is usually derived from two main factors: game developers and game players. However, the GameFi economy has a more diverse variety of stakeholders. The P2E system thrives on creators, builders, collectors and investors. The investors might not participate in the actual games themselves, but they represent the financial backbone of any successful P2E game.
As GameFi and DeFi continue to develop independently, the overlapping space between them has the potential for growth. As more entrepreneurs join the Web3 movement, these models and incentives will become more solidified over time.
In traditional gaming frameworks, players earn items that hold no inherent value, and they have no ownership over what they acquire. While Web2 gaming allows players to earn points, weapons, and other rewards, these rewards lack monetary value. For players, it provides an enjoyable way to spend time with friends and improve their gaming skills while experiencing the thrill of victory.
GameFi offers all the fun of Web2 gaming while allowing users to own what they earn. This shift changes the gaming framework from player-as-consumer to player-as-owner, made possible through blockchain technology, NFTs, and cryptocurrency. NFTs enable players to have complete ownership over in-game assets, characters, and other items, allowing them to buy, sell or trade them freely.