How does play-to-earn (P2E) work in Blockchain games?

In play-to-earn games, players can earn rewards by engaging in various in-game activities, such as battling, farming, or completing quests. These rewards often come in the form of cryptocurrencies or NFTs, which hold real-world value. Here’s a breakdown of the P2E model:

• Earn in-game currency: Players earn cryptocurrency (like ETH or game-specific tokens, then exchange them for ETH/other Blockchain currencies) by completing tasks, competing in battles, or winning challenges.
• Ownership of assets: Items like characters, land, or weapons are represented as NFTs, which players own and can trade on secondary markets.
• Real-world value: Players can sell or trade their NFTs and cryptocurrency for real money, essentially turning gaming into a form of income.
• Community-driven economy: In many P2E games, players contribute to the game’s economy, either by investing in assets or by participating in governance decisions.

Popular blockchain games like Axie Infinity and The Sandbox have demonstrated how players can earn meaningful rewards, with some players making full-time incomes through P2E gaming.

Example: Axie Infinity players earn tokens called SLP (Smooth Love Potion) by battling with their Axies, which can be sold or traded for cryptocurrency, making it one of the most successful P2E games to date.

Top Blockchain games and platforms to explore

Here are some of the most popular blockchain games and platforms leading the way in play-to-earn gaming:

• Axie Infinity: One of the most famous blockchain games, Axie Infinity allows players to collect, breed, and battle creatures called Axies. Players earn SLP tokens, which hold real-world value.
  • Why it’s popular: Axie Infinity was one of the first games to allow players to earn a living, especially in regions like the Philippines, where it became a significant source of income.
• The Sandbox: The Sandbox is a virtual world where players can buy, sell, and build on virtual land using NFTs. The game allows users to create their own assets and experiences within the platform.
  • Why it’s popular: The Sandbox gives players extensive creative control and the ability to monetize their creations by selling them as NFTs.
• Decentraland: Decentraland is another virtual reality platform where users can buy, develop, and sell land parcels as NFTs. It has become popular for virtual real estate investment and for hosting events, concerts, and art galleries.
  • Why it’s popular: Decentraland combines social interaction with a decentralized economy, making it a unique experience for investors and creatives.
• Gods Unchained: Gods Unchained is a blockchain-based trading card game where players own the cards they collect. They can buy, sell, and trade their cards, making it similar to physical collectible card games.
  • Why it’s popular: With true ownership of cards, Gods Unchained provides players with tangible rewards and control over their assets.

Quick tip:If you’re new to blockchain gaming, start with a free-to-play game like Gods Unchained to get familiar with the play-to-earn mechanics before investing in NFTs or tokens.

Benefits of Blockchain gaming and play-to-earn models

Blockchain gaming and play-to-earn models offer numerous benefits that go beyond traditional gaming:

• True ownership: Players truly own their in-game assets as NFTs, meaning they can buy, sell, and trade items independently of the game.
• Earn while playing: P2E games allow players to generate income, sometimes enough to replace traditional jobs.
• Decentralized economy: In many blockchain games, players can participate in the governance and development of the game, making them stakeholders in the game’s economy.
• Greater transparency: Blockchain technology ensures all transactions are secure and publicly verifiable, adding transparency to the gaming economy.

Stat: Blockchain games attracted 1.4 million unique active wallets in 2022, showing a high interest in play-to-earn models and decentralized gaming.

Challenges and risks of blockchain gaming

While blockchain gaming has promising advantages, there are challenges and risks to consider: 

• High initial costs: Some P2E games require an initial investment to get started. For example, Axie Infinity players need to purchase at least three Axies to play.
• Market volatility: The value of in-game tokens and NFTs can be highly volatile, meaning players’ earnings can fluctuate dramatically.
• Security risks: Like any blockchain-based asset, NFTs and tokens are susceptible to hacks or scams. Players must be cautious and use secure wallets.
• Regulatory uncertainty: Governments are still formulating regulations around blockchain gaming, which could impact its legality and accessibility.

Quick tip:If you’re interested in blockchain gaming, start small to understand the game mechanics and the potential risks before making a larger financial commitment.