How does the Play and Earn business model

Today, we’ll take a deep dive into “Tokenomics” to analyze how the GameFi space has contrasted with the controversial “pay-to-win” (Pay-to-Earn) used in the traditional game industry through the recently popular “Play-to-Earn” (P2E) model. To gain a deeper understanding of the topic, we will use one of the most popular GameFi projects — “Axie Infinity” as a case study to explore how it motivates users to actively participate in its platform activities through the “play and earn” model. What is earn while playing? How does it differ from other games’ business models? According to Statista, the global eSports gaming industry is expected to grow from $155.89 billion in 2020 to $268.81 billion in 2025, a compound annual growth rate (CAGR) of 11.51%. Based on the rapid development of the industry and the base of over 3.2 billion gamers worldwide, we can draw a conclusion that the gaming industry is a lucrative market. In addition, game makers are taking advantage of this great opportunity to boost their revenue through the controversial Pay to Win (Pay to Win) and Free to Play (F2P) business models. Unlike F2P, P2W and more traditional methods, “Earning While Playing” (P2E) is a model widely used in the GameFi space and within the cryptocurrency community to reward players for active participation and interaction. Most “play and earn” games convert all or part of the items in the game into NFTs (Non-Fungible Tokens), which users can buy or trade through official or partner brands’ marketplaces (similar to small transactions, but more Decentralization), or earn NFTs by actively playing games, participating in events and sweepstakes, and completing challenges. Players can sell the NFT tokens they earn in-game, or use these tokens for profit through the cryptocurrency market. In addition to NFTs, P2E games often feature native tokens or in-game token rewards. How does Earn while Playing work on GameFi? Take Axie Infinity as an example. Some readers may be completely new to GameFi and the blockchain gaming world, but what we discussed earlier should also provide you with basic information about P2E solutions. The next question we need to ask is: how does making money playing games work in the real world? To answer that question, we’re going to introduce you to the fun world of Axie Infinity, one of the most popular GameFi that allow users to earn money through gaming. Although Axie Infinity is a P2E game, users must purchase three reels to start the game. To get more, players can use the Market or spend in-game Smooth Love Potion (SLP) tokens (along with some AXS) to breed new creatures. Each Axie character has unique abilities based on their body parts, and is divided into one of three tiers (Beast, Aquatic, or Bird). These variables affect data such as health points, morale, skills, and speed, as well as how these creatures perform in combat. In one of Axie Infinity’s turn-based combat systems, players must eliminate all three Axis creatures from the enemy team to win. This is why the user needs three creatures to start playing the game, because the user needs a fighting mechanic of one defender and two attackers. Interestingly, players can fight not only other users, but also non-player characters (NPCs), allowing them to earn AXS and SLP. Unlike traditional games, Axie Infinity is based on the Ethereum blockchain as the protocol. Blockchain games are also owned and managed by their users rather than companies. However, it’s worth mentioning that developer Sky Mavis holds about 20% of the project’s native token AXS and has a majority vote until October 2023 to prevent malicious parties from disrupting the GameFi solution’s ecosystem. In addition to governance, Axie Infinity’s AXS token has the following features:Stake AXS and earn passive income with your tokens; Earn AXS rewards for voting on management decisions, playing games, and participating in various events such as tournaments; Breed Axis creatures by paying a combination of AXS and SLP; Settle various payments in the Axie Infinity universe. As you can see, AXS plays an important role in Axie Infinity’s ecosystem. The cryptocurrency has recorded excellent gains so far due to its wide range of features and high demand for games. BitYard Exchange Business Request: media@bityard.exchange BitYard Telegram Communities BitYard News & Events — https://t.me/BITYARDNEWS English — https://t.me/BityardEnglish --- How does the Play and Earn business model was originally published in BitYard Token Insight on Medium, where people are continuing the conversation by highlighting and responding to this story.
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