Guellord MbusaGames developed on the blockchain have been widely acclaimed by the crypto industry, massively attracting new investors and players in the gaming industry. The principle behind the game play to earn (P2E) is quite clear: players earn income or assets through gambling, in part through blockchain-based rewards, including crypto tokens and non-fungible tokens (NFTs).
Investments have flowed into this new sector with early entrants like Axie Infinity (Sky Mavis), Blankos Block Party (Mythical Games) and other games, with valuations estimated in the millions of dollars. Many development studios (Zynga, Ubisoft, etc.) have announced their interest in the development of future games based on blockchain. The frenzy for Play-to-Earn games, thousands of games have appeared in the space of a year.
Gamers and cryptocurrency enthusiasts have been enthusiastic about the prospect of earning money by “playing” such games. The rise of gaming Axie Infinity has enabled thousands of citizens in Asia to generate income thanks to the rewards from the game.
Cependant, le bear market started in 2022 has dampened the enthusiasm. The value of the vast majority of P2P game tokens has collapsed, leaving players disappointed...The question of the viability of the P2P business model is then called into question.
How do the players do they make money on P2P games?
How a game works P2E is not really different from that of a classic game. What is different is the economic model used. The rewards (crypto tokens ou NFT) obtained by playing have real value and belong to you. Another revolution that P2E games bring is that the rewards players obtain can be freely resold to other players outside the game.
Players can then choose to sell their rewards for cash or reinvest their winnings in the game to increase their chances of winning better rewards.
The procedure is much simpler than you might think. It is generally sufficient to:
- Register for the game via the website or by downloading a mobile application;
- Play the game (sometimes you have to purchase one or more NFTs beforehand);
- Earn rewards in crypto or NFT;
The principle that players receive real financial rewards for their time and attention is real. P2E can be a powerful force for good, offsetting inequality, introducing millions to crypto without risk, and potentially emerging as an aspect of universal basic income.
This is the optimized vision of games developed on the blockchain. In reality, far from making a fortune, many players complain about losing their money...
The business model of Play to Earn (P2E) Games is it viable in the long term?
Now that the euphoria has passed, many players are wondering if P2E is a ponzi scheme which makes more money than you might think at first glance.
To unlock the true potential of P2E, we need to understand where these problems arise and improve designs accordingly.
In modern P2E, winning has less to do with playing and more to do with investing. Players must first spend significantly, purchasing NFTs or paying a third-party guild to rent it. And to earn a return, certain groups of future players must spend more to keep the economy going. The logic is then to grow, infinitely and to attract ever more new players.
This is an unsustainable model in the long term. We have been able to observe this with many games and even alternative applications like Step'N whose tokens lost value once growth stopped. Despite the continuous and aggressive promotion of many influencers, games cannot attract new players indefinitely...
The other problem with P2P games comes from market fluctuations which can swallow up the capital of players who have invested in the game's tokens. For example, when " earnings » are based on appreciation, market declines mean that players see their tokens depreciate. Since 2022 bear market, most tokens have lost value, particularly NFTs and tokens from P2E.
Only investors and developers were able to make profits. That such a thing can happen in the play-to-earn model is counterintuitive isn't it?
However, the sad reality is that most P2E games benefit a central operator to the detriment of their many individual players. The developers of such games (even if they are good people with the best intentions) can rake in considerable revenue despite the risk and potential loss incurred by players.
This is what is problematic when we talk about “play-to-earn” games.
It is certainly amid growing concerns about automation, global inequality and centralized power structures that P2Es are asking if there is a way for ordinary people to earn and share the value they have helped to create. create with their time and attention.
How to make games play to earn (P2E) more enjoyable for players?
Some player-focused design principles that can ensure an interesting, more sustainable and impactful P2E ecosystem that lives up to the ideals of Web3.
➡️ A fairer economic design : A P2E game is an economic system with multiple players, competing interests and limited resources. The mechanisms that decide who gets what piece of the pie must be fair and place all participants on an equal footing. For a real economic impact, games must be accessible to all players, without any discrimination.
➡️ Think about them tokenomics and a viable business model: To create P2P games that are not based on broken systems, it is important that developers think about tokenomics and the merits of tokens in advance. We need to think about use cases for NFTs which go beyond the scope of speculation. Tokens must have meaning and utility. It is also important to consider market variations in order to create solutions for investors.
➡️ A transparent environment : All key financial data must be shared openly. It should be clear how money is generated by the system and how it is distributed/earned. As long as rewards are shared fairly with players, it will increase trust, engagement and revenue opportunities.
➡️ A decentralized space : Blockchain should be used for the benefit of players and developers. For example, game results and transactions can be made openly verifiable on-chain, and players can be meaningfully involved in ownership and governance.
Final word
More and more people today are advocating Web3. However, far from promises, concrete actions are needed. This will become a reality when the industry comes together to build systems that are fairer and better designed.
The principle of P2E games in Web3 is fundamentally to distribute income fairly in a redistribution system. Web3 applications must ensure that all stakeholders (end users, players, partners, team members, suppliers, etc.) are fairly valued and rewarded, but this won't happen by accident.
This does not mean that we should abandon the P2P business model either. They need to be improved. And as a reminder, a game must, above all, be incredibly fun and exciting to play. Otherwise, no amount of rewards will keep players engaged. Again, it is important that game developers work on games that are more qualitative and less focused on future returns.
Taking such steps to honestly value the contributions and well-being of end users is certainly what will make Web3 games so much fairer than traditional games...
------
This is not investment advice. Always do your own research. Only invest amounts you are willing to lose.
To buy cryptocurrencies (simple way):
- Public chat Binance (Complete crypto trading platform)
Generate interest on your cryptocurrencies:
- Public chat Youhodler (Earn up to 12% interest)
To secure your cryptocurrencies:
To have fun and play
- The best for Esport and sports betting: CloudBet
