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What is the Play-to-Earn Game Model?

What is play-to-earn, and how does this game model work? Played to potentially earn cryptocurrency Can create native or existing...

By | 05/13/2022 8:37AM

What is the Play-to-Earn Game Model?

What is play-to-earn, and how does this game model work?

  1. Played to potentially earn cryptocurrency
  2. Can create native or existing cryptocurrencies
  3. Typically needs an initial investment
  4. Offers NFTs as rewards or assets
  5. NFTs are player’s property
  6. Has more secure technology compared to traditional games
  7. Developed parallel to the metaverse

What was once an enjoyable hobby has taken a very lucrative and interesting turn. Gaming as we know it has been turned on its head with the introduction of cryptocurrency and “Play-to-Earn” games. While many say that this new step will revolutionize the gaming world, others are more skeptical of its value and sustainability.

But what is play-to-earn, and how is it different from traditional games? If you don’t quite understand the concept yet, read on. In this article, we show you the ropes of play-to-earn games and blockchain gaming.

Played To Potentially Earn Cryptocurrency

The term itself gives a good clue. It’s essentially a mix of gaming and finance, giving play-to-earn games another name: GameFi (which we covered in a different post).

With this game model, players are given financial incentives to enter, play, and progress through the game. But how do players earn through these models, exactly?

The key is through cryptocurrency and in-game assets. These assets can be anything, from weapons, skins, cards — any kind of item that players can earn or collect in-game. In traditional games, these assets were only valuable inside the game. But, play-to-earn attaches cryptocurrency to these assets, so these things have real-world value.

Players could potentially earn a steady stream of crypto income by simply playing the game, earning rewards, and collecting new assets. Each game will differ, but they typically offer staking, farming, trading, PvP, and other mechanisms that offer chances to earn rewards — these in-game business models allow players to work for an income.

This model works for a very simple reason: it gives gamers the possibility of earning money while doing something they enjoy.

Can Create Native Or Existing Cryptocurrencies

Can Create Native Or Existing Cryptocurrencies

Play-to-earn games are also frequently called crypto games — and for a good reason. As we mentioned, it attaches cryptocurrency value to in-game assets (and may even offer the crypto itself as a reward for playing the game). If the value of the cryptocurrency rises, you have the potential of earning a profit from these assets and rewards.

Players can collect cryptocurrency by participating in tasks, completing objectives, winning contests, or any other activity the game brings.

From there, developers can offer one of two choices. They can either create a native cryptocurrency in the form of tokens — which entails making a blockchain project, designing tokens, and closing the deal with smart contracts. One example is Imperium Empires, which has two native cryptocurrencies — IME and IMC, both of which have real-world value.

Or, developers can rely on existing cryptocurrencies. For example, some games use Bitcoin or Ethereum. But, while these are established cryptocurrencies, it can take much longer to earn a significant amount from them. In comparison, the monetization process is usually faster with native tokens.

Typically Needs An Initial Investment

Each play-to-earn game will have different requirements to start playing. At the very least, you’ll be asked to have a crypto wallet to store the game’s currency. However, most games will ask for initial investment from new players. This is typically investing in starting items or a team of characters.

Don’t worry, these play-to-earn games usually require this to give players what they need to earn more in-game assets later on, usually for simply playing the game. All it takes is some time and engagement. This way, players can generate a return on investment — and potential profit.

Offers NFTs As Rewards Or Assets

Offers NFTs As Rewards Or Assets

We can’t talk about the play-to-earn gaming model without talking about NFTs. This stands for non-fungible tokens, a term that describes virtual collectible assets. NFTs can come in all sorts of digital forms, but in this model, they appear as things players would collect anyway. For example, unique characters, equipment, vehicles, skins, or even virtual land.

Each NFT is a unique, irreplaceable asset that’s impossible to duplicate. This creates value for each NFT item you get in-game.

For example, in our game Imperium Empires — the first AAA space metaverse game on Avalanche — we have spaceship NFTs, like our Genesis model. These spaceships can not only be in our space metaverse, but each one is rare and possesses value.

NFTs Are Player’s Property

Any NFT you earn, buy, or trade for in these play-to-earn games is your property — not the game’s nor the developers’. Even if the game crashes or shuts down, these will remain your property.

This means you can do whatever you want with an NFT once you own it. In Imperium Empires, our spaceship NFTs can be used to fight, explore, and gather assets within our game. They can also be used to fight enemies and other players — each adventure you take with your NFT has the potential to reap rewards and increase the value of your NFT. When the time comes, you can even decide to sell them! Either way, you can trade in your assets and get paid in cryptocurrency.

Has More Secure Technology Compared To Traditional Games

Has More Secure Technology Compared To Traditional Games

With so much value attached to in-game assets, how can you play without fearing hackers and thieves cheating you out of profits? For play-to-earn games, the critical difference is that everything exists on blockchains.

There are several attributes in a blockchain that easily prove ownership, legitimacy, and rarity. It’s an immutable database, maintained by an extensive network of users holding a copy of the blockchain’s data. This prevents anyone from changing, deleting, or falsifying the data. Simply put, play-to-earn games are developed to prevent fraud and exploitation tactics common in traditional games.

Thus, your NFTs are safe from theft or deletion, and their value and rarity are protected.

Developed Parallel To The Metaverse

Developing in parallel with play-to-earn games is the metaverse, a shared virtual world in which users can meet up and interact together through their avatars — all while playing games.

This technology presents the ability to stake out claims on virtual land. While the metaverse is still in its early stages, it promises an interoperable world — where players can use in-game items to do all sorts of things, such as building, creating territories, and even creating new societies and markets. It’s a powerful catalyst for play-to-earn gaming.

Key Takeaway

What is play-to-earn? This new gaming model offers the opportunity for players to earn through cryptocurrencies. On top of that, it utilizes new technology to offer more value, lessen the risk, and improve sustainability.

If you want to explore play-to-earn more, explore Imperium Empires today! We are the first AAA space metaverse crypto game built on the Avalanche blockchain, offering innovative GameFi 2.0 and team-to-earn mechanics. Head over to our blog, news, and our whitepaper to learn more about our project.