I work flexibly in NFT games

Cabanatuan, a metropolis located in the northern part of the Philippines, has long been “rich” in two things: banks andelectric tricycles .

The deposit liabilities of the former account for more than half of the entire province for a long time, establishing its status as the economic center; the latter is the magic weapon for the city’s “stabilization of employment”-because public transportation is only distributed outside the city, the three-hop children’s travel has become a high priority. frequency demand.

In 2010, there were at least 30,000 electric tricycles registered in the city of Cabanatuan, and many people in Cabanatuan rely on the three-bumpers to support their families. However, the global pandemic has upset a fragile balance, with almost a third of young people in the Philippines losing their jobs.

It was not Foxconn that saved the Philippines, but an NFT game called “Axie Infinity”. This game focuses on the concept of “Play-To-Earn”. In the Philippines, Venezuela, Argentina and other countries, many people have regarded it as the main source of income.

The 75-year-old Lolo Sliverio family is one of them. He and his wife run a grocery store in Cabanatuan City. The isolation at home has reduced their income by more than 90%. The two can only earn food and medicine through games every day. Expenses[2] – until they met the white knight “Axie Infinity”.

Lolo Sliverio mentioned in the documentary that he and his wife prayed to God every day that “Axie Infinity” would not disappear.

I work flexibly in NFT games

Lolo Sliverio and wife

On July 31, 2021, the single-day revenue of “Axie Infinity” reached 40 million US dollars, which was 4 times the average daily revenue of “Honor of Kings” on the iOS side during the same period. Behind this, there are one after another Filipinos who have relied on the game to regenerate.

In October 2021, the game has 2 million daily active users worldwide, 40% of which are from the Philippines; in order to prepare for the funds needed for the game, some people even auctioned their houses on social media [3]. Sky Mavis, the Vietnamese company that developed the game, also made a lot of money. Last May, Sky Mavis raised $7.5 million in Series A funding.

I work flexibly in NFT games

Some people type codes in front of the screen, some people work flexibly in games, and everyone has a bright future. Is this what shared prosperity looks like?

Wealth and Bubble

Around the concept of “Play-To-Earn” games such as “Axie Infinity”, there is a proper noun in English – “GameFi”, that is, game finance. With the help of the NFT model, the income of the cryptocurrency in the game is related to reality.

On the surface, “Axie Infinity” is a remake of “Pokémon”, but it differs from “Pokémon” and all traditional games in thateach “Axie” pet is a unique NFT digital asset with ownership It belongs to the player – this means that even if the game goes out of business, the asset remains on Ethereum; and the resource SLP currency produced in the game is an encrypted token, which is directly linked to the US dollar.

I work flexibly in NFT games

game interface

The entire game’s transfer (zhuan) to (qian) process roughly has the following steps:

New users need to register an encrypted wallet and purchase 3 “Axie” pets on the NFT secondary market as an entry threshold. With 3 “Axie” pets to form a team, win in PVP and PVE to get SLP tokens, users can choose to sell SLP tokens in exchange for US dollars. “Buy NFT pets – liver tokens – sell tokens” constitutes a small cycle that can quickly obtain investment returns.

In addition, the game also provides 2 medium and long-term profit schemes:

One is to make money by breeding pets in the game. Players can choose to consume the generated SLP coins to make two pets breed offspring, and the offspring attributes are randomly determined by the parents’ genes. Multiple breedings will hopefully produce top-quality pets, but the player’s SLP consumption will also increase exponentially. Powerful pets can be sold directly for cash, or can be added to the team as a “production tool” to increase the winning rate and increase the output of SLP coins.

The second is to become a “game shareholder”. Players can obtain limited AXS governance tokens through some game competitions or secondary transactions. Holders can receive dividends from time to time. Sky Mavis also mentioned in the development log that it plans to hand over game ownership to the community in 2023, with governance token holders voting to determine the direction of development.

In subsequent updates, “Axie Infinity” also added virtual land for investors to speculate.

By contrast, Sky Mavis’s own way of making money is somewhat unpretentious — collecting taxes. For every transaction involving Axie Infinity, the company takes 4.25% of the profit.

I work flexibly in NFT games

Frequent transactions on the secondary market

The venture capital institution a16z, which participated in the early investment of Sky Mavis, praised its model as the embodiment of the spirit of Web 3.0, “recovering power and wealth from the platform that has been in an exploitative position, and redistributing it to ecological participants” [6]. But “Axie Infinity” is actually just a digital asset exchange with game elements.

The company makes money, and the players make money, so the question is, who is the leek? Now it seems that the answer is probably “later”.

The only way to consume SLP coins is to breed pets, and those who have a large demand for purchases are mostly new players who lack powerful pets. Therefore, when the game ushered in the peak of user growth in July 2021, the exchange ratio of SLP coins to US dollars also reached a new high: calculated by playing 100 SLP coins per day, the single-day income can reach about 17 US dollars; the highly skilled “Liver Emperor” even At that time, the income of 2,000 US dollars per month was almost 10 times that of the blue-collar income in the Philippines[7].

However, with the subsequent slowdown of new users, the output of SLP coins gradually began to exceed the demand.Sky Mavis tries to achieve a dynamic balance by reducing in-game output. The value of SLP currency still falls to the point where Chinese concept stocks are ashamed: in October last year, 100 SLP could only be exchanged for about 7 US dollars; as of March 30th , leaving only $2.14 [8].

The house leak happens to rain overnight. Judging from the recent series of turmoil, this is far from the bottom of the valley:

On March 30, “Axie Infinity” issued an announcement saying that more than $600 million in cryptocurrency had been stolen by hackers, which was ridiculed as “stealing the Philippine treasury.” The theft occurred a week before the announcement, and Sky Mavis was unaware of it until one user failed to withdraw the cryptocurrency. Sky Mavis took investors to draw a Web 3.0 pie for a year, but was embarrassed to find that all this was actually much more fragile than imagined.

But players from the third world are still united under the banner of “Axie Infinity” – after all, there are no good choices in reality.

Working in the Metaverse

Israeli scholar Yuval Harari made such a prediction in “A Brief History of the Future”: With the advancement of algorithms and AI, most people will lose their jobs, and only a few people will be able to complete social production, and Feed the “useless class” who are not needed. And these people who cannot generate social value will indulge in cheap virtual worlds or drugs for a long time to pass the boring time.

In the era of epidemic shutdown, “surplus” has become a status quo that many countries cannot ignore. However, they did not live bored in the virtual world, but just moved to another place to work as part-time workers.

When “Axie Infinity” first became popular in Vietnam, the start-up capital was only about 4-5 US dollars; but today, a team with poor stats needs to spend at least 70 US dollars, and a single powerful “Axie” pet can easily Selling for $300 or more.This price is much higher than the monthly salary of some fresh graduates.

The “poors” in the community saw business opportunities from it. Three unemployed people raised money to buy a large number of “Axie” pets, rented them out to people who needed to make a living, and made a profit by taking a share. This entrepreneurial project called “Axie University” was a great success, and the unemployed became bosses, and those players who rented pets from the “boss” became employees of “Axie University”, such as those who were unemployed after graduation. pregnancy.

Entrepreneurial projects similar to “Axie University” have sprung up, and the organizational structure is becoming more and more like a real company: “Axie” pet “landlord” began to regularly organize various game skills training in order to maintain profitability, and even began to assess “Student” game level.

Similar things are also happening in Argentina: In recent years, the country’s prices have maintained a crazy annual increase of about 50%, causing at least tens of thousands of citizens who have difficulty living to choose to obtain income through NFT games such as “Axie Infinity”. However, Sky Mavis’s head of Latin America said in the media that most Argentine players are actually “working” for American and German players because they can’t afford their own game accounts [11].

The cold facts prove that even if human beings enter the Metaverse era, there will still be situations of exploitation.

I work flexibly in NFT games

Players looking for “students” on Twitter

However, human surplus is not a unique phenomenon in the epidemic era, but a long-term crux – after all, a direct manifestation of productivity improvement is the reduction in the number of people participating in production. In the past, excess populations were often limited to marginal jobs with lower economic returns, such as manual labor, but this has struggled in the era of the pandemic. It can be seen that even if “Axie Infinity” falls, the next “Axie Infinity” still has the opportunity to make a lot of money.

But for the whole society, this change may not be a good thing: 30,000 electric tricycle drivers can at least ensure the convenience of transportation in Cabanatuan, but 30,000 Axie players have not brought any substantial contribution to society. The only thing that hasn’t been affected is that both have a bright future, presumably.

As Harari puts it in the book:

“The development of liberalism that promotes the sanctity of human life and human experience will be a fatal blow to this belief. These people are useless to society, living all day between reality and fantasy, how can such a life be sacred ?”

financial pressure

One of the most common criticisms of games or virtual worlds is that people play with things and get discouraged. This critical framework doesn’t really apply to Axie Infinity. Since its “financial attributes” have surpassed “game attributes”, many governments are looking at this work from a “financial perspective”.

For example, in the hotly debated Philippines, in the face of gamers indulging in virtual worlds and not seeking jobs in society to boost the economy, the government did not order games to be shut down or time-limited, but considered taxing gamers and game companies.

According to the Philippine Tax Code, “Axie Infinity” will generate about 9 million US dollars in taxes every month in the Philippines[17]. However, the Treasury Department and the Internal Revenue Service have not determined in the short term what form the player will be taxed in. The Central Bank of the Philippines once proposed to regard “Axie Infinity” as a “payment system operator” of the same nature as a bank and incorporate it into the corresponding regulatory system, but it has not yet been implemented.

Since games are highly correlated with cryptocurrencies, government attitudes toward cryptocurrencies can also have an impact on gaming.

In this regard, the Philippines has a sense of moving forward. By the end of 2021, xSpend, which focuses on crypto token payments, will be launched in Bangladesh, India, Indonesia, Malaysia, and the Philippines, allowing users to pay with SLP tokens; in the Philippines, it can be used for more than 350 additional companies Payment for goods.

I work flexibly in NFT games

In contrast, Axie Infinity is in an awkward situation in Argentina. Not long ago, Argentina chose to ask the International Monetary Fund (LMF) for help due to economic pressure. The two sides signed an agreement on March 8, and 14 days later, 2.8 billion US dollars were sent to the rescue. However, the LMF added a condition to the agreement, requiring the government to take a tough anti-cryptocurrency stance [13]. The development of NFT games in Argentina has begun to be subtle again.

In the three largest game markets in Asia, NFT games such as “Axie Infinity” were rejected due to legal restrictions.

China does not currently open the secondary transaction of NFT digital assets, and the application of this technology mainly focuses on digital collections and copyright protection; South Korea’s legal provisions explicitly prohibit the exchange of game currency for cash, while Japan has extremely strict gambling crimes, NFT Game modes have a high chance of breaking this law.

In conclusion, tax evasion, disruption of the national financial system, and conflict with existing legal provisions are the main reasons why many major countries are very cautious or even reject NFT games.

Last summer, after Axie Infinity created a revenue myth, Steam took down all NFT games on the spot and temporarily added a clause to the Getting Started Guide that “should not publish any block-based cryptocurrency or NFT transactions that mention or allow it. Application of Chain Technology”.

Under countless heavy blows, the “Axie” pet, which is harmless to people and animals, has become a monster at this moment, but it still cannot reverse the prevalence of NFT games – after all, the government’s minimum living allowance is not that much money.

end

While players in the third world are working in the game, many European and American game producers and ordinary players are launching a mighty wave of anti-NFT public opinion.

Game producer Josef Fares, best known for his “F**k the Oscars” and the phrase “F**k the Oscars”, has recently had a new target. “NFT will never appear in my game.” In February of this year, the British game developer Team17 just announced the NFT plan, and was scolded by irritable players to apologize and shut down the project; at the same time, many other game studios have launched Sanlian was denied on social media and vowed to distance itself from NFT.

The reason for the collective boycott of NFTs in Europe and the United States is simple – gaming is an art, and NFTs distort it. Game companies will prioritize how to make NFTs more investment-worthy when designing products, rather than gameplay itself.

Here they talk about art, and there they just want to subsidize the family. It’s absurd to expect the game to redistribute wealth with such a divisive response around the game itself.

[1] The NFT Game That Makes Cents for Filipinos During COVID,CoinDesk

[2] PLAY-TO-EARN | NFT Gaming in the Philippines

[3] Axie Infinity: How the Philippines became a Play-to-Earn Nation | Around the World with NFTs

[4] “From Games to Metaverse” Series Report 2: Popular NFT Game Axie, Metaverse Exploration of Ethereum Blockchain, CITIC Securities

[5] Earning 2.1 billion in 30 days. Is “Axie Infinity” an innovative game or a Ponzi scheme? What about mobile games?

[6] Investing in Axie Infinity,Future from a16z

[7] Play Games, Earn Crypto: For Children of Blockchain Pros, Play-to-Earn Gaming Opens a Brave New World,the information

[8] Smooth Love Potion price prediction: Has it lost its magic,currency.com

[9] NFT game security questioned: Axie Infinity developer was hacked and lost $600 million, GameLook

[10] A Brief History of the Future, Yuval Harari

[11] Play-to-Earn Crypto Games Becoming a Popular Income Booster in Argentina,Be In Crypto

[12] Philippines may classify Axie Infinity as a company running a payment system,forkast

[13] Argentina’s IMF bailout deal includes a wild clause that rips cryptocurrencies,FORTUNE

[14] xSpend Now Lets Users in Bangladesh, India, Indonesia, Malaysia, and the Philippines Spend Their Crypto Assets——CISION

[15] Renewed NFT controversy: European and American players have a huge wave of opposition, but Asian manufacturers have made a lot of money, GameLook

[16] BLOCKCHAIN GAMES TWIST THE FUNDAMENTALS OF ONLINE GAMING

[17] The Philippines plans to tax Axie Infinity players, TokenInsight

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/i-work-flexibly-in-nft-games/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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