What is “Play-to-Earn”?
Plan to earn (abbreviation: P2E) is a popular business model currently staying in the world of blockchain games. It corresponds to the common F2P (Free to Pay) model in the real-world game industry. The latter refers to Players can play for free, but they need to recharge if they need a better gaming experience.
In fact, the P2E business model has been in traditional games for a long time. Games such as World of Warcraft and Onmyoji have a group of players making money by selling equipment or equipment. In blockchain games, this model has been upgraded. Players can earn real money by playing games with cryptocurrency-based assets (NFTs). By actively participating in these virtual economies, players can earn rewards, such as in-game assets and tokens, which can then be traded or sold on the open market.
This is an important change in the game world, because traditionally, in-game asset transactions are only in the game ecosystem, and it is difficult for players to trade or sell their digital assets outside of the platform.
From Free-to-play to Play-to-Earn
In the beginning, players needed to pay to purchase game licenses. After entering the Internet era, the free game model gradually developed. The so-called free game means that players can get basic game experience at zero cost, while getting advanced game experience or personalized items is required Pay additional fees. At present, most of the highest-paid games in the world are actually these so-called free games. In June 2021, Tencent’s “Honor of Kings” mobile game attracted nearly US$277 million (approximately RMB 1.79 billion) in the global App Store and Google Play, an increase of 21% year-on-year in June 2020. These free games have earned billions of dollars in revenue each year, which just shows that the business model of free games has matured, and developers have learned the art of monetizing free games.
We think P2E is an evolved version of free games. Blockchain technology gives players ownership of in-game assets and allows them to increase their value by actively playing games. It is a key component of the game’s P2E model. Most of the revenue in P2E games no longer belongs to large centralized game companies, but to excellent players. By participating in the in-game economy, players are creating value for other players and developers. In turn, they are rewarded with assets in the game. These digital assets can be any encrypted assets that are confirmed on the blockchain. This is why the P2E model is very compatible with blockchain games.
In fact, P2E games may not be free games. Take Axie Infinity as an example. Players need to purchase at least 3 Axies to start the game, which may cost hundreds of dollars at present.
We think this is reasonable. First, the matching of input and output is a long-term and healthy economic model; second, game development requires costs. Because players can finally get value by selling encrypted assets, it is acceptable for players to pay some start-up costs. On the contrary, if the game is completely white-prostitution, we believe that such an economic model is unsustainable.
Understand the essence of P2E games
F2P is now the mainstream game business model. The current problem comes from the player’s game loyalty. Since a free game relies on very few people to pay for support, F2P will often squeeze players and cause serious loss of players.
P2E is essentially a business model driven by blockchain technology. Players can obtain in-game assets or token ownership by recharging and playing games. The explosive Axie Infinity demonstrated the successful use case of the combination of NFT and DeFi: introducing the idea of DeFi in Token design, from profitable NFT to governance Token, presenting the trend of game financialization.
The P2E model has some obvious advantages:
1) Using DeFi’s Farming, it solves some of the problems of early drainage. Some players will be attracted to the game because of the revenue, or some people who were not originally players will be attracted to the game because of the revenue (which may or may not be converted into players).
2) The game is not a pure financial gambling. NFT prevents Farming itself from flooding liquidity. However, if the game’s playability and mechanism can attract players to join continuously, if players keep losing, NFT will be meaningless.
3) Farming revenue helps increase the retention rate of players in the game, in an attempt to solve the problem of over-squeezing players in F2P games.
4) The ultimate goal of most P2E is to achieve DAO governance, so that the community (player guild) can participate in the governance, voting, and profit distribution of the project.
P2E inspires new industry clusters
The P2E model driven by blockchain technology is opening up digital native economic opportunities to new population segments. Playing games is no longer just a consumer behavior to kill time. By playing games day after day, players are more like working, giving time and labor, and earning income for the family. Axie Infinity is a good example. The most important thing is that, especially during the COVID-19 pandemic, poor groups who need ancillary income often benefit the most. Since part of the mission of cryptocurrency has been financial inclusion and the open source of the digital economy from the beginning, it is vital to bring the people who need it most-P2E 2.0 finally achieved this. Axie’s economic model clarifies the concept of cryptocurrency from provable scarcity to how monetary policy can be applied in the context of playing games and earning.
The P2E business model has also inspired ecological organizations such as game developers, players, and guilds.
Take Axie Infinity as an example. The success of this game is inseparable from the support of the game guild. Now the game guild has become a hot resource in the P2E world. Mature game guilds have developed into independent DAOs with their own operating mechanism.
YYG (YieldGuild Games) is a relatively well-known DAO. The owner is all investors and players. The investors are responsible for the initial investment, and the players are responsible for participating in the game. You pay for it), and the guild surplus is reinvested to purchase virtual assets and land in the game. YYG originally originated from Axie Infinity, and is now a strong guild pillar in the game. The DAO will issue its own token this month.
How do ordinary people participate in P2E?
Become a real player (join a guild or be independent), or resell key and rare items in the game mechanics. Now there is one more way to participate, that is, to become an investor in the game DAO.
I missed Axie Infinity, what other P2E games can I follow?
Since the birth of Free to Play, the game industry has been silent for too long. The emergence of Play to Earn has given us a new path for game development. If you are still worried about missing Axie Infinity, take a look at these P2E projects. The next phenomenon-level explosion may be among them.
Alien Worlds is a DeFi NFT meta-universe with a space background. The game includes many different planets. On the planets, players can own land, collect rent, mine, and fight. In the game, players compete by collecting and using NFT cards in the game.
Trilium (TLM) is the native token of the game. TLM can be used to purchase and trade in-game items. All in-game items are NFT. In the game, players can mine TLM through mining and participate in battles to earn TLM. In addition, the six planets in the game each have their own Planet DAO, and TLM holders can participate in governance through pledges, thereby affecting the direction of the game.
ZED RUN was launched by Virtual Human Studio (VHS) in June last year. It is a horse racing game that combines AR, blockchain, NFT and other elements and is built on Polygon Layer 2 Chain. Players can directly buy horses, race horses, feed horses, place bets, etc. from their home mobile phones. They can also interact with the horses of their choice. In the real environment, they can view horse information, data and status from multiple angles in the form of AR. , You can also take a selfie with the horse. Each horse is unique and has its own characteristics and advantages. Horses have multiple levels of speed, ability, and genetic purity. At the beginning of this year, the game cooperated with Atari Games, the game console overlord of the last century, to launch the cryptocurrency Atari Tokens. The game is currently the No. 1 horse racing game in the NFT, with about 35,000 fans on Twitter.
F1 Delta Time
F1 Delta Time NFT is a game developed by the racing sports F1 (Formula 1) in cooperation with the game company Animoca Brand. Provide arcade-style F1 racing cars. The game centers around racing, collecting and trading unique cars, drivers and car parts, all in the form of NTF. To qualify for the competition, you must have at least one driver, a car and a set of tires in order to participate in the weekly racing competition or mortgage your NFT to earn REVV tokens (native platform tokens). The game is one of the projects hand-picked by TheSandboxGame CEO Sebastien, and currently has about 41,000 fans on Twitter.
Guild of Guardians
Guild of Guardians (GoG) is a mobile role-playing game (RPG) developed by Stepico Games mobile game and published by Immutable Blockchain Company. The game style is close to Mobile Legends and Dota, and the guild is the core of the game. Guild Crafting is the main P2E mechanism. Players who join the guild will contribute resources to the guild “treasury”, which can be used to make various items. When the produced NFT items are sold on the market, everyone who contributes will get paid. Axie allows players to fight against each other, and Guild of Guardians supports players to fight side by side. The game had its first NFT pre-sale in June, and sales reached US$2 million within one hour after the launch. This game is expected to be launched in early 2022, has about 40,000 fans on Twitter, and has been followed by some well-known game DAO and NFT game investors.
This game is a blockchain animation game developed and published by the Hong Kong blockchain company Swissone, and is linked with the Japanese RPG blockchain game “My Crypto Hero”. With MCH heroes, you can also play anywhere in the game. use. The game is a free turn-based blockchain RPG game. Each character is designed by Noi Sackda, an in-house artist who works for DC Comics. The background is a futuristic city in 2069. Players start their stories as the defenders of their respective blockchain planets. And Adventure, currently in the open beta, has gained nearly 37,000 followers on Twitter, and is currently launching an AMA.
X World Games
X World Games is a decentralized game ecosystem (not referring to a specific game) built on Binance Smart Chain and Ethereum. The team previously operated a popular mobile game “Ji Dou Wushuang” . Players and creators can obtain X World Game (XWG) tokens through various innovative games. The first game released on the platform is Dream Card, which is built on the Ethereum blockchain and Binance smart chain. Players can use XWG tokens to buy and sell them and nurture new characters with exciting features and varying degrees of cuteness, powerful combat and trading cards. The goal of X World Games is to create a perfect game mechanism, including the determination of game items, the setting of fair rules, cross-game asset exchange, and player profit models. The team is popular in Southeast Asia and has gained nearly 115,000 followers on Twitter.
based on the F2P MMORPG of Thanabus Fantasy City, built on Ethereum (Polygon), and developed by independent developer Bright Star Studios (supported by Play Ventures). The game positions itself as the “ultimate sandbox MMORPG”, with customizable skins, items and land, as well as non-level, fast-paced PvP and PvE games. The game is centered on the land, where players will take epic adventures and obtain rare collectibles and tokens. The designer plans to generate revenue for players through land ownership and distribute 50% of the income in the Ember Sword world to land owners in the form of ERC-20 tokens. The game is scheduled to be launched in 2022 and will undergo alpha/beta testing this year. The land sales have come to an end in May, and more than 20,000 fans have been gained on Twitter.
MMO space exploration RTS and RPG games, based on Solana, position itself as a 3A-level meta-cosmic space. In the game, players cooperate through the DAO-based guild system (recently announced cooperation with Yield Guild Games). A dual-token economy is realized through ATLAS (transaction currency in the game) and POLIS (management token of the game). The earliest pre-alpha version is scheduled to be launched in the first quarter/second quarter of 2022. In-browser mini-games will be launched this month, and Galaxy Assets will be released in the third quarter. The game currently has 23,000 fans on Twitter.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/play-to-earn-mode-is-setting-off-a-game-revolution/
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