Blockchain is a vast ecosystem that spans many domains and is backed by cryptocurrencies. This ecosystem offers opportunities for those who want to invest, create content or earn passive income by playing games. Play-to-Earn (P2E) is a way of earning passive income by playing games in the crypto ecosystem. In our guide, What is Play-to-Earn?, you will learn how you can earn passive income in this space and what are play-to-earn games.
What is Play-to-Earn (P2E)?
Play-to-Earn (P2E) is a system that allows players to earn money by playing games created on Web3 and blockchain. This model makes traditional games more fun and engages players in the world of blockchain.
In P2E games, players fulfill requirements such as collecting items or completing quests. At its core, P2E is an element where players are rewarded and can earn passive income for their efforts.
The P2E system is developed on blockchain infrastructure. In-game assets are securely and transparently integrated with the blockchain. Players connect their crypto wallets to the game via Web3, then accept the terms of the game. Rewards or characters obtained during gameplay are transferred to the wallet as NFTs. Players can trade these assets through their crypto wallets or use them in the game. Blockchain games are the answer to the question: What is Play-to-Earn?
Blockchain and Cryptocurrency Connection
Blockchain is the foundation of Play-to-Earn games. Cryptocurrency, on the other hand, forms the economy of P2E games. Through blockchain, developers can develop P2E games and offer them to players. Players, on the other hand, connect to P2E games through the blockchain and receive rewards through this infrastructure. The rewards are mostly cryptocurrencies and NFTs. Web3 games, in particular, are among the P2E ways of earning.
NFT and Digital Assets
NFTs and digital assets are key earning elements of Play-to-Earn (P2E) games. NFTs are known as unique digital assets built on the blockchain. These assets can be included in the flowchart of P2E games. For example, when a player wants to buy an object for their character, they do so through an NFT. NFT games in particular have attracted a lot of attention in the digital asset space.
Advantages and Disadvantages of Play-to-Earn Games
Play-to-Earn (P2E) games have many disadvantages as well as advantages. Among the advantages are that players can earn income while having fun, become the real owners of in-game assets thanks to blockchain, and access the global economy. In particular, the main purpose of P2E is for players to earn additional income by selling the NFTs and tokens they earn while playing the game. P2E helps Web3 technology to provide the best efficiency. While it is a lucrative and fun industry, P2E has some notable drawbacks. For example, the volatility of cryptocurrencies can harm the P2E economy. In some cases, players’ passive income may decrease and there is no point in playing the game. Another disadvantage of P2E is that it interacts with crypto wallets, which is often abused by fraudsters. This means that a scammer can steal players’ assets by creating a fake P2E project.
Real Money-Making Potential
The potential to earn real money in Play-to-Earn (P2E) games varies depending on the games players play or the time they spend playing. Being successful in these games can also increase earning potential. Small-scale games can earn between $1-5 per day, while popular games like Axie Infinity can earn between $5 and $20 per day. NFT and token sales will also increase earning potential.
Risks and Cautions
Play-to-Earn (P2E) may be vulnerable to cyberattacks as it falls under the category of blockchain games. The P2E system, which is based on playing games with a crypto wallet, can be exploited by pishing and cyber attacks. Players should be careful against all these risks. How projects secure infrastructure, software and smart contracts are issues that should be investigated.
Most Popular Play-to-Earn Games
Play-to-Earn (P2E) games have gained massive popularity with Axie Infinity. By late 2021, the P2E space has become a multi-billion dollar market with players flocking to it. Many P2E projects, notably Axie Infinity, failed to build an economic model. Players saw their rewards lose value day by day and moved away from the games. Nevertheless, some projects still remain popular. Axie Infinity, The Sandbox and Alien Worlds are among the popular projects.
Axie Infinity
Axie Infinity, Ethereum tabanlı bir Play-to-Earn (P2E) oyunudur. Axie isminde bir NFT tabanlı dijital yaratıklarla oynanılan oyun, Sky Mavis tarafından geliştirildi. Oyuncular Axie’leri toplayarak kendi aralarında savaşabilir, aynı zamanda bu yaratıkları geliştirerek para kazanbilirler. Axie Infinity’i oynayabilmek için Ronin Wallet’ı kurmak ve cüzdana 3 AXS atmak gerekiyor. Axie Infinity, P2E kategorisinin ilk en popüler oyunu olarak biliniyor.
Berachain and the P2E Model
Berachain is an EVM-compliant layer-1 project with a Proof of Liquidity (PoL) consensus mechanism. With all these features, Berachain, which also hosts Play-to-Earn (P2E) games, is one of the newest players in the crypto industry. Many altcoins have been created on the Berachain blockchain network. Analysts think that the P2E space may soon shift to Berachain due to its efficiency.
Other Featured P2E Games
Apart from Axie Infinity, many other games stand out in the P2E space. Thanks to blockchain technology and NFTs, the P2E sector continues to develop day by day, attracting players.
The Sandbox has created a virtual world through a metaverse platform and allows players to interact with it, using SAND tokens for in-game interactions. One of The Sandbox’s biggest competitors, Decentraland, is also in the P2E space. Decentraland offers land ownership in a virtual world and passive income through in-game interactions. Other games include Gods Unchained, Alien Worlds, Splinterlands and Illuvium.
What is Berachain and its place in Play-to-Earn Games
Berachain, which stands out with its Proof of Liquidity (PoL) mechanism and layer-1 blockchain network, offers strong support for Play-to-Earn games. Having a fast and efficient blockchain with its EVM-compatible structure, Berachain provides all the infrastructure needed by P2E games. NFTs and Web3 games can reach more players with Berachain.
Although still new to the industry, some P2E projects have started to emerge where tokens like HONEY and BERA can be earned. The value of P2E rewards is increasing day by day as crypto investors show interest in BERA tokens.
Berachain’s Technical Infrastructure
Berachain’s technical infrastructure has enabled the emergence of an innovative and developable blockchain network. Drawing attention with its Proof of Liquidity (PoL) consensus and Ethereum Virtual Machine (EVM) compatible structure, Berachain generates blocks more efficiently for every liquidity provided by users. Running on BERA, HONEY and BGT, Berachain has a fast and efficient network.
P2E Projects Running on Berachain
Although the Berachain ecosystem is new, it is developing rapidly. Berachain is gaining traction due to its Proof of Liquidity (PoL) mechanism, with the Boink project at the forefront. In this P2E game, players can earn BERA rewards. Honey Jar, on the other hand, is attracting attention with its Bong Bears-themed NFTs and game system.
How to Make Money with Play-to-Earn?
To earn money with Play-to-Earn, you need to spend time in blockchain-based games and acquire digital assets. These assets are recorded in crypto wallets via NFTs. Players can earn passive income by selling their NFTs. On the other hand, P2E games also offer cryptocurrency rewards. Earning methods include in-game missions, challenges, battles, and trades.
When looking for the answer to the question “What is Play-to-Earn?”, you need to know how and in what way you can earn money from these games. Axie Infinity, for example, offers a reward system for raising and playing creatures called Axies. P2E is a model that combines entertainment with economic opportunities. Web3 games and NFT games are branches of the emerging P2E category.
NFT Sales and Rental
Selling and renting NFT enables players in Play-to-Earn (P2E) games to cash out their digital assets and generate passive income. This is done by players selling or renting NFT earned or developed in-game. The relevant sale or lease takes place on the NFT marketplace supported by the game being played. OpenSea is the most popular NFT marketplace. Players often buy items or characters that they will use in the game on these marketplaces.
Token Staking and Yield Farming
Token staking and yield farming, the most active uses of decentralized finance (DeFi), are also preferred in the Play-to-Earn (P2E) ecosystem. Players can earn passive income by staking the NFTs or cryptocurrencies they earn in the ecosystem they are involved in. For example, a player earning AXS can engage in yield farming by locking their earned tokens into a liquidity pool for a certain period of time. These methods are preferred to increase the value of passive income.
Tournaments and Prize Events
In the Play-to-Earn (P2E) space, tournaments and events with prizes are very popular. This is a way for players to showcase their skills to earn extra income and get ahead of the competition. Gods Unchained or Splinterlands offer rare NFTs by organizing regular tournaments.
How to Start P2E Games?
To start playing P2E games, you must first have a cryptocurrency wallet. Wallets like Metamask are often preferred in P2E games. Then research the game you will play and find the game with the best reward mechanism. Connect your wallet to the game and fulfill the requirements to play the game. They usually require you to buy NFTs or own a certain amount of the relevant cryptocurrency. At the final stage, start playing the game and accumulate your rewards in your wallet.
Don’t forget to have fun while doing all this, and make a plan to turn your rewards into an income model. You can consider it as passive income or as a long-term investment.
Required Crypto Wallets and Platforms
Having a cryptocurrency wallet is a must for P2E games. Wallets such as Metamask, Trust Wallet or Coinbase Wallet are preferable. In order to monetize the rewards from the game or to purchase the desired cryptocurrencies in-game, you need to be a member of an exchange. Finally, it is mandatory to connect to gaming platforms. Since the game is run on blockchain, you log in to the platform with your wallet.
Initial Investment and Start-up Strategies
Create a budget for yourself that you can use in the game and spend as needed. On average, this budget will be between $50 and $100. Then, purchase the NFTs or digital assets that the game requires. Once your purchases are done, determine your passive earning model. At this point, you can research how often to sell incoming rewards and how to monetize them. Some players also invest their earnings back into the game to generate more passive income.
The Future of Play-to-Earn Games
The future of Play-to-Earn games is the next topic we’ll cover in this What is Play-to-Earn guide. As we know, Play-to-Earn (P2E) games gained a lot of traction in 2021, but with the bankruptcy of FTX, players moved away from the industry. Since the summer of 2024, the P2E space has seen a resurgence. Thousands of players are playing games for passive income, especially on blockchains like Arbitrum and Avalanche.
P2E could become mainstream as blockchain technology becomes widespread and NFTs reach more investors. In the future, more developers are expected to create P2E games and more players are expected to monetize them.
The traditional gaming market is expected to accept P2E gaming and regulations are expected to positively regulate the space.
On the other hand, technological advances will also attract players with better graphics or processing times.
Metaverse and Play-to-Earn
Metaverse creates virtual universes, while Play-to-Earn (P2E) helps players monetize these universes. Lands or avatars created with the Metaverse can be converted to NFTs and used in P2E games.
In addition, in the future, games supported by the metaverse are expected to be shaped by the P2E model. Especially games played with virtual reality glasses will be able to generate passive income.
Metaverse projects such as The Sandbox and Decentraland offer various rewards to their users through P2E models.
Web3 Technology and the Future of P2E
Web3 technology and the NFT industry are shaping the future of Play-to-Earn (P2E) gaming. Web3 technology, which offers full authority to players thanks to blockchain, NFTs and decentralized structures, enables P2E players to earn passive income without any authority. Supported by smart contracts, Web3 technology ensures the transparency of P2E games and allows players to freely use the cryptocurrencies they earn.
P2E games may become more popular as Web3 becomes more widespread. The innovative nature of Web3 may ensure that the P2E world survives against traditional games.
Play-to-Earn, Berachain and the Next Generation Gaming Economy
Play-to-Earn (P2E) games are an innovation brought to the gaming world by blockchain technology. The P2E model allows players to earn passive income by playing games and access real-world assets such as NFTs. P2E games like Axie Infinity are growing in value and attracting new players every day. In the future, the gaming economy, which is worth over $100 billion, is expected to shift to the P2E space. Berachain, on the other hand, is strengthening this system with its own blockchain network. Berachain’s fast and efficient network enables P2E games to thrive and reach more players.
The next generation of the game economy is evolving into a system where players can make their own decisions, the game world is becoming more inclusive, and finance is becoming more sophisticated.
While P2E games are popular for their passive income and reward mechanisms, there are some drawbacks. Players need to be especially careful about security threats and protect their assets against the volatility of cryptocurrencies.
Leave a comment