Earning money in P2E games is more than just playing. Here are a few ways most Web3 players make money from blockchain games.
Ever since the introduction of Web3 games to the markets, people of all ages have been curious as to how exactly blockchain players can make money simply by playing an online game. It won’t be that easy to press a few buttons, some of them require complex strategy or in-depth knowledge of game mechanics.
Here are 5 common ways players can make money in blockchain games.
1. Mirroring NFTs
Most blockchain games are only playable with an NFT character, which usually manifests as fantasy-like creatures or characters. They distributed characters through a coin sale.
NFT coins are multiplied with NFT flippers. They’re usually at their most hyped during the mint phase of a project. As the sale progresses, other players will want to buy into the hype.
This tactic allows you to make money by getting into the coin before it sells out (which assumes you are very early!), buying multiple NFTs and selling them on the open market at a high profit. That is a risky investment Strategy but it may work for some players.
2. Breeding of NFTs
Provide certain crypto games breeding skills with their NFTs. For example, Axie Infinity allows users to breed Axie NFTs to create new NFTs. Using blockchain technology, the newly created creature cannot be replicated or copied. It’s absolutely unique.
The NFTs farmed by players often have less utility or power in the game, so they’re less valuable, but you can still sell them on the open market. Frankly speaking, however, this is not the main source of income for most games.
3. Sale of game currency
The reality with most play-to-earn games on the market is that “earn” may not be the right word for them. Because of this, it is very important for users to take profits as much as possible.
The P2E markets often feature a very popular game appearance with many fans cheering the currency and claiming that it is going to the moon. However, as soon as the hype dies down, many investors regret not having sold sooner.
At the moment, most P2E games consist of players deploying their playable character NFTs and engaging them in turn-based passive battles that last for a certain amount of time, then receive a certain amount of in-game currency as a reward.
It’s essentially P2E Mark out. Players receive in-game tokens as a reward for using their digital NFTs, and this is at the core of most play-to-earn games.
4. Liquidity Pool Staking
Staking liquidity pools in blockchain games typically works like this:
- You earn the in-game coin from the game
- They bundle the coin with another coin, usually either $SOL or $ETH
- You wager your pooled coins in the game (like depositing money in the bank)
- In return for making this liquidity available to other users, you get more in-game coins as a reward (like earning interest from the bank).
For example, DeFi kingdoms is mainly a series of gamified liquidity pools where you passively wager in-game coins for various APRs.
Image source: DeFi Kingdoms
The percentage returns of some of these liquidity pools can be unusually high. The problem, however, is that if the coin falls in-game, the value of your pooled coins will also go down.
In this case, no insanely high APR can offset the decline. And these percentages are not fixed, the more people enter the pool, the more they lower the APR.
5. Buy Digital Land
Some open-world metaverses offer players the ability to purchase and build on virtual land.
For example decentralized is an open metaverse where players can buy virtual land and build shops where they sell digital assets such as clothing for their in-game avatars. Users build their own minigames on the digital land, which earns you $MANA, the game’s in-game token.
Image source: Decentraland
This is the primary way investors can make money with open metaverses.
There is no doubt that one of the main factors behind the massive growth of P2E was that users wanted to make money. They made money quickly, but some also lost money in a game of chance that they didn’t fully understand.
It’s important to take notes and do thorough research before pouring your life savings into the next big P2E project. While the room has made significant strides in improving GameFi as a whole, don’t let the visually appealing graphics fool you – play-to-earn can and will rob you of your cash if you let it.
Edmond is a passionate writer for video games, GameFi and Web3. He has worked for top GameFi companies and video game/crypto news websites.
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