How Does the Future of GameFi Rely on the Play-to-Earn Economy?

GameFi and play-to-earn models are producing hundreds of crypto millionaires every year!

Experts bet big on GameFi! Play-to-earn is the future of the gaming industry.

Are you a gamer? Play-to-earn is the way to go!

The click baits are everywhere!

However, suppose you’re struggling to navigate and develop a more nuanced and simplified understanding of what’s brewing on the brighter and more innovative side of the gaming industry. In that case, you’re at the right place.

We will be drilling it beyond the buzz and hype as we track the future of GameFi!

What is GameFi?

Think of GameFi as a financial framework for any online game with blockchain-enabled features such as decentralization, privacy, shared control and more. For all practical purposes, it is an innovative way of incentivizing players. It features high levels of transparency, provides easy exchange and transfer of digital assets earned, and ensures minimum unwanted involvement/control of game publishers.

What is Play-to-earn in GameFi?

It is a simple and transparent way to incentivize players. Typically, online video games reward players with points, recognitions, badges or other non-transferable digital assets. GameFi takes it further by tokenizing the incentives. Players can easily earn rewards and digital tokens with their favourite games.

In-game economies featuring play-to-earn models allow players to exchange their rewards for one or different digital currencies. Players can exchange these digital assets within the gaming ecosystem or on third-party marketplaces.

You would be surprised to know many different online marketplaces facilitate the exchange and trade of such in-game digital or tokenized assets. Players can earn tradeable digital assets, including the NFTs (Non-fungible tokens) with crypto games, and sell them on dedicated marketplaces.

Can we talk about the future of GameFi?

Data aggregators and analysts say the crypto gaming industry is already punching above its weight. GameFi’s estimated market size was slightly above USD 11 billion in 2022. By 2028, it may witness a 400% jump.

The online gaming market in India is smashing records. There were about 421 million online gamers in India in 2022, of which 90 million were those who paid for games. Research estimates there will be about 450 million gamers in 2023. It is also not hard to see why investors are betting big on GameFi.

Source: https://www.statista.com/statistics/1064010/number-of-online-gamers-india/

Hey! It’s illegal to cherry-pick data points!

Agreed!

Often, they don’t talk about the shrinking size of this evolving industry. We will!

GameFi market size was already down by over 40% in Feb 2023. Are the projections skewed?

No!

The sustained bear run drastically impacting the overall crypto market has also negatively impacted the GameFi market size. It would be a gross misappropriation to overlook that the global crypto markets have lost over 70% this year. The deal Flow of blockchain-driven startups has taken a hit.

Here, it is critical to understand that GameFi has been the most resilient among other blockchain-driven ecosystems/industries.

The bear gripping the crypto markets and major geopolitical turmoils impact even the conventional investment avenues. GameFi is no exception. Equating a market situation with the long-term industrial prospect would be disingenuous.

The play-to-earn economy is the key

Next-gen gamers want beyond the typical gaming experience. It is not just about impressive UI and designs, but also about incentivization. Today's digital experience is not just confined to earning a badge in combat, it is also about the ability to transfer or trade such badges/assets with an immutable certificate of ownership in a free market.

The future of gaming is about creating gaming ecosystems with shared control and transparency where game publishers alone don’t enjoy overwhelming authority.

The solution is a highly transparent play-to-earn economy powering the next-gen gaming solutions. It would not be an exaggeration to claim that the play-to-earn economy is the most potent distinguishing feature of the blockchain-driven crypto-gaming industry.

One cannot imagine the future of GameFi without transparent in-game play-to-earn models.

If you discount the play-to-earn economy from GameFi, what remains is just a decentralized gaming framework.

Let’s wrap it!

GameFi is already synonymous with play-to-earn. While it is certain that the play-to-earn economy is the future of GameFi, over the next five years, we can expect multiple innovative ways to create, sustain and deliver play-to-earn economies hitting the market. Blockchain provides a promising technology to architect such models with the highest levels of transparency.

Today, gaming is not just recreation; it is also a profession. The play-to-earn model acknowledges the players and allows them to earn and develop their in-game skills. With innovative play-to-earn models, we will see more disruptive gaming technologies scripting the future of GameFi.