Play to earn games like Axie Infinity and Decentraland have revolutionized the gaming industry and business in general. The “explosion” is also caused by this game throughout the crypto world. So, how does it work?

Play to earn itself has indeed revolutionized the gaming industry with a very interesting new format with great appeal. To find out how it works and the source of its value for investors, see the review below.

Source of Money in Game Play To Earn

The value in all play to earn games comes from the currency that players earn on the platform. However, not every game has the same model and some of the smaller names are just making money from the “madness” of the metaverse.

To note, most games have native tokens for in-game purchases and player-to-player trading. According to blockchain developer James Bachini, they derive value through the use of their tokens which cryptocurrency users and traders find valuable.

For example, the model used by the game Axie Infinity relies on players making a large initial investment in game-specific NFT (in this case Axies). Players or gamers can then trade their in-game digital assets, earned by playing, at prices that are rewarded with other gamers, who continue the loop to inject value into the gaming economy.

“If everyone decides to go and exchange their Axie tokens for other digital currencies then the value of the tokens will collapse,” said Bachini.

“If the game continues to succeed then token requests will continue to occur.”

The owners and investors of this game have confidence that people will continue to play and funnel money into it as digital asset ownership is gaining mainstream acceptance.

In 2021, the Axies cryptocurrency earned a tantalizing 18,000% gain, while Decentraland’s mana token was up 4,000% thus placing the two among last year’s overall best performers of the crypto space, all due to the popularity of play to earn and metaverse games.

On the other hand, if you are asking, “Am I guaranteed to make money playing?”, then the answer is no. After all, it depends on the amount of time you invest in the game, its popularity, and the demand for the in-game assets or underlying tokens.

As co-founder of the open-source AR platform OVR, Diego Di Tommaso puts it: “Play to earn is not a magic pill that will make any game profitable for players. However, it sets a precedent and canvas for a game that distributes value like that.”

Game Play To Earn: A Sustainable Business Model?

Although perhaps this play to earn game is considered a sustainable business model, there are a number of problems associated with this concept because the attraction of making money can undermine the gaming experience.

Its main risks, among other things, are the game’s ability to continue to grow the economy it seeks to build. The only way for the play to earn model to be sustainable is to create high-quality game users.

According to startup DeFi Domination Finance founder Adrian Kolody, being entertained and actually having fun while playing can be made easier by people who use bot-farmers as a way to maximize the game solely for residual income.

“Bot behavior also encourages auto-dumping of token rewards you receive from these games,” he said.

“This leads to negative price action and could mean certain demise for some of these projects that rely on their tokens to do well to sufficient ground.”

In addition, the continued trading of in-game assets creates the need for a constant influx of new players to maintain the business model and develop revenue streams.

How to Play To Earn Generate Income

This is of course easy, namely through transaction fees. In this case, new players will be charged for purchasing in-game currency and that is the main revenue stream for the game.

The most interesting part of this game is related to the appreciation of the original token price. Games with a solid community and brand have an advantage over other games.

“Axie’s sustainability will be based on how quickly Axie can grow its player base and drive additional utility to its in-game assets,” said Koh Kim, Head of Ecosystems at blockchain infrastructure startup Mysten Labs.

“Axie has truly changed people’s lives—that’s their competitive advantage. No other play to earn game has this level of loyalty.”

Price of Anxie Infinity on INDODAX

For information, Axie Infinity (AXS) has been listed on Indodax. The open deposit and open trading took place in August 2021. To find out and monitor AXS/IDR prices on INDODAX, you can click this link.