Play-to-Earn could be a solution for pandemic-related economic woes. Covid-19 has drastically changed the global working culture. Some became sick were unable to work. Or, they had fewer hours of productivity. Others found themselves unemployed.
The pandemic is also changing the workplace in additional ways. Automated jobs mean fewer people are needed. Office buildings are no longer necessary due to a hybrid remote working structure. Companies are adapting and introducing new ways to work, whether through virtual offices, telecommuting, or flexible hours.
According to a report from the United Nations, global unemployment has increased to over 200 million people. Now more than ever, people are looking to take advantage of alternative methods to earn.
The blockchain industry is growing exponentially because many people are joining en masse. They are hoping to make passive income from crypto-related activities like Play-to-Earn.
The P2E gaming model is a method of earning cryptocurrency while playing video games. It works by rewarding players with cryptocurrency for their success in-game. The more successful they are, the higher-earning potentials there will be. Gamers are incentivized for completing missions and maximizing gameplay.
P2E is still relatively new to the world of crypto. But has enjoyed strong success in traditional gaming and sports models.
Axie Infinity is an example of the play-to-earn model. Axies are creatures that can be bred, traded, and battled to obtain new Axies for collection or NFTs. The game has enjoyed significant success. Infinity Studio, the team behind Axie, received $150 million in funding from A16z and Mark Cuban. The company is currently valued at over 3 billion dollars.
The best way to incentivize cryptocurrency adoption is through reward and incentive programs. However, the problem lies with effectively incentivizing crypto adoption in a world where high volatility and shortened consumer trends can lead to dramatic changes overnight.
Play-to-earn models allow users to earn digital assets by playing games or completing tasks. They can then spend those assets or convert them into other cryptocurrencies. It’s a new way for users to earn without constantly monitoring the value of their tokens.
Tokenomics (or token economics) defines the study of digital currencies, the token economy, and cryptocurrency. Tokenomics fundamentally changes how companies work, how consumers make purchasing decisions, and how systems operate.
They become valuable because public blockchains are publicly accessible, including criminals and bad actors. Unfortunately, this means people are not guaranteed to act in good faith, in a manner beneficial to the network.
For long-term growth, properly incentivized tokenomics are necessary because they guide the behavior of each actor and align the protocol. This ultimately creates trust within the blockchain and generates ongoing value accretion.
A lack of sustainable tokenomics hinders Play-to-Earn projects from long-term growth.
How NFT 3.0 blends liquidity mining, staking, and APY for a new era in NFTs
The NFT market is growing exponentially. NFT trade volumes soared to $10.7 billion in the third quarter of 2021, according to data from market tracker DappRadar. This is a dramatic increase from the previous quarter. It shows a surge in interest for crypto assets.
NFT 3.0 aims to combine liquidity mining, staking, and APY returns to bolster sustainable tokenomics within different decentralized projects.
It provides a stable income to early adopters. They are rewarded with the highest returns (APY). This is thanks to liquidity mining activities, the act of providing liquidity sooner than others.
Token staking is a way to incentivize gamers to hold onto their tokens to ensure the platform’s security.
Coins also get a yield that protects both the platform and its users against any form of dilution brought about by inflation.
Play to Earn in the future
Play-to-Earn is a post-COVID success story. It presents opportunities for future exploitation.
Many people are worried that the only way their cryptocurrency investments will continue to grow is with ongoing time and effort spent. Without adding anything more than what’s already there, all their hard work will be for nothing.
However, this doesn’t have to be the case. P2E gaming encourages more opportunities for those looking to profit on their terms – from NFT incentives to engaging tokenomics, the platform exists for financial independence.
The play-2-earn model allows users to make a return on their investments, time, and effort. The best part is they’re doing something they love.
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The information provided in independent research represents the author’s view and does not constitute investment, trading, or financial advice. BeInCrypto doesn’t recommend buying, selling, trading, holding, or investing in any cryptocurrencies