The central theses
- Pro Gaming has long been a unique source of income for many around the world.
- The same trend can be seen in various blockchain-based games like Axie Infinity and Decentraland.
- With players living sustainable lives in the Metaverse, VCs keep a close eye.
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W.While games like World of Warcraft originally blurred the line between in-game economics and real money, games on the blockchain take this to the next level.
And for many, this innovation makes them a real living.
Play games, get rich
The rise of competitive games has created a new wave of professional gamers who make a living from online tournaments and a loyal fan base. The phenomenon continues, but amid global lockdowns, the “play-to-earn” trend has gained even greater popularity.
Crypto-based games are no different, says co-founder of Yield Guild GamesGabby Dizon. He said:
“At its core, YGG is a community of play-to-earn players. You could think of it as a World of Warcraft guild, for example, but we operate across multiple games and we also invest in high-yield NFTs in those games and lend our gaming assets to our player base. “
Every day, users log into the guild’s discord group, play games, earn rewards and exchange them on platforms such as: Uniswap. The most popular game is called Axie Infinity and offers battles between the little Pokémon-esque creatures called “Axies”.
In contrast to conventional games, Axies are based on blockchain and are unique. Just as Bitcoin introduced scarce digital value, non-fungible tokens (NFTs) add value on the Ethereum blockchain art, music, and Gaming.
In the fights, different Axies compete against each other. Each creature has its own strengths and weaknesses that every player needs to know in order to win.
Registration with Axie Infinity is free, but users need at least three Axies to play the game.
The creatures aren’t cheap and cost around $ 100 at Axie Infinity Marketplace the most expensive Axie ever at over $ 500,000. Even so, users can quickly get their initial investment back through regular gameplay.
“Axie Infinity players can earn by fighting, breeding, and trading NFT creatures called Axies. If you win an Axie battle, the reward is a token called the Small Love Potion, or SLP for short. SLP is an important token in the game as it is required if you want to breed Axies. However, if players aren’t breeding Axies, they can sell their SLP through a liquidity pool on a decentralized exchange like Uniswap. Axie breeders buy the SLP so they can breed more Axies to sell to other players, ”explains Dizon.
A little love potion is worth it $ 0.06 At press time, players can expect to win approximately ten of these if they win a game against another player. And in some parts of the world, enough profits are enough to make a living.
Axie Infinity has become such an important social phenomenon in the Philippines. In the country where YGG started, there is now local solutions to be exchanged for buyers and sellers without uniswap.
Through an organization like YGG, players can easily start playing by getting three Axies on loan. Over time, they will return the original loan and then make money selling in-game items.
The battle in Axie Infinity isn’t all there is to the game. One of the most intriguing parts of Axie Infinity isn’t fighting, it’s the Axies breeding system. Each Axie is kept in its owner’s Ethereum wallet. Provided the player has enough small love potions, different Axies can breed together to create new ones.
These new Axies can be chosen for their fighting skills, which is why certain Axies fetch incredible prices.
NFT gaming: more than a trend
Axie Infinity isn’t the only game on the blockchain, however.
Players and investors have different investment options, each with their own advantages. One way is to invest in land in a particular game and develop it for income. Properties in popular virtual worlds or “metaverses” such as Decentralized can be bought and sold and developed for profit.
Decentraland will soon be one virtual music festival for which users can already buy tickets on the blockchain.
Recently YGG raised $ 1.3 million from VC firms like Delphi Digital to keep investing in the games they love. They will use the fund to buy various NFTs that they represent Plots of virtual land and play ability. YGG not only wants to continue investing in Axie Infinity, but is also positioning itself as the mainstay in all games and metaverses on the blockchain.
“We intend to develop and build on this land, and then the income and profits from these investments will be shared with our guild. The vision is to create the largest economy in the virtual world by engaging millions of players in the metaverse, while taking income generating stakes and optimizing our investments in significant assets in economies of the virtual world. We already have several different games in our guild and we offer players the opportunity to make a living doing what they love, ”said Dizon.
The top ranked players each season will receive a share of AXS, the native token of Axie Infinity. This token has a total market cap of nearly $ 300 million. according to CoinGeckoSo the rewards for the best players are substantial.
The future of the NFTs
Starcraft pro gamers have been organized in teams since 2003 and have made gaming their daily business. However, these were very few selected players. Axie Infinity turns the earnings model on its head. The top players can make huge sums of money, but any regular user can make $ 20 a day to grow the little love potions. The money you make playing Axie Infinity is also distributed much more fairly.
While $ 20 a day may not be essential in the US, where the median income was in the Philippines $ 277 / month in 2018can represent this more than twice this average salary. In places that have been badly hit by Covid, this can be a life-saving solution. Dizon said:
“Especially for actors in emerging markets where job opportunities are limited and government relief after the COVID-19 lockdowns are limited, the play-to-earn movement is changing lives for the better to enable economic empowerment in its truest form and enabling people to take control of their own financial potential. We are already seeing this in places like the Philippines, Indonesia and Venezuela, and I expect the movement will continue to spread rapidly. “
NFTs are having a huge impact on the internet’s business models as people can now monetize their content in ways that weren’t possible before crypto. Rock bands, painters, and performance artists publish NFTs, and the implications for content creators shouldn’t be underestimated.
Gaming is a whole different beast. Making money through games is not a new phenomenon, but the democratization of the play-to-earn model is unique to blockchain technology.
Real ownership of gaming assets makes it possible in a unique way to tie the economy of gaming to real financial assets with liquid markets. Currently, Axie Infinity enables thousands of gamers to make a living from their game and collectives like Yield Guild Games are benefiting from this trend. However, the universe of blockchain-based games is only just beginning.
Imagine playing a quick game of public transport and buying your coffee with the winnings. Whether it’s Axie Infinity or something else, the NFT revolution comes to play.
Disclaimer: The author held the ETH at the time of writing.
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