Axie Infinity: Play-To-Earn Model
Blockchain is starting to attract some gamers. On Hive, we are well aware of this as per the growth rate of our very own @splinterlands game. This was consistently one of the more popular blockchain games since its inception a few years ago. In reading about some of the upcoming additions, it appears that game is intent on only increasing its offering.
Of late, the game Axie Infinity is making some noise. Located on the Ethereum blockchain, it is a game where users can build kingdoms while collecting and trading cards.
Recently, there was an Axie Infinity community established on Hive. This is a place where people can interact and share their experiences with the game. It is also the ideal use case for Hive, whereby people can assemble around a particular topic and discuss what is happening. Ultimately, the community could opt to tokenize in an effort to reward those who are dedicated users.
Here we see another layer added to the potential outside the game itself.
As for the game itself, this is falling in the realm of play-to-earn. This is getting rather common with blockchain gaming. It is an idea that really frames what is being offered.
Gaming is huge business. This is no secret. The problem is that the financial rewards are not truly enjoyed by the users. For the most part, major corporations such as EA Sports reap the benefits of what they develop. Users are the product, similar to social media. It is true, they get the enjoyment out of the game yet that is the extent of their stake. From a financial perspective, it is mostly nil.
There are exceptions of course. A few games did see third party platforms arise where in-game assets could be traded. These tend not to be endorsed by the gaming companies and come with some risk. Also, one needs to have some pretty valuable stuff to be trading in that arena.
Hence, the top gamers might have some financial incentive. The average user, however, is just getting enjoyment.
That is about to change with the play-to-earn model. Here we see individuals owning every asset they acquire. Since it is built upon blockchain all tokens, fungible and non-fungible, are tied to a wallet. Just like most major tokens, transferring of ownership is simple.
We also can see a record of what happened to a particular asset. Since blockchain is transparent, anyone can view the history of where that asset was held. This can help in terms of authenticity and validation of ownership.
The idea behind this model is that the community are the actual owners. Each person who engages in the game has the potential to earn rewards. In the case of Axie Infinity, players can battle to win prizes while also collecting "Axies" which can be bred and sold on the marketplace. Ultimately, this all will tie into the governance of the system, as it seeks to decentralize.
Playing To Get Rich?
Many want to know what the potential is. Will someone get rich from a game like Axie Infinity. Certainly there are going to be people who make a ton of money off the game. The question is whether that will be the average person?
Playing to get rich is possible yet does require dedication, long-term commitment, and some luck. If those align, just like anything else in the world of cryptocurrency, enough financial incentive is there.
Here we see a write up of the earnings after one week playing Axie Infinity. At the time of the article, the price of the Smooth Love Potion was 4 cents. It is now sitting at 28 cents according to Coingecko, a 7x increase. Hence, the 881 SLP earning during that week are now worth close to $250.
Certainly that is not going to make someone rich yet it is a nice reward for a week of playing a game. If this person kept at it, there is the potential that his standing might have increased, providing a greater weekly return. Of course, over time, with more users, perhaps the game is harder to earn also.
The point is that there was no way to know at the end of last year that the SLP token would 7x. That is where a bit of luck is required. However, if one is spending time on a game that gets very popular, early activity could prove to be of extreme financial benefit. Many are starting to experience that with Splinterlands.
Naturally, we can look at this through the lens of an overall strategy. While some might make a profession out of Axie Infinity or Splinterlands, most will do it in passing. This could be part of a larger approach whereby one earns from a number of different sources. For much of the world, even $50 in a month from a game of this nature is a great help. Couple that with the host of other ways already available to get rewarded and we can see the numbers start to add up.
Gaming has to potential to draw the masses to cryptocurrency. At the end of the day, users will not care if it is on blockchain or not. What they will focus upon is the play-to-earn aspect of things. We are dealing with a community of people who are already accustomed to in-game tokens and assets. The difference is that we are offering them a way to actually own these outside of the game.
That likely will hold great appeal to the gamers that are already spending hours engaged in the activity yet getting very little (to no) financial reward. Will Axie Infinity be one that is leading the pack into the future? We will see. Just like Splinterlands, the game needs to keep growing and evolving.
Those that do have a chance to attract more users who then can become stakeholders in the game itself.
It is a radical concept and one few are aware of at this time. Over the next couple years, word will spread as the number of games utilizing this concept expand.
The play-to-earn model is destined to become very big.
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