Matty Erickson 
The emergence of the Web3 economy is changing the gaming industry and creating new opportunities for gamers to earn a living. Innovative economic models allow gamers to own in-game assets and monetize their hobbies, using impressive technologies like blockchain. This applies to almost all types of gaming: it can even be used in games on sites like icecasino. Let’s take a closer look at this new economic model.
The Rise of Play-to-Earn Models
To explain Web3 gaming, we must first talk about what the play-to-earn (P2E) model is. This model is based on earning cryptocurrency or NFTs through gameplay. In traditional games, the in-game rewards that players earn do not have a real-world equivalent. They can give you “prestige” in-game, but you cannot take them outside of that game. In the Web3 model, this is possible, and players can earn income through different mechanics such as:
- Earning In-Game Currency: Players earn tokens or cryptocurrencies by completing a quest, winning a battle, or being the first to complete an achievement. Tokens can be converted into real money. For example, in the game Axie Infinity, once can earn tokens called SLP (Smooth Love Potion) by fighting digital pets, and these can be exchanged for real money.
- Collecting and Trading NFTs: In most Web3 games, in-game items are digital assets and are represented by NFTs. So, for example, a legendary sword you find in an RPG is saved in your inventory as an NFT and you own it. You can earn money by selling this NFT on exchange platforms. Games like Gods Unchained are based on this system: players can sell their digital items, buy new items, or trade them.
- Staking and Yield Farming: This is a rarer mechanic and is based on elements of decentralized finance (DeFi). Players stake their digital assets and earn token rewards in return. This is a way to earn passive income and does not require active playing of the game.
The common feature of all these models is that items and achievements in the virtual world can be transferred to the real world and converted into money, and Web3 gaming is based on this.
Economic Impact of Web3 Gaming
The economic impact of Web3 gaming is greater than most people realize. This model transforms players from “participants” to digital entrepreneurs. Players can earn income in exchange for their skills and time investment. This not only makes them loyal followers of a game but also turns them into small business owners. Game developers also benefit from this model in many ways. For example:
- Transaction Fees and Royalties: Players pay a fee to the developer when they transfer their digital assets outside of the game or in the game. This fee can be converted into real money, just like player items. Therefore, it provides the developer with an additional source of income. In some cases, it is the developer’s only source of income.
- Community Engagement: Community engagement is much greater in Web3 games. This is not only due to the economic model used. Players participate in all the events and competitions organized because they have the chance to earn more items, and therefore more assets.
Although it is still relatively new, Web3 gaming has also started to attract the attention of eSports organizations. The competitive nature of eSports fits well with the Web3 gaming economic model and could provide professional players with a steady income, and it could even be possible for them to turn their unique identifiers into an NFT.
Challenges and Opportunities
Web3 gaming is still quite new and has a promising future, but some challenges will not be easy to solve. For example, this model, which is based on blockchain technology, is affected by market volatility just like cryptocurrencies. There is a risk that players’ investments and assets can become completely worthless within hours.
Regulatory concerns are another problem. No authority regulates Web3 gaming yet, and this economic model is completely “lawless” like the Wild West. No country has yet made any regulations in terms of the rules that developers must follow, the procedures they must apply, and the ethical standards they must comply with. This naturally brings various risks. For example, if the developer shuts down the servers and disappears, the time you spend and the assets you earn will also be wasted.
For these reasons, Web3 players need to educate themselves on crypto market trends and learn to analyze whether the developers are trustworthy or not. In other words, this model is much more than just playing games and requires players to act like “business owners”. But there are also many exciting opportunities waiting for those who can do it: Web3 gaming can be a profitable business that will put you into retirement.
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