P-2-E. How video games have outgrown themselves

P2E or Play-to-Earn

A new concept of video games has been gaining popularity on the market for the last year. P2E or Play-to-Earn is a new type of game where gamers get the opportunity to earn cryptocurrency or NFT tokens for performing any actions. These games are based on the Free-to-play model. Which means that the game and the process itself are free for a user. But the developers provide for the possibility of donations for the purchase of costumes, weapons, in-game coins, etc. It is the type of F2P that accounts for more than 80% of total revenue from video games, which greatly limits developers and types of gameplay. That very factor has pushed video game manufacturers to create new games where users will be able to earn money themselves.

Crypto games start their development from NFT. Trading and exchanging non-interchangeable tokens with rare cats brought considerable income to users of the Cryptokittie. However, in a game where the rarity of an NFT token depends on randomness, it is very difficult to know the amount of income for sure.

In 2021, the P2E game Axie Infinity, a follower of the online game Cryptokitties, appears. Axie game characters are the subject of NFT and have a certain set of characteristics, so they can be sold and exchanged. By the way, Axie characters can be bred, just like kittens in the Cryptokitties game.

The difference with Cryptokitties is that in the game Axie Infinity there is a possibility of character interaction with the environment. After collecting several Axies, you can join the fight against other players, or go on a journey through the digital universe and fight virtual monsters in the Lunacia. For adventures and victories over other characters, players receive Smooth Love Potion(SLP) tokens. In future, tokens can be spent either on increasing combat power, or on breeding new animals. The second coin of the project is Axie Infinity Shard (AXS). It can be used by players to generate passive income and for staking in future.

Not all crypto games are like Cryptokitties or Axie Infinity.

For example, the RPG game Guild of Guardians.

At the beginning of the game you choose heroes who will be part of your army (orcs, humans, elves, etc.), then you go down to the dungeon, where you fight with your opponents. The winner receives supplies of resources and weapons to strengthen his army. The stronger your army is, the higher the chance of victory, which will bring more resources.

How can you start earning money in P2E?

There are several ways to earn money in crypto games:

1. Getting tokens
2. Passive income due to the increase in the value of coins
3. Steaking
4. Leasing of gaming assets

With the game currency and NFT, you can perform exactly the same operations as with any other cryptocurrency. You can withdraw it, exchange it for a stablecoin or for ETH or BTC. Some game assets due to rarity can cost several thousand dollars, they can be sold or rented out to other players. Due to the fact that the games are created on the blockchain platform and are regulated by smart contracts, you can be sure that no one will copy, steal or forge your assets. Due to the uniqueness of game items and their fixation in the blockchain, you can rightfully be considered the owner of this asset, and consider game purchases as investments, and not as entertainment expenses.

How to start playing P2E (using Axie Infinity as an example)?

You must have a personal crypto wallet on which your assets will be stored.

In most games, you first need to have a start-up capital to purchase a character or any assets. In the game Axie Infinity, in February 2022, the minimum cost for one Axie is about $ 30-35, and to start the game you need to have at least three characters. Despite the fact that the cost of entry will pay off within a couple of months, this creates significant problems for beginners.

Summing up all of the above, we get a list of pros and cons of crypto games: