The Play-to-Earn business model is the latest development in the games industry. It’s a business model that embraces the concept of an open economy and provides financial benefits to all players who add value by contributing to the game world. It’s likely to introduce new game concepts and retention models not yet seen in modern gaming.
The play-to-earn business model has many similarities with the free-to-play one. Often a play-to-earn game also uses mechanics seen in free-to-play titles. However, play-to-earn games also allow gamers to make money or earn valuable digital assets.
Explaining play-to-earn Giving gamers ownership over in-game assets and allowing them to increase their value by actively playing the game are key components of the play-to-earn business model. By participating in the in-game economy, players are creating value for other players and the developers. In turn they are rewarded with in-game assets. These digital assets can be anything ranging from cryptocurrencies to in-game resources that are tokenized on the blockchain. That’s why the play-to-earn business model goes very well together with blockchain games.
In the play-to-earn business model the game and the developers reward players for putting time and effort into their game. For example, in Axie Infinity players earn Small Love Potions (SLP). Players need these tokens to breed new Axies, but they can also sell the tokens to other players on the open marketplace. Other examples are the resources in League of Kingdoms, or the prizes players can earn in the fantasy football game Sorare.
The benefit of the play-to-earn business model is that a gamer always creates some value that can be sold. Even when a gamer needs to pay to start playing, these acquired items can always be sold again.