Play-to-earn (GameFi)

Play-to-earn (P2E) games let players earn crypto tokens or NFTs by playing, which they can sell for money. The wider field of blockchain games and the finance built around them is often called GameFi.

The model became famous through Axie Infinity in 2021, when players in countries including the Philippines earned meaningful income breeding and battling NFT creatures. Many players borrowed NFTs through "scholarships" and shared earnings with owners. When new players stopped arriving and the reward token's price crashed, earnings collapsed, revealing that much of the income came from new entrants rather than from the game itself. In March 2022 Axie's Ronin bridge was also hacked for about $625 million.

Many newer projects have shifted to "play-and-earn", putting gameplay first. Before spending money on a P2E game, look at whether people would play it without the rewards, how its tokens are issued and how much you must buy upfront to start.