NFTs combined with virtual reality are completely transforming the way games are played. The Play-to-Earn model operates on smart contracts, granting ownership of digital assets to gamers. There are two main methods of achieving liquidity in decentralized gaming.
The integration of NFTs with virtual reality is revolutionizing the gaming experience. You may have heard of the Metaverse, where games like Minecraft allow players to purchase virtual land using non-fungible tokens (NFTs). These tokens can be obtained as in-game rewards or purchased, and then used to dominate virtual civilizations and gain more power, becoming a dominant player.
CryptoKitties paved the way for decentralized NFT gaming, but its immense popularity caused Ethereum to experience downtime shortly after its launch.
So, what exactly is the Play-to-Earn business model? It operates on smart contracts, which ensure that gamers receive ownership of digital assets according to predetermined conditions. Ideally, these assets increase in value as more players join the game. Typically, these assets or rewards are tied to NFTs, which players can exchange for dollars on decentralized exchanges.
When it comes to obtaining liquidity in decentralized gaming, there are two primary methods, both made possible by NFTs:
1. Buying and Selling NFTs: Gamers can create, buy, and sell NFTs through the Play-to-Earn model. For example, in Axie Infinity, players can breed magical creatures called Axies and use them to battle other gamers. Each Axie is unique, and ownership is tracked through the blockchain. Players can breed and sell Axies at a higher price, creating an open economy for decentralized gaming. The player’s marketplace also offers NFT collectibles such as power boosts, cosmetic items, and weapons.
2. In-Game Rewards: Games like Mbox, recently launched on Binance LaunchPool, use a free-to-play model to reward players with cryptocurrencies. Players can also stake their crypto assets on the liquidity pool to earn additional rewards.
This open economy makes gaming more rewarding and financially beneficial for enthusiastic players. In the future, the popularity of these games is expected to skyrocket, driving up the prices of NFTs. You can trade or hold the earned tokens on cryptocurrency exchanges like Coinbase or Binance to earn even more from these assets.
For example, let’s look at Axie Infinity, a game inspired by Pokemon that runs on the Ethereum network. In May 2021, the AXS token was selling for $4.20. By mid-August, the price had surged by approximately 120 percent, reaching the $13-$15 range. By the start of September 2021, it had skyrocketed to a staggering $90. This chart by Tradingview illustrates the bullish trend in the price action of AXS/USD.
[Insert AXS/USD June – September Chart by Tradingview]
This bullish trend resulted in a record gain of 1000 percent within a month and a half. This demonstrates the potential for trading in-game tokens such as AXS and MOBOX’s MOMO NFT.
Another noteworthy example is Polygon’s investment in Decentral Games’ native token, $DG. This move is expected to drive the price of $DG significantly higher.
