The world of gaming and cryptocurrencies are colliding in innovative ways never seen before. Crypto games that reward MyCasino players with digital assets and cryptocurrencies are gaining tremendous popularity. This new genre of blockchain games, commonly referred to as “play-to-earn,” is transforming the gaming landscape with its disruptive economic models and interoperability across different platforms. Players can now earn real value and own in-game assets that were previously controlled and confined by individual games and developers.
The Evolution of In-Game Economies
In-game economies have been around for decades in video games, allowing players to earn points, in-game currencies, items, skins and other digital goods. However, these assets lived inside closed game environments and were controlled by game developers. Players invested enormous amounts of time, money and effort into games, without actually owning anything.
The invention of blockchain technology enabled the emergence of crypto games where game assets have real-world value. Instead of siloed economies, blockchain games feature open economies where players can earn transferable crypto tokens and NFTs (non-fungible tokens).
Rise of Play-to-Earn Gaming
In 2017, an innovative blockchain game called CryptoKitties allowed players to breed, collect and trade unique digital cats on the Ethereum blockchain. Some rare kitties were sold for over $100,000. While the actual gameplay was rather limited, CryptoKitties demonstrated the potential of recording in-game assets on immutable public ledgers as unique digital assets with tangible value.
The real breakthrough came a few years later, when developers started designing intricate blockchain games with well-developed gameplay and expansive in-game economies fueled by cryptocurrency rewards. One hugely popular title was Axie Infinity, a Pokemon-inspired universe where players breed, battle and trade Axies (fantasy creatures). Highly skilled Axie trainers can earn over 10 times the average monthly income from playing the game.
The Axie Infinity economy saw over $4 billion in NFT trading volume in 2021. Hundreds of thousands of people in developing nations lifted themselves out of poverty through play-to-earn gaming. The rampant success of Axie Infinity demonstrated a sustainable model where players are financially incentivized to keep playing and participating in in-game economic activities.
Evolution of Reward Systems
The incentive structures in play-to-earn games have progressed enormously within a few short years. Let’s examine some of the popular reward systems that have emerged.
Breeding & Selling
One of the first reward structures centered around breeding scarce NFTs and selling them for profit. Games like CryptoKitties and Axie Infinity feature breeding mechanisms that produce new offspring NFTs with varying attributes and rarity levels. The odds of breeding an ultra rare NFT can be less than 1%. These rare NFTs can sell for astronomical prices – an ultra rare Axie recently sold for $820,000!
Staking
Staking has become a prevalent feature where players can earn passive crypto income by holding specific NFTs or tokens. Generally, the rarer the NFT, the higher the yield. For example, yield rates for Genesis NFT horses in Zed Run range from 80% APY on Commons to 280% APY on Legendaries. Certain play-to-earn games essentially function as NFT yield farms.
Scholarship Programs
Scholarship programs enable “managers” to lend NFT assets to “scholars” (often in developing countries) to play the 3d slots game and share the rewards. For example, an Axie Infinity manager may lend 3 Axies to a scholar, then take a 30% cut from the SLP tokens earned. This increases accessibility and grows the player base, while allowing asset holders to generate additional revenue.
Tournaments & Competitions
Competitive tournaments and esports leagues are emerging across many crypto games, attracting sponsorship deals and large cash prizes. In Axie Infinity’s 2022 World Championship Tournament called Origin, there is a staggering $1.3 million prize pool up for grabs. The decentralized nature of blockchain games creates huge potential for grassroots competitive circuits to emerge organically.
RPL Rewards
A newer rewards model called “reveal, play, earn” (RPL) has started gaining traction across crypto games. Unlike play-to-earn, RPL systems do not require an upfront asset purchase. Instead, players can reveal NFT assets within the game through gameplay achievements, then start earning rewards. This lowers the barrier to entry and avoids being pay-to-win.
The Future of Ownership & Rewards
Play-to-earn gaming marks a monumental shift, where players truly own game assets and participate equitably in in-game economic activities. Reward systems will only continue to evolve with more creativity and player agency at the forefront.
Table: Comparison of Reward Systems
| Reward Model | How it Works | Example Games |
| Breeding & Selling | Breed scarce NFTs, sell rare ones at high prices | Axie Infinity, CryptoKitties |
| Staking | Earn yield on NFTs for holding/staking them | Zed Run, Splinterlands |
| Scholarships | Lend NFTs to scholars to share gaming rewards | Axie Infinity, Pegaxy |
| Tournaments | Compete for prizes and sponsorships | Gods Unchained, Guild of Guardians |
| RPL Rewards | Reveal and earn NFTs within the game | Legends of Elumia, Heroes of Mavia |
Crypto gaming is establishing a new paradigm where world-building goes hand-in-hand with world-ownership. The possibilities of blockchain gaming are only just beginning to unfold.