Play-to-earn games in the metaverse

What are play-to-earn games?

Play-to-earn games don’t differ much from normal video games apart from the fact that the player gets a reward with real-world value. In order to get a price, you may need to battle other players, complete tasks, or progress through levels. Crypto tokens, virtual land, skins, and weapons are some of the in-game rewards you can obtain and exchange later on for real money due to the decentralization of the platforms. As you can see in figure 1 the value of crypto tokens can fluctuate resulting in different benefits.¹

Figure 1: Market capitalization of play to earn tokens

What role plays the metaverse in these games?

The metaverse is based on technologies such as blockchain, AI, and VR. These technologies make it possible that gamers can meet in digital spaces to play and interact with each other using cryptos or NFTs. We could say that the metaverse is the meeting point for play-to-earn games.²

Play to earn games you should know

  1. Axie Infinity
Figure 2: Play-to-Earn games running on Ethereum (left) and running on an own sidechain (right)

Where does the money come from?

It is a combination of different things. Firstly, when players exchange their tokens they pay a fee. Some games also use advertisements capitalizing on the amount of time you spend in the game. If you want to start playing some games you even need to invest a significant amount at the beginning. For example, to play Axie Infinity you need at least 3 Axies .⁹

Play-to-earn in developing countries

In countries with a high unemployment rate such as Philippines, these games are really popular. Some people even use it as a way of living. One of the most successful is Axie Infinity. In order to avoid the initial investment users rent the NFTs to play and can make up to 1000$ a month. Given the situation, the government announced that people that play for a living would need to start paying taxes.¹⁰

Do I have to report my activity?

Something you should not forget is to report your NFTs and crypto gains from gaming because they can change the results at the end of the year. Doing reports can be a challenging task if you don’t have the right tools. Keeping track of each and every one of your play-to-earn transactions and NFTs becomes easy with basenode.io. We provide you with an overview of your assets and track your transactions. You just have to connect your wallet. If you like to play Axie Infinity you can, for example, connect your Ronin wallet.

About basenode.io

At basenode.io, our mission is to eliminate the gap between traditional accounting and blockchain-based accounting. basenode.io is the easy-to-use accounting solution for digital assets that offers seamless crypto invoicing and portfolio tracking. We provide a self-explanatory user interface with a clean and modern look, that naturally supports your workflow. We support the most popular networks like Bitcoin, Bitcoin Lightning, Ethereum, Binance Smart Chain, Polygon, Ronin Chain and more.

References

  1. https://builtin.com/blockchain/play-to-earn
  2. .https://decrypt.co/resources/what-are-play-to-earn-games-how-players-are-making-a-living-with-nfts
  3. https://phemex.com/academy/what-is-axie-infinity
  4. https://bitcoin.es/actualidad/alien-worlds-exploracion-espacial-por-nft/
  5. https://blog.switchere.com/how-to-play-the-sandbox-nft-game-ultimate-guide-for-beginners-2021/
  6. https://deasilex.com/play-to-earn-metaverse-games/
  7. https://www.coolwallet.io/metaverse-7-best-play-to-earn-p2e-games/
  8. https://capital.com/what-is-decetraland-and-how-does-it-work
  9. https://markets.businessinsider.com/news/currencies/play-to-earn-crypto-axie-infinity-business-model-gaming-value-2022-1
  10. https://medium.com/udonis/play-to-earn-games-101-how-do-they-work-56b07ad2117c#:~:text=T1

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Basenode.io

The easy-to-use portfolio tracker and crypto accounting solution for freelancers