It’s no secret that the video game industry is one of the fastest-growing industries ripe for innovation. At the same time, the world of cryptocurrency is also growing and garnering more investors. What’s the relationship between gaming and crypto?
One result of this relationship is the play-to-earn (P2E) gaming genre. One of the most popular titles, Axie Infinity, has taken the gaming and crypto worlds by storm.
Learn more about P2E games, Axie Infinity, and what to expect from this type of gaming in the future.
An Overview of Play-to-Earn (P2E) Games
The crypto craze impacts virtually every industry and gaming is no exception. As NFTs gained massive popularity and became mainstream, blockchain-based P2E games were already taking off.
P2E games are similar to regular video games, except for one major difference: players earn rewards in the form of cryptocurrency, most often NFTs.
An NFT reward from a P2E game represents an in-game asset, such as a weapon or virtual tool used within the game. After winning these assets, players can trade them for other in-game assets or sell them for actual money on an NFT marketplace.
The more people play P2E games, the more assets they can collect. Unlike traditional gaming, where assets can only be used in-game, the player benefits from assets that have real-world value.
Additionally, P2E games are decentralized, meaning that the game developer does not control everything from its power center. By participating in the game’s economy, players generate value for other players and the game developer.
Remember that any income earned from a P2E game is subject to income and capital gains tax, just like standard cryptocurrencies are. Some professional gamers may be able to deduct home office expenses from their taxes, which could offset paying any taxes on their P2E income. Even though most players play P2E games as a hobby, they need to know how that may affect their taxes.
What is Axie Infinity?
Axie Infinity is a popular P2E game on the blockchain where players can purchase NFTs of little monsters and use them to fight other players in battle in the World of Lunacia. The game was created by an indie studio called Sky Mavis and was inspired by Nintendo’s iconic Pokémon series.
Axie Infinity players can collect, breed, battle, raise and even build kingdoms for their monsters, called “Axies.” Currently, Axie Infinity is the third-most played game in the P2E marketplace.
Each Axie comes with various characteristics, including:
- Class (aquatic, plant, beast, reptile, bird, bug, mech, dawn, dusk)
- Battle stats (morale, health, skill, speed)
- Four abilities
- A rarity attribute (Japanese, mystic, etc.)
- A purity level (either 0 out of 6 or 0 to 100%)
- Six body parts
- Breed count (from 0 to 7)
Fights between Axies happen in PvE, which is adventure mode, or PvP, which is arena mode. Both modes reward winners, but many players focus on PvP mode.
Axies belong to the player and provide tangible rewards in the form of Smooth Love Potion (SLP), crypto tokens that can be exchanged for money.
The game essentially rewards players the more time and effort they put into it. One hang-up with Axie Infinity is the starting cost to begin playing.
A player must already have three Axie NFTs, which used to be over $200. Now, an Axie may cost between $30 and $70. However, Axies generate rewards through gameplay and can always be resold.
Other Popular P2E Games on the Market
Aside from Axie Infinity, there are other P2E games you may want to consider playing, including:
- The Sandbox
- Splinterlands
- Ember Sword
- Star Atlas
- CryptoKitties
- Sorare
- Blankos Block Party
- Silks
- Decentraland
Because crypto and gaming go hand-in-hand, it’s expected that more P2E games will emerge, allowing players to benefit from an entertaining video game experience and a profitable one.
The Future of P2E Gaming
More people are starting to play P2E games because they can yield high profits. However, deciding which P2E game is right for you can be challenging. Be sure to research all your options and consider learning more about what you can expect from P2E gaming.