Markets like these sell items like weapons, vehicles, and props that are used within the gameplay. Additionally, “in-game” marketplaces develop the demand side of the tokens (burning mechanisms). The P2E model allows GameFi projects to scale the number of gamers and increase the token supply side. NFTs can also be used within the game to enable updates and introduce new experiences. These tokens can then be exchanged for mainstream cryptocurrencies like Ether (ETH), Bitcoin (BTC), or stablecoins (USDT, USDC, BUSD). Games based on the P2E model allow gamers to earn in-game currencies in exchange for their playing progress. One of the models gaining widespread adoption is the Play-to-Earn (P2E) model.

The value generated from in-game assets and tokens is distributed through the ecosystem based on the defined economic model, called tokenomics. In the decentralized ecosystem, creators have the liberty to design engaging experiences based on unique financial models. How Does GameFi Work?Īt its core, GameFi focuses on the financialization of games, allowing gamers to monetize their gaming experiences through cryptocurrencies and NFTs. Today, we’ll explore the fundamentals of GameFi and cover the key elements that are creating this new ecosystem.

Titles like Axie Infinity have managed to become mainstream with over $1B in asset sales, and the potential in this sector is already starting to attract conventional publishers like Ubisoft. GameFi has come to the forefront of the crypto sector recently, and blockchain gaming is poised to disrupt the gaming industry by offering a fundamentally revamped solution. Beginner’s Guide to GameFi-What is GameFi?

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