The gaming industry is evolving quickly and has already undergone significant change. It is becoming increasingly decentralized with the aid of ground-breaking technologies like Web 3.0 and Blockchain.
An ecosystem known as Gamefi is emerging as a result of these upheavals. It is a better setup that seamlessly fuses games and money. As a result, gamers may now reap the rewards of their time and effort spent playing the game in the real world.
Yes, you did read it right. The players get rewards in the form of assets they may exchange for cash. Additionally, these advantages cannot be taken away owing to the blockchain.
There are several ways to get these financial advantages. Play to Earn and Move to Earn are the two most well-known of these strategies. In this article, we will discuss and contrast the two metaverse game paradigms currently in use, as well as how players can gain greater control over the new environment.
P2E and M2E: Things to consider
You need to keep a few things in mind when playing to earn or moving to earn models or even other models. The term X-to-earn will be used here to generalize.
Numerous X-to-Earn initiatives tempt consumers with large payouts for what seems to be minimal work. While this could be alluring in the short term, it often results in uncontrolled token inflation, which significantly reduces the value of the token. This means that X-to-Earn initiatives with long-term tokenomics and attainable incentives may perform better. Expect the reward token to fall if it has no usefulness.
Many X-to-Earn initiatives aren’t accessible in their early stages, even though many of them garner enormous attention. Instead, the majority use some kind of gating mechanism to guarantee that only privileged, wealthy, or well-known users are granted early access. So before making any X-to-Earn investments, think about the hurdles to entry.
Stream of income:
In the absence of strong token use, X-to-Earn projects that earn incentives only from the inflation of their token or a specialized reward pool generated from the total supply may struggle to retain value. However, others can become more robust by funneling benefits from several sources.
There is often a significant rise in competition when the X-to-Earn market heats up. Because of this, it’s crucial to periodically evaluate what the competition offers to determine if there are better options elsewhere, keeping in mind that many of these platforms may be temporary. Though generally speaking, the first mover does the best; this is only sometimes the case.
What is Play to earn?
P2E games have fundamentally altered how players see gaming. Although the games were designed for enjoyment, the industry has gone a long way. And playing games is no longer their only purpose of them. Instead, streamers broadcast their video game play on Twitch, Youtube, and other platforms, which enables them to profit from the gaming.
If they are playing any play to earn games, players do not need to broadcast their games to get money. They may earn cryptocurrencies, NFTs, and more thanks to the P2E idea, which can then be exchanged for fiat money and sold on cryptocurrency exchanges. So you still have a lot of opportunities to make money in this industry, even if you are not streaming.
Here are a few awesome P2E games:
P2E networks are based on the Ethereum blockchain network, leading the field in market share. In-game Axie’s, a kind of NFT, can be purchased, rented, and utilized by players. In addition, a Smooth Love Potion (SLP) is a virtual token that can be exchanged for real money in the game.
The game recently suffered a security breach, but sources say the crew is working hard to restore its former glory. There have been active participants in the game, as about 3500 ETH worth of axes has been sold despite the current crypto winter.
Originally a mobile game, Sandbox switched to a blockchain environment in 2018. When players use NFTs to create in-game ecosystems, they are rewarded. In addition, fewer laws exist in this universe, so players have greater creative freedom.
In-game markets are where players can sell their creations. The game has a decentralized marketplace where players can exchange assets. Users can make their video games with the Sandbox Game-maker. The Sandbox environment currently uses the coin SAND.
What is Move to Earn?
Moving, gaming, and cryptocurrency income are all combined in move-to-earn.
During the peak of the COVID-19 epidemic, move-to-earn soared. Most people were at home, sitting and passing their time in front of screens. M2E became really well-liked since exercising regularly for your wellness is crucial. It’s a novel technique encouraging those using electronics to get up and move. Your actions will earn you bitcoin.
Due to this idea’s potential and peoples’ desire to be healthy and active in light of the health issues brought on by the current pandemic, this M2E trend may eventually change from GameFi to FitnessFi rather than vice versa.
Here are a few examples of M2E games
STEPN is a move-to-earn game that gives you incentives for exercising through the Web 3 Lifestyle app. Activities such as walking, running, biking, and others can earn GMT tokens for you. The more you move around, the more GMT you can earn.
You can purchase new avatars and upgrades with GMT tokens in-game. Additionally, GMT tokens can be traded on exchanges or invested in other cryptocurrencies. The user-friendly UI and great payouts of STEPN make it a fantastic move-to-earn game.
As you complete exercises, you accumulate MOOV tokens in Dotmoovs, a move-to-earn NFT game. Using Augmented Reality (AR), you can even carry out activities in real-world settings and receive rewards.
A new feature is available in Dotmoovs, which allows you to track your achievements and awards. You can now play freestyle football and dance, and more will be added soon. It is possible to buy in-game items such as avatars or enhancements with the accumulated points. As well as competing in contests and climbing leaderboards to win rewards, you can use them to compete in contests.
Play to Earn vs. Move to Earn
Despite the recent growth of both play-to-earn and move-to-earn games, there are still certain uncertainties about the sustainability and strength of the initiatives, which is normal for any emerging market.
In most games, you have to pay before you can be rewarded for playing or moving. Thus, these projects need help developing a viable in-game economy that enables all players to profit, not just early adopters. Play-to-earn games are more advanced when put alongside other game kinds.
Blockchain games that reward players already exist and are becoming more and more entertaining to play. A metaverse virtual world like Decentraland or The Sandbox collaborates extensively with significant corporations and uses NFTs to ensure ownership. In these games, winning has been reduced to a minor aspect.
In contrast, move-to-earn games have far more to show and must defeat really strong rival web2 applications. Unfortunately, most move-to-earn programs, which struggle to convince their own communities that they are not Ponzi scams, need to catch up to the fitness sector in this regard.
The revenue model and the rewards system serve as the primary distinctions between P2E and M2E. The P2E and M2E models vary in a few ways, as you can see. That much is clear: none of them is just a virtual gamer.
P2E is anticipated to evolve from a fad to a developed idea. Although the gaming business is fascinating, it’s important to remember that recreation and social interaction should always come first. Real players are more concerned with the gameplay and visuals than with the business strategy.
The M2E scene is also gathering steam. A fee model may provide users who struggle to exercise sufficiently with the motivation they need. The move-to-earn idea is still in its early stages, so we’ll just have to wait and see what the future holds.