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Blockchain Gaming Economics - Play-to-Earn (P2E) model

The “play-to-earn” model is exactly what the name suggests: A model where users can play and earn tokens or crypto while playing. This model has a very powerful psychological incentive, because it combines two activities that have driven humanity since the beginning of time: reward and entertainment.

The main idea in P2E is that players are rewarded as they invest more time and more effort in the game, and thus become part of the in-game economy (tokenomics), creating value for themselves, for other participants in the game ecosystem, and also for the developers. They receive an incentive/reward for their participation and playing time in the form of digital assets with potential appreciation over time.

Note that the use of blockchain technology in such assets has brought scarcity to digital assets in games, which can take the form of NFTs and can represent absolutely anything from characters like the kittens in CryptoKitties to cryptocurrencies like Bitcoin (BTC) or Ether (ETH).

Along these lines, the key component in this model is to give players "ownership" over certain "digital assets" in the game, allowing them to increase their value by actively participating. This is where blockchain technology has become decisive for gaming business models.

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