"Play-to-Earn Gaming and the Startup Mentality: How Work is Evolving in Web3"

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Hatched by Glasp

Aug 03, 2023

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"Play-to-Earn Gaming and the Startup Mentality: How Work is Evolving in Web3"

In recent years, a new phenomenon has taken the gaming world by storm - "play-to-earn" gaming. This concept revolves around the idea of players being able to earn real-world rewards, such as money or tokens, by playing video games. One prime example of this is the game Axie Infinity, which has generated over $3 billion in total sales since its launch in 2018.

The creators of Axie Infinity initially had the idea of allowing players to trade their in-game experience points as tokens. This innovation opened up a whole new world of possibilities, as players started creating liquidity pools on decentralized exchanges like Uniswap. What's fascinating is that many players, particularly in the Philippines, turned to Axie Infinity as a means of escaping the economic hardships brought on by the pandemic-induced lockdown. These were regular people without any prior knowledge or interest in cryptocurrencies.

This emergence of play-to-earn gaming in the Philippines can be attributed to the country's history of being early adopters of social networks and platforms like Facebook. The unique circumstances in the Philippines allowed the concept to flourish, but it also serves as a glimpse into the future of work in emerging market economies. The idea of not having all the value retained by the platform, but instead passing it back to the community, is gaining traction and becoming an unstoppable movement.

What sets play-to-earn gaming apart from traditional gaming models is the removal of middle-men. In traditional models, platforms often take a significant portion of the revenue generated by a game, leaving little for the actual players who drive traction. Play-to-earn gaming disrupts this model by directly sharing the value with the community. This not only incentivizes players to continue engaging with the game but also creates a deeper sense of ownership and emotional connection.

However, the long-term success of play-to-earn gaming depends on various factors. One crucial aspect is managing the capital and token supply within these virtual worlds, which can prove to be a real challenge. Additionally, it's essential to ensure that players find enjoyment and value beyond just the monetary rewards. The game needs to provide a fun and engaging experience, akin to a real social network or a nation, where players can exchange value and form meaningful relationships.

The success of Axie Infinity can be attributed to the strong community that has emerged around it. The community plays a vital role in educating and onboarding new users, with a staggering 80% of users coming from referrals. As more people own Axie tokens, Axies themselves, and even land within the game's universe, the economic and social relationships deepen, creating a self-sustaining ecosystem.

The growth of Axie Infinity has been nothing short of remarkable. Before the launch of Ronin, the game had around 38,000 daily active users in April. Since then, it has skyrocketed to a staggering 2.4 million daily active users. The introduction of Ronin, a sidechain solution, eliminated the scalability issues that were hampering the game's growth potential.

This brings us to the connection between play-to-earn gaming and the startup mentality. Startups are defined by their focus on growth. Similarly, play-to-earn gaming thrives on rapid growth and scalability. To grow really big, both startups and play-to-earn games need a sizable market and the ability to reach and serve that market. The best way to achieve this is by identifying new ideas that have recently become viable due to changes in technology and market conditions.

Successful founders and creators in both realms share a unique ability to see problems and opportunities that others may overlook. They have the vision to recognize the potential of technology to solve these problems and capitalize on emerging trends. Like startups, play-to-earn games need to maintain a high growth rate to stay competitive and attract users. A growth rate of 5-7% per week is considered good, while 10% per week is exceptional.

Ultimately, play-to-earn gaming and startups are driven by the same principle - growth. Growth is the lifeblood of startups, and it's what fuels the success of play-to-earn games. The ability to adapt, innovate, and find new ideas is crucial in both domains. By embracing the startup mentality, play-to-earn games can continue to revolutionize the gaming industry and reshape the future of work.

Actionable advice:

  • 1. Embrace the concept of play-to-earn gaming: Whether you're a game developer or a player, explore the opportunities presented by play-to-earn gaming. It's a chance to not only have fun but also earn real-world rewards.
  • 2. Focus on community building: Just like in startups, building a strong community is key to the success of play-to-earn games. Foster relationships, facilitate education, and incentivize referrals to create a thriving ecosystem.
  • 3. Prioritize growth and innovation: If you're a game developer or an entrepreneur, adopt a growth mindset and constantly seek new ideas and opportunities. Stay ahead of the curve by leveraging technology and embracing change.

In conclusion, play-to-earn gaming represents a paradigm shift in the gaming industry. It blurs the lines between work and play, allowing players to earn real-world rewards while having fun. The success of games like Axie Infinity showcases the potential of this new model, while also highlighting the importance of the startup mentality - a focus on growth, innovation, and community building. As technology continues to evolve and reshape our world, the blending of work and play will become more prevalent, with crypto serving as a means of exchanging value. The future of gaming and work is undoubtedly exciting, and play-to-earn gaming is at the forefront of this revolution.

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