"'Play-to-Earn' Gaming and How Work is Evolving in Web3 - Future"

Hatched by Kazuki
Aug 20, 2023
5 min read
4 views
Copy Link
"'Play-to-Earn' Gaming and How Work is Evolving in Web3 - Future"
In the world of gaming, a revolutionary concept called "play-to-earn" has emerged, transforming the way people work and earn a living in the digital realm. One notable example of this phenomenon is Axie Infinity, a game that has generated over $3 billion in sales since its launch in 2018. What sets Axie Infinity apart is its integration of blockchain technology and the tokenization of in-game experience points.
Axie Infinity started as a traditional game, but its players soon expressed a desire for their experience points to have real-world value. In response, the developers tokenized these points, allowing players to trade them on decentralized exchanges like Uniswap. This opened up new possibilities for players, particularly in regions like the Philippines, where economic hardships during the lockdown led many to seek alternative sources of income. What is truly remarkable is that these players were not necessarily crypto enthusiasts but regular individuals looking for a way to make ends meet.
To further scale their efforts and introduce more people to the world of play-to-earn, the creators of Axie Infinity established guilds and launched a scholarship program. This program aims to provide access to Axies, the game's characters, to individuals around the world, expanding the reach of this new form of work and income generation. The Philippines, known for its early adoption of social networks like Facebook, proved to be fertile ground for the growth of Axie Infinity. However, it is only a matter of time before other emerging market economies catch up and embrace the concept of decentralized value distribution.
One of the key factors that sets play-to-earn gaming apart is the elimination of middlemen. Traditionally, game developers and platforms would retain a significant portion of the revenue generated by a game. Axie Infinity disrupts this model by removing intermediaries and sharing the value directly with the community responsible for building it. This movement towards user ownership of economic benefits is unstoppable and has the potential to reshape the future of work.
It is essential for play-to-earn games like Axie Infinity to attract players who genuinely enjoy the game and find value in it beyond the financial aspect. Long-term success hinges on creating an engaging and immersive experience that goes beyond money. As Axie Infinity evolves into a social network and virtual nation, the opportunities for value exchanges and interactions will continue to grow. However, sustaining and managing the capital and token supply within these metaverses will present a significant challenge.
Despite the financial incentives, it is crucial to recognize the role of the community in educating and onboarding new players. Referrals account for a staggering 80% of new users, highlighting the strength of the community-driven onboarding process. As more individuals own Axie tokens, Axies themselves, and even virtual land within the game universe, the bonds between players deepen, further solidifying the economic and social relationships within the community.
Axie Infinity's exponential growth is a testament to the power of play-to-earn gaming and the potential it holds for the future of work. In April, the game had around 38,000 daily active users, but with the introduction of the Ronin sidechain, that number skyrocketed to 2.4 million. This technological advancement enabled scalability and removed the limitations that would have otherwise hindered the game's growth.
Looking ahead, the integration of crypto and the blending of work and play will continue to reshape industries and how we exchange value. While the concept of play-to-earn may have originated in the realm of gaming, its influence will transcend traditional games as we know them today. The SECI model of knowledge dimensions provides a framework for understanding how tacit and explicit knowledge are converted into organizational knowledge. Externalization, combination, internalization, and socialization are the four dimensions through which knowledge is created and shared.
In the context of play-to-earn gaming, the SECI model can be applied to the process of discovering and acquiring new knowledge within the game. Externalization involves publishing and articulating knowledge, allowing players to share their tactics and strategies with others. Combination refers to organizing and integrating different types of explicit knowledge, such as building prototypes or collaborating on projects. Internalization occurs when explicit knowledge is internalized by individuals through learning by doing, becoming assets both for the individual and the organization. Finally, socialization is the process of sharing tacit knowledge through interactions with other players, akin to a discovery process.
To thrive in the world of play-to-earn gaming and leverage the opportunities it presents, here are three actionable pieces of advice:
- 1. Embrace the Community: Engage with the vibrant community surrounding play-to-earn games like Axie Infinity. Participate in forums, join guilds, and collaborate with other players to learn from their experiences and share your knowledge.
- 2. Focus on Value Beyond Money: While the financial incentives of play-to-earn gaming are undoubtedly appealing, make sure to derive enjoyment from the game itself. Seek out the social, creative, and competitive aspects that go beyond monetary gains.
- 3. Stay Informed and Adaptive: The world of play-to-earn gaming is constantly evolving. Stay updated on the latest developments, technological advancements, and new opportunities that arise. Adaptability and a willingness to learn will be key to thriving in this rapidly changing landscape.
In conclusion, play-to-earn gaming represents a paradigm shift in how work is evolving in the digital age. Games like Axie Infinity have demonstrated the immense potential of decentralized value distribution and the empowerment it brings to individuals, particularly in regions facing economic hardships. As the boundaries between work and play blur, and crypto becomes a means of exchanging value, the future of work will be shaped by these revolutionary concepts. By embracing the community, finding value beyond money, and staying informed, individuals can navigate this new landscape and unlock the full potential of play-to-earn gaming.
Resource:
Copy Link