"Play-to-Earn Gaming and the Evolving Nature of Work in Web3: A Look into the Future of Product Management"

"Play-to-Earn Gaming and the Evolving Nature of Work in Web3: A Look into the Future of Product Management"

The rise of "play-to-earn" gaming has revolutionized the way we view work and its relationship with the digital world. One notable example is a game called Axie Infinity, which has generated over $3 billion in sales since its launch in 2018. What sets this game apart is its incorporation of tradable tokens, allowing players to monetize their in-game achievements. This concept of turning gaming into a source of income has gained significant traction, particularly in the Philippines where players have turned to Axie as a means to escape economic hardships during lockdowns.

The success of Axie Infinity can be attributed to several factors. Firstly, the game's creators recognized the demand for tradable tokens among players and tokenized the experience points. This enabled players to create a liquidity pool on Uniswap, a decentralized exchange, further enhancing the value of their in-game assets. Additionally, the introduction of guilds and a scholarship program expanded the reach of play-to-earn opportunities, making it accessible to individuals worldwide.

Filipinos, known for their early adoption of social networks and platforms like Facebook, played a pivotal role in the initial growth of Axie Infinity. However, this phenomenon is not limited to a single country. It is merely a glimpse into the future of emerging market economies, where the value generated by platforms can be shared with the community that contributes to its growth. This shift away from middle-men and the retention of economic benefits by users themselves is an unstoppable movement.

Traditional gaming models often involve a significant portion of revenue being retained by intermediaries, such as game publishers. Axie Infinity disrupts this model by eliminating intermediaries and directly sharing the value with the community. This not only empowers the players but also ensures that the game remains sustainable in the long term. The ability to trade in-game assets for real-world value, coupled with the development of a strong social network within the game, creates a dynamic environment for value exchanges to flourish.

Despite its success, Axie Infinity faces challenges in managing capital and token supply within its metaverse. Maintaining a balance between player enjoyment and the economic dynamics of the game is crucial. As more funds flow into the ecosystem, it is essential to ensure that players continue to find value and enjoyment in the game. This is evident from the emotional connection players have with their in-game assets, as only a small percentage of Axies are available for sale on the marketplace.

The strength of the Axie Infinity community lies in its ability to educate and onboard new users. Referrals account for a significant portion of new users, showcasing the deepening social and economic relationships within the game. This strong community foundation has contributed to the exponential growth of daily active users, from 38,000 in April to 2.4 million after the launch of Ronin. The introduction of Ronin, a scaling solution for Ethereum, played a crucial role in unlocking the game's potential.

Drawing parallels between the evolution of play-to-earn gaming and the traits of great product managers (PMs) reveals valuable insights. Great PMs possess excellent writing skills, enabling effective communication with their teams and stakeholders. They excel in building consensus but are not afraid to make tough decisions when necessary. Taking responsibility for failures and sharing credit for successes is a hallmark of exceptional PMs.

Furthermore, great PMs have the ability to envision the future and work backward to develop product strategies that maximize business impact. They actively seek customer insights through research, experiments, and collaboration with cross-functional partners. A finely tuned understanding of a well-crafted product experience is another trait that sets great PMs apart. Ultimately, their goal is to amplify their team's impact on the customer experience and business outcomes.

As we look ahead, the blending of work and play will continue to converge, with cryptocurrencies facilitating value exchange. However, the definition of games may evolve beyond our current understanding. The emergence of play-to-earn gaming showcases the potential for work and leisure to intertwine seamlessly in the digital realm.

In conclusion, the rise of play-to-earn gaming exemplified by Axie Infinity offers a glimpse into the future of work and the evolving nature of product management. The ability to monetize in-game achievements and create economic opportunities for players is a testament to the power of decentralized systems. As this movement gains momentum, it is crucial to manage the dynamics within these metaverses and ensure a balance between player enjoyment and sustainable economic models. To embrace this future, aspiring product managers can take three actionable steps: hone their writing skills, seek out customer insights, and develop a keen understanding of crafting exceptional product experiences. By doing so, they can contribute to the growth of innovative and inclusive digital ecosystems.