1/ Play-to-earn in blockchain gaming. Some thoughts on what I think it is, what it is not, and the future
2/ What it is: Enabled millions of people around the world a way to earn more money than they had before. The @AxieInfinity, @YieldGuild and other Axie guild teams have truly changed lives, in the Philippines, Brazil, Venezuela and beyond
3/ What it is: Brought legitimacy to what has been a decade of grey and black market where players have grinded for in-game items, gold, and services for other players who were willing to pay
4/ What it is not: In and of itself a standalone game monetization model. It co-exists with a model, whether it’s F2P, subscription, pay-to-win etc. It defines the player behavior rather than the game economy
5/ What it is: The gaming world’s most fire new user acquisition strategy when designed correctly, because P2E spreads by word-of-mouth. But it is not free. It acquires a player who then creates a net outflow of revenues in-perpetuity, a tax, on the game economy
6/ In the long-term the economy’s cash in-flows and out-flows must balance. What creates in-flows? (1) A player who spends $1+ to play with no expectation of returns. The game is fun. There’s deep PvP or PvE content and in-game monetization to maximize player lifetime revenues
7/ (2) Non-game revenues. You have 1M P2E players you pay $500M/mo in income to but you make $600M/mo selling them goods, services, transaction fees from the debit cards issued them by you. You can airdrop $500M into the economy, have no non-P2E players and still make a profit
8/ The generational P2E games of tomorrow will likely have (1) and (2). P2E will transform not just games but also turn gaming companies into fintechs and full-stack consumer platforms, the next-gen SEA or Tencent
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