Play-to-Earn

Virtual Economy | Games

Play-to-Earn (P2E) is an economic model used by some blockchain-based games.

In the virtual economy of a P2E game, players may earn virtual items or virtual currency by playing the game. These items and currency may be sold to others via decentralized marketplaces.

P2E games frequently make use of NFTs.

The game developer that creates a P2E game typically generates its revenue through the sale of items or currency to players. The game developer may also take a revenue share from secondary-market sales that players make.

Further Reading

• Game Economics, Part 2: NFTs and Digital Collectibles

• Why do play-to-earn games work when real money trading in games has (mostly) not worked? — Twitter thread by a16z partner Jon Lai.

• Types of Virtual Items

• The Virtual Economy