Play-to-Earn and Game Economies

Play-to-earn (P2E) pays players in tokens for gameplay — Axie Infinity made headlines when Filipino players earned living wages during the 2021 bull market. When token prices collapsed, the model proved unsustainable without continuous new player inflows.

Sustainable models tie earnings to skill, cosmetics, or esports — not infinite minting. External revenue from battle passes, ads, and marketplace fees supports token sinks like crafting, breeding, and tournament entry.

Newer framing shifts to play-and-earn: earn as a bonus, not the primary reason to play. Free-to-play with optional NFT ownership keeps retention and enjoyment first; token rewards stay secondary.