GameFi (game finance) is an innovative combination of decentralized finance, blockchain games and NFT, In this article you will learn how to profit or make money with Gamefi, one of the hottest trends in the cryptocurrency industry today. While many modern games operate on the Pay-to-win pattern, which implies an investment in the game, GameFi applications use the Play-to-Earn (play to earn). Simple, this could not fail to interest users and investors. The concept suggests financial incentives for players to progress more actively. Thus, the player can receive a uniform income. Our editors will tell you how to make money from blockchain games and tokens GameFi how this system works and whether it is promising.
How does GameFi work?
The term was introduced a long time ago – 9 years ago André Cronier, the founder of Yearn Finance, the “father of DeFi”. It was therefore about the game and its relationship with monetary policy. One of the first blockchain-based games with a profit opportunity was CryptoKitties in 2017. GameFi is not limited to one technology or platform now, but covers a wide range of games and frameworks.
Most GameFi apps are built to work with PC, but there are also mobile apps. Often, players must first invest a certain amount of cryptocurrency to start earning. Applications of this type include the following structural elements:
- Play to Earn. P2E allows you to earn in-game cryptocurrency by performing certain actions.
- Blockchain-based technology that makes in-game characters or items unique and cannot be copied or counterfeited.
- Service token. Used for rewards, incentives, internal trading, maintaining the value of the project.
The first platforms were built on the Bitcoin blockchain; however, later the sphere gradually expanded and became more complicated, so they gradually switched to blockchains specifically designed for decentralized applications: Ethereum, Wax, Solana, Binance Smart Chain, etc. All transactions, purchases and sales of goods are carried out in a decentralized manner, they are also transparent and fair.
Investing in GameFi
Blockchain gaming projects and tokens are of interest not only to retail investors, but also to companies. The total value of the gaming sector is expected to exceed $200 billion by 2023. The rapid growth of blockchain gaming suggests that such platforms will gain a significant share of this market, and it also allows them to make money by investing in projects that effectively combine finance with gaming.
Investors also include HTX Ventures, the investment arm of HTX cryptocurrency exchange , which invested US $ 10 million into various gaming projects in September. Earlier in May, HTX also created a $100 million fund to finance DeFi and NFTs.
The Tron Establishment, led by Justin Sun, announced in August the launch of its $300 million fund to invest in GameFi over three years. Exchange OKEx, in turn, alocou $10 million in grants and marketing support for these projects.
Binance also has a Launchpool platform, which gives you the opportunity to receive live in-game tokens as a bonus reward for staking other assets.
Earnings on NFTs in games
Most objects in blockchain games are expressed in the form of NFT – digital tokens, each of which is unique and confirms ownership of a specific intangible item. In games, these are usually weapons, air elements and character clothing, houses and plots, mascots.
By finding and receiving these items during the game, the player can sell them on digital markets, exchanging them for cryptocurrency. You can increase the value of items and, consequently, the profit potential by pumping characters and creating rarer items.
The use of technology NFT in the gaming industry has several advantages:
- Players have full ownership of items that cannot be disputed.
- The received items remain in the user's wallet in the form of tokens, and not on the platform servers. Likewise, they can be sold anywhere, on any marketplace that supports the required token format.
- The process is decentralized, there is no single point of omission. Consequently, players do not run the risk of losing their assets due to hackers or technical issues.
Many games also include DeFi components, such as yield pools or staking. This means that players can lock up certain tokens and receive interest income for the entire duration of their holding.
What you need to start playing
To make money With blockchain games and GameFi tokens, the following inputs are required:
- A cryptocurrency wallet that supports the ability to connect to decentralized applications. The most popular option is Metamask . It works with any Ethereum-based blockchain game, and if you change the network in the app, it can work with Binance Smart Chain and almost any other blockchain (you can manually add network data).
- A certain amount of cryptocurrency on the wallet account. Typically, the cryptocurrency of the blockchain on which the game is running (ETH, BNB, etc.) is suitable. It will be needed for initial purchases and later for paying transaction fees.
- Starting items, characters, pets. You can enter blockchain games for free. But to enter the game – only by purchasing the starting items.
The best projects to make money on GameFi
Examples of time-tested blockchain games that can be used to make money with NFTs or tokens:
- Axie Infinity . A game inspired by the Pokémon theme, where you must control mascots, develop them and use them to fight against other players.
- Alien Worlds . The player here acts as a space explorer and can choose a planet to mine trilium (in other words, TLM tokens).
- MOBOX . A platform that includes tools for creating games and NFT tokens, their use and trading.
- My Neighbor Alice . Blockchain game with the theme of organizing a plot of land, developing and decorating a farm, interacting with neighbors, including commercial operations.
- The Sandbox . Sandbox is a platform for creating your own games and in-game items, equipped with a powerful yet simple editor.
- Decentralized . The project focuses on the social component, where players can organize the lives of their characters and share with other users.
- Cryptoblades . Allows you to fight with other players, equipping your character with weapons and armor and improving your skills.
- Cropbytes . Blockchain farm, which has been working in the form of a mobile application since 2018. It received a new wave of popularity with the launch of its own token.
New but promising projects also include Genopets, Mines of Dalarnia .
Where can I buy or sell game tokens?
Blockchain gaming tokens are supported by almost all popular cryptocurrency exchanges.
Centralized:
Decentralized:
- Uniswap
- PancakeSwap
- Sushiswap
In other words, the transaction and exchange of such tokens are supported by some exchanges, telegram bots and cryptocurrency wallets.
Direction prediction
GameFi has already gained significant popularity, but analysts believe that this relatively new sector still has a long way to go. For example, Tron founder Justin Sun, declared recently that this industry could be key to expanding cryptocurrency adoption and integration, as GameFi makes decentralized finance easy to understand for everyday users.
New projects are released almost every day, and entire gaming platforms are being created, such as MOBOX , allowing people to independently create blockchain games and NFT tokens. With new investment coming in, the potential for the sector is endless. Another factor that could further spur growth is the decentralized future that developers aspire to. We will certainly see many more innovations and improvements.
Conclusion
Gamers who have been mastering blockchain games for a long time have been making money by selling NFT characters, weapons, and other objects. To do this, you can use both third-party platforms (e.g. OpenSea) and in-game ones. Entire virtual marketplaces have formed, allowing you to buy or sell what you need. Blockchain games and GameFi tokens are an inevitable trend in the industry, and the rapidly growing numbers of player coverage and engagement, as well as the capitalization of tokens, only confirm this. Access to such games, although associated with an initial cost, still has a low barrier. Especially when it comes to applications not on Ethereum, but on other blockchains with moderate fees.