GameFi
Blockchain games that fold DeFi mechanics into play, letting users own in-game assets as tokens and earn rewards.
GameFi merges video games with token economies. Players own characters and land as NFTs, then earn tokens for playing and trading them on open markets. Axie Infinity was the breakout case, peaking near $40 token prices and millions of daily players in 2021.
The model strains under its own economics. Rewards are funded by new players buying in, so when growth stalls, token prices fall and earnings dry up.
Axie's collapse from those highs is the cautionary chart. Most GameFi tokens follow the same arc: sharp launch, fast decline.
Related terms
A game model that pays players in tradeable tokens or NFTs, turning hours of play into real income.
NFT (Non-Fungible Token)A blockchain token that represents ownership of a unique item, where no two units are interchangeable.
MetaverseA vision of persistent, shared 3D virtual worlds where users own digital assets and identity across platforms.
TokenA digital asset issued on top of an existing blockchain, usually through a smart contract rather than its own network.