Play-to-Earn (P2E)
A game model that pays players in tradeable tokens or NFTs, turning hours of play into real income.
Play-to-earn flips the usual arcade deal. Instead of spending money to play, you earn tokens or NFTs you can sell. At Axie Infinity's 2021 peak, players in the Philippines and Venezuela earned more from the game than from local jobs.
The economics depend on newcomers. Earnings come from new players buying tokens and NFTs to enter, so the model needs constant growth to pay existing players.
When signups slowed in 2022, Axie's reward token fell over 99% from its high. Most P2E games have repeated that pattern.
Related terms
Blockchain games that fold DeFi mechanics into play, letting users own in-game assets as tokens and earn rewards.
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.