Introduction
The gaming industry has come a long way since the days of arcade games and 8-bit consoles. Today, the industry is worth billions of dollars and continues to grow yearly. With the rise of online gaming, the industry is becoming even more competitive and innovative. One such innovation that is making waves in the industry is Game-Fi.
So, what is Game-Fi? Game-Fi is a new concept changing how people play and earn from games. It is a platform that connects gamers developers to create an ecosystem where everyone benefits. Game-Fi allows gamers to earn real money by playing their favourite games on the blockchain.
Unlike traditional games, the core elements that Game-Fi has implemented into its games include blockchain technology to allow gamers to have verifiable asset ownership (e.g., NFTs) in and outside of the game. Tokens play a big role in the Game-Fi space, which allows players to perform in-game purchases or even transfer the token to centralized exchanges and sell it for real money. De-Fi (Decentralized Finance) is important in Game-Fi too. It enables the players to perform transactions without an intermediary because it relies on smart contracts within the blockchain, which are transparent, efficient, and fair.
Tokens
One of the critical features of Game-Fi is its tokens, either Fungible, Non-Fungible tokens, or both.
Fungible Tokens and Non-Fungible Tokens in Game-Fi
Fungible Tokens in Game-Fi can be cryptocurrencies that allow gamers to earn rewards and participate in various activities on the platform. For example, gamers can earn in-game tokens by playing the game, participating in tournaments, or referring friends to the platform. They can then use the tokens to purchase in-game items, exchange them for real money on cryptocurrency exchanges, or participate in De-Fi. By creating functions for the in-game tokens and creating supply and demand for the in-game tokens, the Game-Fi economy can maintain a stable state, allowing users to benefit from the game itself. In the example below, SLP is the in-game token for Axie Infinity.
SLP | Source: CoinGecko
Non-Fungible Tokens (NFTs) have allowed Game-Fi to reach where it is today. The role of NFTs in Game-Fi is to allow the player to participate in some Game-Fi projects requiring specific NFTs to start the game. For instance, Axie Infinity requires players to own 3 Axie NFTs to start playing and earning their in-game tokens, SLP. Players interested in the project can usually mint the NFT or purchase the NFT from the respective game's marketplace. NFTs allow a whole new way of verifying the authenticity of the player's ownership because it is non-replicable and traceable.
Axie Infinity Marketplace | Source: Axie Infinity
Game-Fi popular models
Play-to-Earn (P2E)
Axie Infinity
One of the famous examples of the Play-to-Earn project is the game Axie Infinity. Players first need to buy or hatch the creatures known as Axies. After that, the players will use the Axies to battle in PvP (Player versus Player) mode to earn in-game tokens, which can be used to breed more Axies and maintain the economy inside the game.
The game uses a dual-token design which is Smooth Love Potion (SLP) and Axie Infinity Shards (AXS). The common use case for SLP and AXS in the game is to breed new Axies for the game itself. However, SLP can be earned by playing in PvP activities in the game, but AXS can only be earned by achieving a certain amount of trophies (wins) in PvP and ranking high in the world leaderboard.
Axie Infinity Origins PvE Battle | Source: Axie Infinity
Move-to-Earn (M2E)
STEPN
Besides playing games online, the modern Game-Fi scene has become a more 'healthy' way of earning tokens. One example of a 'healthy' Game-Fi is the 'Move to Earn' game, STEPN. This move was to break the stereotype of Game-Fi as unhealthy gaming indoors to earn money through tokens. Instead, it encourages the player to step out of the house and move their bodies.
STEPN requires players to purchase or mint their shoe NFTs to earn their in-game tokens. One of the features of their in-game token, Green Satoshi Tokens (GST), is to fix the player's shoe NFT because as the player walks/runs to earn tokens, their shoes will get damaged, and their efficiency will be lowered. Another feature for the tokens earned in the game is to upgrade the shoe NFTs for higher efficiency, durability, etc. The developers have made this feature to maintain the game's economy and prevent inflation.
STEPN | Source: STEPN App
Sleep-to-Earn (S2E)
Pacer
Other than the two types of Game-Fi mentioned above, there is this new concept of the Game-Fi model known as 'Sleep-to-Earn,' which incentivizes people to form healthy sleeping habits and healthy sleeping schedules. The application that applies this concept is the application known as Pacer.
The Pacer app requires the user to wear any smart device that can track sleep activity before sleeping to track the user's sleep activity effectively. Later on, users need to purchase or mint Pacer's Pillow NFTs to convert the crystals they earn from sleeping into utility tokens known as the $WELL token and to the $PACE token if they reach a high enough level. The function of the $WELL tokens is to fix the Pillow NFT's durability to continue to get rewards from sleeping, and the other function of the $WELL token is to mint other in-game items that will be useful for the game itself.
Pacer.gg | Source: Pacer App Store
How to Get Started in Your Game-Fi Journey
Create a Crypto Wallet
To start your Game-Fi journey, you must first have the assets and the wallet address to start playing the game. Different games are built on different chains, so depending on the chain the game is built on, you must create a wallet supporting that chain. For example, Axie Infinity is built on an Ethereum sidechain known as the Ronin Network. You must create a Ronin Wallet to start playing Axie Infinity.
Do Research about the Project
After creating a wallet and securing the funds, it is always important to do initial research before stepping into the project and regretting it afterward. Like the track records of the company that created the game, the road plan of the project to see what the game promises in the future to prevent yourself from participating in a rug-pull project. You can also research the requirements to start playing the game, like what and how many NFTs you need to own to start playing the game. Besides NFT ownership requirements, you should also check the game's system requirements and whether your device can support the game.
Start Playing the Game and Earn Effectively
After the last two steps, you are on the right track to start your Game-Fi journey. What you need to do now is to do more research regarding the strategies to earn effectively in the game. For example, you can always learn from Youtube videos about the strongest team for Axie Infinity and buy that team of Axies from the marketplace and use it to win more PvP games and earn more tokens from the game. It is always recommended to join Gaming Guilds, communities that are invested in Game-Fi projects, and there are a lot of valuable resources inside to help you in your journey. Some examples of Gaming Guilds are YGGSEA and Hooga Gaming.
Conclusion
In conclusion, Game-Fi is revolutionizing the gaming industry by providing a new way for gamers to earn money while playing games and for developers to monetize their games through blockchain technology. With the creation of Game-Fi tokens, Game-Fi creates an ecosystem where everyone benefits. But always remember to DO YOUR OWN RESEARCH (DYOR) before stepping into the rabbit hole. If you're a gamer or game developer, now is the time to get involved in the Game-Fi revolution!