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Future of Web3 Gaming: Play-to-Own (Ecosystems)

Arthur0x on Medium | Sep 25, 2022

Web3 gaming - Future of Web3 Gaming:  Play-to-Own (Ecosystems)Today, the gaming market is worth over $300B (according to both Accenture and BitKraft) with an expectation of 12% annual growth rate from 2022 to 2028.

  • Overview: Our thesis is that the integration of Web 3 elements into gaming will likely usher in a new era of gaming dubbed “Play-to-Own”. We posit that unlocking the economic activity within games will drastically expand the Total Addressable Market (“TAM”) for the gaming industry as well as supercharge the value creation.

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  • Potential: In 2021, we caught a glimpse of the potential of Web3 Gaming via Axie Infinity’s rise to fame. Popularizing the Play-to-Earn (P2E) model most of us are familiar with, Axie has grown from 10k DAUs in early 2021 to a peak of 3 million DAUs and brought in $1.3B revenue in 2021 according to Nansen. What’s more surprising is that Axie was still in its infancy
  • Interest and ecosystems:  Games that integrated NFTs have experienced much greater success in terms of player retention, growth and revenues compared to their Web2 counterparts. We are already beginning to see a myriad of projects launching with innovative Play-and-Earn mechanics embedded within their gameplay. Apart from gaming studios, an entire ecosystem has also quickly spawned around Play-to-Earn like gaming guilds, DAOs, tooling for these guilds, game discovery platforms, custody, trading infrastructure and analytics.
  • Play-to-Earn — Incentivising gameplay with financial value:  Utilizing blockchain technology, token incentives for activity and true ownership of gaming assets via NFTs were introduced into games to give rise to the Play-to-Earn business model. P2E players are able to convert their time spent in a game into tokens and NFTs which can then be converted to cash to be used in the real world. Typically in such games, the “Earn” component of the game is heavily emphasized to attract players to play for rewards, hoping that a portion will be converted into paying players.
  • Challenges with P2E:  The pitfalls of the current P2E model are well recognised, namely the challenges with managing an inflationary economy and attracting value extractors rather than real players. Most leading entrepreneurs in the Web3 gaming space are moving beyond this model to make it more sustainable. We expect rapid experimentation in the coming months and it is our firm belief that the next generation of successful Web 3 games will not require the P2E model to be successful.

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  • Play-to-Own — The Future of Web 3 Gaming:  Unlike pure P2E, Play-to-Own will focus on fun gameplay, a sustainable economy and foster a strong sense of ownership of in-game assets and IP — rather than a transient earning mentality among gamers. We believe this model will allow games to reap the real benefits of blockchains such as unlocking value from in-game assets, better price discovery and building a strong sense of community ownership.

A blockchain-enabled game developed with the ethos of Web3 — which is incentive alignment and true stakeholder ownership. Players are rewarded for their play and contributions with ownership of the game in the form of tokens or in-game assets.

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NCFA Jan 2018 resize - Future of Web3 Gaming:  Play-to-Own (Ecosystems)The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit:

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