Play-to-Earn Paradox: Why It Fails and How to Revive It


Made to Fail.

Another desperate plea for P2E

 

Do you want to know why most if not all play-to-earn games are failing to maintain stability? 

[developer]  {wants money} -=spend money=- <develop game> xxRECRUITxx  #get money# 

[user] {wants money} <play game> -=spend money=- xxRECRUITxx  #get something like money# -=spend money=- xxRECRUITxx  #get something like money#  <play game> #get money# 

I'm not good at making flowcharts, but if you can follow along, you can see where it starts to breakdown for players. 

Understanding Play-to-Earn Games

So what are play to earn games?  If you been living under a rock for the past two decades, play-to-earn (P2E) games are video games where players can earn special coins or tokens just by playing. This is not new with crypto so what's the difference? Oh you didn't know there was money to be made in gaming prior to blockchain? Here's a few examples and by examples, I'm referring to digital economies where you earn a digital currency and possible exchange said digital currency for physical currency (we will call this version "fiat" from now on). Here's some classic examples: 

1990s

  1. Meridian 59 (1996)

    • One of the first graphical MMORPGs (Massively Multiplayer Online Role-Playing Games), allowing players to trade items and earn in-game currency.
  2. Ultima Online (1997)

    • A groundbreaking MMORPG where players could gather resources, trade items, and even create businesses within the game world.
  3. EverQuest (1999)

    • This popular MMORPG featured a player-driven economy, where players could earn in-game currency and items through quests and trading.

Yes you made digital gold. It was against the TOS of the games however these secondary markets existed and prevailed. In high school, while my peers were flipping burgers, my squad was flipping UO gold and houses and rare items. No blockchain was around and this created duping, where the players would see the item in the window but when they executed the transaction, it disappeared but the gold still transferred.

2000s

  1. RuneScape (2001)

    • A widely popular MMORPG where players can earn money by completing quests, engaging in crafting, and trading items in a player-driven economy.
  2. World of Warcraft (2004)

    • While not originally a play-to-earn game, players began to earn real money by selling in-game gold and items on third-party websites.
  3. Second Life (2003)

    • A virtual world where players can create content, trade virtual real estate, and earn Linden Dollars, which can be exchanged for real money.

I think the Sims was just starting around this time, but either way, that is the game that attracted me to play this game -> Second life was literally operating like a modern day blockchain with their Linden Dollars which you could cash out for real money. It was not as easy and fun as the days of UO so I didn't getting to make $1000s of dollars, maybe just a few hundred if that. It was in deed, like having a second life in a digital world and it was work...back to UO! 

2010s

  1. Entropia Universe (2003)

    • This game allows players to earn real money through virtual activities like hunting and mining, with a real cash economy.
  2. EVE Online (2003)

    • A space-based MMORPG where players can earn in-game currency (ISK) through various in-game activities, some of which can be traded for real money.
  3. Cryptokitties (2017)

    • Though just outside your specified range, this game popularized blockchain technology in gaming, allowing players to breed and trade digital cats for cryptocurrency.
  4. League of Legends (2009)

    • Players can earn in-game currency and items, and some players have made money by selling accounts or in-game items.

These games laid the groundwork for the play-to-earn model, even if they didn't fit the modern definition perfectly. I felt like with the introduction of blockchain that this process of conversion would become more streamlined but somewhere something went wrong.

Why P2E Aren't Working

Money Problems

Some P2E games have money systems that don’t work well. They make too many tokens, which can make them less valuable. This can make players feel upset. When money woes prove to be problematic, developers started updates leading to changes in commission structure resulting in random rewards. Many P2E games in a cash grab monetization model implement "loot boxes" where players spend money to get random items. Often times these items are very lackluster, which can feel unfair. 

The Game Play

Fucking Boring Ass Games! I'm one to talk being a developer of a boring play to earn game myself, the play to earn games are boring if you are really making money. Remember Second Life, I felt that game was more focused on the aspect of money making versus actual gaming experience. I will be biased to not say that Second Life wasn't a game but a life sim. Meh. To be honest, I've never not heard someone complain about their job. So I honestly expect that if you have a decent P2E it would probably feel like a work sim but heh, its slightly entertaining and can be done remote. 

What if 

Ultima Online was on the blockchain. How would that work? Well we can't let the players fight monsters to get tokens because that would require coming out of the developers pockets.  Hmm, but they did have a subscription model but we don't like that much so let's not include that part. Axie Infinity made secondary tokens, ok so let's assume UO Gold was a crypto. That would quickly go to zero unless the reward structure is greatly reduced and or capped. They did have scarcity from plots, we can make those NFTs. And let's throw in the wrench to the equation - all this needs money to cover server, marketing, development costs. With no subscription model where does this money come from? 

But why throw all features of crypto into a game just to call it a crypto game? Assuming we have to make a crypto game, I think if certain elements are removed we can start to achieve sustainability. 

Let's Ponder

If I were to make a sustainable play to earn game, how would I achieve that in 2024? 

Internal Ecosystem

Most games rely on recruiting of players. Let's assume that we will only get one diehard player. We need an economy where the player can gather rewards that can reward the player for their actions but at the same time help the game development (lets call this "the community") as a whole. Okay so we need this type of game loop: player action -> reward community -> player action -> reward community -> player action -> reward community -> player action -> reward player -> player action -> increase rewards 

This incentive system tells the player, "Hey, help us help you help the community help you." Rewards are given based on the players actions and increases based on the players actions. 

External Ecosystem

Community Structure

Money out needs money in first. The only system currently that provides a semi-sustainable structure is a not for profit organization. This has been touched on before but not at this scope. Using that model, we can start gathering resources for game development. VOLUNTEERS! Volunteers not just including human labor but any free resource that can simplify the creation process. And in 2024, there is a shitcoin ton of resources available for free. It's not the best, but it still is able to accomplish a job. 

Monetization

Let's keep it a buck, everyone relies on the pockets of advertisers to continue their existence. YOutube, TV, fake news, every media outlet, me, you, this website, that website down at the bottom, everyone. It's the middle economy that helps fund everything. ADVERTISING. Everyone hates it, but everyone needs it. I don't think I need to elaborate on this much as we all know what an ad is, especially the kind you can't skip anymore like on YOUTUBE!

[placeholder for multiple angry face emojis]

So what do we get? I don't know yet but let's find out. Follow my game development as I try to enter a suck ass market that everyone hates but I think is underappreciated and undervalued. If executed right, I think play to earn gaming can become a middle industry between work and play.  Because let's be serious work = play, NOPE that math don't math. Yes it will be boring. Yes it might have some elements of fun that you thought could have been fun but actually turn out to not really be fun at all but fun nevertheless. Yes it will have play to earn economy. Yes the community will earn rewards and increase rewards from the actions of just one player. If there's more than one player, a leaderboard will be featured to help determine the best player. There will be a story line that is a crucial part of the game lore that advances the story and the game and in turn will increase rewards. The game currently is receiving donations from friends, family and readers. If you want to donate to me specifically, I will have a Patreon posted soon. Just not right now, its too much work. For now, just tip here and that will go to the community. 

Also I have some stuff that I want to try and do and raise money for the community and I think it would be fun to explore. 

Thanks for reading and if you made it this far, go ahead and click the tip jar, its good for you and me and the community, like "Hey, help us help you help the community help you." 

 

 

 

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kingfreebee
kingfreebee

I write game lore for a free play to earn game.


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