Contribute-to-Earn: Sustainable Business Model for Web3 Games

The play-to-earn business model, in which players can earn real money or cryptocurrency through their in-game actions, has become popular in the world of Web3 gaming. While this model may seem attractive at first, it is actually very risky and not sustainable in the long term.

One major issue with the play to earn model is that it relies on a constant influx of new players in order to sustain itself. Without a steady stream of new players, the value of the in-game currency would decline, leading to a downward spiral in which fewer and fewer players are willing to play. This creates a high risk of inflation and even the possibility of a Ponzi scheme, in which early adopters profit at the expense of later ones.

To avoid these risks, Web3 games need to focus on attracting regular players and selling fun, not just earning potential. A good Web3 game will appeal to both classic players, who are primarily interested in the gameplay itself, and crypto players, who are interested in the earning potential of the in-game currency.

The value of blockchain in Web3 games lies primarily in its ability to provide ownership and reward for contribution. Rather than simply playing to earn, a more sustainable model is the “contribute-to-earn” model, in which players can contribute to the development and growth of the game in exchange for rewards in the form of the game’s coins.

One example of a game that is embracing this model is Axie Infinity, which is preparing to launch an update that will allow players to create their own mini games and be rewarded with coins for their contributions. This update represents a new direction for Web3 gaming, one that combines the enjoyment of classic gameplay with the potential for earning cryptocurrency through meaningful contributions to the game.