The gig economy has slowly replaced traditional revenue generation in the last ten years. The COVID-19 epidemic accelerated this change by motivating individuals to seek alternative funding on Web3. However, a new future is already emerging, one in which crypto, decentralization, and DAOs will be at the forefront, even as we continue normalizing remote labor. The new future of GameFi is shaped by the x-to-earn paradigm. Which may change how we work, play, socialize, create, and learn. The play-to-earn games Axie Infinity and Sandbox are where the movement first began.
In a few years, it divided into multiple sub-divisions, giving people more opportunities to make money by engaging in simple activities like playing games or taking online courses. We shall examine some of the current x-to-earn models in this post.
In the Play-to-earn (P2E) paradigm, users complete tasks or goals while playing online games to receive rewards. The winners will get game or metaverse tokens, which they may usually convert for fiat money.
Players may breed digital animals in Axie Infinity and compete with other pets in an arena to earn SLP (Small Love Potion). A game-specific ERC20 token called SLP may be traded for ETH or fiat currency.
The popularity of pay-to-play (P2P) games has given rise to creative and innovative ways to reward participation in almost every daily activity. Move-to-earn, another x-to-earn idea, is a growing GameFi market where individuals can earn money by using mobile applications to be active and healthy.
The app Stepn, which allows users to earn tokens by jogging, walking, or running outside, is the best example of this “x-to-earn” paradigm. A new wellness app called Pacer is beginning to take form. It is a wellness-to-earn software developed by Hooga Gaming with financial support from FTX. Its business strategy is built on rewarding positive actions like getting enough sleep and exercising frequently.
One of the most traditional x-to-earn methods for generating cryptocurrencies is stake-to-earn. It’s a method that allows you to make money while you sleep and requires you to hold onto your coins for a set period. Your coins are locked into the network for a fixed time when you stake them.
You will be unable to use the coins while locked in, but you will still have complete control over them. The platform will use your money to help with network security. How? When you stake your coins, they are given to validators who check transactions to preserve the blockchain’s integrity.
On Web3, learn-to-earn programs are also becoming more common. The L2E paradigm encourages education instead of the conventional method, which requires payment for teaching. Users receive rewards for completing activities like watching Coinbase training videos or taking part in RabbitHole on-chain actions in most L2E services.
Proof-of-Learn is a Web3 education platform that enables you to earn bitcoin incentives by mastering crucial Web3 skills. It is an excellent example of an L2E platform.
Due to the general use of the technology by well-known companies and notable individuals during the past several years, the NFT market has experienced enormous growth. A new x-to-earn architecture for earning money has also been established due to the success of NFTs. Digital artists can sell their creations in NFT or digital asset formats thanks to create-to-earn programs.
How is this different from the typical way of getting paid for your labor? The most significant difference is the ability to use several NFT markets to reach a broader audience. You may also get royalties on second-hand sales with NFTs. Your NFT (or maybe your NSFW NFTs) may be produced and sold on various platforms and online stores.
According to the participate-to-earn paradigm, holding a specific quantity of tokens within a network or Web3 environment qualifies you to join that ecosystem’s DAO or Decentralized Autonomous Organization.
A DAO handles the project’s future planning and token distribution. Simply owning a part of the platform will provide you access to unique benefits and voting privileges. You are entitled to a share of the game’s future success since you have invested in it. Users will be paid in this new “x-to-earn” paradigm for repetitive chores.
Work-to-earn: A prospective future idea
With so many x-to-earn crypto economies growing, it is difficult to ignore these concepts’ potential and ongoing development.
The fundamental tenet of work-to-earn Tokenomics is that you assign activities from 9 to 5 every day to earn monthly tokens that can be converted into other currencies. This new idea should be something to watch out for very shortly given the state of the market at the moment and the economic unrest caused by fiat money. In the upcoming years, this may become how work is done. Work-to-earn will undoubtedly draw talent because of the inevitable development of the Metaverse and Web3.
To establish an economic relationship and facilitate the functioning of the project’s product, the player’s actions are connected to it through the development of a token economy. By really playing, moving, learning, and engaging in other activities, players actively contribute to the product while creating the projected income forecasted by the product model design.
In essence, different x-to-earn systems are ways for players to increase the worth of their possessions while simultaneously earning prizes. The only difference is the way the players are acting. As a result, the x-to-earn variable is X, a different but related activity whose goal is to participate and earn by obtaining virtual money through a range of actions.