The advancement in technology and adaptation of Web 3.0 is leading the world towards a new age. Aside from the metaverses, decentralized apps, and cryptocurrencies, there’s a great deal of attention being paid to the play-to-earn (P2E) games. Played through a simple browser by utilizing the web3 technology, such NFT-based games have created a lot of hype over the last couple of years.
Being a part of decentralized finance with dual-token economics, such NFT games offer their players an opportunity to monetize the time they spend playing games. From minting new NFTs to lending them on the marketplace, NFT games open up alleys for passive income. In the past year alone, hundreds of play-to-earn games were released, each one offering varying earning potential for the players.
NFT-based entities such as Axie Infinity, Pavia, Decentraland, and a bunch of other titles have offered their players to earn through the games by letting them dip their toes in the expansive decentralized market. But, how much could a person earn through NFT games, and can you earn a living through NFT games? Here’s our honest answer.
What are NFT Games?
The blockchain gaming industry is powered by NFTs with each game being built on native blockchain technology. Popular smart chains such as Solana, Binance, and Cardano blockchain platforms are often used to host these games. Moreover, such blockchain games contain Non-fungible tokens (NFTs) which are the digital property of the players, and hence, they’re referred to as “NFT Games”.
Each NFT in these games has its own unique attributes and it is under the complete digital ownership of the user. It can be minted, traded, and can be lent on the marketplace for monetary gains. Hence, NFT games feature unique characteristics which allow their players to trade in-game assets to generate real-world income.
How to Earn from NFT Games?
NFT games offer lucrative opportunities to earn a living. By leveraging decentralized finance, players can utilize their skills to earn real-world money by playing games. Although the focus has mostly been on the P2E feature of the games rather than the fun part, the blockchain gaming industry has seen a massive rise in its popularity due to its lucrative opportunities.
One question that often leaves casual players in doubt is the mechanism behind the earning process. While some people find it a lucrative opportunity to earn a living, others are simply denying the opportunity because of the complexity of the process. However, the process of getting started and earning lucrative earnings through NFT games is actually quite simple.
Playing NFT games can earn players money in a number of ways.
The majority of NFT-based games such as Axie Infinity, CryptoBomb, Thetan Arena, and many others use dual-token economies. The two types of tokens include utility and governance tokens. The utility token is used to make in-game purchases and it can be earned by completing various quests and objectives. While the governance token holders get a say in the development and policy-making phase of the entity.
Once players gather enough utility tokens by engaging with the gameplay, completing quests, and winning against their foes, they would be rewarded with the utility tokens, and in some cases, they will also be rewarded with governance tokens as well. Then, players can redeem their winning to their crypto wallet which can be withdrawn right away.
Minting and Trading NFTs
NFTs are the most important aspect of turning a profit in the blockchain scene. Each player has an extensive arsenal of NFTs that they either have purchased from the marketplace or have unlocked by completing in-game quests. Firstly, players can purchase rare NFTs from the marketplace, upgrade their traits, and sell them on the marketplace to turn a profit.
The second option is to utilize the in-game resources to mint new NFTs. Such NFTs could be in the form of characters, minerals, and other in-game resources. For instance, in Star Atlas, players can mine raw ore and sell them as NFTs on the native marketplace to turn a profit and make a living from it.
Renting out NFTs
The concept of renting out your NFTs to other players is something we still need to wrap our heads around. But, here’s a brief example of how the process works. For instance, let’s take
Pegaxy as an example. It is an NFT-based game that utilizes the use of renting out the NFTs. In a virtual horse racing game, players deploy their virtual horses against others on racing tracks with the first three players to win the awards.
The horse with the best attributes is likely to take the lead and make it to the finish line. But, since there’s a rare breed of horses that would be able to do so, players can either own such expensive horses or rent them out for a short span of time to deploy them in races and beat their foes. Claiming the winnings, the person who is renting the horse would redeem its winning to its wallet after paying the rent for the horse NFT.
In short, players can rent out their most prized NFTs on the marketplace to turn a profit. However, to acquire such premier-level NFTs, one first has to spend a decent sum of money to get their hands on such NFTs from the marketplace.
Can you Earn a Living Through NFT Games?
Now, let’s cut to the chase, can you really earn a living through NFT games? Here’s the truth.
Top-rated NFT games such as The Sandbox, Decentraland, or Axie Infinity have the potential to offer lucrative means of earning to their players. However, these games first require initial investments, and to make up for the money you invested, it would take at least a few months.
Moreover, NFT games that employ free-to-play and win-to-earn mechanics have higher earning potential. Players aren’t required to invest much in the game since they’ll be relying on their skills to win in-game rewards to later redeem them to their wallets. Daily revenues are, however, quite low for such games.
After grinding for a month, a person would be able to make a decent profit. However, it would not be enough for someone to live on the revenues generated through these NFT games. But if someone is looking for passive income, NFT games are without a doubt, an excellent and lucrative opportunity.
That’s all folks!