When you combine the concepts of gaming and decentralised money, you get GameFi. Play-to-Earn (P2E) gaming refers to GameFi, which integrates gaming with blockchain technology aspects such non-fungible tokens (NFTs) and cryptocurrencies to offer players monetary rewards.

This post will define GameFi and discuss some of the most well-known GameFi cryptocurrencies available right now.

Just what does “gaming finance” entail?

The advent of cryptocurrency has allowed online gaming communities to establish economies complete with their own currency and marketplaces, ruled and managed by the players themselves. GameFi has made it possible for gamers to make money through play-to-earn model (P2E) blockchain games.

In a player-to-player (P2P) game, players can buy and sell virtual items with other players. Coins earned in games can be traded for real money on cryptocurrency markets like Binance (BNB) and Coinbase (COIN). Because GameFi projects are hosted on a blockchain, they may easily incorporate DeFi features such as token issuances, farming, NFTs, and peer-to-peer trading. GameFi projects combine a reward system and play-to-earn mechanics to encourage a dedicated fan following, repeat business, and a thriving in-game economy.

When used, how does GameFi function?

First, let’s take a look at the blockchain game Axie Infinity and its in-game tokens, the Axie Infinity Shards (AXS) and the Small Love Potion, to get a feel for how GameFi or play-to-earn operates in practise (SLP).

In many ways, Axie Infinity may be considered its own independent realm. Axies are creatures that can be reared, produced, and traded for the game’s currency, AXS. Each Axie is a non-fungible token (NFT), and its worth on the market is determined by how uncommon its traits are. The progeny of two Axies can be bred to produce a new Axie with a desired trait.

Battle and adventure modes allow players to gain SLP, a resource needed for breeding. Tokens represent ownership of land in Axie Infinity, which can be freely swapped between users. Token holders of both AXS and SLP have the option of trading their tokens for other cryptocurrencies and fiat currency on various exchanges.

To this day, the term “P2E gaming” cannot be mentioned without first thinking of Axie Infinity. In 2020, the blockchain game Axie Infinity gained to prominence when many Filipinos, unable to work because of economic lockdowns caused by the Covid-19 virus, turned to it as a means of making money.

Frequently Used GameFi Tokens

According to Crypto.com’s list of top GameFi currencies by market capitalization, other prominent GameFi tokens include MANA for the virtual world Decentraland, SAND for the metaverse platform The Sandbox, GALA for the blockchain gaming platform Gala, and ENJ for the GameFi NFT platform Enjin.