Play-to-Earn (P2E)
A crypto gaming model where players can earn tradable crypto tokens or NFTs through gameplay, rather than purely playing for entertainment.
Play-to-earn (P2E) is a crypto gaming model where players can earn tradable crypto tokens or NFTs (see Kaavon's "Non-Fungible Token" glossary definition) through gameplay, which can then be sold or exchanged for other value, rather than players engaging purely for entertainment with no direct economic return.
Several prominent P2E games have documented a real, structural sustainability challenge: a game's token-reward economy depends on continuous new player inflow to sustain earlier players' earnings, a dynamic that has historically struggled once new-player growth slowed, leading to well-documented token-price collapses in some notable cases.
Examples
- A play-to-earn game might reward players with a native token for completing in-game tasks, which can then be sold on an exchange.
- Several prominent play-to-earn games have documented real economic sustainability challenges once new-player growth slowed, a structural risk worth understanding.