1
\$\begingroup\$

I have read that players get in-game cryptocurrency tokens when they play a play-to-earn game and then they can use it to purchase in-game items or they can exchange the cryptocurrency tokens to real money.

But how are game developers benefiting from a play-to-earn game when they already give tokens for free as a reward to the players just for playing the game? How can game developers earn money if they use their own cryptocurrency token in their game and when players are not purchasing the in-game currency with real money?

In addition, how does the game developer get the cryptocurrency tokens that he gives for free to the players as a reward? Does the game developer purchase the cryptocurrency tokens with his real money on a platform like Binance and then the developer gives the tokens in his game to the players as a reward? How can the game developer earn money in this case when he gives just away the tokens for free?

I have seen that you can create a new cryptocurrency token in a few minutes online with a tool but I don't know if you could use such a token in an iOS/Android game. How can game developers earn money if they use their own cryptocurrency token in their game?

\$\endgroup\$
1
  • 5
    \$\begingroup\$ Often these systems are fundamentally equivalent to Ponzi schemes: money only flows into the system when players invest, either by buying in-game items with an external currency, or as a fee on trading items between players. So to pay out, the system relies on more players investing than cashing out. When it can't do that anymore, the trade value of the custom tokens/in-game items craters, leaving anyone who was holding them in the lurch. \$\endgroup\$ Commented Oct 4, 2024 at 11:28

1 Answer 1

Reset to default
0
\$\begingroup\$

The first option is that the game devs don't bother to earn money. (unlikely given how scammy crypto has become)

But the simplest one is gating creating any crypto behind some buyable premium item which is consumed by the creation.

Depending on the contract of the crypto they could benefit from a transfer tax when the players want to transfer the created crypto between each other.

Or they use their knowledge of the crypto creation code to just make and sell the crypto directly.

\$\endgroup\$
4
  • \$\begingroup\$ I have seen on platforms like Binance that the value of a cryptocurrency token is often changing, sometimes it goes up and sometimes it goes down. Does the price(in the game's cryptocurrency) of an in-game item in the in-game shop not change when the value of the cryptocurrency token is changing on Binance? Are new players disadvantaged when they would purchase the game's cryptocurrency to a higher price than the other players? For example, if the value of the game's cryptocurrency went up after launch of the game. I don't want that a player needs to pay much more money for an in-game item. \$\endgroup\$ Commented Oct 2, 2024 at 11:51
  • \$\begingroup\$ crypto values will fluctuate, that's inevitable of being crypto. If you want to earn money from a game it's much more honest and effective to just make it a microtransaction lootbox gamble and forget the crypto angle. \$\endgroup\$ Commented Oct 2, 2024 at 12:15
  • \$\begingroup\$ I have never played a crypto game before and I want to learn more about the in-game prices. Are the item prices(in the game's cryptocurrency) in the in-game shop not automatically adjusted? For example, if the initial price for an in-game item was 1000 XYZ and then a few days later the value of the cryptocurrency token went significantly up on Binance. Are they still using the same price(1000 XYZ) in the in-game shop for an item when the value of the game's own cryptocurrency token went up? Should the game developer not change the price of the in-game item in this case? \$\endgroup\$ Commented Oct 2, 2024 at 13:25
  • \$\begingroup\$ the cost for each item will likely remain constant in terms of the crypto it is tied to (and fluctuate relative to government fiats) \$\endgroup\$ Commented Oct 2, 2024 at 14:12

You must log in to answer this question.

Start asking to get answers

Find the answer to your question by asking.

Ask question

Explore related questions

See similar questions with these tags.