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Why GameFi Networks Could Make Gaming a Stable Source of Income?

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Why GameFi Networks Could Make Gaming a Stable Source of Income?

According to 2020 statistics, the global traditional gaming market was worth $57.7 billion and was forecasted to hit $73.6 billion by 2024. These figures can differ from what we see now, more so in the wake of the GameFi Network that is quickly revolutionizing the gaming industry. GameFi combines the conventional thrill of earning or winning prizes from games and takes the play-to-earn model to a new level. It’s the hottest thing in the gaming world right now, and if you wonder why—it’s leveraging the power of cryptocurrency and blockchain technology. Understanding the GameFi Network GameFi is not too old in our ears, but it’s simply a combination of gaming and finance, precisely decentralized finance (DeFi). It merges cryptocurrencies, blockchain technology, NFTs, and the mechanics of video gaming to provide a virtual environment where people can play and earn. Cryptocurrencies and NFTs have more use cases in the network, making them profitable and affordable. The gaming applications under GameFi allow players to benefit from a range of financial options, making gaming on GameFi a potential stable source of income for players. Based on a specific game’s economic setup, players can have a combination of or any of the following options: ·         Yield farming ·         In-game currency rewards ·         Staking ·         NFT-based assets In-Game Currency Rewards All GameFi platforms require players to have a cryptocurrency wallet for storing the specific game token or NFTs. The games also require players to purchase a starter pack, so having a loaded cryptocurrency wallet is necessary. However, once players are in the game, they can receive monetary rewards in the game’s token. The rewards come after completing specific tasks in the game, such as growing virtual crops on Decentraland, mining precious stones, or winning battles, providing opportunities for continuous financial inclusion. Axie Infinity (AXS) is one of the pioneer GameFi pioneers that allowed the Philippines to earn money in real life amid a country-wide lockdown. Many people who lost their income during the pandemic signed up for AXS, and reports came out that some were earning over $50 daily, which was above the country’s minimum wage. Some players turned Axie Infinity games into their full-time job. NFT-Based Assets The NFT industry has quickly grown into a billion-dollar industry, and GameFi is leveraging its potential in gaming. While crypto gaming focuses on allowing players to transact and receive gaming rewards in crypto, NFT gaming is a little different. Players can generate NFTs based on assets in the game, like land or armor. Think about all the virtual assets that players unlock when playing conventional games. All these assets can be made into NFTs and owned by players. The NFTs remain on the distributed ledger network and are under the control of players rather than the game developers. Owners can transfer or sell them on the blockchain, and the gaming platform also allows them to access NFT marketplaces for buying and selling NFTs. Staking GameFi applications provide a mechanism for players to delay rewards for higher payouts. Staking can take different forms depending on the platform, but players have a variety of ways to enhance their experiences in gaming. Players who stake their earnings can earn passive income paid in the game’s native or other cryptocurrencies. Myobu, for instance, allows holders of its Myobu token to stake and earn passive income paid in Ether. It is an innovative approach to pay rewards in another crypto coin other than its native token. Most projects prefer to use the native token for rewards, although using the token results in downward pressure on the token’s price as players sell their earnings. Players do not lose their tokens upon staking. Instead, they get locked away in a wallet the players possess, and they have the freedom to ‘unstake’ at any time. Even if the staking period hasn’t expired yet, players can retrieve the lock-ups at a fee. In any case, staking allows players to increase their returns passively while developing their ability to purchase NFTs. Yield Farming Yield farming is an investment strategy in DeFi that involves lending or staking crypto tokens to receive transaction fees and interest rewards. Players in the GameFi network can provide their token holdings and become liquidity providers. The tokens provided will be locked in a liquidity fund and reward the liquidity providers with the fees and interest. MOBOX is one of the GameFi platforms providing one of the best yield farming strategies for users. Liquidity providers can stake their coins into the CRATE contract, whereby each contract has a uniquely optimized yield farming strategy under different DeFi protocols. Wrapping Up The GameFi network provides an upper hand to the new age of gamers compared to traditional gaming platforms. It … Continued

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