The co-founder of Reddit has predicted that 90 per cent of the gaming market will be Play-to-Earn games within the next five years.
Alexis Ohanian said the emerging model – which uses blockchain technology to issue in-game crypto tokens that can be exchanged for real-world currency – will allow people to make significant amounts of money just by playing video games.
“90 per cent of people will not play a video game unless they are being properly valued for that time,” Mr Ohanian told the Where it Happens podcast.
“In five years, you will actually value your time properly, and instead of being harvested for advertisements, or being fleeced for dollars to buy stupid hammers you don’t actually own, you will be playing some on-chain equivalent game that will be just as fun, but you’ll actually earn value and you will be the harvester.”
The implications of the new virtual economy arising from Play-to-Earn and blockchain gaming were noted in the Kraken Intelligence annual crypto report, compiled by crypto researchers at the eponymous cryptocurrency exchange.
”The implications resulting from this model are revolutionary for gaming, particularly in an age where users spend real money on in-game assets such as in Fortnite, which has generated billions in revenue,” the report noted.
“Some have argued it may have the potential to make a significant impact not just on gaming but also in broader society as an alternative to universal basic income, as Play-to-Earn can serve as an efficient medium of providing low-skilled workers with a livable income through true ownership and in-game rewards.”
There are a number of forms Play-to-Earn can take, from adorning your character or avatar with a company’s logo, to offering services within the metaverse. Such services could include piloting someone’s spaceship from one part of the metaverse to another, to performing a concert within the virtual world.
In-game rewards can also allow players to win valuable NFT tokens in exchange for completing a task.
Early versions of this gaming model, such as the Pokemon-style game Axle Infinity, have seen players earn up to $500 per month from in-game rewards.
“Looking ahead, it is possible many will make a career out of being in the metaverse, architecting digital buildings, hosting events, and playing via Play-to-Earn game mechanics as the industry grows and commercial involvement increases,” Kraken’s report noted.
“Overall, the metaverse has the potential to build new virtual world economies and provide a plethora of economic opportunities for players, investors, creators, and more… Based on the sentiment surrounding the metaverse late in [202-, and announcements coming from companies and projects both inside and outside of crypto, it is likely we’ve only seen the tip of the iceberg of what’s to come in these virtual worlds.”