How to Earn a Livelihood from GameFi: All You Need to Know.
Making a livelihood out of playing your favorite video games is something out of a fairy tale book. Though this idea was a far-fetched one a couple of years ago, not anymore.
Gamefi is the most trendiest niche in the cryptocurrency industry at the moment, no less than a gold rush. Blockchain gaming has caused a frenzy in the video game industry and it is set to challenge the traditional $175 billion global video game industry.
How come this new phenomenon is so much popular? What is GameFi all about? Can you really earn real money out of playing games? And what are the ways to make money out of GameFi? We have got you covered.
To put it simply, GameFi is a combination of video games and finance where cryptocurrency, blockchain technology, and NFT's are incorporated into a video game. This video game then provides various ways for gamers to earn money playing the game.
The GameFi concept operates on the Play to Earn model of video games where players are rewarded with financial incentives. Some games require an upfront investment to start the game activity while others are free to access.
The reward works in several manners where players can receive bonuses while completing in-game tasks, or battling it out with other players. Everything a player receives in the game becomes a digital asset with a value behind it.
Such games are then integrated into decentralized finance tools for issuing tokens, algorithmic stable coins, loans, and more.
GameFi Mechanics and Ways to Earn
Different GameFi projects have different mechanics, however, there are some commonalities. The in-game items are treated as NFT's that come in different shapes and sizes like avatars, land, weapons, costumes, tokens, and pets.
These games let you have the access to full ownership of your in-game items. These items can be claimed via playing the game and are tradable in market places for cryptocurrencies.
NFT's can be won by achieving and reaching to higher levels in a game.
Besides NFTs and leveling up in a game, there are other ways to earn via GameFi. Some games allow gamers to make predictions on gaming results.
One such example is Bet Naija where you bet on the results of gaming competitions and win money.
Another exciting way to earn money though GameFi is renting out your NFT. In-game items like land can be rented out to others and its prime example is evident in Decentraland where people rent out their digital space to others for real money.
The value behind these digital lands are exorbitant; Decentraland sold Fashion Street Estate for a whopping $2.42 million. Similarly in The Sandbox, Metaflower, a virtual yacht, got purchased for $650,000.
Another way is to complete in-game quests and winning battles to earn game’s token like in Axie Infinity where players are rewarded SLP.
The DeFi method and Staking Opportunity
Some blockchain games allow players to make money via staking i.e. by locking up their in-game assets and cryptos in smart contracts.
The staking takes place in gaming guilds and in return interest is earned. Yield Guild Games provides staking opportunity and is a relevant platform for this method.
Some of the GameFi coins are trending hot right now and holds a promising future ahead. These coins enable gamers to earn tokens by starting out on games that they love to play.
These tokens have the utility to purchase in-game items, redeem rewards, as well as donation to your favorite game and its developer.
Popular GameFi Coins
Some of the most popular GameFi coins nowadays are Pac Man Frog (PAC), Gala (GALA), and the Sandbox token (SAND). These coins are appealing to both gamers as well as crypto enthusiasts.
If you are just getting started, go for games like Axie Infinity, CryptoBlades, Sorare, Gods Unchained, and Splinterlands. These games provide an exciting way to earn income in crypto space.