Web3 Gaming is all about integrating blockchain technology with online games to help gamers, investors and community members generate a regular source of income. Not only do players have the ability to own in-game assets as NFTs and digital collectibles, they can win native tokens, which can be exchanged for fiat money.
Several projects have taken this approach leading to a significant growth in the industry. According to Dapp Industry Report 2022, blockchain games account for 49% of all Dapp activity with 1.15 million unique active wallets and 7.4 billion in transition count. Let’s take a look at the different ways to earn revenue with Web3 gaming.
How to Monetize Web3 Gaming?
Earning revenue with Web3 gaming involves leveraging the unique characteristics of blockchain technology, decentralized finance (DeFi), and non-fungible tokens (NFTs) to create new monetization opportunities. Here are some strategies to consider:
1. Play-to-Earn Models: Web3 gaming often incorporates play-to-earn models, where players can earn cryptocurrency or other digital assets by participating in the game. This can be achieved through various mechanisms such as completing quests, winning competitions, or contributing to the game’s ecosystem. By providing players with tangible rewards for their time and skill, developers can attract and retain a dedicated user base.
Take a look at Funarcade, a community-centric casino that provides users with an opportunity to earn rewards while enjoying their preferred casino games. This project fully embraces the principles of Web3 in its gaming platform and adopts an economic model that prioritizes the community, rewarding both players and stakers. These rewards are seamlessly integrated into a delightful and captivating experience, complemented by substantial utility features.
2. NFTs and Virtual Asset Ownership: NFTs are unique digital assets stored on the blockchain, and they can represent in-game items, characters, or other virtual assets. By integrating NFTs into Web3 games, players gain true ownership over their in-game assets. Developers can sell NFTs directly or implement a marketplace where players can trade, buy, and sell their virtual possessions, allowing for a thriving secondary market and potential revenue streams through transaction fees.
For instance, CryptoKitties stands as a decentralized collectible game that enables players to amass, breed, and exchange digital cats. Leveraging the Ethereum blockchain, this game is recognized for popularizing the notion of non-fungible tokens (NFTs) and has sparked the creation of numerous similar games. At the heart of CryptoKitties lies a dynamic community of players who have amassed an impressive collection of over a million distinct digital cats.
3. Tokenized Economies and Governance: Web3 games often have their own native tokens that serve as a means of exchange within the game’s economy. These tokens can be used for in-game purchases, trading, and other economic activities. Additionally, incorporating decentralized governance mechanisms allows players to participate in decision-making processes, potentially earning rewards for their contributions.
For instance, take a look at Gods Unchained, a strategic trading card game that allows users to use their NFT cards in multiplayer battles. The game features an intricate player economy and introduces the gratifying concept of P2E in the realm of trading card games.
4. In-Game Advertising and Partnerships: While traditional advertising may not be as prevalent in Web3 gaming, there are opportunities for targeted and permission-based advertising within the game environment. Developers can collaborate with advertisers or brands to display relevant ads or sponsored content to players, offering an alternative revenue stream.
5. Community Engagement and Support: Building a strong and engaged community around the game is crucial. Developers can offer exclusive benefits, rewards, or experiences to dedicated players or community members, potentially through membership models or subscription services. Additionally, crowdfunding or token sales can be utilized to generate initial funding and gather community support.
For instance, Elfin Games is a decentralized gaming ecosystem and gaming platform for developers and gamers. The project utilizes ELFIN token to power a shared economic engine infrastructure, tools and resources to drive the ecosystem and empower users and builders.
Also, take a look at Polygame, an innovative esports ecosystem that facilitates a decentralized community by bringing together streamers, fans, teams, tournament operators, and advertisers. Operating on a state-of-the-art platform, Polygame cultivates an inclusive environment where individuals can engage, compete, possess assets, and reap rewards utilizing fan tokens, an NFT marketplace, and the native $PGEM token.
All of these projects have their unique features and gaming mechanism, all designed to help gamers generate a steady source of income with their skills and represents the potential of monetization in Web3 gaming.