The Money Game: Is P2E the New Blockchain Reality or a Pyramid Scheme?
P2E: how it works
P2E means Play-to-Earn, and that’s the essence of its definition.
Players enter a game and buy a character (NFT) with specific capabilities, determining their starting opportunities to progress in the game and earn money. You can also purchase certain upgrades and resources for your character, affecting income.
Any P2E game has its own tokenomics and assets in which players are rewarded. These digital assets can be credited to your wallet or spent on improvements within the game.
In addition to the rational benefits, let’s remember that P2E gaming is what is, a game that offers plenty of emotions and the opportunity to try your luck, flavored with a bit of adrenaline and excitement. A fierce mixture of joy and profit!
Is P2E a pyramid scheme?
Creators of a new game launch a liquidity pool when entering the market, which typically links their game token to stablecoins (e.g., USDC), which provides stability when exchanging the in-game token. This guarantees initial liquidity for players to enter at launch. Further downstream, the liquidity pool usually becomes self-sufficient.
In simple P2E games, profitability depends on new players joining. This is quite reasonable, as this is the only way to maintain the liquidity pool (if players want to cash out), demand and financial support for the game’s viability.
To the uninformed, this scheme may seem like a pyramid scheme or a Ponzi scheme, but it is not.
Advanced tokenomics = Sustainable game
P2E games exhibit well-developed tokenomics. This is important because strong volatility is inherent in this sector.
Quality tokenomics include:
- Sufficient token “ drains” to provide players with a guaranteed opportunity to continue spending tokens, so as to maintain demand
- Mechanisms to control token supply (burning)
Cosmic FOMO is an example of a quality tokenomics game.
There are four types of assets in Cosmic FOMO:
- COSMIC, in-game token (BEP-20)
- MDAO
- BNB (for transactions)
- USDT
An important place is given to maintaining the balance of the in-game token, COSMIC.
COSMIC supply is unlimited, which allows users to constantly interact with the game’s economy.
An important aid to the sustainability of P2E games
Money is nice, but there’s something more important in P2E games. It is the usefulness/value for the players. Only such games will stand firmly on their feet in the vastness of the crypto industry for more than one year.
For example, Cosmic FOMO allows you to learn how to trade and master crypto strategies without the risk of unnecessary financial losses. Within its framework, you can play any scenario and try different tools of crypto analysis, thereby boosting your skills and protecting yourself from many negative situations that occur in the real market.
Bottom line
P2E games will take some time to eliminate negative associations with pyramid schemes, but it will definitely happen.
To create a quality game, developers need flexibility, a sophisticated tokenomics system, and added value to the game for users. If this is the case, the success of the product is assured. And for users, it is a great opportunity to playfully get acquainted with the crypto world and earn decent money.
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