Labor To Earn — A Solution to the Unemployment & Its 3 Models
This article will guide you through the explanation of the Labor To Earn concept which is an appropriate solution to the low-skilled workers, and 3 models classified in this concept.
The fear of losing jobs due to machine development has been present in human history for hundreds of years. In every turning point of the society, people have been facing the irresistible employment change. According to PWC, one of the Big Four Auditors, ⅓ of humans’ jobs are predicted to be replaced by machines by mid-2030. Limited-skilled workers will be the most likely to be pushed to the margins of society.
Besides the threat of job losses due to machines, the COVID-19 pandemic has pushed a lot of people into poverty. According to ILO Monitor, the COVID pandemic wiped out 114 million jobs in 2020. In addition, the number of working hours cut down during this time was about 4 times higher than that during the financial crisis in 2009.
Although the COVID pandemic deprived people of their jobs, it has also accelerated the wave of technological developments, enhancing the social transition to the era of the Industrial Revolution 4.0. In this wave of innovation, blockchain technology in the crypto economy has introduced entirely new forms of work, which is called Labor To Earn.
Labor To Earn and Its New Models
In the crypto world, smart contracts connect everything. Every activity is handled by code that removes the existence of the intermediaries or third parties. This means that users can form complex contractual activities with the absence of a third-party, which is considered a “game changer” in organizing and managing resources. These smart contracts allow for generating new types of Labor To Earn models, broadening the earning opportunities for anyone all over the world, especially the low-skilled workers.
The Labor To Earn model can be categorized into 3 types: (1) Learn To Earn, (2) Create To Earn, and (3) Play To Earn (aka GameFi).
Learn To Earn
The concept of Learn To Earn is quite simple, which is pretty much what the name suggests. In the Learn To Earn model, you normally have to watch videos, read articles, and take quizzes. If you pass, you will be rewarded with a specific amount of digital assets. It is a win-win situation in this model, because crypto users will have the chance to absorb new concepts as well as earn some crypto rewards, while crypto projects will be able to promote their tokens and get closer to their audience base.
Basically, there are 2 types of Learn To Earn programs:
- Learn To Earn by Centralized Exchanges: Many exchanges provide users with the Learn To Earn programs, such as Coinbase, Kucoin, or Binance.
- Learn To Earn by Projects/Partners of the Projects: Other Learn and Earn programs are offered on the main websites of the crypto projects or their partners who make an attempt to promote the projects. CoinMarketCap can be taken as a common example of a website bringing about new earning possibilities for users.
Create To Earn
The Create To Earn programs will fit those who consider themselves a creator/collector, or have a desire to become a creator. Users can create and sell almost any digital product in the form of NFTs. In fact, art works, music audio, films, memes,… have been traded for an enormous amount of money. According to NBC News, NFT trading exploded into an estimated $40 billion market in 2021.
Nowadays, creators are enabled to create their own NFT pieces with the support of various platforms that allow them to create and sell their own NFTs, including OpenSea, Rarible, Foundation, KnownOrigin, etc.
Play To Earn (GameFi)
Until now, Play To Earn is the most preferred program, which involves users in the game development process and make their earnings by playing the game. A play to earn game is a blockchain-based game that rewards players with digital assets such as NFTs, crypto, or character skins,… While the mechanism of each game is different, rewards typically come from staking, farming a game’s token, or creating tradeable NFT items.
From the points mentioned above, it is undeniable that Labor To Earn is such an ideal proposal for the unemployed or low-skilled workers. Especially for the young, this is one of the very few areas where they can manifest their strengths in making use of technology.
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Disclaimer: The information herein is for educational purposes only and should not be considered financial, investment, or trading advice. Please conduct your own research and due diligence before making investment decisions. You understand that you are using the Information provided at your own risk.