Play to Earn, Move to Earn, X to Earn: Trending Investment
P2E, M2E, X2E,… all news methods to earn money (not just working) have uprisen with the era of technology. The boom of technology such as blockchain is not the only reason for this shift but also the demand, the social behaviors, and the culture have changed to generate those models. Let’s have a look through each model, understand the changes each model brings up, and anticipate the next trend.
Play to Earn (P2E):
Play-to-earn is a business concept based on blockchain technology. Simply put, players can participate in a game and earn cryptocurrency. These games are also decentralized, unlike traditional games. This means that the developer’s power center won’t be able to govern everything.
Players can obtain potentially valuable in-game assets in play-to-earn games. It might be anything from skins to cards to a special coin. The more people who play, the more assets they can acquire and the more valuable they become. Players can move these assets to the real world at any time and sell them for cryptocurrency or real money on their own terms. In-game assets are divided among participants in play-to-earn games. Players generate value for other players as well as the developer by participating in the in-game economy.
This model has changed the traditional gameplay from pay-to-play to P2E. Certainly, the players have to pay an entrance fee, for example, NFT to enter that game world. The investment will be worth it if they keep spending time on the economic activities in games. Still, there poses a threat that the players must stay active for a long time, or their initial investment can outweigh the actual benefits they earn from the game.
Move to Earn (M2E):
As you might expect, move-to-earn platforms incentivize users for staying active by providing an additional income stream in exchange for participating in their regular exercise routines or participating in particular fitness-related challenges.
Many people interested in move-to-earn games are, obviously, looking for a way to profit from their physical activity. While many users will profit, their chances are usually determined by the following factors:
- Most move-to-earn apps demand an initial commitment, which can be made in NFTs or a utility token. Rarer NFTs and higher token holdings can increase participants’ move-to-earn incentives and shorten the time it takes to reach a positive return on investment.
- Because yields are usually directly related to the amount of physical activity a user engages in, individuals who are very active are more likely to attain profitability.
- Saturation: Most move-to-earn games pay users a fraction of the inflation rate of their utility token or a set reward pool. In general, these prizes are distributed among users based on their relative performance to all other participants or a fixed per-person cap. In most cases, the higher the number of participants, the lesser the benefits for each user.
- Price activity: The profitability of move-to-earn apps can vary greatly depending on the price action of the reward token. Users should keep in mind that tokens with a strong bearish trend are likely to be less profitable in the long run than those with a strong bullish trend.
If these applications become more popular, the barrier to entry may rise, making it more expensive to acquire a big token holding or powerful NFTs in order to maximize earnings.
X to Earn (X2E):
There is no clear definition for X to Earn but it can be generalized as activities that help you earn but do not include working. In the real world, people have to work to earn, but in the new digital world, we can earn by talking, designing, playing, creating, developing, etc.
That won’t happen by itself; new decentralized autonomous organizations (DAOs) will be needed to organize all of this new activity outside of corporate systems. And the many types of contributions DAOs require will determine the profit prospects available. This article provides a foundation for comprehending the employment alternatives that will be accessible in the future.
DAOs are no longer just an optimistic notion, even though they are still in their early stages of development. They are genuine businesses that manage billions of dollars in assets, provide real products and services to millions of people, and invent new methods for people to make money.
In the near future, when the DAO model allows users to earn through various activities, the X2E model shall be applied variously depending on the project. However, one upcoming trend of the X2E model should be included socializing to earn, in which people can execute social behaviors, and activities to earn money. This model will be widely supported by transferring the social media users to the decentralized world with the aid of Web 3.0 and blockchain technology. By this, the users can adopt the social behaviors and practices from X2E better and more easily compared to P2E or M2E. For example, instead of having to play or exercise, people can simply talk to each other and earn money.
This prophecy means the project that incorporates Web 3.0, and social media will be advantageous in the market soon for approaching a larger customer base (social media users) compared to game players or exercisers. Indeed, it could become the next big trending investment certainly!
Presently, UMBΛLΛ MΞTΛVΞRSΞ is launching UMBΛLΛ NFTs that act as a passport to enter SocialFi open Metaverse of Umbala ecosystem with the X2E and DAO2DAO models.
