Web3 Gaming: Play-to-Earn or Pay-to-Lose?

Web3 gaming promised to revolutionize the industry by giving players true ownership of in-game assets and the ability to earn real money through play. Two years into the experiment, the results are mixed at best.

Early play-to-earn games like Axie Infinity attracted millions of players, particularly in developing countries where gaming income could exceed local wages. But the model proved unsustainable. As player earnings depended on new players buying in, the economics resembled a pyramid scheme more than a game.

The fundamental challenge is that fun and financialization may be incompatible. When every action has monetary value, play becomes work. The joy of gaming—exploration, experimentation, failure—is replaced by optimization and grinding.

Yet the technology has potential. True asset ownership could enable player-driven economies and cross-game interoperability. The question is whether developers can find models that enhance rather than undermine the gaming experience.