The ways to make money in NFT games
The profit models of NFT (Non-Fungible Token) games rely on the digital asset ownership confirmation features of blockchain technology, combined with in-game economic system design, forming various monetization patterns. The following details specific profit paths and cases from three stakeholder perspectives: players, developers, and investors:
I. How Do Players Make Money from NFT Games?
1. Play-to-Earn (P2E) Model
Earn Tokens through In-Game Missions Some NFT games feature "mission reward mechanisms" where players can obtain native game tokens (e.g., AXS, SAND) by completing main storylines, dungeon challenges, daily activities, etc. These tokens can be sold on blockchain exchanges for fiat currency or stablecoins. Case: In Axie Infinity, players can earn SLP (Smooth Love Potion) daily by breeding and battling Axie pets. During the early high-price period of SLP, Southeast Asian players could earn hundreds of dollars monthly.
Stake Tokens or NFTs for Yield Some games allow players to stake idle tokens or NFTs into game pools to earn extra token rewards through "liquidity mining". For example, in DeFi Kingdoms, staking in-game NFT assets yields the governance token JEWEL.
2. Profit from NFT Asset Trading
Buy Low, Sell High on NFT Items In-game weapons, characters, skins, etc., exist as NFTs, whose values fluctuate with market supply and demand. Players can purchase scarce NFTs at low prices on markets like OpenSea or LooksRare and resell them at higher prices. Case: In Decentraland, virtual land NFTs surged in value due to the metaverse concept. Early holders who bought land at low prices could resell it at tens of times the original cost.
Profit from NFT Disassembly/Synthesis Some games allow disassembling NFTs into basic resources or synthesizing higher-level NFTs. For example, in Gods Unchained, players can disassemble common cards into fragments to synthesize rare cards for resale.
3. Participate in Game Ecosystem Construction
Become a Game Creator Some UGC (User-Generated Content) NFT games allow players to design skins, maps, characters, etc. After being confirmed by the blockchain, these items are put on the shelves for sale, enabling players to earn royalties or transaction commissions. For example, The Sandbox supports players in creating and selling 3D assets using tools.
Rent Out NFT Assets Lease idle NFTs (e.g., high-level characters, rare equipment) to other players for time-based rent (usually settled in game tokens). For example, in Splinterlands, players can rent out cards on the NFT rental platform RentalMarketplace.
II. How Do Developers Profit from NFT Games?
1. NFT and Token Issuance for Financing
Pre-Sell NFT Items or Land Before launch, promote "genesis NFTs" (e.g., limited characters, virtual land) through whitepapers to attract investors, quickly raising development funds. For example, Illuvium raised over $20 million through a single virtual land NFT pre-sale.
Token Issuance and Circulation Profits Issue native game tokens (e.g., ERC-20 standard) and sell them through private or public offerings, profiting from subsequent token market value growth or transaction fees. Note: Token issuance is treated as a securities offering in some countries, requiring compliance with regulatory requirements.
2. In-Game Economic System Charges
Transaction Fee Splits Build an in-game NFT marketplace and charge 5%-10% fees on each transaction. For example, Axie Infinity’s marketplace fees once generated over $100 million annually.
NFT Minting and Upgrading Fees When players mint new NFTs (e.g., synthesize equipment) or upgrade existing ones, they must pay tokens or consume resources, generating profits for developers. For example, in CryptoKitties, breeding new kittens requires paying ETH.
3. Brand Partnerships and Advertising Monetization
Virtual Scene Ad Placement Provide ad spaces (e.g., virtual stores, billboards) for brands in the in-game virtual world, charging advertising fees. For example, brands like Samsung and Coca-Cola have purchased virtual land in Decentraland to build experience centers.
Co-branded NFT Issuance Collaborate with IP owners (e.g., movies, anime, sports stars) to issue co-branded NFTs, profiting from revenue splits. For example, NBA Top Shot’s collaboration with the NBA to issue star highlight moment NFTs generated over $1 billion in sales.
III. How Do Investors Profit from NFT Games?
1. Early-Stage Project Investment and Token Speculation
Participate in IDO (Initial DEX Offering) Buy game tokens at low prices during the initial listing period and sell them at higher prices as the game gains popularity. Caution: Early projects carry extreme risks, including potential "rug pulls" (scams).
Bet on Promising Sectors and Concepts Focus on trends like the metaverse and blockchain gaming 2.0 (e.g., integrating DeFi, SocialFi), investing in related game tokens or NFTs. For example, during the 2021 metaverse boom, tokens like Decentraland (MANA) and Sandbox (SAND) rose by over 100x.
2. NFT Asset Collection and Appreciation
Collect Scarce NFTs from Leading Games Invest in limited NFTs from top games (e.g., genesis Axies in Axie Infinity, rare characters in CryptoPunks), leveraging growing game IP value for NFT appreciation. For example, CryptoPunks #7804 once sold for $7.57 million.
Deploy in Game Ecosystem Infrastructure Invest in infrastructure projects like game development tools, cross-chain bridges, and NFT aggregation platforms to share industry growth dividends. For example, user growth on the NFT marketplace OpenSea surged with the blockchain gaming boom, driving its valuation to over $30 billion.
IV. Cautions and Risk Warnings
Market Volatility Risk: NFT and token prices are highly influenced by market sentiment, potentially depreciating drastically in the short term (e.g., most tokens fell by over 90% during the 2022 blockchain gaming bear market).
Project Compliance Risk: Some countries treat NFT games as gambling or financial products, facing regulatory restrictions (e.g., China and South Korea have restricted blockchain gaming transactions).
Technical Barriers and Costs: Participating in high-threshold NFT games (e.g., Axie Infinity) requires purchasing initial NFTs, costing hundreds of dollars, and involves technical learning curves for blockchain wallets and cross-chain operations.
Conclusion
The profit logic of NFT games essentially involves "financializing" in-game assets through blockchain technology, allowing players, developers, and investors to share value by participating in ecosystem links. For ordinary players, starting with low-threshold Play-to-Earn games (e.g., Splinterlands, My Neighbor Alice) to accumulate initial assets through missions is advisable; developers should focus on balancing gameplay and economic systems to avoid over-reliance on "token speculation" models; investors must conduct in-depth fundamental research on projects and guard against conceptual hype risks.
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