
Web3 gaming has evolved rapidly, shifting from Play-to-Earn (P2E) models to more sustainable Play-and-Earn (P&E) structures. In 2025, blockchain games are moving beyond financial incentives to focus on gameplay, community, and longevity.
๐ Is Play-to-Earn dead?
๐ฎ How does Play-and-Earn improve the gaming experience?
๐ Which blockchain games are leading this shift?
Letโs explore how Web3 gaming incentives are evolving and what it means for players and developers.
1. The Rise and Fall of Play-to-Earn (P2E)
๐น What is Play-to-Earn?
Play-to-Earn games allow players to earn cryptocurrency or NFTs through in-game activities, which can be sold for real-world value.
Example P2E Games:
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Axie Infinity (AXS, SLP) โ Early success but struggled with sustainability.
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Decentraland (MANA), The Sandbox (SAND) โ Virtual worlds with NFT-based economies.
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Gods Unchained (GODS) โ A trading card game with NFT ownership.
โ ๏ธ Why P2E Struggled:
โ Inflationary Rewards โ Overproduction of in-game tokens led to price crashes.
โ Player Retention Issues โ Many played only for rewards, not for fun.
โ Unsustainable Economies โ More sellers than buyers led to market collapses.
๐ Key Takeaway: Play-to-Earn worked in the short term but lacked long-term sustainability.
2. The Rise of Play-and-Earn (P&E): A Sustainable Model
๐น What is Play-and-Earn?
Instead of focusing solely on earnings, Play-and-Earn prioritizes:
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Fun-first gameplay โ Quality game mechanics attract long-term players.
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Sustainable economies โ Game tokens have utility beyond selling.
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NFT ownership without financial dependency โ NFTs add value without forcing monetization.
Example P&E Games Leading the Shift:
๐ฎ Illuvium (ILV) โ AAA-quality RPG with real ownership of assets.
๐ฎ Big Time โ Playable without upfront NFT purchases, with optional asset monetization.
๐ฎ Shrapnel โ A first-person shooter with true item ownership and NFT integration.
๐ Key Takeaway: Web3 gaming is moving toward โgaming first, earning secondโ for sustainability.
3. The Future of Web3 Gaming in 2025
๐น Key Trends Driving the Shift:
๐ฅ Hybrid Game Economies โ Combining free-to-play, NFTs, and optional crypto rewards.
๐ฅ AI & Procedural Content Generation โ AI-driven NPCs and smart contracts create dynamic in-game economies.
๐ฅ Cross-Chain Gaming โ Games built on Ethereum, Solana, and Vector Smart Chain (VSC) for interoperability.
๐ฅ Decentralized Game Studios โ DAOs funding and developing community-driven games.
๐ Key Takeaway: Games must be engaging first, with optional monetization that enhances gameplay.
4. Which Blockchain is Best for Web3 Gaming?
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Ethereum (ETH): Strong NFT ecosystem but high gas fees.
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Solana (SOL): Fast transactions but network congestion issues.
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Polygon (MATIC): A Layer-2 Ethereum solution with low fees.
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Vector Smart Chain (VSC): A scalable, enterprise-ready blockchain built for gaming and tokenized assets.
๐ Key Takeaway: Cross-chain compatibility will be crucial for the future of blockchain gaming.
WTF Does It All Mean?
๐ฅ Play-to-Earn is evolving into Play-and-Earn, where fun comes first, and earnings are optional.
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Sustainable game economies prioritize long-term player engagement.
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The best Web3 games blend traditional gameplay with blockchain-powered asset ownership.
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Cross-chain interoperability and AI-driven economies will define the future of Web3 gaming.
๐ Would you play a Play-and-Earn game, or do you still prefer traditional P2E models? Letโs discuss!
For more Web3 gaming insights, blockchain adoption, and emerging trends, visit jasonansell.ca.