Burn The Tokens, Keep The Loot
The play-to-earn (P2E) model has largely collapsed, with funding for Web3 games dropping over 70% in Q1 2025 and major projects shutting down. Player engagement is declining significantly, revealing that rewarding gameplay with volatile tokens turns players into speculators. The model's reliance on token inflation led to unsustainable growth, and as token prices stalled, user participation fell sharply. The industry needs to pivot to a play-to-own (P2O) model, which decouples gameplay from token emissions and treats digital items as fixed-supply assets. This approach fosters meaningful ownership and avoids inflation issues. The NFT gaming sector is projected to grow significantly, driven by ownership rather than speculation. Successful P2O games will require strong design choices and effective supply management. Projects that continue with emission-based rewards are likely to face ongoing contraction, while those focusing on ownership may thrive in the current market. The blockchain gaming sector needs better games and economies rather than more incentives.
