‘Play-to-Earn’ Gaming and How Work is Evolving in Web3

In today's episode, I will talk about a new game model called Play to Arning, which allows players to earn real money according to the time and effort of the game. Play to Arning is a part of a widespread trend, such as changing the relationship between players and platforms, new incentives for participants in blockchai n-based networks, and new days of the Internet, which are becoming a web3. be.

The perfect game to make money is the AXIE Infinity game, operated by a Vietnamese company called Sky Mavis. The player gets a unique digital pet called Axy and competes with other teams of Axy. These NFT AXIES can be created and sold using i n-game currency SLP, and can be exchanged for conventional currency.

NFT is a Pokemon on a blockchain, incorporating social networks, real economy, and even games. Since the launch of the service in March 2018, the total sales of the game have exceeded $ 3 billion, and many of the early growth have been brought from the Philippines.

(As a precaution, the following should not be interpreted as an investment advice. More important information can be viewed at A16z. com/disclosures).

Today's guests are Jeff Jilllin, a c o-founder of Sky Mavis, Gaby Dizon, a c o-founder of the game guild Yield GUILD GAMES, which provides resources for players to start the game, and the cryptocurrency company A16Z. Ariana Simpson, a general partner.

In A16Z's dialogue with Zoran Basic, a bigger technical trend that contributed to the rise of Play-to-Earn, the reason for the spread of this technology, the role of community, the role of recruitment and scalability, and the economic of this model. I will talk about sustainability.

Transcript

Axie and the beginnings of play-to-earn

Jeff: This took nearly four years. Many of the original AXIE communities and founders are from the Cryptokitty community, where we believe that new NFT production needs to work and effort. This can prevent hyperinflation. Therefore, in the first version of the Axis battle system, we prepared experience points that can be used to breed Axis. Later, we came up with an idea, and many players wanted to change this experience to a token and trade. So we made the experience point token.

And I saw our players actually making a fluid pool on UNISWAP. And I noticed that this pool was guaranteed a liquidity, so I could calculate the expected hourly wage of the game with AXIE.

So I think we found this possibility. In January 2020, we published an article that NFT and Defi intersected and that we have what we call "Play-To-Earn".

You need to load the Zoran cryptocurrency and buy three axes. Gabby, you saw this from the Philippine site, where did you pay attention to this economic model?

Gabby: I have been working in the game industry for nearly 20 years, but in the latter half of 2018 I participated in the Axy community as a player. Last year, I saw my home country, Philippine, discovered and started playing to break the economic difficulties of rock. They were not cryptocurrent enthusiasts. They were trapped at home and had no work.

Therefore, we will introduce the game world to people, provide axis not only in the Philippines, but also through exchanges that can be accessed by people around the world, such as Southeast Asia, India, and Latin America, and have the ability to purchase assets in advance. The idea of ​​creating a guild was created as a way to increase the scale of efforts to play games and make money on it.

We act as a player team, invest in many of these assets, and create communities around various games where people can participate in these networks.

The conditions for growth — the Philippines and beyond

You mentioned the growth of countries like Zolan Philippines. What conditions were there in the background? Why did you fire in the Philippines? What is this talking to us about the creation of a local community in the future? < SPAN> And I saw our players actually creating a fluid pool on UNISWAP. And I noticed that this pool was guaranteed a liquidity, so I could calculate the expected hourly wage of the game with AXIE.

So I think we found this possibility. In January 2020, we published an article that NFT and Defi intersected and that we have what we call "Play-To-Earn".

How play-to-earn reflects broader web3 trends

You need to load the Zoran cryptocurrency and buy three axes. Gabby, you saw this from the Philippine site, where did you pay attention to this economic model?

Gabby: I have been working in the game industry for nearly 20 years, but in the latter half of 2018 I participated in the Axy community as a player. Last year, I saw my home country, Philippine, discovered and started playing to break the economic difficulties of rock. They were not cryptocurrent enthusiasts. They were trapped at home and had no work.

Therefore, we will introduce the game world to people, provide axis not only in the Philippines, but also through exchanges that can be accessed by people around the world, such as Southeast Asia, India, and Latin America, and have the ability to purchase assets in advance. The idea of ​​creating a guild was created as a way to increase the scale of efforts to play games and make money on it.

How sustainable is it?

We act as a player team, invest in many of these assets, and create communities around various games where people can participate in these networks.

You mentioned the growth of countries like Zolan Philippines. What conditions were there in the background? Why did you fire in the Philippines? What is this talking to us about the creation of a local community in the future? And I saw our players actually making a fluid pool on UNISWAP. And I noticed that this pool was guaranteed a liquidity, so I could calculate the expected hourly wage of the game with AXIE.

So I think we found this possibility. In January 2020, we published an article that NFT and Defi intersected and that we have what we call "Play-To-Earn".

You need to load the Zoran cryptocurrency and buy three axes. Gabby, you saw this from the Philippine site, where did you pay attention to this economic model?

Gabby: I have been working in the game industry for nearly 20 years, but in the latter half of 2018 I participated in the Axy community as a player. Last year, I saw my home country, Philippine, discovered and started playing to break the economic difficulties of rock. They were not cryptocurrent enthusiasts. They were trapped at home and had no work.

Therefore, we will introduce the game world to people, provide axis not only in the Philippines, but also through exchanges that can be accessed by people around the world, such as Southeast Asia, India, and Latin America, and have the ability to purchase assets in advance. The idea of ​​creating a guild was created as a way to increase the scale of efforts to play games and make money on it.

We act as a player team, invest in many of these assets, and create communities around various games where people can participate in these networks.

You mentioned the growth of countries like Zolan Philippines. What conditions were there in the background? Why did you fire in the Philippines? What is this talking to us about the creation of a local community in the future?

Jeff: I think there are actually originals related to the Philippines. Filipinos love mobile games. Crypto literacy is relatively high. It is a very common civilization where information and trends spread quite quickly. Filipinos tend to introduce various social networks and platforms, such as Facebook. Regarding the Philippines itself, I think there were many special events that could be advanced compared to other countries in the world, but I think that only 9 % have progressed compared to other countries where the economy is developing. Masu.

The role of community

Zoran If this model really spreads and continues to grow, something big is happening here.

Ariana: Basically, we believe that those who decide the price have an obligation to participate in increasing profits. And this is the belief that is the basis of what is actually happening on the Web3. The people have adhered to AXIE, and as a result, they have created the opportunity to return the price to the general public, developers, and those who are responsible for actually pricing, rather than completely controlling the price of the platform.

Jeff: One of the frameworks we can think is, "Who is the excluded intermediary?" And how is the meaning of these brokers being transmitted to the actual users and stakeholders of the platform? In the case of AXIE, I think that the app shop and game publisher were left behind. They usually make more than 50 % of the profits from the game. We have excluded them. We do not use them. And we share this value with those who have actually started our network, that is, society.

Zoran's great, people pay for money, interact with their characters, compete, and make money. But let me understand how this is stable. What do you think about the financial model behind this? < SPAN> Jeff: I think there are some originals related to the Philippines. Filipinos love mobile games. Crypto literacy is relatively high. It is a very common civilization where information and trends spread quite quickly. Filipinos tend to introduce various social networks and platforms, such as Facebook. Regarding the Philippines itself, I think there were many special events that could be advanced compared to other countries in the world, but I think that only 9 % have progressed compared to other countries where the economy is developing. Masu.

Zoran If this model really spreads and continues to grow, something big is happening here.

Ariana: Basically, we believe that those who decide the price have an obligation to participate in increasing profits. And this is the belief that is the basis of what is actually happening on the Web3. The people have adhered to AXIE, and as a result, they have created the opportunity to return the price to the general public, developers, and those who are responsible for actually pricing, rather than completely controlling the price of the platform.

Jeff: One of the frameworks we can think is, "Who is the excluded intermediary?" And how is the meaning of these brokers being transmitted to the actual users and stakeholders of the platform? In the case of AXIE, I think that the app shop and game publisher were left behind. They usually make more than 50 % of the profits from the game. We have excluded them. We do not use them. And we share this value with those who have actually started our network, that is, society.

Zoran's great, people pay for money, interact with their characters, compete, and make money. But let me understand how this is stable. What do you think about the financial model behind this? Jeff: I think there are actually originals related to the Philippines. Filipinos love mobile games. Crypto literacy is relatively high. It is a very common civilization where information and trends spread quite quickly. Filipinos tend to introduce various social networks and platforms, such as Facebook. Regarding the Philippines itself, I think there were many special events that could be advanced compared to other countries in the world, but I think that only 9 % have progressed compared to other countries where the economy is developing. Masu.

Zoran If this model really spreads and continues to grow, something big is happening here.

Scalability challenges and Ronin

Ariana: Basically, we believe that those who decide the price have an obligation to participate in increasing profits. And this is the belief that is the basis of what is actually happening on the Web3. The people have adhered to AXIE, and as a result, they have created the opportunity to return the price to the general public, developers, and those who are responsible for actually pricing, rather than completely controlling the price of the platform.

Jeff: One of the frameworks we can think is, "Who is the excluded intermediary?" And how is the meaning of these brokers being transmitted to the actual users and stakeholders of the platform? In the case of AXIE, I think that the app shop and game publisher were left behind. They usually make more than 50 % of the profits from the game. We have excluded them. We do not use them. And we share this value with those who have actually started our network, that is, society.

Zoran's great, people pay for money, interact with their characters, compete, and make money. But let me understand how this is stable. What do you think about the financial model behind this?

Jeff: Finally, this method must be stopped, but the ECSI economy, like the economy of the country where the market is developing, is now slightly rising. It depends a little to the inflow of funds. But in the long run, it's a very basic thing for us, and players who are participating in the economy consider the game to be very interesting, and actually funds for management and respect. We waste funds for the fact of how to exchange. And more AXIE is made on a civilization that is highly likely for such a value exchange family, and on the actual social network. From the beginning, we appreciate AXIE as a game but also as a social network. And this is happening more correctly, as we understand this baggage as the maximum extension of our discord.

What are the main points that can be used to regulate stable games? For example, what do you think about restricting funds and participation?

Arianna: In many relationships, these economy will look like a real economy. These are very complicated, I think the national management, the provision of tokens, and the overall dynamics from the inside of these meta performance will be a real challenge.

In my opinion, one of the important factors is that various group players will continue to participate in this IRGE, participate for various reasons, and receive various benefits. In other words, people have all the opportunities to participate in tournaments alone, because they really like trading in games, or to actually get their own charms and trainings from others. In many cases, this has the potential to be related to money. There are many types of basis for people to give them games and have all the opportunities to participate in society. However, if you get a joy from this, a player who invests a support method is all right. And in fact, this is not a comparison with real economics at all. I am richer, I can pay someone for things I do not want to create, and I have the ability to pay for someone on the same line as me.

Onboarding into the game

And while there is a reliable ecosystem consisting of members here for various reasons, I believe it actually promotes development.

What is the balance between those who trade from the inside of the Zolan economy and those who withdraw funds from the economy, for example, those who have funded Fiat? As a result, we must conclude how much investment in the system and how much it will be excluded. What is the trend? What kind of impact does that affect business models?

Jeff: Speaking of the flow of funds, we can see that our ecosystem has an overwhelming amount of funds that are invested than the funds to be withdrawn. Only 4 % of Axies has been resold on the market. This is a psychological connection, and I think it's because people think this is more than just resources. This also gives new opportunities, social networking, and access to many fun.

So, basically, at the moment, if we grow rapidly and the animal spirit works, we think it is easy to balance the economy. In the long term, it is socially recklessly interesting, and the games will be more reckless.

Zoran, but what actually makes people experience themselves as a member of the community? Here, there is something more gospel, not just "Oh, let's make coins." Right?

Play-to-earn and the future of work

Jeff: Of course. In fact, it has an agreement not only in economic aspects but also in cultural aspects. The association had existed before NFT became famous, and everyone in the world was really interested. Right? For example, I think these studies are considered part of the DNA of society. And when a new member comes, they know this, and when they become members, some norms are inherited by them. I think this is quite basic. And society is good at learning and preparing. 80 % of our users are recommended.

Ariana: This simply indicates that people are interacting with the excitement of people, like physiological places-By the way, it is popular at the meeting. In this way, people feel that this association is their own, and they do not benefit from themselves, but to be considered as members. < SPAN> Jeff: Speaking of the flow of funds, we can see that our ecosystem has an overwhelmingly more funded funding than the funds to be withdrawn. Only 4 % of Axies has been resold on the market. This is a psychological connection, and I think it's because people think this is more than just resources. This also gives new opportunities, social networking, and access to many fun.

So, basically, at the moment, if we grow rapidly and the animal spirit works, it is easy to balance the economy. In the long term, it is socially recklessly interesting, and the games will be more reckless.

Zoran, but what actually makes people experience themselves as a member of the community? Here, there is something more gospel, not just "Oh, let's make coins." Right?

Jeff: Of course. In fact, it has an agreement not only in economic aspects but also in cultural aspects. The association had existed before NFT became famous, and everyone in the world was really interested. Right? For example, I think these studies are considered part of the DNA of society. And when a new member comes, they know this, and when they become members, some norms are inherited by them. I think this is quite basic. And society is good at learning and preparing. 80 % of our users are recommended.

Ariana: This simply shows that people are interacting while being excited about what people are happening, like a physiological place-By the way, it is popular at the meeting. In this way, people feel that this association is their own, and they do not benefit from themselves, but to be considered as members. Jeff: Speaking of the flow of funds, we can see that our ecosystem has an overwhelming amount of funds that are invested than the funds to be withdrawn. Only 4 % of Axies has been resold on the market. This is a psychological connection, and I think it's because people think this is more than just resources. This also gives new opportunities, social networking, and access to many fun.

Gaming as a pathway to crypto adoption

So, basically, at the moment, if we grow rapidly and the animal spirit works, it is easy to balance the economy. In the long term, it is socially recklessly interesting, and the games will be more reckless.

Zoran, but what actually makes people experience themselves as a member of the community? Here, there is something more gospel, not just "Oh, let's make coins." Right?

Jeff: Of course. In fact, it has an agreement not only in economic aspects but also in cultural aspects. The association had existed before NFT became famous, and everyone in the world was really interested. Right? For example, I think these studies are considered part of the DNA of society. And when a new member comes, they know this, and when they become members, some norms are inherited by them. I think this is quite basic. And society is good at learning and preparing. 80 % of our users are recommended.

Ariana: This simply shows that people are interacting while being excited about what people are happening, like a physiological place-By the way, it is popular at the meeting. In this way, people feel that this association is their own, and do not benefit from themselves, but to be considered as members.

Zoran: But actually, I feel like there's a kind of phenomenon here. Because one of the characteristics of the old system, whether it's money or games, is that it's not flexible. It's not easy to move a personal account from one bank to another, or to move in-game goods from one game to another. And cryptocurrencies have revised this story, made it more miniature. If another game that's just as cute and the characters are just as cute comes to the forefront and your association has the ability to move there, wouldn't that be easy?

Jeff: What we've actually achieved is not just a game society, but a civilization in many ways, where people share common cultural meanings, there's fellowship and joy, and there's a language like Argot. We have a bottomless economy. And as a result, I think that with the support of this kind of network, it's much harder to uproot an association and transplant it into a new universe that doesn't have its own universe. We're looking at how people are creating Axie societies in the real world. There's also a network effect, right? The more people who have Axies, the more people who have Axies, the more people who have territories in space, the more these financial and social problems become entrenched.

Gabby: Yes. One of the particular perils of the transition from Web 2 to Web 3 is that society is freely formed and brewed by common financial assets. People stay here because they decided to be here, and they can help build a tribal culture. There is a craft financial catalyst, there is an educated catalyst. But if people want to leave this network, resign and join another network, nobody will allow that.

Zoran: So, in terms of user choice and behavior, how is this changing? Because GGG can fund players, get them into the game, and help them along the way, we have the opportunity to monitor the data up close.

Want more a16z?

Gabby: We see it as an important layer to bring real-world people into the metaverse. But once they get there and they start making money, we actually encourage people who were computer players to become traders.