What are play-to-earn crypto games?

Play-to-earn is a type of video game that rewards players for their in-game achievements with assets that have real-world monetary value.

The financial services sector isn't the only area that blockchain technology has impacted. Its key characteristics of decentralization and immutability have also allowed it to revolutionize different aspects of the entertainment industry too.

Play-to-earn (P2E) has emerged in the last few years as one of the hottest new frontiers in online gaming.

By combining the worlds of cryptocurrencies, non-fungible tokens (NFTs), and decentralized finance (DeFi), play-to-earn crypto games allow players to acquire digital assets that have real-world value in return for their in-game achievements.

For many around the world, the play-to-earn model has shown that video gaming is no longer just an entertaining pastime — it also has the potential to be a revenue-generating activity.

Play-to-earn gaming is rapidly changing the traditional video game landscape thanks to the new opportunities created by blockchain technology.

Here are some of the reasons why people are getting started with play-to-earn:

• Earn real rewards - From their in-game accomplishments, play-to-earn gamers can earn cryptocurrency and NFTs that have a real-world value beyond the game’s environment.

• Take ownership over in-game items - Because items are tracked on decentralized blockchain networks, play-to-earn gamers can take full ownership over the items and assets they earn from gameplay.

• Participate in strong communities - Play-to-earn gamers regularly network with other community members in online forums, where they share in-game strategies and make personal connections.

• Develop new economic opportunities - Many are using play-to-earn games to supplement their income and generate new streams of revenue.

• Decentralized governance - Many crypto games use governance tokens allowing holders to vote on key decisions regarding the game’s future development, giving gamers a voice and further engaging the community.

• Have fun - Beyond the financial benefits of playing the game, play-to-earn titles offer unique and immersive gaming experiences

Game designers typically build and launch play-to-earn gaming platforms using Layer 1 blockchain networks, such as Ethereum, Solana, or BNB chain. However, more recently, some P2E ecosystems have been launching their own chains, such as ApeCoin’s ApeChain and Immutable’s Immutable zkEVM.

P2E platforms provide developers with software tools for creating crypto-compatible applications and experiences that run on top of their respective blockchains. 

Leveraging these blockchain infrastructures, game studios can tokenize game items and give them unique digital identities. In this way, players can become the rightful owners of these intangible items. Holders can sell this digital ownership to others in the gaming community, trade their items for other NFT-linked assets or even convert the crypto tokens they earn into real life money.

Let’s look at an example using a P2E gamer named Jenna. Jenna is an avid player of Axie Infinity — one of the most popular P2E games around.

During her time playing the game, she has managed to acquire and level up a lot of rare Axies (Axie Infinity’s collectible monsters used to battle others in the game). Each Axie in the game is an NFT. This gives Jenna complete ownership over each of her characters, not the company behind the game, Sky Mavis.

These ownership rights allow Jenna to sell her Axies using the game’s in-house marketplace or on the secondary NFT marketplace.

In return, Jenna can earn the game’s native tokens, which have a real-world value. Jenna could convert the tokens she earned from her in-game achievements into a government issued fiat currency using a cryptocurrency platform like Kraken.

In short, the play-to-earn model empowers gamers and allows players to earn rewards that have a real world value in return for completing quests, battling enemies, or leveling up characters.

The economic model of play-to-earn games is different from popular video games of the past like World of Warcraft or Minecraft.

Traditionally, video game players had no way to monetize their accomplishments or exchange in-game currencies — gold and Minecoins — for real-world money.

This means that players’ gaming achievements solely live within a points system or in-game marketplace. However, the play-to-earn business model has revolutionized how video game players can be rewarded.

With play-to-earn games, the native currency of the video game can be bought, sold and traded on platforms outside of the game’s economy. This allows players to exchange their real money for game cryptocurrency and vice versa. Additionally, play-to-earn crypto games allow players to buy and sell different characters, skins, abilities and items on the open market. This has allowed players to have real ownership over their in-game items.

Although not totally unique to P2E ecosystems, crypto games often allow players to create characters and items with far more flexibility than traditional video games. For example, The Sandbox is a user-generated metaverse where players can create their own games, structures, and customize their avatars. And the space-set MMORPG, Star Atlas, offers extensive capabilities for players to create their own starships, crew, and characters.

Finally, blockchain developers have also created third-party platforms that facilitate the lending and borrowing of popular NFTs from P2E games. These platforms allow players to borrow NFTs in order to take part in the P2E game. You can think of this like renting a bat and glove in order to play a game of baseball.

This new addition to the sector, where players can borrow and lend P2E game assets, is known as Game Finance or simply “GameFi”.

This new addition to the sector, where players can borrow and lend P2E game assets, is known as Game Finance or simply "GameFi."

Play-to-earn crypto games is a growing sector of the wider gaming industry, with new titles regularly hitting the market. Below are some of the most popular P2E games and GameFi platforms available

Immutable (IMX) is a leading Web3 gaming platform, powering a large ecosystem of P2E games. Using Immutable zkEVM, it offers zero gas fee NFT minting, trading, and transfers, while preserving high-end security thanks to Ethereum.

Boasting more than 400 titles and 4 million wallets, the Immutable network is now consolidating, merging its Immutable X and zkEVM chains into a single unified chain, enhancing developer flexibility, cross-game asset options and security.

The platform supports a range of play-to-earn crypto games, including Gods Unchained and Guild of Guardians, and runs a rewards program called Immutable Play. The platform is one of the most active and rapidly growing ecosystems in GameFi, deeply rooted in NFT ownership, cross-game economies and playability.

Floki (FLOKI), originally a meme coin, has evolved into a full-fledged GameFi ecosystem centered around its flagship play-to-earn title, Valhalla. This browser-based MMORPG runs on opBNB and uses the FLOKI token as its in-game currency, letting players earn FLOKI by capturing, training, and battling with NFT characters called Veras.

Valhalla features turn-based tactical combat, resource gathering, and exploration across an open metaverse, all underpinned by an onchain economy backed by Floki’s multi-million dollar treasury.

The crypto game’s mainnet launch in mid-2025 has been supported by its esports partner Method and strong activity from FLOKI’s sizeable community.

Floki also supports other P2E crypto games and services beyond Valhalla, including Floki Run, a mobile endless-runner where players can collect coins and earn tokens, as well as additional utilities such as NFT staking and in-game marketplaces.GameFi, deeply rooted in NFT ownership, cross-game economies and playability.

Decentraland (MANA) is one of the earliest and most recognized GameFi platforms. As a browser-based, 3D virtual world, users can own, build, and monetize digital land and experiences. Its economy runs on the MANA token, which is used to buy virtual plots of land (LAND), wearables, and other in-world assets. Players can also create and sell unique assets, and even host events.

Governed by a Decentralized Autonomous Organization (DAO), Decentraland empowers its community to vote on land auctions, platform updates, and ecosystem decisions. In 2024, the platform saw a major milestone; the launch of Decentraland 2.0, a desktop client, alongside more than 627,000 hours spent in-world and 14 million emotes used.

Decentraland is a foundational metaverse in the P2E space, especially for virtual real estate, creative land-based games, and community-led experiences.

If you are interested in learning more about Decentraland, you can check out the Kraken Learn Center article What is Decentraland?

Gala Games (GALA) is a play-to-earn gaming platform focused on giving players true ownership over in-game assets and a range of ways to earn. Instead of being a single P2E game, Gala offers a portfolio of over 20 titles ranging from strategy to RPG and simulation.

The platform is underpinned by a network of Gala Nodes, run by community members, which helps secure the system. Node operators earn GALA tokens and rare NFTs. Regular players can earn GALA tokens via gameplay, trading, completing tasks and creating assets. Once earned, NFTs and tokens can be freely traded, giving players real economic control and revenue potential.

Gala’s most famous game is Town Star, a farming simulation P2E title where players can earn TownCoin by placing NFTs in their town. The broader Gala ecosystem supports trading, node staking, and content creation, making it a long-standing and highly active brand in the play-to-earn gaming space.

Check out the Kraken Learn article What is Gala Games? to learn more.

ApeCoin (APE) is a utility and governance token tied to the Bored Ape Yacht Club (BAYC) ecosystem, created by Yuga Labs. Rather than powering just one game, APE acts as a currency across a growing Web3 universe, especially Yuga’s metaverse, Otherside, where virtual land in the form of Otherdeeds, is purchased in APE.

In addition to its metaverse use, APE has been integrated into third-party P2E games like Benji Bananas, developed by Animoca Brands, which lets players earn a token (PRIMATE) that can be swapped to ApeCoin, giving APE further utility in play-to-earn crypto games.

APE holders can also participate in the ApeCoin DAO (Decentralized Autonomous Organisation), voting on ecosystem funding, partnerships, development and the future of Yuga. 

However, in 2025 Yuga Labs proposed replacing the DAO with a new entity called “ApeCo,” in order to streamline decision-making and improve efficiency. If the ApeCo proposal goes ahead, it would transfer much of the treasury out of on-chain governance.

Learn more about ApeCoin and BAYC by reading our Kraken Learn article What is Bored Ape Yacht Club?

Axie Infinity (AXS), built by Sky Mavis on the Ronin sidechain, is a leading P2E crypto game. It combines elements of Pokémon and Tamagotchi, allowing players to collect, breed, and battle creatures called Axies. These creatures are NFTs, meaning players can earn rewards through gameplay, quests, and seasonal tournaments.

Players are rewarded in tokens called Smooth Love Potions (SLP). SLP can then be used to breed Axies, or exchanged for cryptocurrencies like Ether (ETH) — the native cryptocurrency of the Ethereum blockchain.

After recent updates like the Bounty Board and its Coinbase integration, the Axie ecosystem has seen a resurgence. In 2024, it reached approximately 150,000 active user wallets in a month, and about 55,000 daily users.

While it's not at its all-time high, onchain data indicates growing engagement again, with a reported 30% increase in active wallets recently.

Sky Mavis continues to invest in the game’s future, with ongoing development and strong community support. The developer activity remains healthy with over 150 contributors, suggesting Axie Infinity remains a central pillar of P2E gaming.

If you are interested in learning more about Axie Infinity, you can check out the Kraken Learn article What is Axie Infinity?

The Sandbox (SAND) is a long-standing and highly influential crypto gaming platform where users can play, build, own, and earn. It supports a broad play-to-earn economy packed with community-created worlds, detailed quests, and opportunities to earn rewards in the native currency SAND and NFTs.

Creators are central to The Sandbox, which provides tools like VoxEdit and Game Maker, allowing anyone to design their own voxel assets or build mini-games, then monetize them in the platform’s marketplace. The ecosystem also supports LAND ownership — virtual plots within The Sandbox metaverse that users can buy, develop, rent, or sell.

In 2024, The Sandbox’s Alpha Season 4 saw significant engagement with over 580,000 unique players, 1.4 million hours played, 49 million quests completed, and a SAND reward pool worth $2.5 million. The project also launched a DAO and continues to scale its creator ecosystem via brand partnerships, new features and community-driven improvements.

Beam (BEAM) is a purpose-built Layer-1 blockchain focused on Web3 gaming. It provides both the infrastructure and token tooling for developers and players to build and play with true digital ownership.

Its native token, BEAM, powers the ecosystem: players use it for in-game transactions, trading NFTs, staking, and governance. After the Etna upgrade, Beam became a fully independent L1 and no longer just an Avalanche subnet, unlocking more flexibility and decentralization via proof-of-stake validation.

Beam’s gaming suite includes titles such as Forgotten Playland (a social party game with toy-box NFTs) and Domi Online, a fantasy MMORPG. Through its SDKs, developers can integrate blockchain features like asset ownership, onchain profiles and decentralized economies.

Combining scalable, EVM-compatible blockchain architecture with active, player-owned game economies, Beam is helping drive a new wave of P2E games rooted in real ownership and community participation.

GameFi, short for Game Finance, is a term that refers to the integration of decentralized finance (DeFi) into the P2E gaming industry.

Combining DeFi services like yield farming, decentralized lending, and governance, GameFi provides additional utility for play-to-earn game users.

For example, third-party NFT rental platforms such as reNFT allow holders of digital items to lend them out to others. Smart contracts automatically construct and execute the lease agreement. Lenders can decide whether borrowers need to put up collateral before borrowing their assets, as well as configure the duration period of the rental agreement.

Aavegotchi is another example of a popular P2E crypto game that incorporates GameFi elements, including allowing players to stake its native governance token, GHST.

The game requires players to stake GHST to join the decentralized autonomous organization (DAO) and vote on key changes to the game. This process offloads many of the key decision-making powers to players, giving them greater control over how the experience develops.

If you want to learn more about how exactly this works, you can check out the Kraken Learn Center article What is a governance token?

Finally, many P2E games incorporate crypto staking to help secure the underlying blockchain, and reward those who stake with in-game rewards and newly minted tokens.

Combined, these GameFi elements provide additional revenue-generating opportunities that allow NFT holders to put their tokens to work.

he future of GameFi is likely to involve integrating blockchain technology into the mainstream gaming industry and leading titles, rather than remaining its own separate niche.

This will include improving the underlying blockchain infrastructure for better performance, cross-platform compatibility, and the use of technologies like Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) to enhance gameplay.

Key elements of the future of play-to-earn crypto games will involve:

• Hybrid models: Blockchain elements will be integrated seamlessly, allowing players to enjoy a high-quality gaming experience without needing to be crypto-savvy. Ownership of assets like NFTs will be a feature, not a requirement, so gamers less versed in Web3 technologies won’t be alienated.

• Sustainable economic models: Game developers and studios are working on tokenomics that are less prone to inflation and can provide long-term value.

• Cross-platform compatibility: Play-to-earn games are aiming for broader accessibility by becoming compatible across different platforms, improving functionality and attracting a wider audience.

• Integration with other technology: The blending of GameFi with other digital technologies like AI, AR, and VR is expected to create more immersive and interactive experiences.

• Strong focus on gameplay: Future P2E games will prioritize engaging gameplay, strong narratives, and player skill over a sole focus on earning and crypto features, to build long-term communities and retain more players.

Some feel that P2E games open the possibility for players to simply pay their way to success.

Because P2E games often allow players to exchange their real world money for the game’s native currency, many in the video game community have voiced their concerns. They feel P2E games allow wealthy players to buy their way to the most prestigious or powerful items in the game without effort, rather than progressing through the game to earn it themselves.

This effect, often referred to as “pay-to-win,” could mean that players buy up the highest performing weapons, characters or items in the game and are able to succeed without developing the skills of more experienced players.

Game studios are actively addressing these concerns. The play-to-earn gaming community is working to ensure the business models of these games reward players while minimizing the risk of pay-to-win players spoiling the fun of the games.

The play-to-earn model has also been criticized for being unsustainable. Studios and developers are working on improving P2E tokenomics that are less prone to inflation and provide long-term value.

For those intrigued by the concept of play-to-earn and want to get started, here are some steps to guide you:

• Research and choose a game: Explore the wide variety of play-to-earn games and find one that aligns with your interests. Consider factors such as gameplay mechanics, community size, and potential earnings

• Set up a crypto wallet: Most play-to-earn games operate on blockchain platforms, so you'll need a compatible crypto wallet to store your earned tokens. Create an account and securely store your wallet's recovery phrase

• Acquire the necessary cryptocurrencies: Depending on the game you choose, you may need to obtain specific cryptocurrencies to participate fully. Research the game's requirements and use reputable exchanges to purchase the required tokens

• Understand the game mechanics: Familiarize yourself with the game's rules, mechanics, and objectives. Take advantage of tutorials, guides, and community forums to enhance your understanding

• Start playing and earning: Dive into the game and start completing quests, battling opponents, or participating in in-game activities to earn rewards. As you accumulate digital assets or cryptocurrencies, you can choose to hold onto them, trade them on specialized platforms, or convert them to fiat currencies (if possible).

• Connect with the community: Engage with other players, join forums, and participate in social media channels dedicated to the game. Networking with experienced players can provide valuable insights, strategies, and potential partnerships

Play-to-earn gaming represents an exciting leap forward, transforming traditional gaming from a mere pastime into a potentially lucrative, crypto-based endeavor.

By harnessing the power of blockchain technology, these play-to-earn games empower players to earn real-world rewards and offer the potential for some to make a living doing what they love. 

Whether you're a seasoned gamer or just starting out, the world of blockchain gaming offers a realm of opportunities waiting to be explored.

Kraken lets you convert your in-game accomplishments into cash, and buy the native tokens of these games as you get started in the space.

Click the button below to get started in the play-to-earn economy with Kraken today!