P2E vs P&E
Games that use blockchain technology are rapidly gaining popularity, and now is the time to learn about this technology and how to start creating your own games using the blockchain.
P2E blockchain games are exactly what they sound like: users play them to earn currency.
For example, players can complete challenges such as quests or battles to earn tokens that they can deposit into their cryptocurrency wallets or spend in the game.
Early P2E games allowed users to begin playing with little to no investment - back then, users had to purchase an NFT from a limited collection, which meant they already had a certain level of understanding and competency with cryptocurrency. This priced many average users out of the game, leading to the formation of guilds (groups of players or investors that buy high-value NFTs and then rent them out to users so they can play the games and earn tokens). With the value of assets increasing exponentially, play-to-earn games with little entertainment value and the sole purpose of attracting high-value investors and guilds began to appear quickly. These users built an exchange ecosystem in which players would rent NFTs, earn tokens, and then sell some of these tokens back in the hopes of making more money. Given the imbalance of resources entering and leaving the game - and users failing to retain for an extended period of time - building a sustainable economy under the play-to-earn model becomes extremely difficult. A healthy game ecosystem requires new users to enter and invest their resources back into the game on a regular basis. This preserves the value and profitability of the game's assets, making them appealing to users.
The P&E model evolved from the P2E framework and focuses on providing genuine entertainment value in order to create a long-term, open game economy. Users of play and earn games can win NFTs and tokens, which are then added to their cryptocurrency wallets. While the NFT can still be traded or sold on the secondary market, it is more likely to be spent on in-game bonuses or upgrades. The goal of play and earn games is to create value through gameplay. They provide entertainment value in addition to the benefits of blockchain ownership. This creates a virtuous ecosystem in which players can earn fully owned rewards while also encouraging in-game spending. When properly implemented, these well-oiled game economies can open up more doors for game design, monetization, and marketing.