Mastering Web3 Wealth
By Arnold Mutunga
A Comprehensive Guide to Earning as a Web3 Gamer and Investor
Gaming has always been a form of entertainment, at best a way to blow off some steam and unwind, and at worst a way to procrastinate and lose hours of time. However, this notion is changing with the onset of Web3 games that are steadily shaping the future of gaming. Web3 gaming goes beyond just playing games; it encompasses revenue generation for players, investors, and game developers, uniting people, fostering social connections, and building gaming communities.
As we explained during the start of this Web3 gaming series, Web3 games ensure players can truly own in-game items like characters and weapons, and they can use them across multiple virtual worlds and games. Web3 gaming then takes this a notch higher by allowing players to earn real money while playing. This new paradigm brings into focus the Play-to-earn (P2E) and Play-and-Earn (PAE) models which when combined transform games into a viable source of income for multiple stakeholders, i.e., gamers, investors, and game developers. Join us as we dive into the predominant areas of opportunities within Web3 gaming.
Getting Started: Beginner-Friendly Tips and Steps
As a general rule for investors, you should familiarize yourself with the basics of blockchain technology and cryptocurrencies then conduct research before choosing where to invest. Your journey into Web3 gaming will develop a solid foundation once you understand how decentralized networks operate and the significance of digital assets. After grasping the fundamentals, you can explore different Web3 gaming platforms to find one that aligns with your interests and preferences. Some factors to consider when selecting a platform include its earning potential, game genre, community engagement, and the availability of demo versions or free-to-play options to gain hands-on experience before committing any capital.
Gamers, on the other hand, need only to leverage their gaming skills in games that offer monetary rewards through gameplay. Multiple Web3 games offer play-to-earn mechanics, allowing players to earn cryptocurrencies or in-game assets by completing tasks, achieving milestones, or participating in tournaments. Taking the example of Decentraland (we will use Decentraland as the point of focus in this article as its mechanics resonate with what constitutes a Web3 game), as a player there are no restrictions to honing your gaming skills, actively engaging with the community, and you can generate a steady stream of income while enjoying your favorite game.
As for game developers, all you need to do to earn steadily from your game is to create a game whose mechanics go hand-in-hand with what today’s gamers ask for; a play-to-earn/play-and-earn model and a community-driven approach to gaming. By doing so, the game developers maximize player interaction which in turn creates a mutually beneficial financial paradigm.
Maximizing Returns: Proven Strategies and Techniques
In this section, we will be speaking mostly to the investors since it is rather straightforward for gamers to maximize their returns in Web3 gaming. They only need to fine-tune their gaming skills and dedicate their time towards gameplay, community participation, and tournament completion to increase their earnings.
Investors, conversely, need to start by adopting a long-term investment mindset and resist the urge to chase short-term gains. They should focus on identifying high-potential Web3 gaming projects with strong fundamentals and promising growth prospects. Two good examples are Decentraland and Axie Infinity as they have shown their potential to change with the times from simple games to incorporating play-to-earn models and then venturing into the multiverse.
Diversification is a proven investment strategy for maximizing returns and by spreading your capital across various assets, games, and platforms you minimize the risk and capitalize on diverse income streams. You can go a step further and consider allocating a portion of your portfolio to specific blockchain-stable assets or liquidity pools to safeguard against market volatility. Liquidity pools are collections of cryptocurrencies locked in a smart contract used to facilitate trades between different assets on decentralized exchanges. Pooling funds results in creating liquidity for faster transactions.
Staying informed and staying ahead of the curve by conducting research and staying updated on industry developments will help make the difference between an earning investor and a stagnating one. Follow ScoonTV, join our online communities, and engage with us to gain insights and exchange ideas on the best path to take when investing in Web3 games. We help you stay informed and proactive so that you can identify emerging trends and capitalize on lucrative opportunities before they become mainstream.
Exploring Revenue Streams: Understanding Income Opportunities
Multiple income opportunities come with Web3 games, beyond traditional gameplay. Some notable revenue streams that players can earn rewards from include: playing, staking, providing liquidity, participating in DAO governance, and more. Each revenue stream is different from the next with each having unique benefits and potential for profitability.
The most straightforward way to earn rewards is by playing games and completing tasks within a Web3 game. Gamers can earn digital assets (cryptocurrencies), in-game assets, and other virtual rewards that can be traded or sold within the game marketplace. To earn these rewards, you have to complete the game’s quests, achieve milestones, and actively play in tournaments with your gaming community. The game’s play-to-earn/play-and-earn models incentivize active participation and skill development, allowing players to monetize their gaming experience.
Revenue streams in Web3 gaming explained in brief are:
- Staking: Players can earn rewards by locking up their digital assets as collateral. Players earn interest, dividends, or other rewards over time by staking tokens in liquidity pools or participating in decentralized finance (DeFi) protocols.
- Providing liquidity in decentralized exchanges (DEXs): Players earn passive income through transaction fees or yield farming rewards. Contributing assets to DEXs facilitates trades and maintains market liquidity while earning a share of the fees generated by the platform.
- Participating in decentralized autonomous organizations (DAOs) governance: You become part of the game’s decision-making panel and can earn rewards for contributing to the game’s development. When you vote on proposals, submit proposals, or participate in community initiatives, you can earn governance tokens or other rewards while shaping the future direction of the game’s ecosystem.
Social Media and Web3
In conclusion, earning as a Web3 gamer, investor, or game developer requires a combination of strategic planning, active engagement, and continuous learning. As the Web3 gaming landscape continues to evolve, being part of the emerging trends and technologies will be essential for staying ahead and future-proofing your investment strategy.
To stay on top of the Web3 gaming trends you can follow your favorite game’s online communities on Discord and X (formerly known as Twitter). These two are the epicenter of Web3 gaming communities where players, developers, and newcomers converge to discuss, share, and connect. Discord is always vibrant with players forming guilds, creating channels for specific topics, and even having voice chats while gaming. On the other hand, X is the perfect platform to broadcast updates, and announcements, and engage with a broader audience for game projects. Telegram, Instagram, and Facebook also play significant roles in community building, with Telegram acting as the bridge, connecting new users to the more focused platforms, like Discord. Instagram and Facebook are the outreach champions that entice new players and spark their interest. Twitch is also an up-and-coming Web3 gaming community platform as players can stream their gaming progress to fellow Web3 enthusiasts and share ideas while at it.
With careful planning and strategic execution, individuals can navigate the complexities of Web3 gaming and unlock a world of wealth-building opportunities. In the next and final article on our ongoing Web3 Gaming series, we will look into the specifics of how players and investors can start a revenue-generating operation in Decentraland.
