How to go about P2E? Axie Infinity responds to negative articles: Transition period in Play and Earn

"Play-to-Earn" P2E, earning while playing, is a challenging issue for blockchain games to balance and sustain the token economy. Games like Axie Infinity, a battle card game, and StepN, a walking-earning game, have implemented various internal economic consumption mechanisms. However, with the slowdown in user growth, both have been impacted on their token economy. The well-known Axie Infinity, especially after experiencing a hacking incident, cast a shadow over the future of this P2E pioneer. Criticism of the "unsustainability" of P2E has deepened within the community amid the bear market.

Philip La, the product lead of Axie Infinity who previously worked at Niantic, the company behind Pokémon GO, responded to the negative news about Axie Infinity by writing a clarification article. At the same time, it is interesting to observe how they are trying to address the weaknesses of P2E and find a way forward.

Is P2E Not the Future?

During the Consensus event in Texas, USA, it was observed that while gaming is a hot topic, "Play to Earn" (P2E) is not considered a trend.

Representatives from Gala Games, Star Atlas, and Polygon discussed how blockchain is changing the gaming industry. They all agreed that the focus should be on making games enjoyable. They believe that a truly "fun" game is one that players would still want to play even without monetary incentives. The sustainability issues of the P2E model can be seen in Axie Infinity; once the token price drops, the model becomes unsustainable. It has even become a term with negative connotations. They suggest that instead of making games based on blockchain, one should think about how blockchain can bring a different gaming experience.

Transitioning into Play and Earn

Philip La stated that Sky Mavis, the company behind Axie Infinity, is aware of the issue of economic imbalance. The new version, Origin, allows Axie Infinity to evolve into a mode that does not rely on player growth.

Philip La believes that Axie Infinity has many high-quality players who are ready and willing to invest in the game to climb the leaderboards or showcase themselves through in-game customization. However, Axie Infinity has not yet prepared for these players. He mentioned that negative articles often criticize Axie Infinity for its token price, players not being able to earn money, and a decrease in active players, predicting its failure. Despite experiencing similar scenarios in the previous bear market, Axie Infinity remains stable and continues to improve. Philip La thinks that these negative articles only focus on the current situation and assume that the player base will keep decreasing. In reality, Axie Infinity has not yet allocated resources for growth and promotion of the early version, Origin. The focus will shift to supporting mobile app development when Origin is fully launched.

Escaping the Damage of Land Speculation

Negative articles point out that land speculation can lead to inflated prices and hinder economic and player growth. This is a common issue in blockchain projects in the virtual world category when selling land.

Philip La mentioned that negative articles criticize Axie Infinity's land program by claiming that its value will increase over time. He refuted this claim, stating that the land program aims to provide players with a more diverse gaming experience using the features of blockchain and cryptocurrencies. User-generated content will also be a significant element in the game.

Philip La noted ongoing discussions within the community, such as:

• Landowners must play the game for their land to generate value.
• If landowners do not play the game for an extended period, other players may be able to utilize the land's resources.
• Players without land can engage in "asymmetric gameplay" where they can collaborate meaningfully with landowners without owning land themselves. The more non-landowners a landowner has, the more benefits they receive.

Rewarding Community Builders, Open IP

Philip La highlighted that Axie Infinity's investments include professional game studios to enhance the gaming experience and support community members in experimenting and creating different games. He emphasized that one often overlooked aspect of Axie Infinity is that community members are free to develop and create using its intellectual property.

Will Buying NFTs End Consumption?

Negative articles suggest that Axie Infinity players stop spending once they purchase battle pet NFTs, making the game unsustainable. However, Philip La is confident in the future of Origin. He believes that crafting talismans, runes, upgrading parts, and decorations within the game are excellent consumption motivators.

In conclusion, Philip La still believes that Web3 games have a bright future. By using sustainable models and offering better gameplay, a game world that rewards ownership, community collaboration, and benefits all stakeholders can be created.