What is GameFi?
GameFi is the amalgamation of gaming and blockchain-powered financialization. Whether through quotes, trading, or additional activities, GameFi allows gamers to earn revenue from their in-game assets. The games run on a blockchain’s distributed ledger, enabling players to have verifiable ownership of the virtual items even when the server is turned off. It operates on the Play-to-earn model (P2E), rewarding players with financial incentives to play and grow their levels in the game. These games are integrated with Decentralized Finance (Defi) tools such as farming, algorithmic stablecoins, etc., enabling players to generate revenue.
Benefits Offered by GameFi
One of the most anticipated benefits of GameFi is the ability to earn money and generate revenue through crypto gaming tokens.
Defi concepts like staking, yield farming, and liquidity mining are the additional ways players can earn in-game passive incomes. Players can stake their in-game assets to earn annual interest and other substantial rewards.
Many blockchain games entitle the players with the responsibility of future game updates by giving stakeholders voting powers to the members of the DAO (Decentralized Autonomous Organization). These voting rights may possess a financial impact, like, such a proposal is initiated to increase the reward for a particular in-game activity.
Blockchain-based gaming has opened the gates of employment opportunities to face the existing economic challenges. It is also a great investment opportunity for the KDMs, looking to seize golden opportunities.