Why Traditional Play-to-Earn Models Often Fail
There are a number of reasons why early P2E projects failed in the marketplace. The main driver of failure, however, was not players’ desire to get rewards for their play but how the rewards were designed and distributed to players. Most of these P2E projects rewarded players with excessive amounts of tokens to perform low-value tasks, like making a daily ‘click’ or watching an ad. Over time, this led to a perfect storm in which an enormous amount of token supply flooded into circulation without any actual demand for the token except for players to sell them immediately. Ultimately, this completely destroyed the future potential market value of those tokens, because players only operated as an expense to the project’s marketing efforts, not as participants in a sustainable ecosystem.
How @Pixels created a New Type of P2E
The team @Pixels built their P2E economy using our $PIXEL token, economically based on a stacked economic model that created a more sustainable, resilient design than the previous paradigm. As opposed to prior P2E models, which created reward tokens for players just for playing, with Pixels, players must generate value to the economy of Pixels by farming, crafting, and completing more complex in-game economies or industries.
The $PIXEL token earned by players is directly tied to the effort and work they have put into creating their output of value. Additionally, the utility of the pixel is significant because players are using their pixel to upgrade tools, buy improvements for their land, and access premium in-game items and experiences. Therefore, there is significant demand from within the Pixels game to purchase and spend pixel to improve lifestyle, as an example of a complete circular economy. Prioritizing deep, integrated gameplay and the internal utility of the pixel before simple, inflationary emission of tokens represents a sustainable model for the Pixels ecosystem.
Disclaimer: "This is not investment advice. Please DYOR (Do Your Own Research).
#pixel $PIXEL
There are a number of reasons why early P2E projects failed in the marketplace. The main driver of failure, however, was not players’ desire to get rewards for their play but how the rewards were designed and distributed to players. Most of these P2E projects rewarded players with excessive amounts of tokens to perform low-value tasks, like making a daily ‘click’ or watching an ad. Over time, this led to a perfect storm in which an enormous amount of token supply flooded into circulation without any actual demand for the token except for players to sell them immediately. Ultimately, this completely destroyed the future potential market value of those tokens, because players only operated as an expense to the project’s marketing efforts, not as participants in a sustainable ecosystem.
How @Pixels created a New Type of P2E
The team @Pixels built their P2E economy using our $PIXEL token, economically based on a stacked economic model that created a more sustainable, resilient design than the previous paradigm. As opposed to prior P2E models, which created reward tokens for players just for playing, with Pixels, players must generate value to the economy of Pixels by farming, crafting, and completing more complex in-game economies or industries.
The $PIXEL token earned by players is directly tied to the effort and work they have put into creating their output of value. Additionally, the utility of the pixel is significant because players are using their pixel to upgrade tools, buy improvements for their land, and access premium in-game items and experiences. Therefore, there is significant demand from within the Pixels game to purchase and spend pixel to improve lifestyle, as an example of a complete circular economy. Prioritizing deep, integrated gameplay and the internal utility of the pixel before simple, inflationary emission of tokens represents a sustainable model for the Pixels ecosystem.
Disclaimer: "This is not investment advice. Please DYOR (Do Your Own Research).
#pixel $PIXEL