Can Blockchain Games Provide Sustainable Income?

Executives in the blockchain gaming industry believe that current laws do not yet do justice to the concept of earning a living through gaming. While blockchain games are played primarily for entertainment, some developers in the industry envision a future where these games could evolve into a form of employment that allows players to earn a living.

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Blockchain games use technology that allows players to earn native cryptocurrencies, or non-fungible tokens (NFTs), by participating in activities in virtual worlds

Players can then trade or sell their rewards to others and convert them into fiat currency or other cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).

Known as GameFi and Play-to-Earn (P2E), these gaming mechanisms have already made blockchain gaming a source of employment in certain communities, such as a small community in the Philippines. However, it remains unclear how existing worker protection and labor laws would impact this emerging sector.

Gip Cutrino, chief operating officer of Web3 platform Runiverse, acknowledges that the concept of making a living through blockchain gaming has had an impact, particularly in countries with lower wages. Cutrino expects regulations to evolve as more mainstream audiences enter the field, given the complexities that arise from the global and interconnected nature of blockchain gaming in various jurisdictions.

One of the concerns around blockchain gaming and the implications for revenue law is how regulators might define this new revenue category for players

Some countries have already begun drafting legislation that would classify certain tokens and liquidity pools as securities. The U.S. Securities and Exchange Commission (SEC) has also taken enforcement action against crypto projects, arguing that certain tokens are unregistered securities.

Despite these challenges, Cutrino and others believe blockchain games have the potential to create real employment opportunities. The ability to earn a living playing Web3 games depends on a well-designed token economy that can adapt to market conditions and the number of players. Ownership and a sustainable in-game economy are key factors that could make this vision a reality.

Adam Bendjemil, head of business development at BNB Smart Chain, believes that making a living by playing blockchain games could become a viable option if workers are well protected and supply matches demand. However, he acknowledges that the industry still has a long way to go in overcoming pitfalls such as creating sustainable token economies and avoiding speculative price volatility.

Karl Blomsterwall, CEO of Nibiru Software, which developed the Web3 strategy game Planet IX, notes that the Web3 gaming space is still in its infancy, making it difficult to separate gaming from work in a legal context. As adoption increases and users prioritize GameFi over traditional work, regulations are expected to adapt accordingly. The industry is still evolving and learning from past experiences to create a more sustainable and regulated environment.

While the concept of earning a living by playing blockchain games is still in its infancy, industry experts remain optimistic about the potential for employment opportunities in the GameFi space. They anticipate that as the industry matures, regulations will be developed to address the unique aspects of blockchain gaming and play-to-earn models. The transformative power of this new paradigm has the potential to reshape the way people think about work and income generation in the future.

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(Featured image by geralt via Pixabay)

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First published in COIN KURIER, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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