Play-to-earn: why game economies break down on schedule

The play-to-earn formula sounded like a revolution: play and earn. At its 2021 peak Axie Infinity fed entire families in the Philippines, and its tokens were worth billions. Then came what happens to every P2E economy - and it was math, not bad luck.

Where it breaks

If more value can be withdrawn from a game than is brought in, the difference is paid by new players. That is the definition of a pyramid. While the inflow of newcomers grows, the economy blooms: veterans earn, tokens appreciate, success stories pull in new players. As soon as growth slows, payouts exceed contributions, the reward token goes into hyperinflation - and players' "salary" zeroes out along with the motivation to play.

Axie went through the full cycle: SLP fell more than 99% from the peak, daily audience collapsed by orders of magnitude. Dozens of clones repeated the same route - faster than the original.

What sets the survivors apart

Games where the token is an option, not a salary: player income comes from other players (item trading, wagers, cosmetics), not from emission. And above all - a game people play for free and voluntarily. The test is simple: remove the earnings - do the players stay? For 95% of the genre the answer is known.

Game token reviews - in the GameFi section.