The play-to-earn (P2E) industry had been enjoying a boom, rising to prominence amid a hype-fueled crypto bull market.
It has benefitted from the success of the gaming industry, which has managed to remain recession-proof even through the worst of economic crises. This industry continued to pull in billions of dollars when companies in other sectors were going bankrupt by the day, and this ability to bring in a steady stream of money seemed to have spilled over into the P2E space.
That is, until the bull market was over and crypto was staring down the barrel of the bear market.
Since the market decline, P2E tokens have taken the most hit. This has spilled over to NFTs, and their trading volume took a nosedive. As a result, earnings from NFTs are now lower than they had been in previous months.
Thus arose the need for an alternative way to earn from NFTs, without being wholly reliant on speculative markets. Blockchain game Cradles is one that has come forward with a new system that allows investors to earn from NFTs without having to hold it themselves.
Staking NFTs For Gameplay
NFT staking is no longer a new concept in the blockchain gaming industry. Various games in the space have adopted an NFT staking system to allow players to earn passive income from their NFTs. This not only provides earnings to the holders, but it also helps to ensure the value of the NFTs remains high by reducing the number of them being traded in the open market due to this induced holding. It also helps holders support their community and promote the growth of the whole ecosystem.
Some good examples of platforms that have adopted NFT staking are Sandbox, Decentraland, and Axie Infinity, among others. The Axie Infinity NFT staking system is one that is being widely copied in the industry due to the success the project has enjoyed since its launch. Players are able to collect, breed, and fight other players on the platform.
However, this NFT staking system is riddled with flaws that do not ensure the sustainability of the model. Basically, the reason that the gaming tokens were so successful was the fact that they were launched into a bullish cycle that was characterized by a lot of speculative buying. The model requires a constant influx of new players who will put down a significant amount of upfront investments through buying NFTs and also investing a lot of time to earn any reasonable amount. So it is not surprising that this model has been…
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