Unleashing the Ownership-Based Open Metaverse

GameFi and the Metaverse look set to reinvent the digital economy. Ownership is at its core, says Mehdi Farooq, Animoca’s Senior Tokenomics Analyst.

GameFi, short for Game Finance, is a relatively new concept combining blockchain technology, decentralized finance (DeFi), and gaming to create a play-to-earn model. It is fostering new economic opportunities for gamers, who can earn tokens by playing games and participating in the ecosystem. These tokens can then be traded on exchanges for fiat or other cryptocurrencies. To its champions, GameFi is transforming the gaming industry by redistributing wealth and widening economic opportunity. But skeptics have voiced concerns about what they see as a lack of sustainability and questionable incentives.

The GameFi ecosystem is not only remaking gaming but has implications for financial inclusion and developing countries. In the past, many games have spawned jobs and income for people in developing nations, who can participate in the ecosystem without needing to have a bank account.

GameFi: Playing and Earning

One of the most prominent examples is Axie Infinity, a game where players can collect and breed digital creatures called Axies. Each Axie has unique characteristics and abilities and can be trained and leveled up by participating in turn-based battles. Players can earn the game’s tokens AXS (Axie Infinity Shards) and SLP (Smooth Love Potion) which can then be traded.

The game caught on during the pandemic, allowing players in developing countries to earn a living for their families. The owner of the games studio, Sky Mavis, is Animoca Brands, one of the biggest companies in the GameFi space.

Mehdi Farooq, Animoca’s Senior Tokenomics Analyst, believes games like Axie, where you can own and trade in-game assets, are only a tiny part of the emerging metaverse. “When we talk about games, we’re already in the early stages of the metaverse, but the metaverse is so much bigger than that,” Farooq said in an interview with BeInCrypto.

“But how will the next version of the metaverse differ from the current one?” Farooq asked. “There are a couple of things: It will be more dynamic, more interactive, and more immersive. So,

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Author: Josh Adams

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