Popular game developers should adopt Play to Earn as a layer two monetization tool

Popular competitive games have an existing userbase that’s very loyal. People treat competitive games as a sport they become good at, and they spend most of the hours playing it. The only way players can monetize through esports, where a team pays you a salary to compete in tournaments. But, the opportunities are very limited to the top 3% of esports players. And there is a vast wealth gap between top popular teams and others.

Play to Earn

All the time and energy spent playing games has no real-world value other than a fancy rank, skill, and status in the gaming ecosystem. With the invention of ERC-20 tokens on Ethereum, anyone can trade their time and energy for a digital asset that can be bought, sold, or traded. This will completely change the commerce in the gaming industry. Some also argue a play-to-earn account beats a bank account that is doing more to deliver financial inclusion than a bank account in developing countries.

Play to earn vs. Traditional revenue streams:

Popular games like PUBG mobile have 30 million active users, and PUBG mobile made $2.6 billion in revenue primarily through selling in-game items.

Going by the above data,

Daily active users from April 2018 — December 2020: 30 million active users

Revenue from April Q2 2018 — Q4 2020: $379.818 million

The average revenue per user (ARPU): $12.63

In comparison, Axie infinity breached $1 billion in all-time sales. In the last 30days, the game has generated nearly $780 million in sales across 1.4 million transactions and 18 million active users, increasing 27% during the previous 30 days.

Source: https://activeplayer.io/axie-infinity/
Source: https://www.axieworld.com/en/economics/charts?chart=revenue

By going by the above data,

Average daily active users from Jan 2020 — Sept 2021: 174,469.91 (active users)

Revenue from Jan 2020- Sept 2021: $35,030,185.27

Average revenue per user (ARPU): $200.78

By comparison, ARPU of play to earn ecosystem is greater by staggering %1589.70

Play to earn as Layer two or side revenue stream:

Game developers could partner with existing blockchains and create an interoperable ecosystem between traditional and play-to-earn ecosystems.

There were 2.3Million players registered for the PUBG mobile India series 2020. A popular esports tournament in India. Esports players already play above 2–3 hours a day on average. Even if 50% of esports players use the ecosystem and consider ARPU as $100 (50% less), The revenue generated could be almost $115 Million.

This would also improve opportunities for millions of players to make a sustainable living through playing daily rather than competing in tournaments that are controlled by tournament organizers who are limited in taking registrations due to operations constraints, only involving popular esports teams for large esports tournaments as the current ecosystem heavily depends on brand sponsorships to monetize and run esports leagues.

The play-to-earn phenomenon in crypto is so powerful because users don’t need to put money in — they can earn it through active participation in a video game. This provides unprecedented access to wealth creation opportunities through crypto, especially in developing countries. This would create opportunities for people to invest and create wealth by contributing valuable economic resources such as time and skill, even when they have zero money, to begin with. Thinking in purely monetary terms is an archaic way to look at the value that people can bring to an economy, especially as digital infrastructure is lowering accessibility barriers and making inclusion goals more attainable than ever before.

How BGMI can work with our protocol

  1. Two players sign up for Higin. They connect their wallet, do KYC and connect and verify their game details.
  2. Build their Matchmaking Rank (MRR) in different modes. Battle Royale (100 in players in one server) or TDM (4vs4).
  3. Upon winning, Players earn $BGMT, a BGMI token built on the permission chain of the main blockchain of Higin’s protocol.

4. They can withdraw $BGMT for $HCH and then convert to any crypto BTC/ETH or convert to Fait money (USD/INR)

5. They can also stake $HCH and earn interest or participate in the governance of Higin protocol or invest in a gamified marketplace and build an investment portfolio.

Check out our whitepaper for more details.

If you are a game developer, esports player, or streamer and would like to partner or connect with us, please DM us @metahigin or join our discord. We would love to connect with as many as possible and learn how to make better products that make gaming a viable career option by improving financial inclusion and wealth distribution.


Sitaram Kakarlamudi
sitaram@higin.in

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