GameFi is a mix of gaming and decentralized finance (DeFi). Games in this sector run on blockchain technology, which means everything — from your character’s outfit to your in-game land — can be owned, traded, and sold by players using crypto.
Players earn rewards in the form of:
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Tokens (cryptocurrencies)
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NFTs (unique in-game assets)
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Virtual real estate, avatars, or tools
These rewards can often be exchanged for real-world money. It’s all possible thanks to the Play-to-Earn (P2E) model, which flips the traditional pay-to-win formula on its head.
What is Play-to-Earn?
In traditional games, players often spend money to unlock content, buy gear, or boost progress. But in Play-to-Earn, you get paid — in crypto — for your achievements in the game.
You might:
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Win tokens for defeating enemies
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Collect and sell rare NFT items
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Rent out your land or character to other players for passive income
Of course, earning in GameFi isn’t just about luck — it takes strategy, consistency, and skill. Some games require completing quests, battling others, or building complex structures to earn real rewards.
Why is GameFi a Big Deal?
Before GameFi, most games were built on centralized servers — which meant developers could shut down the game at any time. Players never really owned their assets. Even after spending money on gear or characters, you couldn’t do anything with them outside the game.
GameFi changes that. Because it runs on blockchain, players can:
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Truly own their in-game items
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Trade them freely
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Convert digital rewards into real income
This isn’t just exciting for gamers — it’s also attracting investors, creators, and crypto enthusiasts who see the potential of merging finance and entertainment.
How GameFi Works
Each GameFi project has its own economy, but they usually include:
NFTs
NFTs represent in-game assets like characters, skins, weapons, and land. These can be bought, sold, and traded on marketplaces for real crypto.
DeFi
Many GameFi platforms offer DeFi features — like staking, lending, or renting assets — that let players earn passive income even when they’re not actively playing.
For example:
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In Decentraland or The Sandbox, you can rent out your virtual land.
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Some players lend their NFT characters to others and earn a share of the profits.
Getting Started with GameFi
Feeling ready to dive in? Here’s how to begin:
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Create a crypto wallet
Choose a wallet that’s compatible with the game you want to try (e.g. MetaMask or Phantom). -
Add funds
You’ll need some crypto (usually ETH, MATIC, or SOL) to start, depending on the game. -
Buy game assets (if needed)
Some games are free-to-play, while others require buying NFTs to start (for example, Axie Infinity requires three Axies to begin playing). -
Start playing and earning
Once you’re in, the rewards depend on your time, strategy, and the game’s design.
Most Popular GameFi Projects (as of July 2025)
Axie Infinity
On July 3, Classic Competitive Season 10 began with a prize pool of over 36,000 AXS. On July 9, the postseason phase of Origins Season 13 started, culminating in the Elite 8 tournament scheduled for July 13. On July 1, staking rewards emissions were reduced from 50,516 to 23,665 AXS per day, with the new level set to remain in effect until May 2026. In late June, the Jin’s Fortune Spin feature was introduced — a blind box system with NFT capsules available on the Ronin marketplace.
The Sandbox
Game Maker version 0.11 enables the creation of multiplayer gameplay experiences with NPCs that react to player actions. New game templates were added, including Tag, Trivia, Idle Clicker, Crash Game, and Social Platforming. Additional improvements include upgraded character animations, object rotation, and interface HUD enhancements. A new edition of the Builder’s Challenge was announced to encourage UGC creators to experiment with interactive game design.
Decentraland
In June, social events such as the LAN Party, DCL Prom, and Pride PJ Party took place. The Career Quest mode was announced, along with an upcoming protocol update that will enhance scalability, expand avatar customization options, and enable Layer 2 integration.
Illuvium
A cinematic trailer for the MMO-lite mode was released, teasing boss raids featuring Leviathan. The Arena mode was updated and reintroduced into active rotation. The Overworld project entered its final beta phase, with the first raid sessions and the guild system launch planned for the second half of June.
Star Atlas
On June 7, the C4 update was announced, introducing exploration, resource staking, crafting, and the Council rank system. On June 5, the Holosim browser-based test version was launched, providing onboarding and early access to core mechanics ahead of the full launch on Unreal Engine 5.
Gods Unchained
Battle Pass Season 3 began on May 13, offering two reward tracks: Cosmetic and Collectors. In early June, card migration to Immutable zkEVM was completed. No new announcements were made in July.
My Neighbor Alice
On June 3, the ALICE Adventure Airdrop campaign launched, featuring four distribution waves with a total of 500,000 ALICE tokens. On June 17, Chapter One: A New Adventure was released, introducing guest mode, land sharing, and the Moxie system to enhance player cooperation. No new updates were released in July.
Splinterlands
On June 3, the Tutorial Campaign was launched, featuring 11 onboarding chapters with automatic card rewards upon completion. Integration with Ramp was added to simplify SPS token purchases on Ethereum and BSC. The land system was simplified by removing the card-locking requirement.
What’s Next for GameFi?
The future looks strong. Reports from DappRadar and Blockchain Game Alliance show that over $1 billion was invested in blockchain games in 2022 — and the momentum hasn’t slowed down.
Even traditional gaming companies like Blizzard and Atari are exploring Web3 opportunities. Meanwhile, flagship projects like Decentraland, The Sandbox, and Axie Infinity have reached multi-million dollar valuations.
With over 3 billion gamers worldwide, many of whom would love to earn from their skills and time, GameFi has a massive potential user base.
Summary
GameFi is more than just a trend — it’s a shift in how people see gaming. For the first time, players can truly own their progress, earn real rewards, and participate in decentralized economies.
As metaverse adoption grows and blockchain tech becomes more user-friendly, expect more projects to appear — blending gaming, investing, and social connection in ways we’ve never seen before.
