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 August 2025)
Axie Infinity Classic Competitive Season 10 is in full swing, with the community competing for a prize pool of over 36,000 AXS. The Elite 8 tournament, which concluded the Origins Season 13 postseason, ended successfully in mid-July, and players are now awaiting the announcement of Origins Season 14. The Jin’s Fortune Spin feature (NFT capsules) is now a permanent part of the Ronin ecosystem.
The Sandbox Game Maker version 0.11 with multiplayer mode is now fully available to creators. A new edition of the Builder’s Challenge started at the end of July and will run until the end of August, with the best user-generated games (UGC) being rewarded with SAND tokens and virtual LAND.
Decentraland After the June events, the platform focused on technical development in July. The Career Quest mode is now available in beta for Decentraland passport holders. As announced, more details about the major protocol update are expected to be revealed in the Q3 2025 roadmap.
Illuvium Following the cinematic trailer’s premiere, the Arena mode has been fully updated. The raid boss and guild systems, introduced at the end of June, are now fully functional and form the core of the Overworld gameplay. The first major guild vs. guild tournament with a prize pool in ILV tokens is planned for August.
Star Atlas The C4 update from June, which introduced exploration and crafting, is now implemented and available to all players. The development team is currently gathering feedback from the Holosim browser-based test version and is working on its integration into the main game client on Unreal Engine 5.
Gods Unchained Battle Pass Season 3 is ongoing, and the card migration to Immutable zkEVM has been fully completed. After a quiet July, the team announced a new mini-card expansion, “Divine Judgement,” at the beginning of August, which is set to be released at the end of the month, revitalizing player interest.
My Neighbor Alice The ALICE Adventure Airdrop campaign has concluded, and Chapter One: A New Adventure is now fully available. At the beginning of August, the team published a public roadmap for Chapter Two, which will focus on expanding social features and player-to-player trading.
Splinterlands After the successful implementation of the tutorial and Ramp integration, the focus in August is on the new ranked season. It introduces a revamped reward system designed to increase the utility of the SPS token and encourage strategic card management from players.
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.
