The play-to-earn (P2E) model has revolutionized the cryptocurrency industry by allowing players to earn real-world value from their in-game activities. Earn money by playing games. While there have been many games in the past that allow users to earn money by trading items with each other, the main feature of P2E games is that they are often designed to allow players to mine tokens through their in-game activities, leveling up to become stronger in the game or enhancing items, and then burning the tokens back so that more can be mined in subsequent mines.

In this article, we'll look at the principles of P2E and blockchain, and discuss the return on investment (ROI) and tokenomics structure with the help of a previously profitable project, Axie Infinity.

# P2E and blockchain principles

P2E is a gaming model that allows users to extract tokens created by the game company by playing the game and redeem them for digital assets with real-world value. Players can earn tokens or in-game items and exchange them for real money or trade them within the game ecosystem. With blockchain technology, the ownership, transfer, and trading of these digital assets is secure and transparent.

In other games in the past, even if users could trade among themselves, the items were still owned by the user, but the game company had access to them. However, with blockchain, ownership remains with the user through smart contracts, and the game company does not have access to the user's blockchain items. In addition, NFT trading allows users to trade items through wallet-to-wallet transactions, not necessarily in-game exchanges.

# Highly profitable project: Axie Infinity

Axie Infinity is a prime example of a P2E project that has been successful in the past. Axie Infinity is a blockchain-based game where players breed, raise, and battle fantasy creatures called Axies. Players can earn Smooth Love Potion (SLP) tokens by participating in battles and other in-game activities, which can be exchanged for real-world currency.

Axie Infinity has gained considerable popularity, especially in the Philippines and other developing countries. Many players have reportedly earned more than the average salary of a regular office worker through the game. This is due to several factors 

1) High unemployment: In some countries, high unemployment and limited job opportunities have caused people to look for alternative sources of income. P2E games such as Axie Infinity initially drove up the price of tokens, allowing people to mine for a month and sell them for more than their monthly salary.

2) Digital and financial inclusion: P2E games promote financial and digital inclusion, even in areas with limited access to traditional banking and financial services. By participating in Axie Infinity, players can participate in the global digital economy, trade digital assets, and earn real-world value in the form of cryptocurrency.

3) Scalability of revenue: For P2E games, the profitability is often unimaginable, depending on the stats and tokenomics structure associated with the tiers of NFTs. With careful strategy and time invested in the game, some players have generated significant income that exceeds the average monthly salary in their region.

While there are quite a few people who have made dozens of times their investment or even recouped their principal and generated a steady stream of revenue from their P2E games, it's important to note that it's not guaranteed for everyone. An initial investment is required to start a game, and profits can vary depending on the player's skills, strategy, and the ever-changing dynamics of the gaming ecosystem. In addition, the value of in-game tokens can fluctuate based on market fluctuations, and there are cases where a game project may not be able to recoup its principal due to lack of success.

# Axie Infinity's tokenomics structure and ROI

Axie Infinity's tokenomics structure consists of two main tokens: Axie Infinity Shards (AXS) and SLP. AXS is the game's governance token, allowing holders to participate in the game's decision-making process, while SLP is a utility token that is used to nurture Axie and as an in-game currency. Both tokens can be traded on various decentralized exchanges, enabling the game's ecosystem. Players earn SLP tokens by participating in battles and completing daily quests, which they can then sell for real money to monetize.

It's difficult to provide specific numbers for daily revenue and ROI for Axie Infinity players, as the numbers can vary greatly depending on a number of factors, including player skill level, strategy, time investment, and initial investment in the game. However, we can provide a rough estimate based on some general assumptions.

It's not possible to calculate an average ROI for P2E games because it depends on how much a user invests and the tier of the unique non-fungible tokens (NFTs) that represent characters or items in the game. 

However, it's important to note that in P2E games, the price of the token is more subject to supply and burn than typical cryptocurrencies, and even the price of NFTs can fluctuate, making it temporary rather than sustainable. 

Users will be able to stake AXS, receive staking rewards, and participate in Axie Infinity governance. For example, with decision-making power over the Community Treasury, stakers will be able to vote to determine how the funds in the Community Treasury are spent. AXS is also Axie Infinity's base currency and is used as a payment method on the Axie Infinity marketplace. 

SLP are rewarded for winning PvP matches in Axie Infinity based on your rank, and can be used to create new Axies by breeding between Axies, or to mint Runes or Charms that increase your Axie's abilities.

However, in general, making money in Axie Infinity means earning SLP through gameplay and selling it on the market for a profit. 

Current Status and What to Watch Out For

Axie Infinity is a shadow of its former glory in 2021, when it was incredibly profitable, and the token is now worth a lot less.  P2E games are characterized by the advantage of earning money, but there are many simple games that are much less fun than general games. In other words, if the value of the token drops and the image of the game is stuck as a game that cannot make money and is not profitable, it is not fun, so the value of the token may drop sharply as users sell NFTs or tokens. Market fluctuations, changes in game mechanics, or regulatory issues in particular can affect the profitability of a project, so it's important to conduct thorough research and stay informed about the project's progress.

However, given that the cryptocurrency market as a whole has seen a sharp drop in price at the moment, and given that the tokenomics structure hasn't collapsed, there is still room for Axie Infinity's profits to increase when the cryptocurrency market revives.