Blockchain games are mostly played for entertainment, but some developers within the industry think the games could eventually evolve into a form of employment where players can grind out a living wage.\u00a0<\/p>\n
Video games using blockchain tech allow players to earn native crypto or nonfungible tokens (NFTs)<\/a> by playing and participating in activities within the virtual world. Users can then trade or sell their rewards to others and convert them to fiat currency or other crypto, such as Bitcoin (BTC<\/a>) and Ether (ETH<\/a>). <\/p>\n Known as GameFi<\/a> and play-to-earn (P2E)<\/a>, these gaming mechanics have seen some places, like a small community<\/a> in the Philippines, turn playing blockchain games into employment<\/a>; however, it\u2019s unclear how existing worker protections and labor laws would apply. <\/p>\n Many countries have laws entitling employees to certain rights, such as minimum wages, a safe workplace, compensation, a pension fund and other protections.\u00a0<\/p>\n Gip Cutrino, an entrepreneur and chief operating officer of Web3 platform Runiverse, told Cointelegraph that the concept of using blockchain games to grind out a living has already made an impact, especially in countries with lower wages.<\/p>\n According to Cutrino, because of the relatively new technology, the laws around the concept have not yet been made clear, but he expects regulations will be on the horizon as more mainstream audiences join the space<\/a>. <\/p>\n \u201cWe\u2019re building products and creating solutions that haven\u2019t been accounted for by existing laws, which can become particularly complicated when we consider the global and connected nature of blockchain gaming spread across different countries and legal jurisdictions,\u201d Cutrino said. <\/p>\n \u201cThere aren\u2019t global labor laws addressing this specific situation, but we can expect increased regulation as GameFi evolves further,\u201d he added. <\/p>\n Recent: <\/em><\/strong>Minecraft, GTA may yet change their tune on blockchain: GameFi execs<\/em><\/strong><\/a><\/p>\n He notes that, from his perspective, there is more concern around blockchain games and income law implications, specifically how regulators might decide to define this category of income for gamers. <\/p>\n \u201cSome countries have begun drafting laws that would classify any token invested with an expectation of profit and any project stimulating liquidity pools as securities,\u201d Cutrino said. <\/p>\n The United States Securities and Exchange Commission has sent shockwaves through the crypto space with multiple enforcement actions<\/a> against crypto projects and companies over the last few years, arguing in many cases<\/a> that the tokens being used are unregistered securities. <\/p>\n 1\/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.<\/p>\n \u2014 Brian Armstrong ️ (@brian_armstrong) March 22, 2023<\/a><\/p><\/blockquote>\n Arguably the most infamous instance has been the SEC\u2019s long legal war of attrition with Ripple<\/a> over its XRP<\/a> token.\u00a0<\/p>\n However, Cutrino still has faith that somewhere down the line, blockchain games will have a part to play in helping people find work. <\/p>\n \u201cThe potential for genuine, impactful employment opportunities in GameFi is massive and only poised to grow from here,\u201d Cutrino said. <\/p>\n \u201cThe real value in terms of employment opportunities in the GameFi space heavily relies on its tokenomics and circulation for it to generate income streams that replace traditional wages while ensuring the sustainability of the game\u2019s growth.\u201d<\/p><\/blockquote>\n Speaking to Cointelegraph, Adam Bendjemil, head of business development at BNB Smart Chain<\/a>, believes that using blockchain games to earn a wage could be a viable option and business model, provided demand meets supply and workers are well protected. <\/p>\n \u201cIf workers are well-protected, there shouldn\u2019t be too many issues for most countries; earning by playing games full time is already a job for pro players,\u201d Bendjemil said.<\/p>\n \u201cGame farmers that spend time playing to sell back precious items is also very common but not legal \u2014 true ownership through Web3 games will change that into a viable legal job,\u201d Bendjemil added.<\/p>\n Recent: <\/em><\/strong>Blockchain tech still far from hitting the esport big leagues, says investor<\/em><\/strong><\/a><\/p>\n Esports, or electronic sports, is a form of organized competition via video games, with some pro players earning millions in prize money. <\/p>\n According to data gathering platform Statista, The International, an annual Defense of the Ancients (Dota 2) esport tournament, offered<\/a> just under $19 million in prize money last year, but in previous years, it has offered far more, tipping $40 million in 2021.\u00a0<\/p>\n Bendjemil said that while he does hope and foresee that making a living through playing Web3 games will become a viable option at some point, he doesn\u2019t think it\u2019s possible to sustainably earn a living playing at the moment. <\/p>\n He believes that, for it to be viable, it will require a well-designed token economy<\/a> that can adapt accordingly to market conditions and the number of regular players, which he says is a significant pitfall to overcome.<\/p>\n In his opinion, fixing these two issues could help avoid the \u201cbrutal pump-and-dumps we have witnessed in the past.\u201d<\/p>\n \u201cThe key aspect of a viable Web3 game economy is likely to be ownership, and the key component of a viable economy is likely to be when people playing long hours to farm precious items will sell it to other players that are willing to pay for it,\u201d Bendjemil said.<\/p>\n Ultimately, Bendjemil said video games are meant to be fun, and ownership for players is the primary added value with Web3 games rather than earning wages. <\/p>\n Recent: <\/em><\/strong>GameFi developers could be facing big fines and hard time<\/em><\/strong><\/a><\/p>\n \u201cIt\u2019s likely that it will evolve a lot before we reach a viable, long-term job opportunity,\u201d he said.<\/p>\n \u201cA lot of Web2 games have been successful in establishing a sustainable economy in their game in the past, and I believe that we will see similar viable models emerging in the near future for Web3,\u201d Bendjemil added. <\/p>\n Karl Blomsterwall, CEO of Nibiru Software \u2014 the Web3 developer behind the strategy game Planet IX \u2014 shared similar sentiments about it being the early days for blockchain games and where they stand legally.<\/p>\n Blomsterwall told Cointelegraph that the Web3 gaming space is still very much in its infancy, which makes a separation between gaming and labor hard to define.<\/p>\n \u201cAs the adoption increases, and especially if or when users prioritize GameFi over traditional labor, regulations will be adapted to encompass GameFi and play-to-earn,\u201d he said. <\/p>\n \u201cThis is especially true for free-to-play models where users don\u2019t need any significant buy-in to start playing the game.\u201d<\/p><\/blockquote>\n Blomsterwall said blockchain games are already starting to evolve past the initial stages into something that could be more sustainable as an employment opportunity. <\/p>\n Recent: <\/em><\/strong>Future of GameFi: Beyond the hype and toward accessibility through identity<\/em><\/strong><\/a><\/p>\n However, he noted that this is like everything in the world: The first wave of something new rarely breaks the mold and succeeds. But the industry still has a way to go<\/a> both in terms of regulation and development.<\/p>\n \u201cYou need first-movers, then the key is for projects that come after to learn from previous experiences,\u201d he said. <\/p>\n \u201cGameFi and its value in terms of potential employment might be a contested topic at the time being, but thinking that it\u2019s not going to evolve and become a very relevant means of employment almost feels like agreeing with the skeptics when Amazon first launched their online book store.\u201d<\/p><\/blockquote>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-06\/d8d0bc3a-cdb6-4049-b260-bd05a25f98c2.png\")
<\/figure>\nA whole new unregulated frontier<\/h2>\n
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The industry still has a long way to go<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-06\/dd589aab-04b3-4ce2-a1eb-09b62c571442.JPG\")
Still too early to know<\/h2>\n