The play-to-earn (P2E) model in crypto gaming has encountered serious challenges and requires a change in approach to gameplay. This article explores the reasons for the P2E collapse and the prospects for transitioning to a play-to-own (P2O) model.
Crisis in P2E: Causes and Consequences
The P2E model, which promised players the ability to earn with virtual tokens, has lost its appeal. Funding for Web3 games dropped more than 70% in Q1 2025, leading to major project shutdowns and declining player interest. The primary reason for this crisis is that rewarding players with tokens turns them into speculators, and once token prices stop rising, the structure begins to unravel.
Benefits of the P2O Model
Switching to the P2O model may provide a more sustainable future for games by decoupling gameplay from token emissions. P2O treats digital items—such as skins and weapons—as fixed-supply assets that players can trade in secondary markets. This creates value based on in-game utility and aesthetic appeal, rather than speculation.
Design Principles for a P2O Economy
For a successful implementation of the P2O model, developers must create engaging games where ownership of items matters. Elements such as cosmetic items and upgrade components should be released in limited quantities, allowing for controlled supply over time and avoiding inflation issues characteristic of the P2E model. A well-designed sink mechanic to remove assets from circulation is also necessary to stabilize supply.
The P2E model has proven unsustainable and requires significant changes. The P2O model offers a more long-term perspective for the gaming industry, based on ownership and importance of game items, which can lead to a healthier ecosystem for both players and developers.
