{"id":37663,"date":"2022-07-23T13:16:08","date_gmt":"2022-07-23T10:16:08","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37663"},"modified":"2025-08-29T19:46:53","modified_gmt":"2025-08-29T16:46:53","slug":"what-is-gamefi","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/what-is-gamefi\/","title":{"rendered":"What is GameFi?"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Key points<\/h2>\n<ul class=\"wp-block-list\">\n<li>GameFi, or gaming finance, refers to blockchain projects that let users earn as they play.<\/li>\n<li>The model blends gameplay with elements of decentralised finance (<a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\">DeFi<\/a>), non-fungible tokens (<a href=\"https:\/\/forklog.com\/en\/news\/what-are-nfts\">NFT<\/a>) and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-metaverse\">metaverses<\/a>.<\/li>\n<li>In 2021, GameFi tokens led the market\u2019s gains, including Gala Games (GALA), Decentraland (MANA), <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-sandbox-sand\">The Sandbox<\/a> (SAND) and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-axie-infinity-axs\">Axie Infinity<\/a> (AXS).<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">When did GameFi emerge?<\/h2>\n<p>The term GameFi was first <a href=\"https:\/\/twitter.com\/AndreCronjeTech\/status\/1303969754907107329\">mentioned<\/a> by Andre Cronje, founder of the DeFi project yEarn Finance, in 2020. But cryptocurrencies had been woven into games long before. As early as 2014 some online casinos accepted deposits in bitcoin.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"\u041f\u043e\u043b\u0443\u0447\u0430\u0439 \u043f\u0440\u0438\u0431\u044b\u043b\u044c, \u0438\u0433\u0440\u0430\u044f \u0432 \u0438\u0433\u0440\u044b \u2014 GameFi | Fork The System \u0441 \u041f\u043e\u043d\u0438\u043c\u0430\u044e\u0449\u0438\u043c\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/sBpdT1Pl_Ag?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>Developers experimented by integrating bitcoin with servers for Minecraft, the sandbox videogame. On the <a href=\"http:\/\/minecraftcc.com\/index.php\">MinecraftCC<\/a> server, players earned the first cryptocurrency for almost any action: placing blocks, killing monsters, building and more. In 2016 the programme became unsustainable and bitcoin support was removed, but the server remains active.<\/p>\n<p><a href=\"https:\/\/www.cryptokitties.co\/\">CryptoKitties<\/a>, launched in 2017, became one of the first popular online games on Ethereum. In CryptoKitties anyone could buy, breed and trade digital kittens as ERC\u2011721 tokens.<\/p>\n<p>The app drew heavy user interest: within a week of launch, \u201ccrypto-kittens\u201d accounted for more than 11% of all network transactions. The game repeatedly caused congestion on the Ethereum blockchain.<\/p>\n<p>Since early 2020 the GameFi sector has accelerated. Numerous games began using tokenised in\u2011game items, helped by the rise of DeFi and NFTs.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What sets GameFi apart from classic videogames?<\/h2>\n<p>The classic pay\u2011to\u2011play model requires users to pay for a subscription or a licence, as well as for add\u2011ons that optimise gameplay.<\/p>\n<p>These videogames run on companies\u2019 centralised servers. As a result, in\u2011game purchases and environments cannot fully belong to users.<\/p>\n<p>For example, a user might buy new armour or weapons to upgrade a character. Typically, items are limited to a specific platform or virtual world. A player can use them only where they were acquired.<\/p>\n<p>GameFi reshapes the traditional games industry. Projects combine gameplay with monetisation, while blockchain brings decentralisation and transparency.<\/p>\n<p>The concept preserves ownership of digital items as NFTs. Data on who owns game artefacts are recorded on a blockchain and cannot be altered or deleted.<\/p>\n<p>In addition, users are rewarded with a project\u2019s tokens for playing. Players can sell tokenised rewards and swap them for other cryptocurrencies or fiat on trading venues.<\/p>\n<p>GameFi spans genres from simple lotteries to complex multiplayer multiverses. The blockchain\u2011gaming studio <a href=\"https:\/\/app.gala.games\/\">Gala Games<\/a> aims to build a cohesive ecosystem with a unified economy across different game types.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Which blockchains are used to build GameFi projects?<\/h2>\n<p>Early GameFi projects were built on Bitcoin and Ethereum, but today developers mostly use cheaper, faster alternatives.<\/p>\n<p>For example, Axie Infinity initially launched on Ethereum, but ultimately deployed its full ecosystem on the Ronin sidechain.<\/p>\n<p>There are also specialised platforms tailored to GameFi\u2014such as <a href=\"https:\/\/forklog.com\/en\/news\/flow-blockchain-from-the-creators-of-cryptokitties-speed-basketball-and-kitties\">Flow<\/a> from the creators of CryptoKitties. Many games have launched on Tron, BNB Chain, Wax and Polygon.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What categories do GameFi projects fall into?<\/h2>\n<p><strong>Free2Play<\/strong> \u2014 projects that do not require upfront investment; you can start playing immediately.<\/p>\n<p>For example, <a href=\"https:\/\/godsunchained.com\/\">Gods Unchained<\/a> is a blockchain collectible card game. It resembles Hearthstone in many ways but lets players freely sell and trade NFT cards and earn rewards for in\u2011game success.<\/p>\n<p><strong>Play2Earn<\/strong> \u2014 blockchain projects that let users monetise their gameplay.<\/p>\n<p><strong>Move2Earn<\/strong> \u2014 projects that reward users for physical activity rather than gameplay.<\/p>\n<p>A prominent example is STEPN, a mobile fitness app. It tracks players\u2019 movements via GPS, and users earn the project\u2019s tokens for walking or running. Participation requires a pair of digital sneakers as an NFT.<\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-metaverse\"><strong>Metaverses<\/strong><\/a> \u2014 virtual worlds in the form of 3D sandboxes where users own not only digital items but also plots of land represented as non\u2011fungible tokens.<\/p>\n<p>For instance, in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-sandbox-sand\">The Sandbox<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentraland-mana\">Decentraland<\/a> any player can buy digital real estate, develop it and earn income, while in the multiplayer <a href=\"https:\/\/www.myneighboralice.com\/\">My Neighbor Alice<\/a> one can acquire an entire farm.<\/p>\n<p>Also noteworthy are companies that provide tools to develop and distribute gamified blockchain projects.<\/p>\n<p>For example, <a href=\"https:\/\/enjin.io\/company\">Enjin<\/a> provides developer tooling, integrates blockchain technology and virtual economies into existing videogames, and helps issue in\u2011game <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cross-chain-bridges\">cross-chain<\/a>-NFTs.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How does the P2E model work?<\/h2>\n<p>The Play2Earn model merits separate attention.<\/p>\n<p>Its main advantage lies in rewards paid in a project\u2019s game tokens, and in users\u2019 ownership of digital assets and characters.<\/p>\n<p>Typically, players earn rewards for completing in\u2011game tasks: interacting with other players, taking part in challenges and competitions, levelling up and more. However, most Play2Earn projects require initial investment.<\/p>\n<p>In the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-axie-infinity-axs\">Axie Infinity<\/a> ecosystem, for instance, players must first purchase or rent a team of Axies. They use these NFT creatures to earn Sweet Love Potion (SLP) tokens, which can be exchanged for other cryptocurrencies or fiat.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How does DeFi fit into GameFi?<\/h2>\n<p>Projects embed DeFi mechanics into game economies, including <a href=\"https:\/\/forklog.com\/en\/news\/what-is-yield-farming\">yield farming<\/a>, <a href=\"https:\/\/forklog.com\/en\/news\/what-is-yield-farming\">staking<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-yield-farming\">liquidity mining<\/a>.<\/p>\n<p>In the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-sandbox-sand\">The Sandbox<\/a> metaverse, for example, players have access to <a href=\"https:\/\/sandboxgame.gitbook.io\/the-sandbox\/staking\/about-staking\">SAND staking<\/a>. Users earn returns based on the amount locked, as well as valuable in\u2011game resources GEM and CATALYST.<\/p>\n<p>DeFi elements make games even more decentralised. Some GameFi projects allow communities to influence a project\u2019s future through decentralised autonomous organisations (<a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">DAO<\/a>) and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-smart-contract\">smart contracts.<\/a> Token holdings determine voting power.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Further reading<\/h2>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-axie-infinity-axs\">What is Axie Infinity?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-sandbox-sand\">What is The Sandbox?<\/a><\/p>\n<p>What is STEPN?<\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-yield-farming\">What is yield farming?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">What is staking and how do you earn from it?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">What is a DAO (decentralised autonomous organisation)?<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is GameFi? How do projects in this field differ from traditional video games? How are they categorised? We explain in ForkLog\u2019s explainer cards.<\/p>\n","protected":false},"author":1,"featured_media":37664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"2","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[2113],"tags":[2129,1155,1213],"class_list":["post-37663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptorium","tag-101-nfts-and-the-metaverse","tag-games-and-gamefi","tag-nft"],"aioseo_notices":[],"amp_enabled":true,"views":"99","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=37663"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37663\/revisions"}],"predecessor-version":[{"id":37665,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37663\/revisions\/37665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/37664"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=37663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=37663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=37663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}