INSUBCONTINENT EXCLUSIVE:
Opinion by: Tobin Kuo, founder and CEO at SeraphThe play-to-earn (P2E) model has largely collapsed, which promised a future in which anyone
could grind digital gold and cash out for real-world income.Funding for Web3 games dropped more than 70% in Q1 2025, major projects have
ever-growing influx of new users willing to buy in
As soon as token prices stalled, the entire structure unraveled
Given this new reality, the industry must pivot to a model that prioritizes asset utility and long-term engagement: play-to-own
(P2O).Speculation was never a gameCritics may insist that P2E can still empower emerging markets or claim that token incentives are
essential to player growth
minted coins as rewards for in-game activity, hoping increased participation would absorb the selling pressure.Sure, it worked temporarily;
user counts grew and token prices rose
But exits accelerated once the price momentum stopped
A recent report showed that April 2025 had the lowest daily active wallets of the year: just 4.8 million, a 10% drop from the month
Late adopters entering a mature P2E game often find reduced payouts, making participation less attractive
As they leave, liquidity dries up, token values drop and developers lose a key revenue stream
This cycle continues until both the player base and project treasury are depleted.No conventional online game expects users to treat in-game
currencies like financial assets
When they do, the experience becomes vulnerable to volatility that most players neither want nor understand.Ownership, not income, creates
demandP2O offers a better path forward by decoupling gameplay from token emissions
These items are collectibles with provable scarcity and value derived from in-game utility and aesthetic appeal.Recent forecasts support
The NFT gaming sector is projected to grow at nearly 25% compound annual growth rate (CAGR) through 2034, with demand driven by ownership
verifiable.Related: How Web3 can change gaming without changing how gamers playTo be successful, P2O demands strong design choices
Developers must create engaging games where ownership is meaningful
Cosmetic items, land plots and upgrade components should be released in limited quantities, with carefully calibrated sink mechanics to
This avoids the inflation problems that plagued P2E.Critics argue that resale markets invite profiteering, but the rebuttal is two-fold
First, secondary trading is healthy when it mirrors physical collectibles, where prices fluctuate but are anchored to perceived cultural or
aesthetic worth, not scheduled token emissions
Instead, it demands active stewardship.Skeptics have also pointed to staggering failure rates in Web3 gaming, as over 90% of announced
blockchain titles are already defunct
This includes figures like gaming finance (GameFi) projects dropping 95% from their all-time highs (ATHs) and lasting less than half a year
before fizzling out.The current market for Web3 gaming through the P2E model is bleak at best, with most casualties sharing the same flaw of
The handful of survivors that shifted to fixed-supply assets and strong sink loops show wallet activity trending upward even amid the
Many of its most-hyped projects have faded, and even some survivors are pivoting toward fixed-supply economies and deeper gameplay loops
models will likely face continued contraction, especially as user growth slows and capital becomes more cautious
It needs better games and better economies
That begins by burning the token drip model and building systems players want to be part of long after the yield is gone.Opinion by: Tobin
Kuo, founder and CEO at Seraph.This article is for general information purposes and is not intended to be and should not be taken as legal
