Subject: GameFi Explained

Hi there!

In our last email we talked about how to make 
money with play-to-earn gaming.

Today we’ll take a quick look at "GameFi".

GameFi effectively began in 2017 with the emergence 
of the NFT phenomenon CryptoKitties. 

The digital collectibles became a viral success and 
CryptoPunks, a collection of 10,000 pixelated NFT 
characters (also built on Ethereum) enjoyed a similar 
success.

The success of these NFTS showed up both the good and 
bad sides of the state of blockchain technology at that 
time. 

Games like CryptoKitties created massive congestion on 
the Ethereum network, causing spikes in transaction fees 
and slowing transaction confirmation times to a snail’s 
pace. 

These issues highlighted a clear gap in the market for 
better, more efficient platforms that could scale with 
the games and handle rising demand from gamers and virtual 
collectors.

The next critical component to fall into place was the 
proliferation of decentralized finance (DeFi) platforms in 
2020. 

This introduced a range of blockchain-native financial 
platforms that run entirely using smart contracts. 

This gave an infrastructure for decentralized exchanges 
where in-game cryptocurrencies could be used, launched from, 
traded, lent, and staked.

In September, 2020, Andre Conje, Yearn.finance founder and 
DeFi developer, tweeted about the gamification of monetary 
policies in a decentralized environment. 

He pointed out the many benefits DeFi and NFTs could bring 
to the online gaming industry. 

GameFi applications soon began to form. Axie Infinity was 
one of the first play-to-earn games to take off in a big 
way.

Key opinion leaders in the cryptocurrency industry think 
there’s more ahead for GameFi. 

Tron founder Justin Sun recently stated he believes this 
new sector will be key to increasing cryptocurrency adoption. 

“GameFi,” he said, “is going to be the next big thing that 
makes the DeFi, NFT, and the larger crypto space easy to 
understand and be involved in.”

Gaming companies and crypto startups are already racing one 
another to capitalize on this new trend, with a long list of 
new games preparing to launch over the next few months. 

There are also entire gaming platforms being built, like 
MOBOX, which lets gamers create their own interoperable 
games and NFTs. 

MOBOX also integrated DeFi elements like staking and liquidity 
pools where gamers can create an income from their assets 
(which can then be used to purchase upgrades or unlock new 
NFTs).

In our next email, we’ll take a look at some other popular 
play-to-earn games.

Until next time,

[Your Name Here]
