One of the most talked-about topics in the blockchain and cryptocurrency industry today is GameFi. GameFi combines the concept of decentralized finance (DeFi) with the gaming industry, and it promises players this: not only can game companies now earn income from games, but you can too!

In this article, we’ll answer the question, what is GameFi or Gaming DeFi, and discuss the best gaming coins.

What is GameFi?

GameFi, in its simplest form, refers to blockchain-based games that follow a play-to-earn model. Unlike traditional games, blockchain-based games allow players to earn cryptocurrencies while playing. Additionally, in many blockchain-based games, players can own their in-game assets thanks to NFT technology; they can buy and sell these assets as NFTs safely and easily. All of this creates a real in-game economy, or GameFi.

Thanks to metaverse games such as Axie Infinity (AXS), Decentraland (MANA), and The Sandbox (SAND), the concept of GameFi is rapidly gaining ground in the gaming industry. Projects like Enjin Coin (ENJ) are also creating a GameFi ecosystem that brings together various blockchain games. In fact, some of the best-selling traditional online games, like Minecraft, are also embracing the GameFi concept and the blockchain world with projects like ENJ, offering players the opportunity to turn their in-game assets into NFTs. You can click here to get detailed information about Minecraft’s relationship with the GameFi concept.

Play-to-earn model

One of the most important aspects of the GameFi concept is, of course, the play-to-earn model.

Before the advent of the play-to-earn model, the game economy was one-sided. While companies made money from the games they published, players were paying to play those games. This one-sided economy grew so large that the pay-to-win model emerged. In this model, players also pay money to acquire better items and progress faster in online games.

The play-to-earn model, on the other hand, transforms this one-sided economy into a multilateral one. According to this new model, players, just like companies, can earn income from games. These revenues can come in the form of in-game cryptocurrency rewards, as well as from buying and selling in-game assets owned through NFT technology.

The cryptocurrencies of the blockchain-based games and platforms that make up the GameFi concept are referred to as game tokens or game coins. These are also known as GameFi coins.

While these cryptocurrencies support the play-to-earn model, they also serve as tools for accessing the governance of games and platforms.

Leading gaming coins include Axie Infinity (AXS), Decentraland (MANA), The Sandbox (SAND), Alien Worlds (TLM), My Neighbor Alice (ALICE), Chromia (CHR), Enjin Coin (ENJ), and Gala (GALA).

Axie Infinity (AXS)

Axie Infinity (AXS), one of the most popular and oldest blockchain-based games, was created in 2018, inspired by cult games such as Pokémon and Tamagotchi. In the Axie Infinity game, released by the Sky Mavis company, players aim to collect and evolve NFT creatures called Axies. They can then earn tokens by engaging their Axies in various battles.

Axie Infinity has two tokens. One of them is the Smooth Love Potion (SLP) token, which is part of the in-game reward system. The other is the AXS token, which is used in governance. The AXS token is among the most valuable gaming coins.

Decentraland (MANA)

Decentraland (MANA) is a blockchain-based metaverse game developed by Argentine entrepreneurs Ari Meilich and Esteban Ordano. On Decentraland, which consists of a universe of 90,601 parcels, players can acquire virtual land in the form of NFTs. On these lands, players can create content and applications.

All trading transactions in Decentraland are made with the ERC-20-based game coin MANA token.

The Sandbox (SAND)

Created by the company Pixowl, The Sandbox (SAND) is a metaverse game similar to Decentraland. In the world of The Sandbox, players can acquire a piece of land as an NFT and create their own universe using various resources on it.

All trades in The Sandbox are made with the SAND token, which is an ERC-20 standard gaming coin.

Alien Worlds (TLM)

Created in 2020 by developers at the Swiss-based gaming firm Dacoco, Alien Worlds (TLM) is a space-themed NFT mining game. Alien Worlds players try to mine Trilium (TLM) tokens on player-owned land on planets managed by players through DAO. They do this with NFT equipment.

The TLM token is the governance and utility token of Alien Worlds. The TLM token is a leading gaming coin.

My Neighbor Alice (ALICE)

Built on the Chromia (CHR) blockchain, My Neighbor Alice (ALICE) is a blockchain-based and farming-themed metaverse game. The governance and utility token of My Neighbor Alice, which plays an important role in the GameFi ecosystem, is the ERC-20-based ALICE token.

Chromia (CHR)

Creating GameFi and blockchain games requires high scalability. Chromia (CHR) is a blockchain platform that aims to solve the scalability problem for blockchain games, allowing them to be developed efficiently. My Neighbor Alice (ALICE), one of the popular metaverse games, is also built using Chromia.

The CHR token, which was launched in 2019, is the native cryptocurrency of the Chromia platform. The CHR token is used to pay transaction fees on the network.

Enjin Coin (ENJ)

Enjin is a platform that provides game developers with the ability to create and manage virtual goods on the Ethereum (ETH) blockchain. Enjin Coin (ENJ) is the ERC-20-based cryptocurrency of the Enjin project, which also supports ERC-721 and ERC-1155 smart contracts.

As a leading gaming coin, the ENJ coin can be considered a common currency for games and applications that use the Enjin platform.

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