Play to Earn (P2E), also known as GameFi - the NFT game in which you can earn rewards and money just by playing games. Not surprisingly, the number of users continues to increase in Japan as well as overseas as interest in the Metaverse rapidly increases.
Therefore, in this blog, taking Axie Infinity, the game which made blockchain game become famous as an example, we will specifically explain the business model of Play to Earn. Besides, some people still believe that Axie Infinity is a Ponzi Scheme, but is it really so? Let&rsquo;s find out in the blog!
<div class="mce-toc" style="text-align: justify;">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8o">How to earn money with Axie Infinity</a>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8p">Business model in Season 19</a></li>
<li><a href="#mcetoc_1ga2p3d7i8q">Business Model Changes in Season 20</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2p3d7i8r">Axie Infinity is a Ponzi scheme?</a>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8s">What is a Ponzi scheme?</a></li>
<li><a href="#mcetoc_1ga2p3d7i8t">Actually, Axie Infinity is not a Ponzi scheme</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2p3d7i8u">Axie Infinity - Future Potential</a></li>
<li><a href="#mcetoc_1ga2p3d7i8v">In conclusion,</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga2p3d7i8o" style="text-align: justify;">How to earn money with Axie Infinity</h2>
<a title="Axie Infinity" href="https://axieinfinity.com/" target="_blank" rel="noopener">Axie Infinity</a> is a pioneer and one of the most popular blockchain games in the world. The number of daily users reaches 3 million, and the feature is that you can use 3 monsters called Axie that you purchase yourself at the start and get rewards such as battles. This is Play to Earn (P2E).
There are mainly 4 ways of getting money:
<ul style="text-align: justify;">
<li style="font-weight: 400;" aria-level="1">Get rewards by playing game&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Earn money by selling owned or bred Axies as NFTs on the marketplace</li>
<li style="font-weight: 400;" aria-level="1">After purchasing Axies, rent them out to players and receive a certain percentage of the earnings as a reward. (Scholarship)</li>
<li style="font-weight: 400;" aria-level="1">Buy, sell and rent land in the virtual space to earn real estate income</li>
</ul>
Axie Infinity has been updated many times, and as in February 2022, season 20 was officially launched. Season 20 has made a big change in playing rule to how you earn in Axie Infinity. So, for the sake of clarity, let's explain the Play to Earn business model in comparison to Season 19.
<h3 id="mcetoc_1ga2p3d7i8p" style="text-align: justify;">Business model in Season 19</h3>
The play stage is divided into two types: Adventure mode and Arena mode.
Adventure mode is positioned as a trial version for beginners, where they will play and battle against the computer. By playing here, in Season 19, players may be able to earn 50 SLP in crypto a day. SLP is one of Axie Infinity's two unique currencies, the other being AXS, a governance token. By the way, the price of SLP fluctuated between 0.06 and 0.4 JPY throughout 2021. Therefore, in adventure mode, even if you could earn it, it was just about a few JPY a day.
In Arena mode, it is called PVP (person vs. person), where users battle vs each other online and earn money. This is the main battlefield of Axie Infinity. All users' battle results in arena mode were ranked at any time, and rewards of 3,000 AXS were distributed to the top 1,000. In the case of the first place, there was a time when the reward was as high as several million JPY.
Furthermore, when using scholarships, the mainstream distribution includes 70% of the earned rewards are invested and 30% are players. In this case, if the player earns 1 million JPY, 700,000 JPY is the share of the investor.
In addition, the world of Luciana where Axie inhabits is divided into 301 x 301 squares called Terra, and players can obtain this tokenized land and sell it freel. Land that can be traded as real estate has a rank, and in November 2021, the parcel classified as Genesis, which is the highest rank, was sold for 550 ETH (about 286 million JPY).
<img class="responsiveImage" src="https://api.relipa.global/storage/542/5348934.jpg" alt="" />
<h3 id="mcetoc_1ga2p3d7i8q" style="text-align: justify;">Business Model Changes in Season 20</h3>
In Season 20, which was launched in February 2022, major changes were made to the above earning methods.
One of the reasons for this is that the number of SLPs issued in its own currency has become so large that its price has fallen considerably.
If the original cryptocurrency declines, the value of Axie Infinity itself as GameFi will decrease, and the existence of Axie Infinity itself may be threatened. Therefore, in season 20, the SLP provided by the operator in adventure mode was reduced to 0 at once. By suppressing the number of SLPs, the aim was to make the price of SLPs to rise again due to market forces.
In other words, the 50 SLP you could get in a day by playing in adventure mode became 0, and the 25 SLP you could get by clearing 3 daily quests also became 0.
Instead, AXS payouts in Arena mode has ] raised by an order of magnitude. Specifically, the top 1,000 was only available, but it was increased to 300,000 and 300 times, and the distribution amount increased from 3,000 AXS to over 110,000 AXS. In adventure mode for beginners and light users, there is no real reward, and by that amount, introducing a generous reward system for heavy users in arena mode, it can be said that GameFi's characteristics have become even stronger.
Until Season 19, only 1,000 AXS can be obtained, so the company switched to a strategy that gives users who had given up on high rankings a sense of hope that they might be able to reach the top 300,000.
In the blockchain game market, new popular content is appearing one after another, as if to catch up and overtake Axie Infinit. In order not to lose users to these forces, it can be said that the above-mentioned drastic incentives have been set.
<h2 id="mcetoc_1ga2p3d7i8r" style="text-align: justify;">Axie Infinity is a Ponzi scheme?</h2>
These days, especially since the middle of 2021, Axie Infinity has been attracting worldwide attention as a pronoun of P2E, but there are people who criticize its business model as a Ponzi scheme.
<h3 id="mcetoc_1ga2p3d7i8s" style="text-align: justify;">What is a Ponzi scheme?</h3>
A "Ponzi scheme" is a fraudulent scheme in which investors are solicited for investment by making a profitable investment story, but do not actually manage the investment. Investors believe that part of the profit generated by investment is being paid as dividends, but in reality, no investment is being made. Therefore, when the number of new investors disappears or decreases, this mechanism will reach its limit and will surely fail.
This type of fraud has been practiced for a long time in both the East and the West, and even in Japan, major fraud cases have come to light repeatedly at a pace of once every few years.
<h3 id="mcetoc_1ga2p3d7i8t" style="text-align: justify;">Actually, Axie Infinity is not a Ponzi scheme</h3>
The issue that determines whether Axie Infinity is a Ponzi scheme is whether or not the investor's investment is managed in some way.
In other words, in the case of Axie Infinity, is the external money when the player purchases the three Axies required for the game, or the commission when the player sells Axie as NFT. The point is whether it is used only for distribution as a reward or not.
One point worth noting here is that if a player wants to win high prizes in Arena mode, he or she should not just use the same Axie, but rather introduce Axies with high fighting power from time to time and update the strategy, one method that can be used to do this is breeding, where two Axies are used to mate to create a new Axie. There is no guarantee that a strong Axie will be born, but if you succeed, you can get a new Axie with high combat power, and you can expect to rank higher.
During this bleed, players will have to pay SLP in their own currency, which will burn their crypto assets. In other words, if the number of SLPs themselves decreases, the price will increase. In this way, Axie Infinity has a mechanism where the operator side adjusts the price, and it can be said that the element of operation is included here.
Looking at the flow of external money such as Axie purchase funds as player rewards, it can be interpreted as a Ponzi scheme. However, as long as the operator of Axie Infinity issues its own crypto assets, AXS and SLP, which are actively traded in the market, and has additional operational elements such as price adjustment by burning as described above, it cannot be called a Ponzi scheme because it can be judged that a mechanism that is difficult to fail is intentionally constructed.
In addition, Axie Infinity constantly distributes useful information on social media and dedicated sites, values ​​dialogue with the community, and otherwise makes every effort to earn the trust of many users and investors. In fact, Season 20 was also redesigned after carefully listening to the voices of the community and emphasizing their content. Considering these management stances, it is clearly unreasonable to conclude that it is equivalent to a Ponzi scheme, which is based on deceiving investors through fraud.
<h2 id="mcetoc_1ga2p3d7i8u" style="text-align: justify;">Axie Infinity - Future Potential</h2>
On March 29, 2022, Sky Mavis, the operator of Axie Infinity, announced that the Ronin Network, which is the base of the game, was hacked and about $625 million (about 77 billion JPY) was lost.&nbsp;
The outflowed funds were ETH (Ethereum) and UNDC, not including AXS and SLP. However, it was said that it included the funds of players and investors, as well as the earnings of the game, which caused a great shock to those involved. The next day, Skye Mavis announced a full refund, after which the attackers were blamed on the infamous North Korean hacking group Lazarus.
This amount of damage is said to be the largest in the history of cryptocurrencies, and Skye Mavis, who was aiming for even higher heights in season 20, was greatly disappointed. As evidence of this, AXS, which was around 9,000 JPY in March of the same year, plummeted to the 2,400 JPY level in June.
It can be said that we are now at a critical stage where the true value of Sky Mavis will be put to the test as to whether the full amount of damage can be compensated, and how much Sky Mavis can regain trust, including the establishment of measures to prevent recurrence.
No one can honestly predict what the future holds for Axie Infinity. However, from September 2021, Axie Infinity will support staking, and like many cryptocurrency projects, a mechanism has been established to receive rewards simply by depositing AXS. In addition, it is worth noting how far the P2E rule change due to Season 20 and the real estate transaction market in the virtual space will grow together with the Metaverse boom.
A notable feature of Axie Infinity, as already mentioned, is the strong tendency to pick up the voices of users and communities and reflect them in the system. That's exactly what happened with Season 20.
There is no doubt that the community-first mindset of providing an easier-to-use and more attractive environment without neglecting player dissatisfaction has won the hearts of many users and has gained strong support. Now that we are on the brink of a crisis, we must keep an eye on this critical moment to see if the management attitude of the past will speak for itself, and whether it will succeed in overcoming hardships and leading to a revival.
<h2 id="mcetoc_1ga2p3d7i8v" style="text-align: justify;">In conclusion,</h2>
The P2E business model at Axie Infinity is never static. Sometimes, like this Season 20, there are major rule changes. It can be said that this is a situation unique to blockchain games that are based on crypto assets and NFTs.
In particular, due to the interest rate hike policy originating in the United States from the end of last year and Russia's invasion of Ukraine, the cryptocurrency market in 2022 has caused considerable turmoil. Even the most popular Bitcoin and Ethereum have fallen nearly half of last year's all-time highs. Furthermore, we cannot predict or be optimistic about the trends of other altcoins such as AXS and SLP.
Therefore, even if you make money with Axie Infinity, you will need to calmly collect information, including the status of the hacking case and further rule changes, and be involved carefully.
At Relipa, we help our customers with their blockchain business. If you are thinking of DX with a safe and competitive blockchain service, please let us know. Our experienced engineers look forward to working with you.
&nbsp;

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Blockchain Future 1: Basic Knowledge about Blockchain and the Future

<div class="mce-toc" style="text-align: justify;">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1gvsl3ab6rc">The high demand for blockchain-related skills</a></li>
<li><a href="#mcetoc_1gvsl3ab6rd">Blockchain-related skills 1: Understanding cryptography</a></li>
<li><a href="#mcetoc_1gvsl3ab6re">Blockchain-related skills 2: Understanding the mechanism</a></li>
<li><a href="#mcetoc_1gvsl3ab6rf">Blockchain-related skills 3: Programming languages</a></li>
<li><a href="#mcetoc_1gvsl3ab6rg">Blockchain-related qualifications</a>
<ul>
<li><a href="#mcetoc_1gvsl3ab6rh">Cryptocurrency skill test</a></li>
<li><a href="#mcetoc_1gvsl3ab6ri">Applied Information Engineer Examination</a></li>
</ul>
</li>
<li><a href="#mcetoc_1gvsl3ab6rj">How to accumulate and cultivate blockchain-related skills</a>
<ul>
<li><a href="#mcetoc_1gvsl3ab6rk">Programming school/Mentors</a></li>
<li><a href="#mcetoc_1gvsl3ab6rl">Online course</a></li>
<li><a href="#mcetoc_1gvsl3ab6rm">Self-study with books</a></li>
</ul>
</li>
<li><a href="#mcetoc_1gvsl3ab6rn">summary&nbsp;</a></li>
</ul>
</div>
The demand for blockchain technology, such as NFT, Metaverse, and the appearance of digital currency is on an upward trend annually. On the other hand, the lack of well-rounded engineers hinders blockchain development and implementation. In plain English, in case you have a firm ground knowledge of blockchain development skills, it is not beyond the realm of possibility that your value will be highly appreciated.
Therefore, in this article, we will give you an overview of accumulating and cultivating blockchain-related skills, necessary technologies, and qualifications.
<h2 id="mcetoc_1gvsl3ab6rc" style="text-align: justify;">The high demand for blockchain-related skills</h2>
Blockchain, which has gained popularity as a foundation for cryptographic assets, is now expanding its applications not only in the financial field but also in logistics, distribution, manufacturing, health care, real estate, government, etc. The reason for this is that blockchain is an excellent system backed by advanced technology and mechanisms that are highly reliable, secure, non-falsified, and quick.
However, due to its peculiarity, the current situation is that there is a large shortage of qualified blockchain engineers to meet the needs. Therefore, it can be said that the significance of acquiring blockchain-related skills is very high.
<h2 id="mcetoc_1gvsl3ab6rd" style="text-align: justify;">Blockchain-related skills 1: Understanding cryptography</h2>
Let's take a closer look at what kind of blockchain-related skills are required.
Initially, you need to have a firm grasp knowledge of cryptographic technology which is the core component to making blockchain secure.
Specifically, you need to consolidate your knowledge of hash functions that prevent data tampering, public key cryptography, and digital signatures essential for keeping communication data confidential, multi-sig, and pseudo-random number generators in smart contracts.&nbsp;
<h2 id="mcetoc_1gvsl3ab6re" style="text-align: justify;">Blockchain-related skills 2: Understanding the mechanism</h2>
Not only is cryptographic technology required, but it is also necessary to understand how blockchains work.
All nodes are connected one-to-one by P2P, and consensus is formed as a whole so that all these nodes share the same data.
With blockchain, sometimes you can't see the other person's face at all, and you don't know who they are. Of course, there is a good chance that an untrustworthy partner is lurking. However, it goes without saying that if the validity of transactions and the authenticity of data cannot be guaranteed, the system will not function. What is essential for this is consensus building, which is called a consensus algorithm.
There are multiple methods such as PoW (Proof of Work) represented by Bitcoin, PoS (Proof of Stake) represented by Ethereum, Endorse + Ordering Service used in Hyperledger Fabric, etc.
It is also important to understand the smart contracts required to create Dapps. A smart contract is a mechanism that automatically executes a contract according to a program, which makes it possible to give various functions to the blockchain.
Read more:&nbsp;<a href="../../blogs/blockchain-future-the-expected-future-use-cases-of-blockchain" target="_blank" rel="noopener">Blockchain Future 2: The expected future use cases of blockchain&nbsp;&nbsp;</a>
<h2 id="mcetoc_1gvsl3ab6rf" style="text-align: justify;">Blockchain-related skills 3: Programming languages</h2>
A final related skill that is essential is learning a programming language.
Specifically, C++ is used to develop Bitcoin, Go language is used to implement client software "Go Ethereum" provided by Ethereum, and blockchain is used to implement blockchain on the web. JavaScript and Solidity, which are used to develop smart contracts, are the main ones.
Neither of them is new nor special languages, and they are already familiar with development sites and relatively easy to master, so if you can learn them as required, blockchain development will become familiar.
<h2 id="mcetoc_1gvsl3ab6rg" style="text-align: justify;">Blockchain-related qualifications</h2>
Let us introduce two qualifications that are effective for acquiring blockchain skills.
<h3 id="mcetoc_1gvsl3ab6rh" style="text-align: justify;">Cryptocurrency skill test</h3>
It is implemented by the Japan Cryptocurrency Skills Certification Association (JCCA). It will be a form of taking the exam after attending the prescribed course. Mechanisms, laws, and business uses of crypto assets and blockchain.
You will be able to objectively prove that you have such knowledge.
It is divided into three levels: the beginner level &ldquo;Cryptocurrency Advisor&rdquo;, the advanced &ldquo;Certified Cryptocurrency Skills Advisor&rdquo;, and the highest level &ldquo;Certified Cryptocurrency Skills Advanced Advisor&rdquo;. Beginners and advanced levels can be obtained by taking courses for a fee, taking online exams, oral exams, etc. The highest grade is premised on obtaining a cryptocurrency advisor qualification and accumulating a certain activity record.
<h3 id="mcetoc_1gvsl3ab6ri" style="text-align: justify;">Applied Information Engineer Examination</h3>
It is an examination sponsored by Information-technology Promotion Agency and is held twice a year, in spring and autumn.
This is a highly difficult qualification for those who aim to become highly skilled IT personnel who are familiar with the planning of information strategies, the realization of IT solutions, and the development, operation, and maintenance of information systems, databases, and networks. It's a tough exam lasting 5 hours, 150 minutes in the morning and 150 minutes in the afternoon.
Read more:&nbsp;<a href="../../blogs/blockchain-future-the-expected-future-use-cases-of-blockchain" target="_blank" rel="noopener">Blockchain Future 2: The expected future use cases of blockchain</a>
<h2 id="mcetoc_1gvsl3ab6rj" style="text-align: justify;">How to accumulate and cultivate blockchain-related skills</h2>
<h3 id="mcetoc_1gvsl3ab6rk" style="text-align: justify;">Programming school/Mentors</h3>
Blockchain skills require not only programming language but also a lot of learning, such as intensifying your understanding of the blockchain mechanism and acquiring software development skills. Therefore, a programming school where you can go to school or a mentor who comes to your home and teaches you is easy to maintain motivation, and you can ask questions to the instructor on the spot, which will be a great advantage.
<ul style="text-align: justify;">
<li><a href="https://careerfoundry.com/en/blog/web-development/online-coding-schools/" target="_blank" rel="noopener">MITxPRO Professional Certificate in Coding (Full-Time)</a>: You can choose between attending part-time and full-time courses. Because of the custom-made curriculum, it is possible to learn according to the progress. In the case of online, in addition to mentoring once a week, you can consult and ask questions via chat or video call, so even beginners can feel at ease.</li>
<li><a href="https://teachers.tech/" target="_blank" rel="noopener">Tech Teacher</a>: A great advantage is that you can study at your own pace according to a custom-made curriculum that matches your level and proficiency. The instructor will come directly to your home and you can ask questions on the spot if you don't understand something, so your understanding will increase considerably. You will be charged for the time you receive instruction, and you will also need to pay for transportation from the instructor's residence to your home.</li>
</ul>
<h3 id="mcetoc_1gvsl3ab6rl" style="text-align: justify;">Online course</h3>
Currently, most schools where you can learn blockchain are online classes. The location and time are flexible, and the cost is affordable, so it is recommended for busy business man or office workers and students, but if you do not have a strong will, it may be difficult to complete the course. However, if you choose a one-on-one format, it will be effective in maintaining motivation.
<ul style="text-align: justify;">
<li><a href="https://www.coursera.org/courses?query=blockchain" target="_blank" rel="noopener">Coursera</a>: Coursera is the most prevalent learning management system which covers a wide range of knowledge in various fields. Especially, a huge amount of organizations and top-notch universities provide blockchain-related courses from beginner to specialization.&nbsp;</li>
</ul>
<h3 id="mcetoc_1gvsl3ab6rm" style="text-align: justify;">Self-study with books</h3>
In theory, it is possible to learn blockchain-related skills from books. However, learning from scratch requires a strong will and takes time to learn, so the risk of setbacks is high.
<ul>
<li style="text-align: justify;">"Blockchain Revolution: How the Technology Behind Bitcoin and Other Cryptocurrencies Is Changing the World" Don Tapscott and blockchain expert Alex Tapscott&nbsp;</li>
</ul>
Don and Alex Tapscott, the authors of &ldquo;Blockchain Revolution&rdquo; clearly explain how Blockchain technology works, how it will scale in the future, and transform everything completely online.
This book also explains the different ways blockchain technology is changing the future of transactions, money, and business.
Don Tapscott, the best-selling author of &ldquo;Wikinomics,&rdquo; and his son Alex Tapscott, a blockchain expert, showcased a well-researched fundamental book on the future of the economy.
This is considered a pastime for business leaders for the next decade and beyond. According to Tapscott, this technology will enhance the provision of expanded financial services, protection of personally identifiable information, and personal and business contracts.
<ul>
<li style="text-align: justify;">"Blockchain: Down The Rabbit Hole: (Discover The Power Of The Blockchain)" by Tim&nbsp;Lea</li>
</ul>
It is recommended for engineers with development experience because it not only provides a detailed understanding of how blockchain works but also explains practical examples with specific examples.
<ul>
<li style="text-align: justify;">"Introduction to Blockchain Technology: Theory and Practice" by Shigeichiro Yamazaki, Kodansha&nbsp;</li>
</ul>
It covers everything you need to know about blockchain from basic technology to application and business use, making it the perfect textbook for engineers who want to learn in earnest. It is divided into 15 chapters according to the theme, and there are plenty of easy-to-understand illustrations, so you can study without hesitation.
Read more:&nbsp;<a href="../../blogs/blockchain-future-basic-knowledge-about-blockchain-and-the-future" target="_blank" rel="noopener">Blockchain Future 1: Basic Knowledge about Blockchain and the Future</a>
<h2 id="mcetoc_1gvsl3ab6rn" style="text-align: justify;">Summary&nbsp;</h2>
It is undeniable that the demand for skilled blockchain engineers will be on the rise in the future. If you grasp the chance and equip yourself with professional skills and knowledge, it is not beyond the realm of possibility that you obtain a better salary and career path than the people jostling with you in the queue for sought-after jobs. So why postpone it, let&rsquo;s start your career immediately.
<a href="../../contact" target="_blank" rel="noopener">Relipa has a large number of engineers who have mastered the blockchain skills introduced in this article at a high level and have extensive development experience. If you have any requests for blockchain development, please feel free to contact us.</a>

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