Play-to-Earn (P2E) games are one of the most successful Web3 innovations. This gaming model became popular in 2021, with notable names such as Axie Infinity gaining popularity to an extent of being played as a source of livelihood by tens of thousands of players in the Philippines at the height of the covid pandemic.
Fast forward to 2025, P2E games are still dominating on-chain activity within the larger DeFi and NFT economy; the most active P2E game currently, World of Dypians, recorded 2.62 million unique active wallets (UAWs) over the past month.
So, what’s the secret behind the success of P2E games? One word – Rewards! The concept of incentivized participation is the main driving force behind the massive adoption of P2E games. Most of the players who interact with P2E games are not only engaging for the gameplay but particularly keen on the rewards as well.
The success of a reward-based gaming economy has again played out in the recent tap-to-earn boom where players can simply earn rewards by tapping on their screens.
For context, this category Web3 games is built on the Telegram Open Network (TON) and leverages Telegram’s mini app, allowing players to seamlessly tap on a specific game to complete quests, in-game tasks or other initiatives in exchange for rewards. Although still a nascent niche, the tap-to-earn gaming ecosystem currently enjoys a total market of $1.3 billion according to real-time data from Coinmarketcap.
That said, let’s dive into some of the reasons why rewards are a game-changer in the new gaming models being pioneered by Web3 innovators.
The Thrill of Incentivized Competition
Similar to the thrill Web2 games such as Fortnite and Call of Duty (CoD) provide to tens of thousands of players who participate in their competition events, Web3 games offer an equally mind-racing thrill.
One of the Web3 gaming ecosystems that seems to have mastered the art of incentivizing players to engage with its portfolio of games is Funtico. This full stack chain agnostic Web 3.0 gaming platform features several games, including a racing game dubbed Formula Funtico and a tap-to-earn game, Lucky Funatic, on its Telegram Entertainment Hub.
Both of these Web3 games on Funtico offer incredible rewards to players; for example, the Formula Funtico game has held several tournaments, with some prize pools going as high as 15, 000 USDT among other prizes. Lucky Funatic, on the other hand, has attracted over 500,000 registered users so far, thanks to its reward model which includes a raffle of up to 100,000 USDT.
With Funtico set to launch its Token Generation Event (TGE) for its utility token $TICO on January 27th, the thrill of engaging with the games on this ecosystem is about to get better. Gamers who play Funtico’s games will now have the flexibility to not only purchase more advanced in-game assets, but also exchange their rewards for other valuable assets outside Funtico’s ecosystem.
Player Owned Rewards
Another reason why the incentivization model in Web3 gaming has been successful is the fact that rewards are not owned by game publishers as is the case with Web2 games; in contrast, Web3 players maintain full control over the rewards they receive by engaging with specific games or completing certain quests. But what exactly does this mean?
Let’s take the example of a Web2 game like CoD and compare it with an incentivized Web3 game such as Gods Unchained to better explain the difference. In CoD, the in-game or rather brand assets are fully owned by the game publisher, Activision. That being the case, any goodwill or monetary value derived from players using these assets exclusively belongs to Activision. While this may be the status quo in Web2, it is not as lucrative compared to an economy where gamers directly owned their assets.
Web3’s decentralized approach is a strong psychological reason why a game like Gods Unchained is more attractive, especially to players looking for more value than mere entertainment. This Web3 game gives players full control over their in-game items, allowing them to trade, sell or use their digital card (NFTs) they wish.
This concept of player-owned rewards has been fundamental in attracting users across the divide, including gamers and top game publishers like Ubisoft, Square Enix, Atari and Konami which are now exploring Web3 options.
Reward-Focused Dopamine Loops
The dopamine loop created by top play or tap to earn games has also been instrumental in the adoption and retention of Web3 gamers. Most of the popular play-to-earn games, including Axie Infinity, Illuvium and Guild of the Guardian all feature a dopamine loop strategy that is further enhanced by the reward models in place.
Let’s start with Axie Infinity; this pioneer play-to-earn game is based on a breeding mechanism where players are tasked with constantly seeking rare or valuable Axies for breeding. This means that players are continuously engaging in a dopamine loop chasing to increase the value of their next generation ‘Axies’.
As for Guild of the Guardians (GOG), this mobile action RPG game features several types of dopamine loops; hero collection and upgrading, dungeon crawling, looting rewards, crafting and trading NFTs, among others. Combining these dopamine loops with a reward model tied to different achievements is undoubtedly a major factor in the success of this industry.
Wrap Up
Reward structures have proven to be successful across several initiatives, including loyalty programs and now blockchain gaming. While the space may not be as active compared to when NFTs peaked, it is quite evident that rewards have kept the Web3 gaming ecosystem going. This approach to gaming will likely define the next era of games where rewards will not just be a passive initiative but a core part of future gameplays.
