DeFi Kingdoms: Moving towards Games-as-a-Service

The current Play-to-earn (P2E) landscape is largely based on a premium model, in which users must purchase NFTs in order to begin playing. However, this has resulted in a high barrier to mass adoption. Recently,  there has been a growing trend toward freemium, a hybrid of free-to-play (F2P) and premium models that allows players to start out with non-NFT assets and then upgrade to NFTs for more competitive gameplay and better rewards. Examples include Axie Origin, Aurory, DeFi Kingdoms, and Thetan Arena.

Regardless of the model used, all blockchain-based games follow the Games-as-a-Service (GaaS) model, a business model that enables perpetual monetization of game content, typically via subscriptions or in-game purchases. It is an emerging model for Web2-based games that has been popularized by World of Warcraft, Fortnite, and Candy Crush. Unlike the traditional games, which are primarily pay-to-play or single-release titles such as Elden Ring and Call of Duty, GaaS is designed to maintain player engagement and extend the life of the game.