Making money online isn’t a novelty. In anything, it has become an essential source of income for many of us. It’s easy to find appreciation for the convenience of working from home (or a beach in Bali, for the lucky ones), without the hassle of having to go to an office, clocking in and out, doing the whole Monday through Friday drill.
There’s no arguing with the fact that there are countless ways of monetizing one’s skills and hard-work on the internet. However, the growing adoption of blockchain technology is presenting new ways of earning money, from playing your favorite online game and exercising regularly to learning new content or simply watching YouTube videos.
It might sound too good to be true that you can get paid for doing the things you already enjoy doing, but the X-to-Earn model has become quite the rage lately.
The technology is still evolving, which means that many more crypto monetization models are likely to keep appearing over time. But right now there are a few X-to-Earn strategies taking off:
- Play-to-Earn (P2E): Rewards paid based on performance in blockchain-based games
- Learn-to-Earn (L2E): Students can be compensated for sitting through lessons, competing assignments and quizzes
- Move-to-earn (M2E): Meant to incentivize physical activity and fitness, users are rewarded for being on the move
- Watch-to-earn (W2E): Users earn rewards for watching videos and other forms of digital content
- Create-to-earn (C2E): Allows users to create and monetize content with NFTs
The rise of X-to-Earn is tied to the development of Web 3.0, the expansion of blockchain-based digital economies and important concepts such as content ownership, proof of authenticity and economic opportunity in a new digital era.
In other words, this model has the potential to transform how we work and engage with our favorite activities, especially when it comes to monetizing one of our most precious assets - time.
Today, we’re exploring the X-to-Earn phenomenon and have a detailed look at the most common strategies currently used.
Top X-To-Earn Models
First off: what is X to Earn? Very simply, it's a business model powered by blockchain technology where users earn cryptocurrency rewards for doing a range of activities. Now that we know what X2E stands for, let’s dive into concrete examples of how it all works.
Play-to-Earn (P2E)
The leading crypto monetization model - and by far the most widely adopted so far - has been play-to-earn. Its rise has been tied in particular to the gaming industry, looking to shift from legacy gaming studios and titles to Web 3.0-based mechanics.
As you might have gathered already, play-to-earn (abbreviated as PE2) allows players to earn rewards with real-life value in return for spending time inside a game, battling other users, progressing through different levels, completing tasks and winning competitions. As this model continues evolving, the range of incentives has also been widening.
Earning by playing games is arguably the major reason behind the success of crypto games such as Axie Infinity, The Sandbox and Gods Unchained.
Unlike traditional gaming, P2E puts players right at the center of the gaming engine, driving virtual economies based on tokens - also known as NFTs. Simply put, non-fungible tokens are units of data stored on a blockchain. They act as a unique digital identifier of assets and thanks to blockchain technology, their authenticity, ownership, provenance and traceability can be easily established.
In gaming, the use of NFT has proved beneficial to the ecosystem, with players given the opportunity to fully own their in-game assets and monetize them on the open market.
Let’s take a closer look at a concrete example.
Axie Infinity is a P2E game where players can breed and collect digital pets (known as Axies) and battle other virtual creatures in return for the SLP (Small Love Potion token). SLP is an ERC20 token that can be traded through cryptocurrency exchanges and converted to ETH or real-world, fiat currency. Given how easy it could be to make money with PE2 games, it’s been reported that many players have even made it a full-time occupation in some countries.
Another point of attraction of this crypto monetization model comes from how these online games are structured. P2E mechanics reward users, that much we know, but they’re also looking at involving their audiences at a much deeper level.
By having governance and utility tokens attached to gameplay, PE2 games put players at the center of the decision-making process, opening new possibilities for the evolution of a particular game and its community.
Learn-to-Earn (L2E)
Learn and earn. Sounds like a winning combination… and you would be right. This specific model has been gaining traction in the crypto space as more users become interested and try to educate themselves on topics such as cryptocurrencies, blockchain, Web 3.0 and the metaverse.
The idea is straightforward.
On L2E platforms, you have the opportunity to read articles, complete quizzes, watch videos and tutorials on a wide range of subjects, among other tasks. In return for your hard work in acquiring new skills and knowledge, you earn tokens.
As you can see, this is very different from mainstream education models, where students pay to learn.
Learn to earn programs are a great asset, especially for crypto beginners, as they provide educational resources while distributing tangible incentives to those involved. And, perhaps most importantly, they also pave the way for the democratization of education as learners don’t need any particular qualifications or previous knowledge to get started with L2E.
When it comes to this specific X-to-Earn model, there are two main variants:
- Learn and Earn Programs offered by centralized exchanges: typically, users have to complete tasks and rewards are directly tied to features of the exchange.
- Learn and Earn Programs offered by projects or their partners: in this scenario, users typically provide the addressers to their crypto wallet to a project or a partner associated with it. Upon completing tasks, they transfer their rewards to these addresses.
Ready to give it a go?
Binance is a leading crypto exchange that has a wide offering of educational courses through Binance Academy and its Learn & Earn programs. Here, you’ll find articles on numerous blockchain-related topics, ranging from beginner's guides to overviews of more advanced information.
As for other great resources where you’ll find plenty of crash courses, CoinBase or CoinMarketCap are two learn to earn platforms you’ll definitely want to check out.
Move-to-Earn (M2E)
The Covid-19 pandemic - together with the unfolding success of PE2 games - marked the onset of a new blockchain trend based on the idea of rewarding users for keeping physically active.
This X-to-Earn model can be seen as a subset of GameFi, putting together gaming, decentralized finance and fitness.
The NFT rewards attached to M2E differ from game to game, but generally speaking users can expect to get incentives (tokens) for exercising, from a regular walk to swimming and jogging, completing tasks or entering fitness challenges.
With M2E apps, the move you move, the more you earn. To get started, all you’ll need is a smartphone or wearable with movement detection capabilities. Based on GPS-enabled features like location and distance covered, for example, the ME2 application is able to convert your fitness activity into in-platform rewards.
There are other ways of earning money with move-to-earn. Imagine you’re having a slower day and don’t want to miss out on your daily tokens. In that case, you can choose to mint new NFTs, trade your collection, rent your virtual assets or token staking.
The explosion of the move-to-earn trend can largely be attributed to the hype generated by the STEPN app. More than just letting you win and collect some really cool NFT sneakers, this platform is known for its generous rewards that come in the form of Green Satoshi Tokens (GST) and the Green Metaverse Token (GMT), in return for walking, jogging and running.
There are many other attributes that make STEPN a unique M2E app, from claiming to be the first full-fledged Web 3.0 app to being the first fitness application to be built on the Solana blockchain. If you’re interested in trying out STEPN, we've put together a guide that will help you take the first steps.
Wellness-to-Earn (W2E)
As the name suggests, Wellness-to-Earn rewards users for investing and improving their well-being, in particular their mental health. This X-to-Earn model can be seen as a subset of Move-to-Earn, only that you won’t have to just to move to get your tokens, but there you can keep it light with other activities such as:
- Meditation and mindfulness
- Focusing on positive behaviors
- Having quality sleep
- Giving mental health support to others
Much like M2E, Wellness-to-Earn apps track participant’s progress through a device such as a smartphone, fitness tracker, or smartwatch. In return for your commitment to leading a healthy lifestyle, you can be rewarded with in-platform tokens and other perks such as discounts at wellness stores.
Watch-to-Learn (W2E)
If you’re not feeling particularly active (or nerdy), watch-to-learn might be a tempting alternative to the other X-to-Earn structures we’ve covered so far. It’s also a familiar concept to most of us, who already spend our days watching videos on YouTube or reels on TikTok and Instagram.
This business model allows users to earn digital tokens for watching videos. Yes, it’s that simple.
Video content is undoubtedly a massive market. After all, the global digital video content was worth $151.4 billion in 2021 and is expected to reach a staggering $391.1 billion by 2027.
In the midst of this growth, watch-to-learn has registered some interest from content creators and consumers alike. Whether from your computer or smartphone, with W2E you’ll be able to watch videos, movies and TV shows in return for, you've guessed it, crypto rewards.
There are still very few platforms dedicated to watch-to-earn. However, you might be interested in testing XCAD Network, which allows Youtubers and Twitchers to create fan tokens and NFT moments. Moreover, viewers can earn regards and get the opportunity to govern a creator’s decisions through a plugin that works directly on these content hosting platforms.
Here are some of the benefits of this model:
For creators: W2E opens an additional monetization avenue based on enhanced fan experience. It also helps increase connection and engagement with audiences, leading to greater loyalty and more watch time.
For fans: Token holders can earn, stake and trade their assets in return for real-world financial benefits. They also get to have a say on what their favorite creator is producing via governance tokens.
ViralUp is another Web 3.0 application that combines Watch-to-Earn with Share-to-Earn mechanics, rewarding creators and users for posting, viewing, commenting and liking content with $VIRAL tokens.
Create-to-Earn (C2E)
The advent of blockchain technology and the subsequent emergence of crypto-based applications has transformed the ways in which we produce, monetize and contact with content. This is certainly true in the context of NFTs, which have largely helped popularize X-to-Earn models.
Create-to-Earn is yet another way of supercharging the creator economy, particularly in virtual environments such as the metaverse.
This model is particularly aimed at empowering creative experiences and content creators by enabling fair and transparent rewards for their creative skills. The advantages of this model are two-fold: it’s an easy way for fans to support their favorite creators while collectors have a chance to profit if their digital assets appreciate over time.
So how does C2E work? It’s simple. All you have to do is create a new digital asset (content), be that a new avatar, skin, piece of digital art or music track, mint it as an NFT and sell it.
You’ve probably come across it when playing some of the most popular Play-to-Earn games, which rely heavily on C2E to promote greater amounts of user-generated content to power their platforms.
Some of the best creator-centric games include Roblox, The Sandbox, Minecraft, Splinterlands and Axie Infinity, as they put no limitations to the kinds of virtual creations players can unleash within their ecosystems, from new structures to in-game characters, mini-games and other NFT assets.
The Create-to-Earn model is also being leveraged by metaverses such as Sensorium Galaxy. Inside it, users can create original content and sell or trade NFTs through the platform’s marketplace, making the metaverse a community-owned experience.
Participate-to-Earn (P2E)
This blockchain monetization model will reward you for participating in activities. P2E is particularly popular with crypto projects that devise systems that gamify the participation and completion of tasks by participants.
The more a user is active and contributes toward a project, the higher their token rewards. The idea behind participate-to-earn is that you’ll be able to use your unique talents and in-demand skills to further Web 3.0 projects you believe, but lending your contribution to them - and even owning a stake in the platform.
Some of the tasks you might be asked to perform include writing code and optimizing applications, writing articles and social media content, and testing products. Under the P2E model, participants may be eligible to join a Decentralized Autonomous Organization (DAO), which will let them enjoy voting rights and have a direct say on project-related decisions.
Bottom Line
As you may have noticed, there are a myriad of ways when it comes to making money with X-to-Earn. Replace the X with any reasonable (read legal) activity, and you’re off to the races. That said, we are just at the nascent of the crypto industry, so whatever future direction X2E takes is anyone’s guess. Except, perhaps, that it’s reasonable to expect growing interest for this particular blockchain segment and more activities to be increasingly monetized with X2E.
