GameFi Trends for 2025: How P2E, M2E, and T2E Models Are Evolving

The Tap-to-Earn (T2E) model is straightforward:

• Some games reward players for watching ads, creating a win-win monetization system.
• Users earn bonuses for completing quests, leveling up, or purchasing in-game items.
• Earned points, virtual coins, and bonuses can be exchanged for fiat money, discounts, gift cards, or valuable prizes.

The Move-to-Earn (M2E) concept isn’t new, though the term itself emerged relatively recently. Gamifying physical activity existed long before blockchain games, with examples like Pokémon GO from Nintendo, fitness games for Nintendo Switch, and Wii consoles.

M2E allows users to earn financial rewards for physical activity, attracting both individuals seeking extra motivation and companies promoting healthier lifestyles. For example, the AIA Vitality insurance program rewards steps with benefits like discounts on insurance premiums.

Despite the high demand for such applications, a key challenge for M2E crypto projects remains building a sustainable and viable token ecosystem.

STEPN: Mechanics and Mistakes

STEPN is a fitness app that combines gamification and blockchain. Its core feature is NFT sneakers, which allow users to earn in-game currency $GST by walking or running.

There are different types of sneakers: Walking, Jogging, Running, and Trainer. Each category is adapted to a specific activity level. The attributes Efficiency, Luck, Comfort, and Resilience affect the profitability and wear of the sneakers. Energy limits the number of rewards per day, while quality determines the sneakers' potential and earnings. GPS and internet signal influence income stability.

The project used mechanisms to control inflation:

• Sneaker wear and tear, requiring repairs paid in $GST.
• Token division – $GST (utility) and $GMT (governance).
• Additional NFTs and customization.

However, inflation problems still arose. Like in Axie Infinity, high $GST emissions without sufficient demand led to its devaluation. Additionally, the model relied on a constant influx of new users, creating a bubble. The high entry barrier without a free-to-play (F2P) version deterred new players.

What Lessons Can Be Learned from STEPN for Future M2E Projects? Projects should implement inflation control mechanisms from the start. For example, limiting token issuance and introducing constant expenses ($GST in STEPN was used for repairs).

STEPN is limited to walking and running, whereas another application, WIRTUAL, also includes swimming, cycling, and other sports. Moreover, WIRTUAL collaborates with Garmin and Under Armour, increasing its popularity and monetization potential.

What’s holding GameFi back? The main challenge for the industry is Western skepticism. Play-to-Earn has actively developed in the Philippines, Indonesia, Vietnam, Nigeria, and South Africa, but Western players see GameFi as a get-rich-quick scheme or a scam. The overall reputation of the crypto industry undermines trust in new games, influenced by Bitcoin-related scams.

Most projects offer primitive mechanics because they focus on token speculation rather than gameplay. A new approach is needed: high-quality products with engaging design and open protocols. Another technical challenge is scalability issues and high transaction costs. The use of bridges and sidechains worsens security and the user experience.

Why will 2025 be the year of revival?

1. Scalable blockchains are evolving. The launch of Teranode in 2025 promises a public blockchain with 1 million transactions per second and fees of $0.000001. This will eliminate issues with high costs and interaction complexity.

2. The regulatory environment is becoming more favorable. After the elections, the U.S. administration created a new speculative trend in GameFi.

3. Play-to-Earn is evolving. The market is shifting from quick crypto-earning schemes to fully-fledged ecosystems. Players are no longer just miners but participants in virtual economies, where supply and demand determine asset value.

4. Easier game access. Previously, launching a game required complex steps like purchasing NFTs, setting up a wallet, and other technical procedures. New projects are making the entry process as simple as possible, lowering barriers for users.

5. Positioning has changed. GameFi is no longer trying to compete with AAA games. Instead, the industry focuses on accessibility and interaction.

This year could be a turning point for GameFi, as the industry overcomes past challenges and delivers high-quality products. Easy access, fair and balanced in-game economies, and technological advancements make the sector more promising. However, for long-term success, GameFi developers must focus not just on profits but on creating engaging gaming experiences.