Library · Crypto, word by word · Tokens and supply
What is GameFi?
GameFi, short for game finance, is a name for blockchain games where in-game items, currencies or rewards are tokens that players own and can trade. Some games run their rules on the blockchain itself; others use it only for the items.
What it means for you
Rewards paid in a game's own token depend on new players and buyers, and many play-to-earn economies have collapsed when that demand fell. An item you own on-chain is only useful while the game that gives it a purpose keeps running.
How it works
ethereum.org describes games where rules and state are enforced by the blockchain rather than a studio's servers, and others that use the chain only for features such as owning assets. In-game assets can be fungible tokens or NFTs, tradable between players for other assets or tokens, with a public record of ownership and transfers.
Source: ethereum.org: Gaming on Ethereum · checked 5 October 2026
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Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.