Why Watch-to-Earn will Outshine Move-to-Earn

The Move-to-Earn (M2E) phenomenon emerged in early 2022 as an offshoot of the Play-to-Earn (P2E) space, where, instead of users earning crypto tokens by playing blockchain-based games, they earn tokens for engaging in exercise activities like walking, dancing, jogging and running. P2E attracted supporters and detractors in equal measure, with many devout gamers unable to see the wisdom in turning a much-loved hobby into a mere job. M2E, pioneered by projects like STEPN (GMT), leaves gamers to their games while tweaking the basic P2E formula by incentivizing users to do something that’s beneficial for their health - engaging in physical activity. While this may seem like a noble aim - and one that is mutually advantageous for the project and the end-user - the M2E concept still suffers from a few niggling pains. First and foremost, users must buy into the M2E concept by purchasing NFTs which currently – in the case of STEPN – range in price from around $30 to over $1,500. What’s more, the NFTs required to participate in the process come in varying levels of efficiency, with higher levels generating more rewards for the user. Naturally, the top-level NFTs have a more expensive initial price. The NFTs are also tied to a pre-set speed level, and if users don’t match that speed every time they run, jog, or walk, they miss out on the promised returns. Enter Watch-to-Earn (W2E) Given that we still inhabit the early stages of cryptocurrency adoption, even if the M2E movement managed to attract the entire cross-section of blockchain enthusiasts who are already fitness fanatics, the numbers would still be incredibly low. Getting paid for finally addressing one’s health issues may appear enticing at first, but with extravagant buy-in costs and paltry rewards, expecting previously inactive users to kick-start a fitness program that lasts more than a few days might be a step too far. Whereas M2E rewards users for their active participation, Watch-to-Earn (W2E) apps reward users for their passive participation, distributing crypto tokens for time spent consuming content on video streaming sites. Unlike M2E, the W2E concept builds an economy model around an activity that many (if not most) people engage in every day. YouTube has at least 122 million active . daily users As in the case of the XCAD Network (XCAD) - an upcoming W2E project - YouTube and Twitch users can install a browser plugin and start earning passive rewards for watching their favorite content creators straight away, without any initial buy-in costs. Creators can issue their own unique tokens exclusive to their channel, and deliver rewards to community members directly. Tokens can then be traded on a dedicated platform, along with user-created NFTs featuring memorable moments from their favorite streams and videos. XCAD has already onboarded YouTubers with more than 500 million subscribers combined onto its platform. These YouTubers will be issuing their own fan tokens on the platform, meaning they will promote XCAD and their tokens to their audiences. Users will be able to track fan token value on - similar to Coin Market Cap. Influencer Market Cap Economizing Smartly W2E doesn’t require any additional costs or equipment, but instead natively overlaps with something that’s already a daily activity for most denizens of the internet. There are no barriers to entry, such as having to purchase an NFT to participate, as is the case with many M2E applications and P2E games. Like the multitude of so-called P2E “games” which offer players token rewards for what is essentially one-click yield farming, the M2E craze grabs attention at first glance but rests upon a use-case that struggles for genuine uptake beyond opportunists and profiteers. Applying a token economy to dApps and NFT platforms has become a de facto norm in the DeFi space and has resulted in a mass of tokens and platforms that are generally inapplicable, useless, or even worse - joyless. For any kind of ‘X-to-Earn’ mechanics to take hold, they will have to be applied to suitable activities and be sustainable in the long run. W2E doesn’t just throw money at an application in the hope of attracting an initial wave of profit-seekers. Instead, it seeks to build on the engagement already found on major video content sites like Twitch and YouTube, while adding an economic model that can benefit creators and their audiences, while further stoking audience engagement and consumer loyalty. With over 1 billion hours of YouTube content being watched daily, W2E models that reward viewers are bound to reign supreme in the “-to-earn” space.

Why Watch-to-Earn will Outshine Move-to-Earn

Too Long; Didn't Read

Company Mentioned

Coin Mentioned

@andersonbhann

RELATED STORIES