Definition:

GameFi refers to blockchain-based games that integrate financial elements such as cryptocurrencies, NFTs, yield farming, and token staking into the gaming experience. 1.

Unlike traditional games, GameFi enables players to earn real-world economic value through activities like playing, owning, trading, and investing in game assets. 2.

💰 How GameFi Works:

1. Players earn tokens or NFTs through gameplay.

2. These assets are stored in crypto wallets and can be:

Traded on marketplaces (e.g., OpenSea, Magic Eden) 1.

Used for staking or yield farming 2.

Swapped for other tokens or fiat 3.

3. Game developers and communities share power via token-based governance.