Can GameFi really make money? The evolution from CryptoKitties to Axie Infinity.

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If you haven&#39;t figured out what GameFi is yet, now is the time to learn. In simple terms, it combines the financial attributes of Decentralized Finance with gaming, allowing you to earn tokens while playing games.## From Virtual Cats to a Real EcosystemWhen CryptoKitties burst onto the scene in 2017, no one expected a game about raising virtual cats to gain such immense popularity. However, this Ethereum-based NFT game opened a door – it turned out that on-chain assets can indeed have market value.The real explosion came from the DeFi wave in 2020. Axie Infinity and The Sandbox not only allow you to earn tokens but also further increase value through DeFi operations like staking and farming. This is the complete picture of GameFi.## You Need to Understand the Three Core Mechanisms**1. Dual Token Economy**SLP (Smooth Love Potion) and AXS (Axie Infinity Shard) of Axie Infinity are typical examples. One is a daily in-game reward, while the other is a governance + value-added tool.**2. NFT Ownership**The LAND of The Sandbox and the virtual plots of Decentraland are digital assets that truly belong to you and can be freely traded. This is fundamentally different from the item systems in traditional games.**3. Player Governance**Many projects allow token-holding players to participate in game decision-making, which is the true spirit of Web3.## What Does GameFi Look Like NowThere are roughly these categories by type:- **Play-to-Earn**: Games like Axie and Splinterlands, which earn tokens by completing tasks and battles.- **Creation**: The Sandbox, Decentraland, create games, sell land, monetize creativity- **Collectible**: CryptoKitties, Sorare, rarity is value- **DeFi Integration**: My Neighbor Alice, Aavegotchi, seamless connection between gaming and financial operations## The Fundamental Difference from Traditional GamesIn traditional games, your equipment, characters, and achievements are only valuable within the game. GameFi is different—your NFT assets can be traded directly on marketplaces like OpenSea for real purchasing power. Moreover, you have the right to vote and participate in the evolution of the game, rather than passively accepting the developers&#39; decisions.This is true asset ownership.## Which chain to run onEthereum is the home base, but high gas fees have caused many new projects to turn to Polygon, Solana, and BSC, which are L2 and alternative chains. Solana, due to its fast speed and low costs, has now attracted many GameFi projects.## How to Move ForwardAt this stage, GameFi is still niche. However, once the metaverse truly takes off and major companies enter the scene (some are already exploring), GameFi may no longer be an "edge" financial product, but rather the infrastructure for mainstream games.SAND, AXS, and MANA are all being observed. The key is whether the projects can balance the profit-making mechanism with a genuine gaming experience—currently, many are too focused on making money and not enough on the game itself.