Consumers want to be paid to learn, move and more — if the terms are right. For companies, this approach can drive user engagement, customer acquisition, loyalty and revenue.
X-to-earn is the business model in which companies pay people to do things that traditionally are not remunerative. The activities may be new to the participant or something they already do without compensation. Our recent survey shows that x-to-earn, despite a bumpy start, has the potential to disrupt industry segments and change the way we work, walk and behave.
Rewarding specific consumer activities or behaviors is not a novel idea, but the emergence of web3 technologies — blockchain, tokenization, smart contracts, programmable payments — has expanded its potential and boosted interest. These technologies emerged during the COVID pandemic when millions of people were stuck at home seeking entertainment, wellness, diversion and extra income — creating optimal conditions for businesses to capitalize on the x-to-earn concept. From move-to-earn exercise programs to play-to-earn video games, businesses pounced on the opportunity to drive user growth and revenue.
Consumers point the way to successful programs
People want to earn at least $100 per month, but many are open to non-cash forms of payment.
To understand consumer interest and sentiment, we surveyed 1,063 people in April 2023, targeting Millennials and Gen Z individuals living in the U.S.
There are lessons to be learned from programs that pay participants to play, move, learn, create, generate, share and more.
X-to-earn use cases
People prefer activities that don’t require special equipment or skills. And they don’t want to cash in on friends and family.
A closer look at consumer insights
They prefer x-to-earn activities with a low barrier to entry
The activities participants were most interested in being paid for were providing reviews, learning something new, being active and playing video games. These are activities most people can perform without specific equipment (such as a certain type of computer or solar panels) or a special talent (such as the ability to write music).
Activities that produced less interest among participants were creating content, music or art; generating renewable energy; and sharing excess computing power.
Survey respondents were asked for their views on various x-to-earn activities, the minimum pay they would require to enroll, alternative forms of payment and which factors (beyond financial reward) would encourage or discourage them from participating. Here are the takeaways:
Three winning use cases
Our research and survey suggest these uses are most likely to unlock value for consumers and companies — review-to-earn, learn-to-earn and move-to-earn.
Consumers express a high level of interest in being paid to provide reviews.
Most potential participants (65%) were willing to share their habits and preferences.
Review-to-earn was particularly appealing to women, older Gen Z and Millennials.
Review-to-earn
Keep an eye out for more of our upcoming Signals reports, covering themes such as the sustainable future, reimagined money and immersive commerce.
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Reimagining Money
Money will include tokenized assets and other new forms of value.
A tokenized
world
1
Complex, conditional commercial payments will be automated to speed commerce.
Programmable payments
2
Next-gen e-wallets will manage our identities, assets, payments and more.
3
Ubiquitous wallets
4
Our assets will be accessible in any environment.
Connected finance
Payments will break through today’s geographic and digital boundaries.
Borderless rails
5
Next-gen points of interaction will drive new ways for consumers to pay.
Unleashing
acceptance
6
New financing solutions will empower underbanked people and communities.
Inclusive
credit
7
Consumers will increasingly spend with companies that align with their values.
Conscious consumerism
8
Trust will become a critical point of differentiation for companies.
Embedded
trust
9
Money will include tokenized assets and other new forms of value.
A tokenized
world
10
Complex, conditional commercial payments will be automated to speed commerce.
Programmable payments
11
Next-gen e-wallets will manage our identities, assets, payments and more.
12
Ubiquitous wallets
13
Our assets will be accessible in any environment.
Connected finance
Payments will break through today’s geographic and digital boundaries.
Borderless rails
14
Next-gen points of interaction will drive new ways for consumers to pay.
Unleashing
acceptance
15
Signals
Q3 2023
Respondents are more interested in x-to-earn activities they already perform, specifically exercising and playing video or mobile games. How often they participate in the activity does not appear to matter: people like the idea of getting paid for leaving reviews, for example, even though most of them do this only occasionally. Respondents are least interested in being paid for activities they never do, such as generating renewable energy or excess computing power and creating content, music or art.
There is one exception to this pattern. People frequently recommend products to friends and family, but most said they don’t want to be paid for it. Perhaps they feel a conflict of interest or moral discomfort about taking payment for recommending products to friends and family.
People want to get paid for familiar activities but resist the commoditization of friendship
There is a minimum threshold for engagement
Most participants said they would need to earn more than $100 a month to enroll in an x-to-earn program. The average minimum rate varied by activity, ranging from $111 to $253 per month.
Respondents expected to be paid the most for playing video games and exercising — even though these were activities they already participated in frequently for free. They also expected to be paid the least for the activities they were least interested in getting paid for. Perhaps there’s a connection: Did they lack interest because they assumed the payoff would be low?
Many are open to alternative forms of payment
We asked respondents if they would be more interested in being compensated in an alternative to dollars — discounts, vouchers, company-specific tokens or cryptocurrency. In each case, 40% to 50% said they would.
Cryptocurrency was the least appealing of the four alternatives, particularly among women and the younger cohort (18-24). Discounts were preferred to other alternatives, with only slight variations between age and gender groupings.
It may be that people prefer discounts because that’s what they’re accustomed to receiving from brands today — or perhaps they believe discounts would have greater value than cash payouts.
More than getting paid
Most people were more motivated to participate in an x-to-earn program if the activity involved was fun, healthful or productive. They were less motivated by the prospect of supporting companies they believed in or of helping the environment.
The 18-24 and 25-34 age groups were most likely to be motivated by the chance to be productive, while the 35-42 group was most likely to be motivated by activities that encourage healthier habits.
Review-to-earn programs may be viable for a wide variety of B2C companies. Those with an existing customer engagement channel that can introduce the concept have an advantage.
crypto
vouchers
discounts
tokens
less interested
no
change
more
interested
tokens
less interested
no
change
more
interested
discounts
less interested
no
change
more
interested
vouchers
less interested
no
change
more
interested
crypto
Change in interest level based on reward type
Level of relative appeal (utility score)
Create content, music, art
Generate computing power
Generate renewable energy
Freelance work
Share data with companies
Endorse/recommend products you use to friends and family
Play video or mobile games
Exercise/be active
Complete online learning
Provide reviews about services you use
-20
-15
-10
-5
0
5
10
15
20
25
30
Most appealing by age grouping
25-34
35-42
males
females
Most appealing by gender
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
endorse
10
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
review
09
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
share (excess)
08
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
share (data)
07
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
learn
06
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
create
05
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
generate
04
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
move to earn
03
work to earn
There are various models but here is a typical example:
• The gaming company issues in-game tokens to which they ascribe a value
• Users must purchase the tokens to buy something on the gaming platform e.g. a weapon
• Players exchange their own currency for these in-game tokens
• New players incur a fee for purchasing in-game currency, and the transaction fees represent another revenue stream for the game.
You are financially rewarded for achieving a task in a video game. For example, you play a video game and receive an automatic and immediate payment for getting to the next level.
The play-to-earn model has gained popularity in recent years, particularly with the rise of blockchain-based games that allow for the creation and exchange of digital assets. Usage of play-to-earn games grew 2000% during the first 3 months of 2022, but has recently declined. After peaking at over 2.7 million players in January this year, Axie Infinity, a non-fungible token-based online video game, now has fewer than 750,000 active players. However we believe that P2E may experience sustainable traction.
"Play-to-earn" refers to a model where players can earn cryptocurrency or other forms of value in exchange for participating in a video game or other digital platform. In this model, players can earn rewards by completing certain tasks, achieving certain milestones, or by simply playing the game for a certain amount of time. These rewards can then be traded, sold or used within the game's ecosystem, or exchanged for other types of currency or value.
definition
examples
scenarios
business models
02
A successful platform can attract and retain users.
The popularity of play-to-earn games has been mercurial:
In Axie Infinity, an NFT-based play-to-earn game, players can breed and collect digital pets (known as Axies) and battle other virtual creatures in return for Smooth Love Potion (SLP), the platform’s cryptocurrency. SLP can be traded on cryptocurrency exchanges and converted into Ether or fiat currency.
Players are financially rewarded for completing a task in an online game — receiving an automatic and immediate payment for reaching the next level in a video game.
overview
potential
benefits to providers
to earn
play
They were most interested in being paid to provide product reviews, learn something new, play video games and be physically active.
They prefer to be paid for activities they already do — not for those that would be new for them.
Most said they were comfortable entering x-to-earn programs with a wide variety of companies. Top choices were video game and streaming services, supermarkets, and apparel companies.
Most would need to earn at least $100 a month to participate. Interestingly, a sizeable group would prefer non-cash payments — including discounts, vouchers, cryptocurrency and company-specific tokens.
Most are willing to share their personal data to participate.
Capturing personal consumer data should pose no signification barrier for companies who require it
Companies should align x-to-earn activities with the target audiences’ interests rather than expecting them to do new things.
Make it easy to enroll in programs and to use the payments.
Companies should budget at least $100 per month per participant — and experiment with alternative types of payments that participants value.
Activities should be fun and have positive outcomes — encouraging participants to be more productive or healthier, for example.
Here are takeaways for B2C companies exploring how to implement broadly appealing x-to-earn programs:
These platforms often foster strong communities and fan bases — and the value of the platform increases as more players join.
The play-to-earn model can create a self-sustaining economy where players buy, sell and trade virtual assets. Providers earn revenue from transaction fees, commissions and marketplace activity.
Providers have attracted the attention of investors, the media and potential partners, which can lead to growth opportunities.
Increased adoption and engagement
Community growth and the network effect
Increased revenue
Partnership opportunities
Move-to-earn experiences can offer gamification to keep users engaged.
Increased adoption and engagement
Lowering costs
Environmental impact
Retention and productivity
By encouraging mobility and healthy habits, employers and health insurance companies can lower medical expenses.
Governments, cities and residents could benefit from the lower emissions and reduced congestion that walking and biking promote.
Employers could benefit from increased productivity, lower staff turnover and better workforce morale if employees are more active, healthier and experiencing greater wellbeing.
In the web3 move-to-earn sector, market cap surpassed $1 billion in May 2022, then fell below $300 million in 10 months.8
WheelCoin is a web3 move-to-earn platform that rewards users for making environmentally friendly mobility decisions.
Players are rewarded for participating in physical activity, for the purpose of exercise and/or to encourage low-emission mobility. These programs typically use wearable devices, mobile apps, geo-tracking or other technologies to monitor and record participants’ movements and reward them for meeting goals or milestones.
to earn
move
Reputation, trust and credibility
Encouraging wellness could bolster an organization’s reputation.
benefits to providers
definition
examples
potential
ExAMple
Feb 2020
EArlY
2022
May 2023
10,000 unique monthly users
2.8 million
400,000
On the other hand, there are signs that play-to-earn has a strong future:
play-to-earn NFT games market
Early 2023
PREDICTED 2028
$3.3 billion
$8.9 billion
of all blockchain activity in early 2023 was gaming
Players are rewarded for participating in physical activity, for the purpose of exercise or to encourage low-emission mobility. These programs typically use wearable devices, mobile apps, geo-tracking or other technologies to monitor and record participants’ movements and reward them for meeting goals or milestones.
WheelCoin is a web3 move-to-earn platform that rewards users for making environmentally friendly mobility decisions.
ExAMple
benefits to providers
overview
potential
to earn
move
Move-to-earn experiences can offer gamification to keep users engaged.
Increased adoption and engagement
Lowering costs
Environmental impact
Retention and productivity
By encouraging mobility and healthy habits, employers and health insurance companies can lower medical expenses.
Governments, cities and residents could benefit from the lower emissions and reduced congestion that walking and biking promote.
Employers could benefit from increased productivity, lower staff turnover and better workforce morale if employees are more active, healthier and experiencing greater wellbeing.
Reputation, trust and credibility
Encouraging wellness could bolster an organization’s reputation.
Participants are rewarded for learning a skill or commanding specific knowledge. They might be paid for correctly answering questions about information shared in instructional texts, modules or videos.
Coinbase, an early mover in the learn-to-earn space, pays people for successfully completing educational modules that cover various cryptocurrencies. In Q4 2021, this program earned Coinbase $20 million in ad revenue.
ExAMple
benefits to providers
overview
potential
to earn
learn
Merchants can drive interest by educating users about their products and their benefits.
Increased adoption and engagement
Lowering costs
Environmental impact
Retention and productivity
By encouraging mobility and healthy habits, employers and health insurance companies can lower medical expenses.
Governments, cities and residents could benefit from the lower emissions and reduced congestion that walking and biking promote.
Employers could benefit from increased productivity, lower staff turnover and better workforce morale if employees are more active, healthier and experiencing greater wellbeing.
Reputation, trust and credibility
Encouraging wellness could bolster an organization’s reputation.
The market is projected to increase by a 14% compound annual growth rate (CAGR) in the 2023 to 2032 period.
Participants are rewarded for passively producing energy at their homes — solar or wind energy.
Powerledger is a blockchain-based peer-to-peer trading platform that lets people sell solar energy they generate to others. Users can buy and sell energy using the Australian company’s native token (POWR) and earn rewards for their contributions to the network.
ExAMple
benefits to providers
overview
potential
to earn
generate
Driving revenue and lowering costS
Generate-to-earn program providers can attract a wide range of participants by providing infrastructure and software and making it easy for people to trade and earn money.
Higher engagement
Providers can generate revenue from the transaction fees associated with energy trades. They can also improve market efficiency and optimize supply-and-demand at scale for suppliers.
NFT technology supports contracts that allow creators to earn royalties each time their work is resold, potentially establishing a sustainable source of income and enabling them to capitalize on the appreciating value of their work.
People are rewarded for creating content. A participant might write and share a song and get paid each time it’s streamed.
Income for artists is often low.
ExAMple
benefits to providers
overview
potential
to earn
create
Successful platforms can attract partnerships with industry players, brands, media companies and advertisers. These may lead to revenue-sharing agreements, more users and increased engagement.
Partnerships and collaborations
Community growth
Increased revenue
Rich data and insights
New users join as they see creators successfully monetize content.
Providers can earn revenue by charging transaction fees, market maker fees and advertising fees.
As creators and consumers interact with the platform, providers can gather valuable data and insights about user behavior and preferences, trends and forecasts.
There are many avenues for new revenue streams, including fees for transactions, data storage and protection, identity management and verification.
Driving revenue
Rich data and insights
Partnerships and collaboration
Diverse and high-quality data from individuals could be used for research, analytics, machine learning and product development.
Providers can facilitate collaboration by matching individuals and organizations whose objectives align.
Share-to-earn is happening today in web2 form, but few people are participating. Instead, tech companies such as Meta and Google are paid for their users’ data.
Users are paid for providing something they have in excess — perhaps computer processing power or network capacity.
Digi.me is a UK-based startup that helps consumers take control of the personal data they generate through their online activities. Its technology platform allows companies to build apps that ask consumers if they want to share their data in exchange for payment.
EXAMPLE
benefits to providers
overview
potential
to earn
share
Successful platforms can attract partnerships with industry players, brands, media companies and advertisers. These may lead to revenue-sharing agreements, more users and increased engagement.
Partnerships and collaborations
Community growth
Increased revenue
Rich data and insights
New users join as they see creators successfully monetize content.
Providers can earn revenue by charging transaction fees, market maker fees and advertising fees.
As creators and consumers interact with the platform, providers can gather valuable data and insights about user behavior and preferences, trends and forecasts.
Users can earn rewards for writing reviews about products, services and consumer experiences.
Many companies are doing this today on a web2 level. Web3 review platforms, such as Tested Web, aim to democratize the review industry by using a decentralized autonomous organization (DAO) where users own their content, vote on governance issues and earn rewards.
ExAMple
benefits to providers
overview
potential
to earn
review/
endorse
Here’s what we learned:
Potential risks
Q: Apart from financial reward, what would most motivate or encourage you to get involved in a program like x-to-earn where you earn money automatically and instantly for doing the types of activities mentioned? (select up to 3)
+ hover dots to learn more
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
49%
if it could bring me enjoyment or fun
0%
10%
20%
30%
40%
Review-to-earn poses threats due to its potentially misaligned incentive structure. Reviewers might not be completely truthful and candid in their feedback and recommendations if they are writing reviews to earn something rather than simply to share their opinions.
In addition, companies may be tempted to cross ethical boundaries given the power of reviews to impact revenues. Here are two examples:
Companies that deploy a review-to-earn strategy can win trust by clearly stating that honest reviews are paramount and negative feedback will not impact reviewers' earnings.
In 2012, Yelp was accused of extorting businesses by offering to remove negative reviews in exchange for advertising payments.
In 2018, Amazon was found to be hosting thousands of fake reviews for products for sale on its platforms. Some of these reviews were posted by companies that paid people to write positive reviews, while others were posted by individuals who received free products in exchange for positive reviews.
It may be hard to measure move-to-earn results unless companies collaborate with providers of smart watches and wearables. There is also a risk in storing sensitive health data.
As an educational platform, learn-to-earn can pose some ethical questions. It is essential for companies to ensure they are educating objectively and that their “right” and “wrong” answers are valid and comprehensive.
Potential risks
Learn-to-earn programs can work for a wide variety of B2C companies. Those with an existing customer engagement channel that can introduce the concept have an advantage.
There is a high level of interest from consumers.
Learn-to-earn is especially appealing to women, younger Gen Z (18-24) and older millennials (35-42).
Learn-to-earn
Companies that deploy a review-to-earn strategy can win trust by clearly stating that honest reviews are paramount and negative feedback will not impact reviewers' earnings.
Potential risks
Move-to-earn could be a good fit for companies involved in health or exercise, such as health insurance companies and gyms. It could also benefit employers.
Move-to-earn is one of the most appealing use cases. It consistently ranked highly across genders and age groups.
Most participants were willing to share information about their habits and preferences (65%) as well as their health data (56%).
Move-to-earn
Learning new things and playing video games
Posting reviews and doing exercise
Providing reviews and learning something new
Playing video or mobile games and exercising
Exercising and learning something new
50%
60%
52%
if it could encourage me to be more productive (e.g. spend time learning)
52%
if it could encourage me to be more healthy (e.g. get more exercise)
27%
if it could help a company I use and like to be more successful
27%
if it could help the
environment
40%
if it could give a sense of increased productivity due to my earning while I do things I already do
4%
none of the
above
48%
e-Learning market value IN 2022
Review
Participants are rewarded for recommending products to their friends and families. If they recommend a shampoo, for example, they are paid automatically and immediately when their friend buys it.
ENDORSE
N26, a European neobank, gave customers €50 when people signed up using those customers’ referral codes. Similarly, Hello Fresh offers vouchers to customers who share referral codes with friends and family.
ExAMple
Review
ENDORSE
18-24
web3 move-to-earn sector market caps
Community growth and network effect
Providers can grow their network and community as they attract users.
Loadteam and Hyperlink are companies that pay people for their excess desktop computing power, while Storj pays for storage space.
EXAMPLE
DATA
EXCESS
This model involves generating income from physical and digital assets by sharing them with others. Airbnb and VRBO are well-known web2 examples that allow people to share their properties for a profit, but the share-to-earn scheme could extend to less obvious assets, such as high-ticket items and excess computing power.
MARCH 2023
May 2022
2022
The U.S. residential solar photovoltaic technology market, valued at $14.2 billion in 2022, is expected to grow at a CAGR of 15.3% from 2023 to 2030.
OF U.S. HOMES
In 2020, 3.7% of U.S. homes generated electricity from small-scale solar arrays, as did 1.6% of commercial buildings, reports the Energy Information Administration.
sHARE DATA
Participants are rewarded for sharing their personal data, which companies typically use to improve marketing efforts or develop products and services.
sHARE EXCESS
per stream
$0.0033
per stream
$0.01
Which of the activites do you already do?
generate computing power
generate renewable energy
create content, music, art
freelance work
share data with companies
complete online learning
providing reviews about services you use
play video or mobile games
endorse/recommend products you use to friends and family
exercise/be active
0%
20%
40%
60%
80%
100%
never
rarely
sometimes
often
always
Sources
1. https://dune.com/dcfraiche1/STEPN-Metrics
2. https://www.financebrokerage.com/stepn/
3. https://www.coindesk.com/business/2022/06/06/move-to-earn-application-stepn-suffers-cyber-attack-after-upgrade/
4. https://www.financebrokerage.com/stepn/
5. https://activeplayer.io/axie-infinity/
6. https://cointelegraph.com/news/gamers-made-up-nearly-half-of-all-blockchain-activity-in-january-dappradar-report
7. https://finance.yahoo.com/news/play-earn-nft-games-market-123250571.html
8. https://www.coindesk.com/consensus-magazine/2023/03/13/move-to-earn-has-a-ponzi-problem-culture-week/
9. https://rankfi.com/learn-and-earn-crypto/
10. https://rankfi.com/learn-and-earn-crypto/
11. https://www.grandviewresearch.com/industry-analysis/us-residential-solar-pv-market-report
12. https://pv-magazine-usa.com/2022/10/28/nearly-4-of-u-s-homes-have-solar-panels-installed/
13. https://4irelabs.com/articles/music-artists-earn-with-web-3-0/
14. https://www.qualtrics.com/blog/online-review-stats/
15. https://www.inc.com/young-entrepreneur-council/why-customer-reviews-are-crucial-to-your-small-business.html
16. https://influencermarketinghub.com/nano-vs-micro-influencer-marketing/
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2
3
4
5
6
7
8
9
10
11
12
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13
15
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Amidst the hype, however, were failures that dampened interest. STEPN, a move-to-earn app that rewards users with tokens for running, walking or jogging is one such cautionary tale. The company initially experienced huge growth, launching in December 2021 and surpassing 700,000 daily users by May 2022. However, users soon realized it wasn’t as straightforward to earn money as they originally thought, and STEPN suffered a serious cyberattack. Its daily user count fell below 100,000 by October 2022 and to fewer than 10,000 in July 2023.
The x-to-earn concept initially spurred excitement and hype, but that was followed by disappointing results and declining interest. Today, however, it merits another look. With thoughtful execution, x-to-earn offers consumers a chance to earn passive and real-time income, and companies an opportunity to drive engagement, customer acquisition, loyalty and revenue. It is one way we see the concept of value exchange evolving as we study consumer needs, expectations and behaviors and on enabling technologies including real-time payment networks, distributed ledger technology, smart contracts, and tokenization.
The evolution of value exchange
This emerging business model can succeed when companies get the details right
X-to-earn
form an opinion on a product after reading one to six online reviews
of Consumers
Review sites are part of a $13-billion global affiliate marketing industry growing about 10% per year. More than 90% of consumers read reviews before making a purchase
14
of Consumers
There is a growing trend for companies to partner with “nano” influencers — those with small, authentic networks. As a result, this is a viable source of income for amateur influencers.
say they would buy a product recommended by a friend or relative.
NFT