A reward token is the key asset within a play to earn universe. Usually, the token will follow the name of the game, as in the case of the AXS token for Axie Infinity, or SAND for The Sandbox. Reward tokens may also have a different structure, with additional assets such as Smooth Love Potion (SLP) added to incentivize gamers.
A reward token list can be found among the top selection of play to earn tokens, as listed by CoinMarketCap. The native tokens may serve as reward tokens themselves, or be used to generate new reward tokens.
The reward tokens can then be swapped back and forth to increase earnings. Various forms of passive income include:
- Uniswap liquidity injections
- Buying NFTs and game items
- Building up a game’s reward pool
For instance, Crazy Defense Heroes, a new game, will award TOWER tokens from a common pool, but only to players that reach a certain level of experience points.
Reward tokens are usually assets with the ERC-271 standard, or BEP-2 for Binance Smart Chain. This type of asset can be held and displayed in the most widely spread wallets for play to earn, including MetaMask, Phantom Wallet, Binance Wallet, BitKeep and others.
The advantage of reward tokens is that they are fungible and can be traded both on centralized exchanges, and to be part of decentralized automated pairs on markets like Uniswap or PancakeSwap.