Scholarship/Scholar refers to a system or individual within the blockchain and cryptocurrency ecosystem, particularly in play-to-earn (P2E) gaming, where a player (scholar) is granted access to a game or platform by a sponsor (often called a manager) in exchange for sharing a portion of the earnings. This arrangement allows individuals who may not have the financial means to invest in the required assets, such as NFTs or tokens, to participate in the ecosystem and earn rewards.
What Is Scholarship/Scholar?
A scholarship in the blockchain and crypto space is a collaborative arrangement where a manager provides the necessary resources, such as NFTs or in-game assets, to a scholar, enabling them to participate in a play-to-earn game or platform. The scholar uses these assets to generate rewards, which are then shared between the scholar and the manager according to a pre-agreed split.
The term “scholar” refers to the individual who actively participates in the game or platform, leveraging the provided assets to earn rewards. This system is particularly prevalent in blockchain-based games like Axie Infinity, where owning specific NFTs is required to play and earn.
Who Uses Scholarships/Scholars?
Scholarships are primarily used by two groups of people:
- Scholars: These are individuals who want to participate in play-to-earn games but lack the financial resources to purchase the required assets, such as NFTs or tokens.
- Managers: These are asset owners or investors who lend their assets to scholars in exchange for a share of the earnings. Managers often oversee multiple scholars, creating a network or “guild.”
This system benefits both parties: scholars gain access to earning opportunities, while managers generate passive income from their assets.
When Did Scholarships/Scholars Become Popular?
The concept of scholarships gained significant traction in 2021, coinciding with the rise of play-to-earn games like Axie Infinity. As the cost of entry into these games increased due to the rising value of NFTs and tokens, scholarships emerged as a solution to lower the barrier to entry for new players.
The COVID-19 pandemic also played a role in popularizing scholarships, as many individuals, particularly in developing countries, sought alternative income sources during economic downturns. The scholarship model provided a way for people to earn money remotely by playing blockchain-based games.
Where Are Scholarships/Scholars Most Commonly Found?
Scholarships are most commonly found in the play-to-earn gaming sector of the blockchain industry. Games like Axie Infinity, Pegaxy, and Splinterlands have implemented systems where players can earn rewards by playing, making them ideal platforms for scholarship arrangements.
Geographically, scholarships are particularly popular in regions with lower average incomes, such as Southeast Asia, Latin America, and parts of Africa. Countries like the Philippines, Venezuela, and Indonesia have seen a surge in scholars, as the earnings from play-to-earn games often exceed local minimum wages.
Why Are Scholarships/Scholars Important?
Scholarships are important because they democratize access to blockchain-based play-to-earn ecosystems. By lowering the financial barrier to entry, scholarships enable individuals who might otherwise be excluded to participate and benefit from the opportunities provided by blockchain technology.
For managers, scholarships offer a way to maximize the utility of their assets, turning idle NFTs or tokens into income-generating tools. For scholars, they provide a chance to earn money, gain experience in the blockchain space, and potentially improve their financial situation.
Additionally, scholarships contribute to the growth and sustainability of play-to-earn ecosystems by increasing the number of active participants, which can lead to greater adoption and community engagement.
How Do Scholarships/Scholars Work?
The scholarship system typically operates as follows:
- Asset Provision: A manager provides the scholar with the necessary assets, such as NFTs or tokens, to participate in a game or platform.
- Gameplay and Earnings: The scholar uses these assets to play the game and earn rewards, which may include cryptocurrency, NFTs, or other in-game items.
- Revenue Sharing: The earnings are split between the scholar and the manager based on a pre-agreed percentage. For example, a common split might be 70% for the scholar and 30% for the manager.
- Monitoring and Support: Managers often provide guidance, training, or support to scholars to help them maximize their earnings and improve their performance.
The process is typically facilitated through smart contracts or third-party platforms that ensure transparency and fairness in the revenue-sharing arrangement.
In conclusion, the scholarship model has become a vital component of the play-to-earn gaming ecosystem, fostering inclusivity and collaboration while enabling individuals to participate in and benefit from blockchain-based opportunities.
