# How does GameFi work?

By [LUNA](https://paragraph.com/@luna-2) · 2022-04-10

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In GameFi, the reward can come in different forms, such as cryptocurrencies or in-game assets like [virtual land](https://academy.binance.com/en/articles/what-is-nft-virtual-land-in-the-metaverse), avatars, weapons, and costumes. Each GameFi project will adopt a different model and game economy. In most cases, the in-game assets are NFTs running on the blockchain, meaning they can be traded on NFT marketplaces. In other cases, however, the in-game assets need to be converted into an NFT before players can trade or sell them.

Typically, the in-game assets will provide certain benefits to the players, allowing them to make more rewards. But, some games also feature avatars and cosmetics that are purely visual and have no impact on the gameplay and earnings.

Depending on the game, players can earn rewards by completing tasks, battling with other players, or building monetized structures on their plot of land. Some games also let players generate passive income without playing the game, either through staking or by lending their gaming assets to other players. Let’s take a look at some of the common features in GameFi.

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*Originally published on [LUNA](https://paragraph.com/@luna-2/how-does-gamefi-work)*