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Proof of Trade vs Play to Earn: Which One is better ?

Posted by Koh Thiam Choon on May 16, 2023 - 2:25pm Edited 5/16 at 2:25pm


Proof of Trade is a novel blockchain trading economic model in the market, while Play to Earn is a new economic model that has emerged in recent years. Proof of Trade is a proof-of-transaction-based model, while Play to Earn is a game-based model.

What is Proof Of Trade? TraderDAO has introduced a new Proof of Trade (PoT) transaction verification mechanism. The POT token is minted from users’ trading fees and shares the platform’s transaction fees. The higher the trading difficulty, the higher the premium of POT. The combination of TradeGDT and POT allows users to earn additional income by acquiring POT tokens through trading while helping the platform’s ecosystem develop and further enhance TradeGDT’s learning and optimization capabilities.

                                Trading Fee Sharing Token on TraderDAO that Revolutionizes your trading journey with fee sharing rewards.

What is Play to Earn? “Play to Earn” refers to a type of game mode or game type where players can earn virtual currency or other game assets by playing games and then sell or trade them for real currency. This game mode typically uses blockchain technology to record players’ game progress and virtual asset transaction history to ensure that the game’s economic system is fair and transparent. Games with this type of mode are usually called “blockchain games” or “crypto games.”

Although they appear different, they also share some similarities. Firstly, they both use blockchain trading economic models, and their goal is to achieve fairer and more transparent transactions through games or trading, benefiting the participants. Secondly, they both adopt an incentive mechanism to motivate participants by rewarding them for their active participation.

In Play to Earn, participants earn rewards by playing games, while in Proof of Trade, participants earn rewards by trading. However, Proof of Trade is superior to Play to Earn in some aspects.

Freeing the infinite potential of traders, fair and corrective benefits for you. Firstly, the barrier to entry for participating in Proof of Trade is lower than that of Play to Earn, as it only requires daily trading to earn rewards, while Play to Earn usually requires the purchase of expensive NFTs to earn rewards. Secondly, Proof of Trade rewards are supported by an asset-backed token (POT), which is far better than game coins, as it has no bubble since it has actual asset support. Finally, as more people participate in Proof of Trade, the coin’s price becomes more valuable because its incentive mechanism is based on proof-of-transaction. Play to Earn, on the other hand, may lead to price inflation when more people participate because its incentive mechanism is based on the game.

                                                                     Train your AI trading assistant and earn $POT by trading

For example, if a person buys an expensive NFT but the number of game participants does not increase, the value of their NFT may decrease. In contrast, as more people participate in Proof of Trade, the value of its reward $POT will increase because more transactions will produce more proof of transaction.

Overall, although Play to Earn and Proof of Trade are both great economic models, Proof of Trade is a more superior choice due to its more robust and fair incentive mechanism, lower barrier to entry, and more valuable rewards.

Proof of Trade and Play to Earn are both popular blockchain applications that provide a new way for users to earn rewards. Although they each have their advantages and applicable scenarios, Proof of Trade has a lower barrier to entry and more valuable rewards.

TraderDAO register Link:https://beta.traderdao.ai/ref/LHWP2305HK
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