Another thought piece on my most recent Alien (Worlds) encounter. One of the most addictive features of the fastest growing blockchain game comes from the fact that players are able to earn money through mining in the game. It's honest work and not particularly hard. You are given a shovel and a ride to a planet of your choice. The golden standard mining rig would be 3 x standard drills. Affordable and efficient. However, with the recent Binance Launchpool listing has suddenly catapulted the game to somewhere amongst the planets. What used to cost 50 cents for 3 drills is now nearly $20 per drill on Atomichub and rising fast. In my previous article, I mentioned making a small profit from mining TLM and selling at the Binance listing. I was able to keep my tools and continue on with my journey.
Semi-passive income: ~2 TLM per hour x say 15 waking hours (I tried not sleeping the days leading up to the listing to get to the minimum amount, would not recommend) x current price around $0.5 x 365 days = ~$4,380 per year or $365 per month if you never miss a click. Let's say you miss 20% of it - that is still over ~$3,500 per year for a few clicks in a game. This is also a reason why the tools have increased astronomically because of the Return on Investment: let's say you had to buy 3 drills for $30, theoretically you'll be able to get that back after playing for 2 days and the rest is profit.
My current set up: 2 x standard, 1 x gasrigged extractor (I threw in the extractor because I wanted something with higher TLM mining and it was the only thing at the time within my budget of what I was willing to spend on a game) or 3 x standard drills for quick plays
Land: Somewhere where the charge time is 3x because I only need to do a few clicks every hour instead of 30 minutes or less
My plan: Continue mining until I get bored or the economics don't make sense anymore...because I feel like that's the only thing I'm doing it for at the moment anyway (spoiler I'm not a big gamer). I want to experiment and try and see how much of the semi-passive income I can actually hit. Maybe I'll report back in a year's time if the game is still around.
Passive income: Early adopters had the chance to purchase the limited land in the game. Land owners offer their land for mining and in return, the miners pay a % commission set by the land owner. The land owner also get a slice of the daily trillium allocation depending on the land rating. Just to pick a random example, this land owner gets about 100 TLM commission from 13 parcels of land so on average ~8 TLM per land per day + daily trillium allocation (paid weekly) (this allocation amount is unknown...but I've heard it's in the hundreds). This land owner's particular strategy seems to be to set the commission at 20% which probably will get the new gamers that had just entered into the game. Everyone ends up changing to a land with low commission.
On the secondhand market, the price of land is approximately $9,000+ depending on type. So if anyone is remotely considering purchasing land should think about the following:
Return on investment (based on $0.50 per TLM):
10 TLM per day x 365 = 3,650 TLM = 5.5 years pay back period
20 TLM per day x 365 = 7,510 TLM = 2.7 years pay back period
30 TLM per day x 365 = 10,950 TLM = 1 year pay back period
Since my initial tools investment has already paid itself off, the next step would be to consider investing in the land since you can earn in your sleep. But with every investment comes with potential risks as well:
- Price of TLM drops
- TLM payout is lower than anticipated due to decreasing miners or poor promotion
- External competition from other blockchain games, existing or upcoming
- Unable to sell land pack for at least the initial purchase price
So let's sensitise the price because that will be the known variable the above will impact:
Return on investment (based on $0.25 per TLM):
10 TLM per day x 365 = 3,650 TLM = 11 years pay back period
20 TLM per day x 365 = 7,510 TLM = 5.4 years pay back period
30 TLM per day x 365 = 10,950 TLM = 2 year pay back period
Basically your pay back period doubles because the price halves. No one can really predict the price of TLM in the future, but it gives you an idea of potentially how long you have to wait to get paid back before making a passive income.
For now, I think I will pass on this strategy. It's too much concentrated risk in one game for my liking. The price of land will probably go up from $10,000 as more and more features are released, but it's not a comfortable amount for me to drop in a single game, especially not knowing whether this game will even be around in 10 years time.
I've read up about the developers and they seem very competent to deliver the upcoming features. I feel quite optimistic about this game's future and will continue to passively play to earn TLM. And maybe one day, I'll have stacked enough sats to get a piece of real estate on another planet besides Earth.
Until then, keep stacking!