What started as simple coin collecting has now become complex economies with real-world value. From gold coins to blockchain-backed tokens, virtual economies are shaping the modern gaming experience. Learn how in-game currencies have become a major factor in all types of online games.
Often, we find ourselves paying for new game assets or using our XP points to unlock new levels. Further, many of us gamers have played World of Warcraft, The Legend of Zelda, and similar games of their class, where we trade tokens for gear. This is also found in simple mobile games like online rummy, endless runner video games, and puzzle games, where game tokens either allow us to play or let us make in-game purchases.
Let’s delve into the history, evolution, and impact of in-game currencies on gaming and real-world markets.
Why In-Game Economies Matter More Than Ever
Wherever we open a fresh account on any gaming platform, we are greeted with welcome bonus tokens. These allow us to play, and as we play and win, we gain more tokens.
Then, these tokens allow people to make in-game purchases as well as unlock new levels. However, this is just the beginning.
No player wants to lose their game progress, and tokens are a major part of that. Thus, in-game economies not only make for an engaging gameplay but are also a major driver for user retention.
The Early Days: Score-Based and Single-Use Currencies
As children, many have played the Classic arcade games, which took paper tickets or plastic tokens as currency. These evolved to virtual tokens that allowed you to play. This was followed by subscription model games such as those offered by Xbox and PlayStation.
Then came the token prizes, such as gems and gold coins of the early RPGs, such as Final Fantasy and The Legend of Zelda. Players could exchange these gems or gold for gear and upgrades. There was no persistence or exchange, the tokens were just a part of the internal narrative.
The popularity of token prizes led to the roll-out of in-app purchases. As an estimate, in-app purchases have generated a revenue of USD 200 billion in 2024 across the globe. It also accounts for 55% of the revenue generated by mobile games.
The latest development here is the Blockchain and NFT-based game tokens, which further improve the gaming experience.

Chart 1: The timeline of development for in-game currencies.
MMORPGs and Persistent Virtual Economies
The first virtual worlds with their own economy were introduced by adventure games such as Ultima Online, World of Warcraft, and RuneScape. Each adventure game came with its own in-game items and currencies that could be saved, traded, and hoarded.
These in-game currencies became a measure of the player’s skills, some even allowing players to level up using in-game tokens. Even black markets emerged for trading virtual gold/items. Not only did the game token help attract players, but it also retained the existing players.
Many games also opt for dual-currency systems using either coins or gems, along with XP points. Some games also developed around the idea of microeconomy, allowing players to take up activities like mining, farming, crafting, and trading. This has given players the opportunity to experience mock forms of commerce and trade, which include virtual real estate, goods, and currency exchanges.
Introduction of Microtransactions and Premium Currencies
Following the virtual economies of action-adventure games came the “Freemium” model that offered free access with paid advantages. This facilitated in-app purchases (IAPs), which have turned into a billion-dollar industry
Player and game development trends have shown a shift from pay-to-play to pay-for-convenience type games. Further, microtransactions are a growing trend in mobile games.
Online rummy apps, puzzle games, and even endless runner video games use tokens that you win to purchase assets and customize your experience. These form a mix of pay-to-play and pay-for-convenience models.
Cryptocurrency, NFTs, and Web3 Gaming
Modern games allow players to own assets created using NFTs. Further, blockchain-based Web3 games secure the player profiles, making them decentralised and transparent. Though challenges are present in terms of sustainability, regulation, and player exploitation, it just opens up room to work on.
Further, it makes transactions seamless and secure, offering a safer gameplay. Mobile games like puzzle games and online rummy involve transactions for both accessing fresh games and making in-game purchases. Though most of these do not use tech like blockchain or NFTs, they can only improve by applying these.
The Blurring Line between Real and Virtual Economies
The virtual economies in games draw their reference from real life and the livelihoods in developing countries. In-game tokens are just as exchangeable as fiat currency, the gaming economies mimicking the real-world markets and policies.
Since the legal framework is yet to catch up with the rapid developments, challenges remain in terms of legal, regulatory, and ethical considerations.
With the action-adventure games, players can get a first-hand experience of a microeconomy. However, rummy app and puzzle games do not offer the same. Instead, they use the pay-to-play and pay-for-convenience strategies for microtransactions that are a tried and true source of revenue for gaming operators.
Where Virtual Coins Meet Real Value
From simple points to entire economies, in-game currencies have evolved into serious financial systems that influence how we play. However, this has not stayed limited to action-adventure games. From in-game purchases to microeconomics, virtual coins have created a second-to-none gaming experience.
Want to Experience In-game Currencies?
Download a simple mobile game like an online rummy app or a puzzle game, get tokens, and experience in-game currencies in play.
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