The shift in higher education toward more flexible and student driven learning models has increased the need for platforms that go beyond traditional evaluation methods and existing assessment systems. This paper introduces Quiz Arena, an ai powered, web-based quiz hosting platform that integrates Artificial Intelligence for faster content generation and a wallet system that provides real-time rewards to both creators and participants. The platform allows university students to host quiz events while also supporting effective preparation for placement assessments and competitive examinations. Existing solutions such as Quizizz and Kahoot offer short term engagement through gamification, but lack collaborative creation tools, peer to peer incentives and AI generated question that align with higher education discipline. Quiz Arena bridges this gap by facilitating collaborative quiz rooms where users can host or compete in quizzes live and by introducing a learn to earn model that rewards quiz creators and top performers via virtual currency-based distribution which can be converted into real rewards. The platform is built using a modern MERN stack (MongoDB, Express.js, React.js, Node.js) and incorporates GPT 4o API for dynamic MCQ generation and validation. A wallet-based system that manages quiz entry fees, payouts and balance with transparency and security. Testing results from real users and internal testing indicate an increase in student engagement along with qualitative improvements in motivation, retention, and self-directed learning. By combining real time collaboration, generative AI and reward-based systems, Quiz Arena offers a scalable and participatory alternative to traditional top-down educational tools. It contributes a unique architecture for integrating gamification, peer monetization, and intelligent content generation in university level assessment and learning platforms.