Magic doesn't usually use knockout tournaments, where if you lose, your out.
We usually use a Swiss-system tournament.
https://en.wikipedia.org/wiki/Swiss-system_tournament
As an example, let's visualize a small 8 player, 3 round tournament. Each round's match is 1 on 1 PvP
After round 1, 4 players won (1 pt), 4 players lost (0 pt). For round 2, the 4 winners are paired against each other, the 4 losers are paired against each other.
After round 2, figuring wins and loses, 2 players have 2 pts, 4 players have 1 pt, 2 players have 0 pt.
For round 3, the 2 pointers are paired together, the 1 pointers are paired together, the 0 pointers are paired together.
After wins and losses, 1 player finishes with 3 pt (winner), with 3 having 2 pt, 3 with 1 pt, and one luckless fellow with 0 pt.
Each player gets to play the entire tournament, with prizes distributed according to where you placed.
Of course, with more players and rounds, and the possibility of draws (1/2 pt) the player distribution gets more complicated. ;)