Austin Castellaw

Algorithmic — The value and supply of algorithmic stablecoins are controlled by code. If the demand for the coin starts to increase rapidly, the protocol automatically creates more coins to bring the price down. If the value drops too low, some of the supply is burned to bring the price back up.

If more money is being extracted than what is being put in, then naturally the economy will eventually fall apart. Money doesn’t grow on trees after all, not even digital ones.

As players earn and extract money out of the gaming economy it puts significant downward pressure on prices, as most people are just cashing out their winnings and not reinvesting back into the game.