Play to earn economies as base layer protocols for games

(eg. SLP earned by completing quests or battles)

For these virtual economies to retain its community members, they must fairly and transparently make decisions that have serious economic implications to their citizens such as:

Through token incentives and community ownership, we are able to unbundle the role of a publisher through a bottom-up set of contributors, players, and guilds which instead drive worldbuilding, product development, and governance.

-Faucets inject asset supply into an economy

We believe that Web 3 games will win over Web 2 and Web 2.5 games because they leverage community ownership, real economic value, and native composability to drive greater player adoption & retention. We believe that the Web 2.5 approach to building P2E ecosystems is not enough to prevent the value extraction of communities. This is because there w... See more

For economies to be sustainable, the sinks need to take more of the token supply out of the economy than the faucets that bring the token into the system, otherwise, there will be natural downward price pressure as supply increases over time.

-Monetization: eg. value accrual mechanisms, transaction fees

Economic sustainability and growth occur when the value flowing into a system is greater than the value leaving it. In game design, the mechanisms influencing value flows in an economy are sinks and faucets:

(eg. SLP burned through Axie breeding fees; breeding is incentivized in general to build stronger teams and obtain higher rewards)

-Economic policies: eg. In-game asset supply, balancing mechanisms