Game Economies and Tokenomics

Game Economies

1. Compare all values against the primary resource: time
2. Design using the scope for types of player motivations. How long would it take each player to reach a certain level with different motivations? (I.e. Socializers level up more slowly than explorers, achievers faster than killers - how to balance?)
1. Explorers
1. Find new areas and nooks and crannies
2. Achievers
1. Level up, beat the game, collects all items
3. Socializers
1. Hang out with other players
4. Killers
1. Fight bots, take on bosses and pick off other players.
3. Consider investment and non-investment resources:
1. Investment resources allow players to level up faster. (Must be limited)
1. i.e. Stats boosters
2. Non-investment resources to not affect speed of advancement.
1. I.e. clothing, skins
4. The cost system. What currency is earned when leveling up and how long does it take to earn this currency? How often can this currency be obtained?
1. What can be purchased with this currency and when (stats or level qualified purchases)?
2. Play-to-win mechanics must be carefully considered to not alienate players spending more time.
5. Deficits and surpluses
1. The costs should scale when players are in surplus or in deficit to keep them engaged and yearning for more ways to earn, without things becoming too easy or too difficult (as a function of time).

Tying in Tokenomics

1. Time scale of emissions
1. Are we trying to mega-reward early players and bootstrap engagement, or are we planning for longevity and rewarding players simply for more engagement?
2. Inflationary vs. Deflationary vs. Fixed Supply
1. Inflationary
1. Pros:
1. Constant reward available as incentive
2. Accommodates longevity
3. Can control price accessibility
2. Cons:
1. Can dilute value if the rate of cash-flow and/or burn rate become too slow/stagnant
2. Deflationary
1. Pros:
1. Positive price pressure, rewards holders
2. Cons:
1. Can price players out quickly if price appreciates too quickly
2. Can skew toward unhealthy hodling
3. Heavily dependent on careful burn mechanisms
3. Fixed-supply
1. Pros:
1. Scarcity, predictable
2. Cons:
1. Same as deflationary model

Monetary flow

Capital in, capital out. How to make tokens stick around.

1. Create multiple ways for capital to enter the system (via tokens, items (NFTs), gift cards, etc.)
2. Create incentives for capital to stay
1. Staking, frequent purchases, locking periods
2. Perks and incentive pools
3. Minimize capital leaving
1. Minimize reasons to sell

Liquidity Pools and Insurance Funds

Allow capital to flow in and out easily, while building a rainy day fund

1. Incentivize liquidity pools without emitting the native token as rewards
1. Use in-game incentives and trading fees for LP providers
2. Use a percentage of emissions and/or fees to build a treasury fund that can earn yield and act as insurance-of-last-resort for exploits

Governance mechanics

Turn the community into co-developers. Add token stickiness.

1. Allow token holders or LP providers to vote on upcoming changes, or make proposals to game changes
2. Establish minimum balances with staking periods to avoid manipulation and flash loan attacks.

Dynamic monitoring for adjustments

1. Elect community members to co-maintain with developers
2. Use automation like a robo advisor

[TO-DO: Spreadsheet variables]