๐ฑEconomy Systems
Economics of the soft currency (in-game)
The basis of tokenomics for POCKETSPACE relies on the Quantity Theory of Money, which states that the general level of prices for goods and services is directly proportional to the money supply. For example, should the supply of money in an economy increase by 2%, prices would also follow a proportional increase, bringing in inflation of 2%.
The Quantity Theory of Money is formulated through the Fisher equation:
MV = PT
where M is money supply, V is the velocity of money, P is the Price Level and T is the volume of transactions. The equation has been applied to crypto economics before in valuing Level 1 chains (e.g., Token Velocity is Good and Other Implications of Analyzing MV=PQ from First Principles) and to Web2 games. Holm and Makinen (2018, New World of Warcraft expansions significantly increase the money supply, which brings inflation to Gold, the currency of the game) show that new World of Warcraft expansions significantly increase the money supply, which brings inflation to Gold, the currency of the game.
In monetary analyses, V and T are often assumed as constant variables, and hence there is a direct relationship between M and P. Hence, to increase or decrease the inflation in an economy, M has to be changed. The table below shows how POCKETSPACE will increase and decrease the money supply M of the soft currency through different channels. Numbers of brackets indicate which sub-section describes the mechanism in more detail.
Each element in the table for increasing or decreasing the number of tokens can be adjusted by the game developer to control the rate of the game's soft currency. For example, a game developer can change the prices of resources, prices for buying keys for chests, the price for producing recipes, merge weapons, and so on.
Exchange from resources to soft currency (and vice versa)
A player can mine N different resources in the game, which the player can then exchange for the soft currency. The preliminary exchange rates are described below. Note that the exchange rate can be edited by the development team to balance the economy and gameplay.
Table: Soft currency economics
The transaction for resource โ soft currency happens between the user and the game developer. Resources are locked at "the house" of the game developer and can be repurchased by other players.
The reverse exchange rate is multiplied through the Reverse Transaction Coefficient. At launch, it is equal to 0.9, meaning a user will get an exchange rate * 0.9 resources for their token. For example, wood can be bought with tokens at a rate of 100 * 0.9 = 90 wood resources per token. This is done to encourage resource collection in the game (the core gameplay mechanic) and discourage back-and-forth trading between resources.
If there are not enough resources in "the house" for the reverse exchange to be purchased, the resource is not available for exchange.
The number of tokens that a user can receive per day is limited. We don't expect users to hit the cap on average, as it will take about 8 hours of pure play to do so.
In the future, it is also planned to transfer part of the trade from "the house" to the free market. On the exchange, players will be able to exchange resources with each other directly. Players will have the opportunity to place orders for the purchase and sale of tokens, and thereby create an exchange glass.
Win tokens (soft/hard currency) in challenges and events
To encourage daily participation of players in the game, the game offers daily challenges and events in which players can get tokens. Modeled after Axie Infinity, a user can generate approximately $0-$2 in daily challenges simply by playing the game for a certain amount of time.
Buy chest keys
Players complete dungeons and can receive rewards for successful completion. This is either a separate weapon, resources or a chest. On average, up to 1 chest will be given for completing the dungeon.
Users can purchase chest keys to open NFT chests by burning tokens. Depending on the rarity of the chests, the price of the key will differ.
The cost of the keys is fixed N$ in the equivalent of the number of tokens. The number of tokens is dynamically adjusted using the market exchange rate. Keys for seasonal chests will have their own unique value.
Approximate cost of keys:
Win and lose tokens in PvP challenges
Players will be able to compete against other players in a PvP arena. At the beginning of a PvP match, players can wager bets on them winning in a match. The winner of the match then gets 95% of the total wagered tokens. The 5% of tokens are then burnt and removed from the money supply. The 5% rate is similar to rake in poker, where the dealing house takes a rake out of every play.
There is no limit as to how many times a player can take part in PvP, and hence the upside and downside are not limited.
Merge weapons
Users can combine weapons into new weapons or level up weapons. The higher the boost level, the greater the value in soft currency. The initial merge costs about $1 at exchange prices in soft/hard currency. The spent tokens are burned and a part is sent to the developers.
Crafting Items from Recipes
Players can drop NFT recipes in chests. All items in the game are made through recipes. To make NFT from recipes you need:
Soft/Hard currency
Resources
Rare items require more tokens, more resources, and resources of higher rarity to create. Recipes are disposable. Crafting an item takes N time.
Average player reward
Activity in the game is rewarded to the user through the following logic:
Table: Token reward
According to the table, the average player per day will play 2 hours per day. During this time, the player will be able to collect resources for $0.5. If a player plays for more than 2 hours, their total income for the day is limited to resources, the total cost of which is up to $2.
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