post
8/2/2024Following the tokenomics of Axie Infinity, many blockchain-based games, like Illuvium or Star Atlas, have chosen a dual-token model with a separation of the share token (basket random) and in-game currency (IGC). Thanks to the clear conceptual distinction between the gaming and investing functions, each token serves a well defined purpose. The IGC maintains a stable price by balancing the buying pressure exerted by new players entering the game with the selling pressure from existing players cashing out in-game rewards. The ST price increases with the growing number of players through the fees collected in the game. Despite the clear benefits of the dual-token model, some games (like Aurory or Defi Kingdom) have opted for a single-token model in which part of the ST supply is distributed to players as in-game incentives. Merging the two assets would expose the game to two opposite dangers: players with little wealth could be excluded from the game if the token becomes too expensive to acquire (lock-out risk). Conversely, in-game rewards could exert an inflationary pressure and prevent its price from increasing. The lock-out effect is best illustrated by the Ethereum native token $ETH, which is both a utility token needed to insert transactions in the blockchain and a security token whose value increases with Ethereum usage. Yet, as the price of $ETH increases, more and more users are excluded from the network. On the other hand, the single token model also presents some advantages. Distributing the main token as in-game rewards avoids the segregation of players and investor, and contributes to building a cohesive community. Moreover, the multiple uses of the main token strengthen its overall utility and market value. This note presents a simplified model of gaming economy with one or two tokens: an in-game currency (IGC) and/or a share token. We evaluate the capacity of each system to bring value to token holders on the premise that the game attracts a growing base of players.
6/17/2024post
6/7/2024post
6/5/2024or
By clicking below, you agree to our terms of service.
New to HackMD? Sign up