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# System prepended metadata

title: A Data-Driven and Principled Approach to Designing the Tokenomics of a New Blockchain-Based Game
tags: [0. Public View]

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tags: 0. Public View
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# A Data-Driven and Principled Approach to Designing the Tokenomics of a New Blockchain-Based Game

Alexis Direr, René Doursat, Benoît Laurent & Dan Biton
*Starchain Gazer, Paris, France*
**version 0.8**

## Abstract

With the advent of Bitcoin and the spectacular rise of crypto-assets, blockchain technology is now rapidly expanding to the video gaming industry. This evolution is the result of two converging trends, the "gamification of DeFi" (started by PancakeSwap) and the "financialization of games" (dating back to Monopoly). A new generation of blockchain-based games feature colorful characters and worlds that make both financial transactions more fun and the gameplay more stimulating. Active in-game trading of items and assets, an activity once reserved to expert players, is now commonplace in the open Web3 universe among casual or "midcore" types. On the other hand, compared to DeFi protocols, which focus on a handful of financial services, modelling the whole economy of a Web3 game is a daunting task. In particular, its token economics or "tokenomics" involves all the on-chain mechanisms of the circulation of game tokens, starting with their distribution among stakeholders (team, investors, and users) inscribed in smart contracts. To best prepare for this challenge, we conducted an extended analysis of established DeFi protocols (Part 1), and current or announced blockchain games (Part 2). This paper reports on our findings and how they guide the economic design of our own project, "Time Breachers" (Part 3). This new game consists of exploring, fighting, and managing resources in a complex “uchronic” multiverse composed of multiple versions of planet Earth. Given the richness of details offered by the game environment, one key decision was to rely on a *single-token economy*, where the protocol's "share token" also plays the role of "in-game currency". In part motivated by a survey that we conducted among dozens of "scholars" (full-time gamers), who strongly came out against juggling with two tokens, we also concluded that a unique token was a better choice to ensure an enjoyable, financially viable experience for the users, and a profitable venture for the token holders.

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## Table of Contents

- **1.Tokenomics of DeFi Protocols**
https://hackmd.io/@starchain-tokenomics/starchain_p1

- **2.Tokenomics of Games**
https://hackmd.io/@starchain-tokenomics/starchain_p2

- **3.Tokenomics of Starchain Gazer**
https://hackmd.io/@starchain-tokenomics/starchain_p3

- **Appendix A: Modelling a Single- or Dual-Token Game Economy**
https://hackmd.io/@starchain-tokenomics/starchain_a1

- **Appendix B: Tokenomics Compared**
https://hackmd.io/@starchain-tokenomics/starchain_a2

- **Appendix D: DeFi Protocols**
-- Appendix DS: SushiSwap
https://hackmd.io/@starchain-tokenomics/starchain_a3
<!-- Appendix DA: Aave
https://hackmd.io/@starchain-tokenomics/starchain_a5
-- Appendix DC: Curve Finance
https://hackmd.io/@starchain-tokenomics/starchain_a4 -->

- **Appendix G: Web3 Games**
-- Appendix GI: Illuvium
https://hackmd.io/@starchain-tokenomics/starchain_a7 
-- Appendix GS: Star Atlas
https://hackmd.io/@starchain-tokenomics/chain_a8
-- Appendix GX: Axie
https://hackmd.io/@starchain-tokenomics/starchain_a9
<!-- Appendix GA: Aurory
https://hackmd.io/@starchain-tokenomics/starchain_a6 -->

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