Where does the money come from.
The aim of this article is to explain the internal tokenomic system and discuss possible solutions necessary to obtain the sustainability of the game as a whole.
To begin with, it's relevant to address the issues of possible attack vectors that might influence the economy and bring an end to the worlds most popular crypto based game.
To sustain the economy and retain current prices of both #AXS and #SLP it's important that an external inflow of newly added #ETH outscales internal outflow! In other wards, there has to be more #ETH coming to the system rather than going out. In order to keep the track and create a balance between buyers and sellers there are different mechanics that might work.
To begin with, the utility of the token comes form the possibilities this token offer, the more things you can do the better.
Given that there's already a financial incentive included simply by playing the game, adding both social and status related utilities should work just fine. The general narrative regarding the game has quickly become Play to earn and the number of players who're actually buying it for the sake of the competition is slowly but surely decreasing. On the other hand it's becoming obvious that the number of people selling #SLP without a plan of contributing is increasing as more and more people with the same mindset enter the field. See, the balance is getting thin.
To get a full picture here are a few possible scenarios that could ocure.
Increased demand for Axies
Axie prices go up > Breeding profitability goes up > SLP/AXS demand for breeding increases > SLP/AXS prices go up
Too much SLP earned in Battle
SLP inflates > SLP price goes down > Breeding costs go down > More Breeding > Axies inflate > Axie prices go down until Breeding becomes less profitable
It's all interconnected and the game needs more balance.
Demand
Perhaps the idea to follow the traditional gaming systems isn't bad, because they provide nothing in return, other then experience (which is huge but I'm refferreing to economic value) and yet, for some reason people spend hours and hours both playing and buying in game items.
Sure, axie has yet to become that type of game you'd play even if it wasn't for the incentives.
I've already talked about similar things but I have a feeling downtrend spiral is inevitable if the game retains the status quo or even if it doesn't follow the increased pace of the new users.
For the game to be sustainable on the long run there has to be a big community that gains other values besides an economic incentive. Weather we're talking about social bonding, status flexing or anything else. People will pay for something that makes them feel special, and that should be obvious by now. I have explored some different in game mechanics a lot of people talked about and I feel it's going to be big, however, it depends on when it will be implemented. Time is crucial factor.
Land will introduce significant new game mechanics that players could gain more intrinsic gameplay value from that will drive more Axie demand. In addition, there will also be demand for Land itself which will drive new ETH into the ecosystem. Players will be able to feel more ownership over a particular space in the game that they want to improve regardless of monetary gain [think Animal Crossing!]. The overall concept of just hanging out in Lunacia with friends, fighting monsters together, and participating in various activities sounds very exciting on its own. This brings in MMORPG style gameplay which is extremely popular and fun!
This could provide intrinsic reasons anyone who's not exclusively economically motivated to hold a land. Perhaps the land will be bought by managers who want to have the virtual place to spend some time with their scholars - this might be good utility.
What I'm afraid of though, is that land won't be cheap and mass spending won't get trendy, but it will play the role, that's certain.
It's a good step forward and the pandemic might have a positive impact on this one. It surely depends on how will the mode be executed, if Marivs manage to make people wanting to hang out in this new virtual reality, that's going to be huge.
In game skins and avatars are always a good thing. The ability to earn or buy skins is massive for the game dynamics, and while it may sound trivial, skins are the only revenue most game oriented games have, and it works just fine! As already mentioned in my previous post regarding tokenomics, skins that are earned for the championships should we worth the most!!
Adding additional utility to Axies through new experiences such as land, mini-games. This also adds utility to Axies beyond their effectiveness in fleeting metas.
That's something worth considering as well. Given that there's no more info about it I will stay reserved and wait until they release more information.
Transition is imporatant, too understand your biggest strenghts and weaknesses is equally important as it can use you as a common ground for the further expansion.
I was just wondering why they haven't implemented any of the advertising fees to begin with. Advertising fees and sponsorships will probably come as they enable tournaments and different modes.
Advertising fees and sponsorships. Many projects are already eager to distribute rewards and tokens to the Axie economy. So far MakerDAO, AAVE, and Kyber Network have done experimental token drops to Axie players. Axie is already the largest community of people who understand how to use Blockchain technology in the world; there is immense value in advertising to a community like this.
Nonprofit organizations will be a major source of Axie demand and to pour capital from donors into Lunacia with no expectation of return; only the will to do good.
Government donations and grants. Axie is well poised to become a laboratory for Universal basic income experiments.
Overall, it looks like there will be a lot more development, and I've read somewhere on twitter that only around 12% of the game has been finished.
What's waiting for us at the rest of the 88%?
Guess we'll have to see!