The Problems and Solution
"When people start believing they can get rich without producing anything, an economy is doomed to collapse." - Paul Samuelson (American economist)
Web3 gaming has introduced decentralization, digital asset ownership, and player-driven economies. However, many of these economies suffer from structural flaws that make them unsustainable in the long run. The fundamental problems lie in flawed tokenomics, unsustainable incentive structures, and a lack of true economic principles.
“The difficulty lies not so much in developing new ideas as in escaping from old ones.” - John Maynard Keynes(Renowned economist)
Most Web3 games have failed to escape from old, flawed economic models, merely slapping a "play-to-earn" system onto traditional gaming without addressing real economic sustainability.
We are building an economy that works, rooted in real market principles, sustainability, and value creation. Below, we analyze the major failures of existing Web3 games and how our system solves these problems.
1️⃣ Over-Reliance on Play-to-Earn (P2E): A Ponzi-like Trap
Most Web3 games promise high returns for playing, attracting users who farm tokens instead of contributing to a real economy.
🔴 The Problem:
Rewards are not backed by intrinsic value—users are paid simply for playing, not for creating demand.
The only way for early players to profit is for new players to buy in, leading to Ponzi-like economics.
Once growth slows, token dumps crash the economy.
✅ Our Solution: ✔ No artificial rewards—players earn by creating, trading, and managing real market cycles. ✔ Value creation, not extraction—players must produce something useful in the economy to profit. ✔ Continuous demand & utility—all resources have an intrinsic role in economic production.
2️⃣ Hyperinflation of In-Game Tokens: The "Print & Dump" Model
Many Web3 games print excessive tokens as rewards, flooding the market and making them worthless.
🔴 The Problem:
Token oversupply leads to devaluation and hyperinflation.
No proper burn or utility mechanics—tokens become abundant and lose their value.
Players cash out en masse, draining liquidity and collapsing the economy.
Nobel Prize-winning economist Milton Friedman once said:
"Inflation is always and everywhere a monetary phenomenon."
Simply put, Web3 games are printing too much money without a real economic base to support it.
✅ Our Solution: ✔ Tokenomics— Fixed token supply, with proper in game utility (e.g., factory operations, trading fees). ✔ Controlled scarcity—key resources (energy, fertilizer, food) must be earned through real effort. ✔ Circular economic model—tokens aren’t just farmed, they are spent and reinvested.
3️⃣ No Real Market Forces & Artificial Price Controls
Many Web3 games set fixed prices for in-game assets, preventing real economic activity.
🔴 The Problem:
No supply & demand mechanics—prices remain the same, making the economy feel artificial.
Developers control pricing—instead of letting players naturally dictate market values.
Lack of liquidity—without real market movements, prices stagnate and players lose interest.
As economist Adam Smith wrote in The Wealth of Nations:
"The real price of everything is the toil and trouble of acquiring it."
✅ Our Solution: ✔ 100% player-driven market—prices are set by real competition and supply & demand. ✔ No artificial floor or ceiling prices—players can negotiate, trade, and influence value. ✔ Market-driven incentives—smart pricing leads to higher efficiency and profit maximization.
4️⃣ Lack of Long-Term Economic Sustainability
Most Web3 games fail to create a self-sustaining economic loop, causing long-term collapse.
🔴 The Problem:
Once rewards decrease, players leave, and the game dies.
No reason for continued investment or reinvestment within the ecosystem.
One-dimensional economies—players don’t need to strategize beyond token farming.
Economist Friedrich Hayek emphasized:
"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."
Web3 developers design economies that look good on paper but fail in practice.
✅ Our Solution: ✔ Self-sustaining production cycles—players must continuously produce, trade, and reinvest. ✔ Dynamic seasonal variations—ensuring the economy never stagnates. ✔ Multi-role strategy—farming, factory management, trading, and investing all play essential roles.
🚀 Our Game’s Economic Solution: A Sustainable Digital Economy
Instead of following the flawed economic models of most Web3 games, we built a system that follows real-world financial principles.
How Our Economic System Works:
✔ Production & Consumption Cycle – Every resource has a natural supply & demand mechanism. ✔ Scarcity-Driven Pricing – Market forces determine real value instead of artificial price controls. ✔ NFT-Based Economic Boosts – Specialization adds unique strategies and competitive advantages. ✔ Seasonal Market Variations – Dynamic supply changes keep the economy fresh and unpredictable. ✔ Tokenomics – Token supply is fixed, and has real utility.
Nobel-winning economist Joseph Stiglitz once said:
"Markets, when they work well, provide the best way of coordinating economic activity. The problem is that they often do not work well."
Our goal is to make sure this digital economy works—and thrives.
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