LeoGlossary: Game Economy

SplinterGlossary: Game Economy

The system of resource distribution, costs, time loops, and/or experience milestones to level up, together make up a base game economy.

The aim is to have a balanced game economy, otherwise, the game becomes unplayable or collapses due to flaws or exploits.

That's what a game economy is from a Web 2.0 game perspective.

Blockchain-based games have an additional perspective that needs to be considered, and often reconsidered as things evolve.

Players of blockchain-based games are the owners of their in-game digital assets and they control what they want to do with them. They can use them in-game, but they can also trade them peer-to-peer, rent out or even burn them (destroy them).

That includes both the NFTs and the game's fungible tokens (i.e. the game's transactional token, governance token, etc.).

That's why the economy of a blockchain game is more sensitive and difficult to design.

There is a continuous fine-tuning of what players pay for their digital assets and what they receive as rewards for playing the game.

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