What are we doing to ensure financial stability in our economic Play 2 Earn model?
Many other games are suffering from design flaws in their economic model. You see earning currencies steadily declining in value forever, you see the marketplace being flooded by NFTs from breeders that are outnumbering the player base 9-to-1. We have invented a number of solutions for contributing to stability in the Play 2 Earn ecosystem — solutions we believe will make the earning aspects stable enough to work long-term. In this article, we will talk about each of them, how they work and what will happen with them in the long term.
Arbitrage Fund
ZiberBugs will, as many other Play 2 Earn games, have 2 different cryptocurrencies — one governance token called $ZIBER, and one earning token called $PHERO. The governance token will launch after our IDO and Liquidity sale, at which point we will create an official swap pool of ADA/ZIBER on a decentralized exchange. When the game launches, we will also launch an ADA/PHERO swap pool of similar size. What other successful games have seen is that their governance token skyrockets, while the earning token keeps declining. To partially counteract that, we are allocating a reserve of both ZIBER and PHERO which we use to arbitrage trade with the two pools. This will offload some of the governance token’s success into the earning token, and we expect this to contribute to stability until our tokens start trading on centralized exchanges.
Buy Back & Burn Policy
Our marketplace will have a trading fee of around 4%, paid by the seller. 100% of this fee will be used to buy back $PHERO from the official pool and burn it. This will alleviate some of the pressure on the declining value, but the most exciting part of this is what happens if the game gets over-saturated with breeders. If the marketplace trading volume increases unproportionally to the player base, this means that a lot of people are trying to make money by breeding only. Most of their NFTs that they’re selling essentially only circulate between them and other breeders — a problem that certain other games are suffering severely from, and ultimately causes an NFT price depreciation. But the fortunate consequence of this, should it happen to ZiberBugs, is that as the trading volume increases, the fees will increase, hence more PHERO will be bought back & burned. Therefore, the price of PHERO will go up, which increases incentive to start playing the game, hence more people will join and buy bugs.
Income Distribution
We never keep any of the $PHERO tokens that are paid into the game — they are immediately burned. The breeding fee portion that is paid in $ZIBER will also partially be re-inserterd back into the ecosystem; 25% will go to our PvP Rewards treasury and 25% will go to our Ziberverse fund. This (together with the Buy Back & Burn Policy above) effectively means that out of everything that is ever paid into the game, over 80% of it will go directly back to the player base and stabilizing the economy.
Symbiosis Cores
In ZiberBugs, there is something called Symbiosis Cores (it will be revealed in further detail later). These are upgradable, for a fee of $PHERO. The upgrades are not mandatory, as there will be ways to grind yourself up to the highest level of cores as well. We are not looking to introduce midcore Pay 2 Win solutions into the game — it will be rather easy to upgrade one to its max rarity (and they will be tradeable on the marketplace as well). The main purpose of these is to introduce synergies, and they come with a pleasant side effect that they increase demand for the earning token.
Egg Production
Your accounts have queens, and they produce eggs. The accounts need to be active to do so. Eggs are a necessary part of breeding new bugs. The consequence of this is that the NFT growth will be limited by the number of active accounts. Should the player growth exceed this number, we will have various tools to handle it (such as queen boosters, pre-minted egg sale and more). But this measure takes away any possibility of exponential growth of NFTs when we don’t need it.
Expiration Mechanics
We will also explore a number of features where players can choose to expire their units. These features are:
- Death Tournaments — enter into a competition of life-or-death for your bugs, with grand prizes for the top players.
- Expiring Cosmetics — bugs can receive cosmetic rewards that only last for a number of games, and then they expire. If you choose, you can just keep playing with the bug, and the cosmetic item will disappear. But some may choose to retire the bug because it now has an entirely unique skin.
- Eternalization — we will provide a method of exchanging your bugs to “eternal” NFTs. This essentially mean it won’t be usable in-game anymore, but instead, we will make it into a collectible and give it awesome graphics and a feature text letting the world know of its achievements.
Conclusion
When building a healthy Play 2 Earn environment, a sustainable financial system is core. Because not many examples of this exist today, creativity is required to make progress. We will make progress, and we will adapt if we need to. But we firmly believe that we’ve battles some of the problems of Play 2 Earn with these sustainability solutions.
Until next time!
The ZiberTeam
https://linktr.ee/ZiberBugs
