Author: Hanson (TOP-寂寞火山）, Founder of Top Player Guild
TopPlayer (TOP)：The World’s First Professional Blockchain Gaming Organization,* http://topplayer.org
Editor: Rex Liu, NeoWorld Space Station，Lord of №4 Continent
Original Article: https://mp.weixin.qq.com/s/RD-JTlGplSrbUmqKqq591g
The recently updated Version 2.0 Island System has undergone a fundamental change from Version 1.0.
The design of Version 1.0 is driven by the double line of business buildings and RO factories. The business buildings can share the pool, while other industries provide necessary resources for business buildings, and obtain corresponding income in the process. At the same time, all other industries are subject to RO, and there is no development without RO.
This design is very interesting because it can maximize the life cycle of the island under a limited pool. But the problem is that no matter how powerful this system is, it can’t solve two dilemmas. On one hand, the pool is limited, and all industries are destined to fade in the long run, which results in the negative expected gain for the long-term investment. On the other hand, the economic system is a closed loop, and external speculative capital can not effectively flow into the system.
Due to these two dilemmas, we will see that no matter how to optimize each industry and strengthen the role of RO, there will be no essential improvement in the end. It is nothing more than balancing interests among several industries, translating the benefits of business and ordinary mining machines to RO within a limited pool, and it does not really activate the island’s sustainability and capital capacity. Meanwhile, once the pool in one island begins to decrease, there will be no more new players to participate. They are more willing to land the new ones.
Under the design of Version 1.0, the above problems have almost no solutions, so we are here with Version 2.0.
The biggest difference of Version 2.0 is that the previous “business and RO dual drive” system is directly changed to “RO drives other industries”.
So what are the highlights the new RO system has? Why can it attract traditional investors?
First, the RO rule is greatly simplified, and it is translated into investment products dominated in legal currency, which is in line with the understanding of the public investors. The investment is calculated according to USDT, and the daily income is also calculated according to USDT. It is easy to calculate the period. Whether they are from the blockchain space, the Ponzi scams, P2P or the traditional banking business, it is very easy for them to understand this logic, and the threshold is greatly reduced compared to the previous Version 1.0. At the same time, RO will also go to the external exchange to connect with the external speculative capital. Only with external capital flowing into the island system, the problems of other industries can be truly optimized.
Second, the team can use the player’s fund for the RO factories to buy back the NRO in the secondary market. With the certain operation and long-term investment expectations, the NRO price will inevitably rise. This hike will not increase the repurchase pressure because the supply of NRO will decrease in proportion to the increasing price of NRO, which is very delicate.
When I recalled the previous Version 1.0, all the resources were fixed and the team did not dare to add or delete, and there was nothing that could be done. Although various rules are optimized, the team still has no money. All the efforts were in vain, and you can only witness the decline of the island.
As for the mainland’s economy, the team has never really possessed the funds, and most of the benefits are given to players. This seems to be benevolent, but the problem is that the team has completely lost control. Everyone can review and see there is no single project in the blockchain space that does not hold most of the funds in their own hands? NeoWorld gives all the benefits to the players, but the players are separate. As a result, who will concentrate and performs a few tricks in the secondary market? If the price of the token is not turbulent enough, the project can only become more and more declining. And what about most players? They only lament, complain, and blame each other.
Of course, I am not against the benefits to the players, but I believe that it needs a limited, strategic, and better mechanism, and the RO mechanism of Island Version 2.0 is obviously much better. Although it will eventually give benefits to the players, it can also concentrate in stages, create ups and downs, and attract attention from external capital so that everyone can see opportunities and hopes.
Third, some people may question that everyone will collect money to buy RO factories. The return will be nearly 1％ every day, and all will be returned by 100 days. Is this a zero-sum game? What is the meaning? — — Significant! During the 100 days, the team can perform a lot of activities, and the ultimate goal is to attract attention in the secondary market. As long as there is capital, the island is a positive-sum game.
The whole world itself is a zero-sum game and the key depends on which system can attract more resources. The more it absorbs, the more it is the positive-sum. The more it flows out, the more it is the negative-sum, and the trade surplus and deficit between countries are the same. In this process, the key depends on who is powerful and more attractive. As regards to this, I have written an article before, and have discussed it in depth. If you are interested, you can refer to *Who Loses when Everyone Else Earns in Blockchain Games? *. I will no longer repeat here. Moreover, RO also has various user case scenarios of the island, foreign exchange and mainland resources as value support, it is no longer a pure fund, and it is able to crack many financial bubbles.
On the other hand, the design of Version 1.0 is equivalent to directly shutting down the country. Although it can avoid the outflow of funds, it also kills the pipeline of capital inflows. How did the Qing Dynasty die？ However, opening up is also a double-edged sword because it may cause a trade deficit and cause a loss, then we can only test our vision. Do you believe whether NeoWorld will make a deficit or a surplus? This can only be judged personally, and everyone should be responsible for the results!
Forth, Version 2.0 system also solves the two big problems of “entering opportunity” and “incremental funding”. In Version 1.0, almost no one will enter the island in the middle period because waiting for the new island is more cost-effective. This will result in the inability of funds and traffic to enter the island. But Version 2.0 system provides that players can build RO factories at any time. As the first area has been in existence for more than half a year, I just built more than 1,000 NEO RO factories the day before yesterday so that any Area can continue to absorb funds and flows. 5％ of the RO factories will flow into the pool, so there is a possibility of continuous increase while NEO and NRO themselves have risen expectations. This series of positive expectations is far better than the sustained negative expectations of Version 1.0.
In conclusion, the new design solves three hardcore issues: closed-loop system, high threshold of the users’ perception and investment, and no capital dominance from the team. As for whether the final resulted can reach expectation, I believe that even if the design itself has no problems, the effect depends on the operational ability and luck. Let us wait and see.