Will the launch of the full game make the price of WOOL go up ?

Sébastien Rouxel-An
WOOLISH
Published in
2 min readAug 30, 2022

As mentioned previously the price of wool is greatly influenced by the drip VS burn ratio, but it is not all, let’s dive in.

First we have to consider that WG employs, or at least consults, economists to find the best tokenomics.

WOOL has to balance the cost of entry, the revenue of the players, and the growth of the game. Let’s see if we can balance that to create a sustainable growth

(we will not talk about deflation, which long term can pump the price exponentially, the mechanisms talked about here ALLOW for the deflation to happen)

The cost of entry will be affordable for all type of players, meaning there will be ways to buy-in at a small cost. It is easy to imagine small assets, or simply WOOL staking, that reward WOOL proportionally : a yield.
The WOOL staking allows for a flexible cost, but for active playing you might need assets. If the price of WOOL grow, then those assets should get more expensive in ETH (people buy the NFT driving the price up), but they should also get cheaper in WOOL. We have to imagine the cost of ingame assets will fluctuate.

That brings us to the Player Revenue. With the WOOL price growing the players might continue to yield more or less the same amount of WOOL. It is what we all want, early players get rewarded more and more.

All this to say, there is no negative effect, for player nor for new entrants, in the price going up.
What is left is the growth of the game.

There are two direct relationships between the price of WOOL and the growth of the game.

  • The first one is self evident : the WOOL drip causes a selling pressure, the WOOL burn a buying pressure. During the Cave Game, at peak, we spent as much as the drip. Those two would seemingly be two values competing, driving the price up and down. But that is not the only main factor, we have to bring back the growth of the game (here in the case of the Launch of the Full game)
  • New players buy WOOL. That also is a buying pressure. Another factor is hoarding, many invest in the token, not to play, but to flip or in reserve for later. The used WOOL in the Game add up with the new players buying in the game and the traders buying to trade.

With this last factor it is clear that WOOL has room to grow. The market cap is small (10- 20 M$ of circulating supply, it is a micro cap and is highly attractive for traders. The new pouch from the Alpha Game will add about 22% to the current WOOL drip. To be frank except is the FG is shit and boring WOOL will FREAKING EXPLODE. WOOL IS GOING TO ROUNDKICK AXIE GROWTH TO OBLIVION. FUCKING STRAP IN MATE. BUY A FREAKING HARD WALLET.

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