Player-First Tokenomics

What makes our $RIFT token sustainable?

Player-First

The majority of issued tokens goes to players and all currency benefits require gameplay. Players have clear in-game benefits both to holding and spending tokens in game. The greatest benefits go to players who play and stake, with a staking lock-in period to help absorb market volatility. This puts value in the hands of our most loyal players.

Tunability

The circulation of our token is tuneable at many places and slow moving:

  • Issuance rate of player rewards is variable

  • Issuance to investors is linear with a long lock-up period

  • The minimum amount of staked tokens to receive rewards increases with issued supply, capturing supply rather than leaving it freely circulating and driving down value in the game economy

No Passive Staking Rewards

In creating a sustainable in-game economy, there need to be incentives to both hold the token and spend the token. The value of a token that is perfectly liquid (does not have any incentive to hold) will steadily trend downward as there is no actual scarcity, thus breaking the game balance of any items / abilities supplied via that token.

To insulate against market shocks and moderate the token supply we need token holders who view the tokens primary value as its in-game utility, rather than speculative resale value.

Unfortunately most P2E games reward passive staking/holding of a tokenised game currency by gifting staking more of that token. This passive generation of rewards results in the majority of the token supply being held by pure speculators with no-interest in actual token utility. Eventually the growth in value of the token slows or a market downturn occurs and these pure speculators dump the token causing temporary or even permanent oversupply of the token and all downstream items/abilities provided by that token.

In contrast, our token rewards only go to players (staking in isolation will not yield tokens), however staking can multiply the token rewards provided through playing. This ultimately makes for a more sustainable token economy, as those who are the most invested in the actual utility of the token will own an increasingly large share of the token supply over time. During a market shock or downturn, unlike speculators, these players have compelling gameplay reasons to keep holding the token. Thus by placing players-first we better insulate the game economy against market shocks and runaway inflation.

Non-Game-Breaking Utility

Staking and spending benefits are almost entirely cosmetic or time-saving, such that even in the event of unexpected inflation or dumping, core game balance (in combat) and player progression rates are preserved.

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