Economic Model in Metaverse
Last updated
Last updated
A comprehensive metaverse economic system necessitates the accommodation of conventional economic and financial instruments while emphasizing the interrelation of token and identity values. This satisfies the anticipated growth of metaverse societal activities, particularly production endeavors. A mature economic model shall fulfill these requirements, focus on IP-driven metaverse economic activities and seamlessly bridge them with existing lawful and compliant financial instruments.
In metaverses, every identity can be represented as an IP token, so the economic model shall balance between IP tokens with financial tools.
The metaverse economic framework facilitates the integration of IP tokens and financial tools:
IP tokens cater to the actual needs of IP project parties, supporting the continuous exploration of IP application rights and equity tokens as well as asset-based IP tokens.
Financial tool integration enables the connection of traditional internet or information system financial tools, such as fiat currency payment channels.
In order to bolster any nascent economic system, project shares and general equivalents prove to be highly efficient economic instruments. However, metaverse economic activities should pay closer attention to the usability of token rights and equity that general equivalents can purchase – a fundamental demand for the closed-loop development of the metaverse.
Metaverse applications presented in the form of games exemplify a prime category of viable usage scenarios. The concept of X (play) to EARN emerges from this notion. Numerous individuals join the gaming ecosystem to earn income, propelling projects into successful initial stages. Nevertheless, a misconception arises here: X to EARN is not an innovative Web3 gaming model, but rather a solution designed to address a specific issue (analogous only to solving customer acquisition through marketing) – unrelated to the game itself!
X to EARN addresses the initial circulation problem of newly issued tokens, rather than being a genuine "earning" scenario. Token incentive plans for players serve as a means to achieve a certain scale of community consensus and guide token pricing through this consensus. The focus of players on "earning" does not represent a "use/consume" scenario.
share
First circulation
Investment dividend
eco-grow to live
Second circulation
(n/a)
use
General equivalent
Fiat
If the metaverse is a real requirement, "PAY for living" will take an effort to fit for multiple use scenarios for multiple objects. In games, "PAY for entertain" is accepted and proven to be a mutual business model. Which matches the consensus economy for tokens.
first circulation, add value => inflation;
second circulation for use scenarios;
consumption => deflation, back to #1.
Therefore, M4M project shall fully support this economic model.
