Moani Token Design
Single token model
When designing the game economy for Paradise Tycoon, our first priority was to ensure that it aligned with our mission of reaching a wider audience of non-crypto native gamers. Although the number of active users in web3 games has exploded in the past two years, the gamer population in web3 games is still only a fraction compared to that of mainstream games. Therefore, the real market potential lies in the audience that has yet to be reached.
To reach a new audience, the first-time user experience needs to be flawless, without extra steps in the onboarding of the game which could break the immersion. According to research by Google Play, gamers decide whether to continue playing within the first 10 minutes. To engage players positively, these 10 minutes should not include reading a manual or watching a YouTube video about installing and connecting a wallet, buying NFTs, and dealing with multiple tokens. Having multiple tokens by default makes things more complicated. For this reason, we prioritized designing the game economy using a single token model.
In some games, a single token model is accompanied by in-game sub-currencies. This is often intended to create stable costs and returns or to separate the free-to-play model from the token economy. However, our model does not use sub-currencies, as this would further complicate the onboarding process. It has also been shown multiple times now that the value eventually correlates with the Token regardless as a clear representative of the demand for the currency.
Additionally, in many single-token games there is a Token or NFT requirement to access most of the game content if not the entire game. This means that early adopters are paying less than a player joining in later. To fix this, sometimes the entry cost is fixed to USD (for example, a player needs to buy $100 worth NFT to play) to avoid ponzi-like mechanisms, but the rewards are based on Token amount (to compete for 1 Million tokens prize pool). As a result, a rapid increase in token value can lead to a quick withdrawal of value.
To avoid this, in Paradise Tycoon there are no entry costs and everyone can play and contribute to the game economy. To create a sustainable economy we introduce a number of in-app purchases and recurring sinks similarily to traditional F2P game, of which some are fixed to USD value. Regardless of the currency used to make the in-app purchase, all value is accrued to the Token. In addition to in-app purchase, the token in Paradise Tycoon is also used for NFT purchases, player-to-player trading and number of different fees.
Some returns (event rewards) will be dynamically adjusted, while others are fixed to token value (ParadisePass rewards). This way players will have partially stable costs, while the earnings remain relevant, avoiding any Ponzi-related mechanisms.
When the token price increases, the costs of in-app purchases in tokens decrease. Similarly, when the token price declines, the costs in tokens increase, but so do earnings. T
The token price fluctuation can result in a loss of buying power and price fluctuations can create a lock-out risks in which players cannot afford to buy new tools or other necessary items after a rapid drop in token value. To avoid lock-out risk, Paradise Tycoon offers multiple ways to acquire these items through player-to-player trading and other means.
Although the model definitely resists surges and plunges more than the other options, it is still dependent on recurring spending of tokens, just like any other token model OR Free-to-Play game.
Multiple uses of the main token strengthen its overall utility and market value.
The dual token model was previously touted as a better way to hold value for investors' tokens. However, it has been observed that this model does not necessarily prevent the token from losing value. Ultimately, investors will also consider the usage of the utility token when valuing it. With a single-token model, the game's upside potential is also shared with players, which strengthens overall incentives for players to progress and spend tokens.
Furthermore, the multitude of use cases for a single token, including in-app purchases (recurring sinks and one-offs), trading & minting fees, and more, creates a strong market value that is less sensitive to market changes.
This model, with some costs and returns fixed, ensures long-term sustainability. Players can start the game for free, and the costs of in-app purchases will remain stable relative to USD. This model is 100% ponzi-free and does not favor those who started first with lower costs, creating an equal playing field for future players and promoting long-term sustainability.
Community of players and investors alike
The interests of owners of different tokens in dual- or multitoken model may not always align, which can divide owners into opposing sides. In a single-token model, distributing the main token as in-game rewards can help avoid this segregation and promote a cohesive community. This approach benefits everyone, as an active gamer/investor community can create sustainability and resistance against market volatility without dividing token owners. By creating alignment between players and investors, this model can benefit the entire community.
To ensure long-term sustainability, utility tokens should be primarily owned by the players. This would make the token less susceptible to market changes. However, in current blockchain games, this ratio is often distorted, with players owning only a small percentage of the tokens in circulation.
Disclaimer
There is no one-size-fits-all token model that is best for any game. A great web3 game can surely be developed using different token models or with just NFTs. In an MMO game with a player-driven open economy, such as Paradise Tycoon, the upside of the token can be remarkable. However, factors such as distribution, scarcity, sinks, and how the token aligns with NFTs should always be carefully considered.
The game economy can be based on a single or multi-token model. However, it will not be sustainable without recurring sinks that players can spend tokens on, such as in-app purchases (or an infinite flow of new players, which is unrealistic).
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