Constructing the Ideal P2E Economy
How do you construct the ideal P2E economy?
Warren Buffet once said: “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it’s typically the reputation of the business that stays intact”.
As the limelight continues to shine on Play-to-Earn, Lumikai deconstructs the fundamental economics behind building the ideal P2E game. We pulled out our dusty ol’ economics textbooks to try and demystify the in-game economies of P2E — with the help of real-world analogies.
Success in this new frontier harkens back to fundamental mechanisms driving the economies of nation-states and invites comparisons with real-world macroeconomic mechanisms that have stood the test of time.
We cover topics including Axie Infinity’s economics problem, challenges in a sustainable economic design, and conclude with some guidelines for how to construct ideal P2E economies.