Exploring the Sustainable Development of Web3 Game Token Economy

Anna Xie, Xi Hu, Mindao Wang and Xindong Zhao ()
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Anna Xie: Economic Statistics, Jinan University, Guangzhou 511443, China
Xi Hu: Economic Statistics, Jinan University, Guangzhou 511443, China
Mindao Wang: Earth Sciences, University of Oxford, Oxford OX1 3AN, UK
Xindong Zhao: Institute of Quantitative Economics, Huaqiao University, Xiamen 361021, China

Sustainability, 2024, vol. 16, issue 15, 1-16

Abstract: With the popularity of Play-to-Earn (P2E) games, in-game token economies have become the foundation of the financial structure of virtual worlds. More and more players are investing in digital assets, promoting long-term economic growth. This paper delves into the key factors for the sustainability of the P2E game token economy: the investment value of tokens and external incentives. When tokens are no longer profitable, user churn rates rise sharply, which is critical to the continued development of P2E games. External factors also significantly impact token prices, which affects the stability and sustainability of the entire economic system. In response to these challenges, this paper proposes a series of strategies to enhance token stability, including adjustments to game design, improvements to player incentive mechanisms, and the formulation of relevant policies and regulations. The conclusions of this study aim to provide valuable insights and guidance to game designers, investors, and players to promote the healthy development of Web3 game token economic systems.

Keywords: Play-to-Earn (P2E); token economic system; sustainability; number of active users; Web3 (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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