NOTE: This is not a big problem! This is normal. We have economic cycles IRL. of course we have it in the metaverse land too.
Difference: we can better anticipate and change
Here are 7 ways Axie can manage inflation and recover 🧵
Economics is the most important aspect to get right in your economy. It builds the backbone of the entire market, but it is complicated to get right.
We wrote a highly valued research report on P2E Economics to help with the economics design. And this time, I want to apply it to Axie Infinity, and talk about how their economic policy led to economic recession that we see right now.
A market is a space for buyers and sellers to come together to trade and transact. The market is not owned by anyone and is just a space for people to come in and trade. Examples of some public markets are countries, farmer’s markets, listed companies, etc.
Examples of a private market are small little Facebook groups or it could be small online social media groups that you create with your friends.
In any ecosystem, be it a country, a market or a video game, the key asset of transfer is value. Value can be captured in forms of goods (i.e. barter trade of cheese for yogurt),
At its core, Ocean empowers and works to give data publishers the power to take control of their data, share data the way they want to, and monetise it.
The main problem that Ocean tries to solve is that we do not feel comfortable sharing our data and also do not really know the true value of our data or how to accurately price it.
If data could be traded openly then the barriers or costs of sharing data could plummet and if we could do that, we could unlock a brand new data economy breaking down the silos that these organisations have created and opening up access to quality data.
We upgraded from DeFi 1.0 to DeFi 2.0. What does that mean for the economics?
Here's Tokenomics 2.0 🧵
TLDR: economic balance.
DeFi 1.0 was to build the infrastructure and tools in finance. Think of it as the basic foundation in your skyscraper.
DeFi 2.0 is to use that existing foundation and built that skyscraper.
E.g. stablecoin for transaction.
Interest-bearing stablecoin for capital leverage.
Tokenomics 1.0 is to realise the existence of the tokens to create value. To look at bootstrapping your community with tokens, gov tokens, native incentives.
Tokenomics 2.0 is to leverage the community and start looking at long-term value growth.
Example: If a house costs $100,000 but the user only wants to buy $50,000 worth. Then, it can be purchased by splitting 100,000 tokens, each worth $1. The user only purchases 50,000 tokens.
To generate $mAssets, users must collateralise assets worth > 150% (if using stablecoin) or > 200% (if using $mAsset). For example: If you want to mint $100 worth of $mXAU, you must collateralise 150 $USDT or $mBTC worth $200.
Most projects offer two products at the same time to take full advantage of blockchain and as a mechanism to transfer risk between two groups of people: