Polyland's tokenomics has been developed upstream of the game economy to ensure the tokens supply release and allocation in the incentive pool won’t impact the token inflation. Therefore, game balance and game design can be developed with a full degree of latitude.
The incentive pool is designed to be the game rewards reserve in addition to being the staking rewards reserve. In this game economy, incentive pool inflow & outflow are assessed to ensure that the pool stay self-sustainable.
Engagement is key as we have seen, not forgetting however, the value of traditional economics. Polyland's economy needs to be balanced to avoid inflation or massive deflation. It needs to balance out user growth, tokenomics, land issuance, NFT mints and in-game assets.
The price of certain values is fixed in ZION, this is the case for entry fees, rewards, gas, potions, starter packs or even certain NFTs. It must therefore be defined in anticipation of each transaction. Hence a dynamic floor price formula is applied by weighting adoption (demand) by inflation (supply) thus:
A bonding curve revolves around the idea that the issuance of the supply is correlated to the adoption, i.e. the price of the token is anticipated based on the demand which in turn is proportional to platform user growth. It then requires having a finite supply in order to always attribute the same reward to the same number of users. In Polyland, the allocation of reserves acts as an inflation on the supply of the ZION, we then have in our formula an unexhausted supply pool of tokens facing the different adoption scenarios. Hence, to calculate the floor price we define the “supply” as the provisional incentive reserve.