Smoke

The Smoke Test: Are These Game Economies Sustainable?

The sustainability of blockchain-based game economies hinges on their ability to function independently of continuous user growth.

• The sustainability of a game economy can be tested by assuming a constant player count; if the economy collapses without continuous growth, it functions as a Ponzi scheme rather than a sustainable model.
• Axie Infinity's collapse serves as a primary case study, where a steady user count failed to generate demand for new Axies, causing the value of the SLP token to plummet and triggering an exodus of play-to-earn participants.
• Splinterlands has maintained relative stability by shifting play-to-earn rewards from the DEC token to the governance-focused SPS token, helping to mitigate oversupply and support the value of its in-game currency.