Principles for Building Lumiterra Economic System

Focusing on Needs

Our focus is on long-term games, which is one of the reasons why we chose a more difficult implementation type of an MMORPG. We pay attention to the needs of different groups of people entering the game.

Many "Web2" games (such as Albion Online and Dream Westward Journey) have actually validated the feasibility of this type of game. In Lumiterra, users with different needs play different roles as both demand suppliers and output providers. These roles work together to form an organic economic system.

Trade Centered on Commodity Economy

Compared to the self-sufficient natural economy, the commodity

In Lumiterra, the official authorities do not act as sellers in the Marketplace. All game resources are NFTs, and all listed products are player behaviors.

We set different divisions of labor in the game, currently including warriors, gatherers, and agriculture.

Dynamic Adjustability of Economic Operation Balance

The system is dynamic. A design that works in System A does not necessarily work in System B.

User Asset Liquidity

The commodity economy plays an important role in Lumiterra, compared to the self-sufficient natural economy. It is characterized by division of labor, exchange, strong specialization, and high efficiency.

We set up a large number of content and systems in the game to create a rich gaming experience, generating the most basic element: demand.

Why do users come to this game?

All "products" have their focused problems to solve, such as iPhones, cars, cookies, etc.

The game solves what and satisfies people's needs. This question is about addressing why users come to the game.

How Players Obtain "Profits"

  1. When the profit is defined as fiat currency in real life

  • In the GameFi 1.0 era, the mining and selling mechanism allows users to perform certain mechanical operations to obtain game Tokens, which can then be exchanged for fiat currency through exchanges (CEX/DEX). The game obtains users within a certain time period.

  • Through a Ponzi-like model, the profits of early users are provided by later users.

The above two behaviors are the core means of causing irrational prosperity and have repeatedly appeared in human social history.

In Lumiterra, we do not resist this behavior. On the contrary, gold farming users are an essential component of the economic system. However, we need to ensure that gold farming users fundamentally obtain their profits by fulfilling the needs of other users.

  1. When the profit is defined as gaming experience (happiness, recognition, self-achievement, etc.) Players pay for this, and this part of the payment supports the income of gold farmers/merchants.

Division of Labor

The division of labor aims to achieve better collective economic benefits. We have set up a system with similar occupational divisions, where each user can choose to explore and deepen their skills in different vertical paths. Although players can complete most of the basic economic behaviors in a single time period, the highest individual benefits are generated through cooperation and division of labor in a highly complex game world.

In most P2E games, the model followed can be simplified as [shown in the diagram](javascript:void(0)). Users purchase tokens to enter the game (some are F2P), play the game to acquire resources, convert them into tokens for sale or convert them into NFTs to sell to other users. The whole process does not involve any economically valuable interaction with other users.

Of course, P2E 1.0 has its logical existence, and human society has also experienced different cycles.

Commodity Economy is the sum of production, exchange, and sale of goods. It is also a social-economic model, referring to an economic form with the direct purpose of exchange, including commodity production and commodity exchange. Compared to self-sufficient natural economies, the commodity economy is characterized by large-scale division of labor, extensive exchange, strong specialization, and high efficiency.

Here, let's use an example to illustrate Lumiterraโ€™s mechanism. In the game, three users make optimal choices based on their own situations.

Player 1 wants to achieve a goal, and besides their own actions (such as occupying land to obtain resources, fighting to gain experience and improve synthesis skills, etc.), they can also directly purchase corresponding assets from Player 2 to synthesize the required equipment X. This equipment can increase their output efficiency. At the same time, Player 3's output can make Player 1's synthesis possible. The interaction between users is deep, broad, and complex. These complexities essentially allow different players to have personalized gaming experiences. To be more precise, the richness of the mechanism and the richness of the content serve as the foundation for a sustainable and lasting economic system.

In fact, real economic system interactions are complex, and the above description is just the tip of the iceberg. It is necessary to verify well-known designs mathematically and make adjustments through trial and error in the early stages. This is why we are conducting an Early Access Launch.

Learn More

Comparative advantage - wikipedia

Commodity (Marxism) - wikipedia

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