Tokens for Game Applications

Tokens for Game Applications

Monetizing Your Assets: Issuing Tokens for Game Applications

As soon as your game gains popularity and starts to grow a community of players around it, it is time to monetize their game activities. In the past, only a select few could afford the luxury of introducing their own in-game currency (which in fact is the most obvious and easiest monetization tool). The rest had to settle for in-game purchases that were sold for a fiat currency through the credit card-backed personal accounts, provided by the app, with a promise to enhance the experience of playing an otherwise free game. The advertising is another popular monetization tool. If you don't want to pay for an app, watch the banner ads on your screen! The lesser of two evils. This option is not a great winner either, but for most online businesses it pays the bills.  

Introducing your own in-game currency that can function outside the limits of the game is the greatest gift for a game developer! A game token has a very specific function: it transfers  monetary value from the realm of the outside economics into the reality of the game, thus, breaking down the existing barriers between the virtual and the real worlds. 

The principles of generating income through your own in-game currency are very much like the financial policies instituted by any central bank: you have your own control over money emission, your own efficiency tariffs, your own payment for services, access and goods, etc. As a result, in the beginning "the citizen-gamers" work for the benefit of the game by earning their tokens and then bring these tokens back to the game treasury in the form of payment for benefit purchases, their right of access, their waiver of errors, etc. 

There is no end to bureaucrats' inventiveness when it comes to finding new sources of revenue for the ever expanding government coffers: custom and excise duties, taxes and licenses, various document-issuance fees and other numerous payments. Just read an internal revenue code of any country and you will see that their government machine is very creative in its work! All a game developer has to do is follow in their footsteps and pick and choose for himself. Be it an alcohol excise tax, a custom duty on medicines or a set of cash registers for his game, the developer's options are virtually unlimited! He can even integrate the aspects of gambling into his game, this forbidden fruit with its elements of danger just like in real life! A game with its own currency is no longer just a municipality, it becomes a full-fledged country that enjoys all the benefits of having its own central bank. In a word, having your own in-game currency is super cool, and super profitable too! 

When creating a new popular game, it is advisable to provide in its structure the options for introducing its own shops, its currency exchanges, its treasury and, of course, its own in-game currency and, maybe, it would even make sense to activate this currency from the very start aiming at the gradual increase in the value of the game's token.  With time, as the game's community of players grows, we can expand the number of objects and services offered for sale, while maintaining the same amount of game tokens, or, in accordance with the Keynesian theory, we can regulate the macroeconomic parameters of our economy by setting up a special ratio between the growing number of players and the increase in the quantity of the tokens issued for the game. This is where blockchain will prove to be a highly valuable and reliable tool for designing an effective and error-proof game. 

The economics of an online game is an exciting area of experimentation for any serious economist. We urge you to invite a real grandee in the world of economics (why not a Nobel prize winner?) to participate in the creation of an economic model for your game. In our turn, we offering Bit-Labs to you to serve as your own personal mint that will give you the necessary technical tools to successfully achieve your goal. Certain members in our team of developers combine higher degrees in cybernetics and economics with a solid expertise in blockchain technologies. They are happy to provide valuable expert-driven consultations and support for any customer who is designing their own economic model for the game that they are building. For more information, please do not hesitate contact us.