Lately, the tokenomics of blockchain games has been on my mind—the more I look, the more it feels like they’re running a faucet and pouring inflation into the pool. The moment output is high, everyone’s first instinct is to sell; since the pool depth isn’t deep enough, when the price softens, LPs still have to eat impermanent loss… and then even fewer people want to stay, so the spiral down really picks up speed. Put simply, output isn’t the problem. The real issue is that the output can’t be exchanged for a reason to be willing to “hold”—leaving only the option to withdraw and cash out.

Now there are yet another batch of testnet incentives and point expectations, and people in the group are constantly guessing whether the mainnet will distribute/airdrop tokens… there’s just too much information, and it really makes me a bit anxious. My filtering method is kind of crude right now: first, see whether the token consumption scenarios are a true necessity (not just burning tokens to complete tasks). Then check whether output can converge over time; if it can’t, then just treat it as something to look at for the fun of it—don’t reach in. Live first, then talk about returns.