Scarcity Gold

The valuable in-game currency.

We redeveloped the Scarcity Gold contract to achieve a two main things:

1. Ensure that gold can be deflationary, which reduces its supply relative to demand over time thereby defending its value.

2. Allowing governance of the variable parameters of the gold smart contract formula, with a view to optimising the game economy.

The Scarcity Gold Supply Formula

The formula is written simply as follows:

A * ((level - 1) ^ 2) + B * (level - 1) + C + D / (level - 1).

The variables A, B, C & D adjust the gold supply. Their values will be set through governance by $SGV token holders initially with a voting mechanism as is typical in many other projects but ultimately aiming at DAO owners.

Here is the code

Examples of Economic Models Possible

The values assigned to the variable parameters could be used for the following economic outcomes:

1. Exponential increase: B, C, D = 0; A = 1000;

2. Linear increase: A, C, D = 0; B = 1000;

3. Static: A, B, D = 0; C = 1000;

4. Hyperbolic decrease: A, B, C = 0; D = 1000;

5. Standard(as it is in rarity): A = 500; B = 500; C, D = 0.

$SGOLD has been set at hyperbolic decrease at the outset. This is represented in a graph as follows:

Note that the full code of the formula can be found here: https://github.com/degen-vc/scarcity/blob/v2/contracts/core/gold.sol#L38