# Scarcity Gold 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 $SGV token holders initially with a voting mechanism as is typical in many other projects but ultimately aiming at DAO owners. Here is the [code](https://gist.github.com/cyvubino/233289b822f25fc05b649dd14472c4c1) ### **Examples of Economic Models Possible** The values assigned to the variable parameters could be used for the following economic outcomes: 1. Exponential increase: B, C, D = 0; A = 1000; 2. Linear increase: A, C, D = 0; B = 1000; 3. Static: A, B, D = 0; C = 1000; 4. Hyperbolic decrease: A, B, C = 0; D = 1000; 5. Standard(as it is in rarity): A = 500; B = 500; C, D = 0. ***$SGOLD has been set at hyperbolic decrease at the outset. This is represented in a graph as follows:*** ![](/files/MypiHXXtDjdq4EKP53Dn) Note that the full code of the formula can be found here: --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://degen-vc.gitbook.io/rartiy2+scarcity/scarcity-gameverse/tokens/scarcity-gold.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.