Upcoming economic crisis in the verse

Ideas
1

The gotchiverse is coming up on an economic crisis.

I like to look at the gotchiverse as a developing economy. Currently the gotchi economy is producing more resources(alchemica) then it can use/consume. This is causing deflation in alchemica prices when priced in ghst. Deflation is the worse thing that can happen to an economy. It disincentivizes consumption and investment. This is particularly bad for a crypto based economy because with no incentives people will just leave the gotchi economy and in turn create a vicious cycle of less consumption and lower prices. The goal for the gotchi economy like all other economies is to get into a sweet spot of slow inflation of prices. Our goal should be to have stable/slowly rising prices in alchemica and gltr or at least strive for this.

Currently gltr prices are very cheap. This is a huge problem. With gltr price this cheap

  1. Makers are not worth building. This removes one sink for all the alch that is produced
  2. It is very cheap to insta build harvesters and reservoir. This accelerates the amount of alch that hits the market
  3. When gltr is super cheap and I can build out everything that makes sense to build on my land very fast and not have anything else to spend/invest in. This leading to me dumping alch on the market.

Currently the prices of alch are slowly bleeding out. Might not feel like an urgent problem but the current prices of alpha and kek are already a problem. With the price of fomo and fud staying high it is fast becoming pointless to build these harvesters. Currently I am sure everyone reading this has already decided to focus on building out they’re fomo and fud harvesters because they provide the best return. Naturally in about a month or two depending on how cheap gltr is there will be a glut of fomo and fud with no where to go but be dumped on the market.

So roughly in a few months(maybe less) we will find ourselves in a spiral of price crashes. As people dump others will panic and also dump. Most will not see a point in investing into harvesters. All of this brings bad vibes. Once this process gets started it will be hard to come back from.

Its not all doom and gloom. If we take action now we can avoid this deflationary spiral.

Well what would stop this?
Obviously we need more alch/gltr sinks that do not produce more alch/gltr.

Few options on what we can do.

  1. enable a “light” version of pvp. On the last community call we discussed enabling heart that players can buy to shoot at each other. We can prices these hearts in alch or gltr.
  2. The dao can offer its own reward for best looking parcel voted on by the community. This could encourage more frens to buy tiles

Here is a thread of ideas for sinks In-Game Alchemica Sink Suggestions

The main point of this post is to encourage the prioritization of in game sinks NOW because it will take dev time to do and is our most pressing problem. I do find the talk about proxy voting and wether we should get rid of the curve super important and interesting but they are not priorities imo.

Thanks for reading frens! Look forward to hearing everyones great ideas. Love this game and community. I think we have a shot at making a dynamic and exciting metaverse were everyone can have fun and prosper.

.

6 Likes
2

Hi fren, you make some great points on the slowly bleeding prices of alchemica. Unless there’s enough utility to sponge up the inflation, we’re going to continue seeing red in the charts.

There’s already a great thread running - In-Game Alchemica Sink Suggestions

People have submitted a number of ideas on how to sink more alchemica. It might be best effort to channel responses there.

3 Likes
3

Yea thanks. The point of the post is to stress the urgency of this issue. I understand dev roadmaps and want to make sure we prioritize this. I will link the other discussion in the post

4

This really comes down to how much dev resources we have to implement token sinks.

Out of the ideas suggested in In-Game Alchemica Sink Suggestions it would be good if we could some guidance on if these can be implemented and where they sit on the roadmap.

If it is going to be a challenge to get the resources for this work we might need to explore other options like the DAO burning alchemica.

2 Likes
5

Yea some clarity on what the plan is for sinks would be nice. I dont think we need something crazy to be implemented. It should be a MVP approach. Instead of some grand pvp that will take alot of time lets add some heart pvp as a temporary sink. I want to avoid a full collapse of prices. The prices for alpha and kek are already an issue.

3 Likes
6

I think both options would be great, even if not looking at it purely from an ‘Achemica sink’ perspective, but just in general adding more competitive games/gamification (which I think is much more important for long term perspective of the project/ecosystem).

Obviously the PVP idea would take PC dev resources, even if it’s a very minimal starting version. Personally I think it should be the top priority but that’s just my opinion.

DAO run ‘Best parcel’ competitions would be great. Could be a regular thing, rather than just a one off.

3 Likes
7

Agreed. I’m trying to get this heart shooting thing off the ground and have advanced the idea as a proposal. the basic infrastructure for this is already in place, which should limit taxing our devs compared to creating other versions of gaming or alchemical sink ideas…would love your feedback.

1 Like