Economic Sustainability
The PlayOrbs economy is designed as a self-sustaining loop where gameplay generates real value.
The Value Loop
┌─────────────────────────────────────────────────────────────────┐
│ SELF-SUSTAINING ECONOMY │
├─────────────────────────────────────────────────────────────────┤
│ │
│ Players │
│ │ │
│ │ Pay SOL Entry Fees │
│ ▼ │
│ ┌──────────┐ │
│ │ Rounds │ │
│ └────┬─────┘ │
│ │ │
│ ├───────► 80% → Prize Pool → Winners │
│ │ │
│ └───────► 20% → Protocol │
│ │ │
│ ├──► LP Vault │
│ │ │ │
│ │ ├──► Buyback (buy PORB) │
│ │ │ │
│ │ └──► Add Liquidity │
│ │ │
│ └──► Dev Wallet → Operations │
│ │
│ PORB Token ◄───────────────────────────────────────────────── │
│ │ │
│ ├──► First 3 Joiners (emissions) │
│ │ │
│ └──► Season Pool → Leaderboard Rewards │
│ │
└─────────────────────────────────────────────────────────────────┘
Key Economic Properties
| Property | Mechanism |
|---|---|
| Non-Inflationary | Hard cap at 100M PORB; emissions stop when exhausted |
| Liquidity-Backed | Every PORB backed by real game fees in pool |
| Deflationary Pressure | Buybacks add PORB to locked liquidity |
| Sustainable Emissions | Epoch decay prevents rapid depletion |
| Real Yield | SOL prizes from actual player entry fees |
Why This Works
1. Real Value In
- Players pay SOL to play
- SOL has external market value
- No reliance on token printing
2. Real Value Out
- Winners receive SOL prizes
- Not dependent on token price
- Sustainable even at low PORB prices
3. Token Value Creation
- Fees fund buybacks
- Buybacks create demand
- Locked liquidity supports price floor
4. Long-Term Viability
- Epoch decay extends emissions 100+ years
- Proportional rewards scale with participation
- Self-adjusting based on activity
Economic Phases
Early Phase (Years 0-2)
- High emissions attract players
- Community builds rapidly
- Liquidity deepens
- Token distribution spreads
Growth Phase (Years 2-6)
- Emissions begin decaying
- Buybacks become significant
- Price stability improves
- Utility use cases expand
Maturity Phase (Years 6+)
- Reduced emissions
- Buyback dominates tokenomics
- Strong liquidity depth
- Pure utility value
Steady State (Long-term)
- Fixed supply (cap reached or emissions negligible)
- Value from utility only
- Self-sustaining through fees
- No inflation pressure
Mathematical Foundation
Emission Convergence
Total emissions converge to ~43.8M PORB (44% of budget):
Total = E₀ × N × (1 / (1 - r))
≈ 250 × 26,280 × 6.67
≈ 43.8M PORB
Fee Sustainability
For every 1 SOL in entry fees:
- 0.8 SOL → Prize pool (players)
- 0.1 SOL → LP vault (liquidity)
- 0.1 SOL → Operations
Liquidity grows proportionally with gameplay volume.
Buyback Impact
Each buyback:
- Removes PORB from circulation (into locked LP)
- Creates buy pressure
- Adds liquidity depth
Risk Mitigations
Player Count Decline
- Smaller pools = smaller prizes
- Natural equilibrium at any scale
- No death spiral mechanics
Token Price Decline
- SOL prizes unaffected
- Buybacks continue at any price
- Emissions are in PORB, not USD
Competition
- First-mover liquidity advantage
- Locked LP can't be extracted
- Community-owned tokenomics
Comparing Models
| Metric | PlayOrbs | Typical P2E |
|---|---|---|
| Initial Distribution | 0% pre-mined | 20-50% team/VC |
| Emission Control | Probabilistic + decay | Fixed schedules |
| Liquidity Source | Game fees | External funding |
| Sustainability | Self-funding | Requires growth |
| Trust Model | Locked LP | Team-controlled |
Next Steps
- PORB Token - Token overview
- Liquidity Management - LP operations
- Fee Distribution - Fee flow details