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Project Twelve, P12 in short, is a GameFi ecosystem with sustainable economy. It features the Editor, a full-featured Metaverse content engine for building game worlds; the Infra, a set of API/SDK and developer portals for bridging game content on-chain; and the Econs, a set of economic and governmental rules and mechanisms implemented in EVM smart contracts.
In this paper, we define key mechanisms and formulate auxiliary theorems and lemmas that derive from the definitions. As a principle, the P12 economy as discussed in the paper does not rely on forced or assumed behaviors from the individual game economy. All game worlds can have desired tokenomics, minting and burning mechanisms of their own. These game worlds will rise and fall as the ecosystem evolve. All of these will not affect the economic principles and objectives established in the paper and it goes to show that P12 ecosystem recovers from local flux.
This paper also goes to show how the P12 economic mechanisms facilitate and guarantee the design goals of true ownership, transparent price discovery, guaranteed liquidity, verifiable scarcity, and lastly enforceable governance. Overall, this paper aims to lay the foundation for the P12 ecosystem and establish the sustainability and viability of P12 economy.
Project Twelve, P12 in short, is a GameFi ecosystem with sustainable economy. It features the Editor, the Infra, and the Econs. This paper discusses the economic and governmental mechanisms implemented in the P12 ecosystem. This discussion falls under the broader category of Virtual World Economy or Game World Economy.
All forms of virtual worlds and virtual experiences have taken up more than 10% of the awake time of the entire human civilization. However, virtual assets take up far less than 10% of the world’s value, as measured in market capitalization. The authors of this paper attribute this mismatch largely to the fact that most virtual assets are currently centrally controlled by for-profit companies and horrendously underserved. When these obstacles were removed, the thesis is that virtual goods and assets would in the future take up more than 10% of the world’s net value, demolishing the mismatch. This is held by many builders of virtual worlds (be it gaming, Metaverse, SocialFi, or NFT). We are seeing but the beginning of this 1000x paradigm shift for virtual assets.
Most virtual assets are currently centrally controlled by for-profit companies. Some companies are building Metaverses under the same company-town paradigm. These companies thus have arbitrary and unvetted power over virtual assets in their respective virtual worlds or game worlds. This has led to a range of negative consequences in the past in the gaming sector, such as game currency inflations, shadow nerfs, fake scarcity and manipulations, and eventual server shutdown and database drop. As virtual assets are unprotected and underserved, their value is enormously impaired. GameFi projects have employed Blockchain to eradicate this problem. However, most if not all of the current GameFi projects have unsustainable economic models, causing them to pump fast and crash faster. This leads to further consequences such as a lack of long-term R&D commitments as most GameFi projects have short lifespans. A most important design goal for P12 is to create a GameFi ecosystem with sustainable economy.
Through economic and governmental rules and mechanisms, P12 seeks to achieve several design goals, including true ownership, transparent price discovery, guaranteed liquidity, verifiable scarcity, and enforceable governance. All these design goals revolve around and contribute to the central purpose of sustainability for the P12 economy. The above goals are defined mathematically for more precise examinations. Overall, this paper aims to lay the foundation for the P12 ecosystem and establish the sustainability and viability of P12 economy.
To conclude the introduction section we briefly discuss the inevitability of virtual worlds, and present an unbiased, first-principle argument for bits over atoms. Virtual worlds and digital simulations are the cheapest and fastest way to run experiments. This holds for entertainment and scientific use cases. Consider two scientific fields, one digital and one physical, that start at the same time and are given the same resources. The digital one will always iterate faster, evolve faster, and thus grow bigger to attract and absorb future resources, including capital and brain, for its own use. In any random walk, the digital side wins. In our current incarnation, bits are winning over atoms, and it will keep doing so. As bits are winning, virtual assets will continue to grow. We are witnessing but the very beginning of the 1000x for virtual assets.
