NFT Games

Understanding the relationship of economic principles with NFT games:

In today's global economy, the pricing of goods and services is largely determined by the law of supply and demand, reflecting the dynamics of various factors such as taxes, logistics, raw materials, technology, scarcity, and consumer preferences. Three fundamental premises underlying this economic framework are utility value, scarcity, and choice.

Utility value is intrinsically linked to how people perceive the value of a good or service based on its perceived utility. It is subjective and varies among individuals, reflecting their unique needs and preferences. Scarcity is the fundamental reality that resources are finite and insufficient to meet all unlimited human demands. This requires the efficient allocation of resources to meet the most urgent needs. Choice is the decision made by economic agents based on the perception of value and the limited availability of goods. Consumer choices affect supply and demand, influencing prices and resource allocation.

In the context of NFT games, these concepts also apply:

• Utility value: NFT games need to create perceived value to attract players, who may be willing to spend time and resources on the game based on the experience offered.

• Scarcity: NFT tokens, as unique digital assets or collectibles, can be designed with intrinsic scarcity, increasing their value to collectors and investors. Limited supply and future issuance and burn prospects also play a significant role in managing scarcity.

• Choice: Marketing plays a critical role in creating interest in NFT games, highlighting their attributes and advantages to attract players and investors. Players' decisions to allocate capital in the NFT gaming ecosystem are influenced by marketing strategies and the perception of value.

Thus, the concepts of utility value, scarcity, and choice continue to play a significant role in the economy of NFT games, shaping how players, investors, and game creators interact within this emerging ecosystem.

Contextualizing the current issue in the economy of current NFT games:

Understanding the current landscape, the founding team recognizes that most NFT Game projects lack an attractive utility value for players. This results in low user retention and overly speculative behavior. Furthermore, economic models that involve unbacked issuances put constant downward pressure on prices, resulting in a race for liquidity. To make matters worse, in some cases, the token becomes the unit of account in the game, which, due to its volatility, creates adverse consequences. An example of this is when the token appreciates substantially, which, while positive for token holders, significantly increases the minimum entry cost into the game, making it difficult for new players to participate and harming the scalability and longevity of the game.

Furthermore, in many NFT game economies, game developers hold a significant portion of the token supply and receive fees in tokens, leading them to sell their own tokens (in exchange for stablecoins) to cover ongoing project costs. This puts downward pressure on prices and drains liquidity from pools, harming the interests of players. In the context of choice, the team acknowledges that marketing has been the only successful pillar in most projects so far. However, faced with this challenging scenario, the Ardoxus founders believe that the market is ready for something new that effectively integrates the three essential pillars: gameplay, financial gain opportunities, and a sustainable economy.

Ardoxus difference:

Unlike most games that start with few tokens in the IDO and significantly increase the supply, causing price depreciation, ARDX is backed by USDT and will not have future issuances. Since the team earns revenue from Capsule sales, our team do not need to have a token supply to profit, avoiding the risk of token dumping by the team and keeping the token economy for players.

ARDX is scarce and deflationary, with token burns in the liquidity pool aiming to positively influence the price. As people buy the token to play or stake, the volume tends to increase and the price rises due to demand.

Player and stakeholder rewards always come from segregated pools backed by USDT. These pools operate independently of price fluctuations in the liquidity pool, offering greater earnings predictability. This tokenomic structure aims to prevent liquidity runs and provide more security to players.