Game Theory
Economic Velocity
The velocity of money is the rate at which money is exchanged or spent in an economy over a given period. It measures how quickly money moves through the economy and is an important determinant of economic activity. Generally, a higher velocity of money indicates a higher level of economic output.
Ludum Vitae and Velocity
In Ludum Vitae, the velocity of tokens is a key ingredient because it reflects the rate at which tokens change hands or are utilized within the game, signifying active engagement and participation in the system’s economy. This velocity is crucial to ensure a vibrant and functional in-game ecosystem that solves the tasks and goals of the sphere.
Here’s how velocity is supported and insured by diminution and other game features that support attention:
- Diminution
- Micro-transactions
- Loss Aversion
- Selectable Sphere Cycle Speed
- Blockchain Technology & Trust
- Negotiation w/Tips & Tributes
- Gem Creation Fee
- Bond Creation Fee
- Bonds and Bond Payments
- Bond side-channel Payments
- Attention Tracking
- Value Rewards
- Voting
- Gifting
- Vouching
- Fast Withdrawals
By combining these mechanisms, Ludum Vitae ensures that tokens are always circulating, thus fostering a dynamic economy. Active participation is rewarded, and neglect is penalized, ensuring that players remain engaged and that the in-game economy thrives through high token velocity.