Web3 projects often have a hard time generating positive buy pressure for their tokens. 1/

Modeling a typical web3 game with a normal distribution in user growth and a 50% reward rate to players, it could take many months before buy pressure overtake the sell pressure from a premint. This is why so few web3 games survive. But there are solutions. 2/

The most obvious would be to avoid the premint altogether, but this is only possible for small teams that can keep the development costs low by investing their own time. The blue line show buy pressure for a project with no premint. 3/

As you can see, buy pressure is positive the moment user growth kicks in. The model parameters use a 50% player rewards rate but it can be increased to improve the tokenomics. 4/

Alternatively with higher entry costs and lower player rewards, buy pressure can overcome sell pressure within a couple of years. The red line show buy pressure for typical tokenomics and a $250k outside investment. It takes almost 35 months before the situation improve! 5/

AAA games with lots of hype can stir up enough interest to secure up-front investment but it is often the players that are left holding the bag. 6/

Small teams are typically more aligned with their users and are able to increase the player reward rate without sacrificing tokenomics. #Web3Games #tokenomics #Web3 7/7