Maintaining liquidity in NFT game projects.

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Avatar for RewarderCrypto
2 years ago

Greetings to all readers of this great platform, in this opportunity I want to share with you information regarding the main problem of NFT games, or at least my perspective of them, which is associated with the problem of maintaining the liquidity pool of the project as such, so they end up failing to run out of resources in the same, this being the main cause that generates the closure of these projects.

The image used is from Public Domain, Author: PixaBay

For a project to be durable over time, it is necessary that the liquidity pool does not run out quickly, for this it is necessary that investors are constantly coming to the platform as such, for them the developers of these NFT games need to be constantly making updates that will generate confidence in the investor, and thus manage to attract more people.

It is an easy point to say but difficult to make, mainly because the people who enter these projects always seek to quickly capitalize resources, and then leave with their profits, by mining token corresponding to the project, but there are also many ways to prevent the liquidity pool from being affected by the constant withdrawals of these tokens, the main one I mentioned above, which is the constant entry of investors.

Other methods that are characterized by being efficient in NFT games, in order to be durable over time, from my point of view you should constantly implement burning methods, where you can improve your participation in the NFT game by burning some tokens acquired in it.

On the other hand, some games have implemented a modality called oracle, which consists of the more value the token has, the less tokens you can mine in the game by the activities performed, in my personal opinion that method has ended up failing, they accumulate large token whales at the beginning and sell on the way up and the project is over.

You must constantly control the production of token, and in my personal opinion the most viable way is the constant burning of the same, by different methods, and the depreciation of the NFTs that as you go mining and you have already mined more than you invested your performance decreases, as CryptoBoom did for some time.

Combining these different strategies you can reach a point where the economy of the same is very stable, so that they can last over time, and are considered high quality projects for the eye of investors.

ll the images used by the Author @RewarderCrypto are Public Domain, in each one of them you can find the source of the image.

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