The Law Of Value
In traditional games, items often appear instantly, created by exchanging currency with developers or through random loot boxes. Because these items require no real effort to obtain, their value remains superficial and temporary, without reflecting actual player work.
In a player-owned economy,items can't appear out of thin air. Every asset results directly from meaningful player effort and the transformation of resources. The Law of Value means an item's worth comes from the materials used and the effort invested to create it. This guarantees that every asset truly reflects player actions.
Effort: A Simple Formula
The main point here is “effort”, which can be put in an equation:
Effort means the work a player does to create an item.
Resource includes materials (e.g., steel for a sword) or tools (e.g., a pickaxe to mine ore).
Time is how long it takes to produce the item using the given resources.
Efficiency multipliers represent improvements in efficiency, affected by player skills or resource quality.
This means valuable items require effort from players. Market prices depend on this effort and the demand on the other end. Even significant effort can't guarantee a high price if resources become too common. Ultimately, each item's worth directly ties to real player investment, making assets meaningful and authentic.
Example: Crafting a Sword
Inputs: To craft the sword, you need steel and wood—each with its own value.
Effort: Additionally, it takes time and skill (effort) to forge the sword.
Creation Value: The sword’s true value is the sum of the steel’s and wood’s values plus the value of the work required.
Market Price: A function of scarcity, if steel is scarce or highly valued, the sword’s market price will be higher. Conversely, if steel is abundant, the price might drop—even though the same amount of effort was used. And desirability, if a sword greatly upgrades combat it would go for a higher price, as more people would be trying to get one and compete through bids.
Real Value
This approach ensures that all items have real worth because they can only be created by putting in genuine effort. In contrast, many traditional games let you obtain items through simple currency exchanges, meaning they’re produced without any real work—diluting their true value.
Understanding the Law of Value is fundamental to achieving a stable and engaging economy. Next, we will explore how these principles combine to ensure long-term sustainability and continuous economic growth.
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