Editing Economic Model

In any economy, for someone to earn, someone must be spending money. Somehow every token someone is earning by participating in a game must related to what is being spent by other players. Whereas in some games the two are only very loosely connected, the economy of PlanetQuest uses only one token: $PQX. 

=== PQX Utility & Purpose ===
Used to buy, trade and construct gear and supplies, as well as for interplanetary transport, activation of artifacts and naming of planets, PQX (also known as Quantum) is at the center of the PlanetQuest economy. PQX is obtained by players from an exchange or earned as a reward for their in-game achievements and managing your PQX wisely is one of the key factors to success in PlanetQuest.

Instead of minting whatever quantity of this token is needed to reward the players and NFT owners for their efforts, PlanetQuest tracks how much raw quantum its players and NFT owners have received each day. It also maintains a single rewards pool, which is constantly refilled based on the revenues of the game. Each day, a small portion of this reward pool is set aside as the daily reward. This daily reward is split by the players and NFT owners based on how much raw quantum they accumulated that day. The diagram below shows how Raw Quantum is generated by playing the game and how it is later refined into $PQX.
[[File:Raw Quantum Generation.jpg|alt=Raw Quantum Generation|none|thumb|800x800px|Raw Quantum Generation]]
[[File:Daily Rewards and Refining Raw Quantum.jpg|alt=Daily Rewards and Refining Raw Quantum|none|thumb|800x800px|Daily Rewards and Refining Raw Quantum]]
''Please note that the contents of the reward pool and exact economic policy shown here are for illustrative purposes only. Model may still be subject to modifications as PQ team fine-tune the game.''

= The benefits of PlanetQuest’s economic model =
This new approach to the game economy allows PlanetQuest to offer a sustainable economy fueled by $PQX being spent on in-game purchases, construction of gear, royalties from sales and even profits from Novels, Comics and Cinematic spinoffs of the PlanetQuest Multiverse. In fact, if you’ve bought any insignias or are participating in the planet sale, you are already contributing to that economy, as 50% of the revenue for these actions will in the future be used to buy $PQX from the market to be added to the reward pool. Naturally we also have a large emissions and rewards pool to help kickstart this process, with 46% of our token supply already allocated for this purpose.

Aside from the final economy being based on real revenue, there is a lot of additional benefits to this approach:

* If someone were to find an exploit in-game allowing them to generate massive amounts of Raw Quantum, the worst-case scenario is that they take the majority of one daily reward. This can be easily compensated, and the problem fixed. Imagine the impact if instead they got to mint a near infinite amount of utility tokens.
* There’s massive utility for the token as all transactions in the game take place in $PQX.
* The game economy can be easily tweaked on a day-by-day basis to keep the game experience fun and rewarding even in changing market circumstances.

This last point, in particular, is an important one to unpack. Because it’s impossible to predict the exact revenues and player base of a game in advance, having an economic model with few controls, or worse, one which is entirely static, can cause a lot of problems. Instead, the PlanetQuest team (and later the community) will have access to several powerful economic policies that make sure that our multiverse can adapt to such unpredictable factors. Below we discuss just a few of these:

=== <u>Daily Reward</u> ===
The daily reward policy takes some part of the reward pool each day to be earned by players and NFT owners. Thanks to being a flexible policy, it can easily be tuned to, for example, increase the reward as the game sees increased spending by a larger number of players.

=== <u>Planet Population</u> ===
The planet population limit is a powerful way to tune the average $PQX earned by planet owners and indirectly by guilds. While it’s impossible to predict how much revenue an average player might generate, having the ability to simply increase the planet population limit means we can tune the number of players allowed per planet in such a way that $PQX earned by planet owners and guilds hits the right level.

=== <u>In-game Pricing</u> ===
As PlanetQuest grows, the value of $PQX is likely to follow suit. Flexible in-game pricing will allow us to make sure that the costs of constructing gear and purchases on the marketplace continue to make sense, so that everyone can continue to participate in the economy, no matter if 1 $PQX is worth $0.40 or $40.

These and other policies allow us to balance the economy in the game based on the value of $PQX as well as the revenue per player, providing us with a powerful, sustainable, token economy.

== Planets as an important part of economic model ==
As it was mentioned earlier ''all planets are represented by an NFT'', so they have a really important place in the PlanetQuest economic model.

To reward the community and to give them more fun from the game process PlanetQuest introduced Planet NFTs that generate a steady stream of PQX for their owners. For planet owners, this income depends on the activity and success of the players they offer a home on their planet, along with the rarity of their planet. This means, no matter the exact number of active players, planet owners who are doing a great job, will always be able to count on a steady stream of income. Before early access in 2023, PQ team will distribute no more than 3 galaxies of planets, including those earned through passport rewards. In each of these galaxies, there are:
[[File:Number of Planets available per Galaxy.jpg|alt=Number of Planets available per Galaxy|none|thumb|800x800px|Number of Planets available per Galaxy]]
For the keen observer, you’ll note the above breakdown not only reveals pricing, but also the weight value for each of the planet tiers. Although planets depend on players joining them and playing to generate $PQX, the amount of $PQX they produce will generally be relative to their weight, which means a Legendary planet will typically generate 50x more $PQX than a common one. In other words, a single Legendary planet can be expected to generate roughly 100 / 19,800 = 0.505% of all the $PQX produced by Planet NFTs within its galaxy, while a rare planet produces only 8 / 19,800 = 0.04%.

This means that if the total $PQX production of a galaxy is 2.5M $PQX per month, a legendary planet would likely produce 5,050 $PQX per month, or 60,606 $PQX per year, as shown in the example below:
[[File:Example of $PQX production .jpg|alt=Example of $PQX production |none|thumb|800x800px|Example of $PQX production ]]
New planets are offered for sale as existing ones fill up with players, making sure there is always enough planets for new players to find a home. Should player count drop, planet owners are incentivized to recruit new players to shore up their earnings, or may (in future), be given the option to crack empty planets, for a one-time lump sum of Quantum, burning the NFT in the process.