FuseBlocks Purpose

The problem FuseBlocks look to solve

In managing a healthy token-based economy, there are risks to be considered:

• Volatility: Triggered by either too many or too few tokens available for public trading.

• Speculation: Trigered by market incentives that reward short term "day trading" behavior among token holders, as opposed to "long term value investing" behavior.

• Inflation: The token supply grows in a manner that creates inflation- the supply of tokens exceeds demand.

• Deflation: The supply of tokens fails to meet demand, artifically constraining their utility for the ecosystem.

The FuseBlock system is designed to give greator macro-economic control over the ecosystem, by incentivising long-term value investing.

FuseBlocks are smart contracts in their own right, that govern the overally economy related to minted game objects. Without a FuseBlock, one could in theory mint an object directly. In practice, objects must be minted via an underlying FuseBlock contract. The PLAY ecosystem controls the rules beind these smart contracts, and these rules relate to to $PLAY token as follows:

• FuseBlocks are smart contracts backed by a quantity of $PLAY. For example, a "$10" FuseBlock contains $10 of $PLAY at that moment.

• A FuseBlock is a precondition to mint game object(s) on the ecosystem. For example, a developer purchases a $100 FuseBlock and mints 100 collectible in-game rewards. These rewards are given to players who've achieved a certain level of game mastery, by a metric set by the developer (levels cleared, XP earned, etc).

• The minted game objects in the above example now have two measures of value:

  • Extrinsic Value: The value as perceived a player in the game context. This is the artistry of game design, that gives status and meaning to a reward consistent with the quality of the game experience (e.g. a super-rare "Skin" for an avatar, where a player has reached the top 1% of players in skill.).

  • Intrinsic Value: This is the underlying value of $PLAY behind the game object. In the example given, the 100 in-game rewards, using a $100 FuseBlock, have an intrinsic value of $1 each (at the moment of minting, given the price of $PLAY at that instant).