Economic Model
Multi-currency system, token flow mechanics, and configurable sink/source design.
Overview
Monsuta Core supports a dual-currency architecture — but does not mandate specific tokens.
| Currency Role | Purpose | Examples |
|---|---|---|
| Settlement currency | External value layer. Funds competitive activity. | AVAX, USDC, USDT, ETH |
| Gameplay currency | Internal game resource. Consumed by gameplay systems. | Any ERC-20 (e.g., THC) |
Any game integrating Monsuta Core chooses which tokens fill these roles.
Why Two Currencies?
A single-token model creates a feedback loop: players earn the same token they use to enter competitions. This leads to hyperinflation because supply grows linearly with participation while demand remains flat.
The dual-currency split isolates speculation from gameplay.
Settlement Currency
Role
- External value layer
- Funds competitive activity
- Denominated in market-priced assets (stablecoins or native tokens)
Sources (inflow)
| Source | Mechanism |
|---|---|
| Tournament entry fees | Players deposit to enter competitions |
| Sponsor funding | Guilds, streamers, or sponsors fund prize pools |
| Marketplace fees | Optional: percentage on NFT trades |
Uses (outflow)
| Use | Mechanism |
|---|---|
| Tournament prizes | Distributed via Prize Pool Contract |
| Season rewards | Claimable from Treasury |
| Developer revenue | Configurable fee split |
Key Property
Settlement currency never touches gameplay mechanics. Players do not spend settlement tokens to make in-game moves. This keeps gameplay accessible even when token prices fluctuate.
Gameplay Currency
Role
- Internal resource for game systems
- Consumed by gameplay actions
- NOT a yield token, NOT designed for speculation
Sources (how it enters circulation)
| Source | Mechanism |
|---|---|
| Competitive rewards | Earned through match victories and rankings |
| Tournament placement | Bonus alongside settlement currency prizes |
| Season milestones | Earned by completing seasonal objectives |
| Achievement completion | One-time rewards for specific accomplishments |
Sinks (how it exits circulation)
| Sink | Mechanism |
|---|---|
| Crafting costs | Consumed when crafting items |
| Upgrade fees | Spent to enhance existing items |
| Blending recipes | Required as ingredient in blends |
| Entry tickets | Spent to enter specific game modes |
| Special events | Time-limited events that consume currency |
Why no artificial burn?
Gameplay naturally consumes currency. If the game is designed correctly, every source corresponds to a destination where it is spent. Artificial burns signal that the economy lacks real demand.
Multi-Token Configuration
Games can configure multiple gameplay tokens, or share a single one:
┌─────────────────────────────────────────────────────────────┐
│ SINGLE TOKEN SETUP │
│ │
│ Settlement: AVAX │
│ Gameplay: Token A (ERC-20) │
│ │
│ All crafting, staking, and rewards use Token A │
└─────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────┐
│ MULTI-TOKEN SETUP │
│ │
│ Settlement: USDC │
│ Gameplay tokens: │
│ Token A — crafting and upgrades │
│ Token B — competitive entry tickets │
│ Token C — cosmetic shop currency │
│ │
│ Each token has its own source/sink configuration │
└─────────────────────────────────────────────────────────────┘
The staking, crafting, and prize pool contracts accept any ERC-20 address as a parameter. Token choice is a configuration decision, not a code change.
Economic Flow
┌──────────────────────────────────────────────────────────────┐
│ │
│ SETTLEMENT CURRENCY (e.g., AVAX / USDC) │
│ │
│ Sponsors ──► Prize Pool Contract ──► Winners │
│ │ │
│ Entry Fees ───────┘ │
│ │
│ Optional: portion of entry fees ──► Treasury │
│ │
└──────────────────────────────────────────────────────────────┘
┌──────────────────────────────────────────────────────────────┐
│ │
│ GAMEPLAY CURRENCY (e.g., any ERC-20) │
│ │
│ Earned via ───► Player Wallet ───► Spent on │
│ • match wins │ • crafting │
│ • season rewards │ • upgrades │
│ • milestones │ • entry tickets │
│ │ • blending │
│ │ • special events │
│ ▼ │
│ Circulation │
│ (supply ← gameplay activity, │
│ demand ← gameplay consumption) │
│ │
└──────────────────────────────────────────────────────────────┘
Economic Boundaries
What a Gameplay Currency Is NOT
| Misconception | Reality |
|---|---|
| A yield token | Not passively earned. Requires active play. |
| An investment | No dividend, no buyback, no guaranteed value. |
| A governance token | Does not grant voting power (unless explicitly designed). |
| Backed 1:1 by anything | Value derives from gameplay demand, not a peg. |
Economic Health Indicators
A healthy economy exhibits:
- Mint rate ≤ consumption rate — supply does not grow faster than demand
- Active crafting/upgrade usage — sinks are being utilized
- Consistent tournament participation — settlement currency is flowing through the system
- Low accumulation by non-players — speculators are not dominating supply
Configurable Parameters
Games using Monsuta Core define their own economic parameters:
| Parameter | Description | Example |
|---|---|---|
reward_per_win | Gameplay currency awarded for a match victory | 50 |
crafting_cost_base | Base gameplay currency cost for crafting | 200 |
entry_ticket_cost | Gameplay currency required to enter ranked mode | 10 |
season_reward_pool | Total gameplay currency distributed per season | 100,000 |
tournament_fee_split | % of entry fees going to prize vs treasury | 90/10 |
mint_cap_per_epoch | Maximum gameplay currency created per epoch | 500,000 |
gameplay_token_address | ERC-20 contract address of gameplay currency | 0x... |
settlement_token_address | ERC-20 or native address of settlement currency | 0x... |
These are defined per-game, allowing each project to tune its own economy without forking the protocol.
Reusability for Other Games
Any game integrating Monsuta Core's economic model must define:
- Token addresses — which ERC-20 contracts to use for gameplay and settlement
- Sources — how players earn gameplay currency (what activities generate it)
- Sinks — how players spend gameplay currency (what consumes it)
- Settlement flows — how settlement currency enters and exits the system
- Parameter values — specific numeric tuning for their economy
The smart contracts and server modules are shared. The economic balance is the game designer's responsibility.