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first approximation of how the Battle Derby web3 economic flow will be - Proof of Skill system and basic features. --- Auto-Generated Description --- This diagram models a comprehensive system that demonstrates a virtual economy involving Non-Fungible Tokens (NFTs), the accumulation and consumption of resources, player interactions, and various game mechanics such as leveling, achievements, and in-game rewards. At its core, the system integrates multiple concepts such as token utility, scholarships, gameplay loops with NFTs, and a proof-of-skill framework, creating a complex interaction model that would be applicable in a blockchain-based game or virtual economy. The diagram includes sources that generate resources, such as player actions and events. These resources flow through pools, which represent storages like player tokens, XP, NFTs, and development points, accumulating over time or as players interact with the system. Converters within the diagram symbolize the transformation of these resources into other forms, embodying gameplay mechanics like upgrading NFT stats, acquiring new NFTs, or leveling up player profiles. Drains are used to remove resources from the system, indicating token burn mechanisms or the consumption of resources for specific actions like renting NFTs or participating in events. Gates within the system manage the distribution of resources based on certain conditions such as player ranks or achievements, further adding to the dynamic nature of the economy. The inclusion of registers allows for complex calculations and state changes based on the accumulation of resources, simulating economic factors such as tokens used, development points earned, and the burning of tokens. Overall, the diagram encapsulates a multi-faceted virtual economy system that could serve as the backbone for a game or digital platform, illustrating the flow of resources through various gameplay elements and interactions, ultimately leading to a dynamic and engaging user experience.