Increasing Price Tokenomics v1

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This diagram models a simplified virtual economy system where citizens are created and resources such as identities, items, and land are managed. Initially, the system generates a fixed number of bytes per day to represent the generation of resources. These bytes flow through a utility gate, which distributes them among three main pools: Item Byte Pool, Identity Byte Pool, and Land Byte Pool, in predefined percentages. These bytes are then used—or rather, required—by corresponding converters (Mint Identity, Mint Item, and Mint Land) to produce tangible assets, represented as resources in their respective identity, item, and land pools.

The production of new citizens is an intricate process involving the assembly of items, identities, and land. Once resources are allocated to these pools, the system triggers the Assemble Citizen converter, which consumes resources from the identity, item, and land pools to create a new citizen. Additionally, several gates manage the flow of resources and trigger actions such as adding resources to counters, which are then utilized by registers to influence the production costs dynamically. This mechanism introduces an element of economic variability, with prices increasing as more resources are consumed. Importantly, the process encapsulates a feedback loop where the production and consumption of resources dynamically affect the economy, simulating a living system where resources are finite and their management crucial for sustainability.