Copy of Web 3.0 Economy

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This diagram models a virtual economy focused on Non-Fungible Tokens (NFTs) and cryptocurrency transactions. In the model, players interact with an economy that involves earning tokens, purchasing NFTs, and selling them on marketplaces to earn cryptocurrencies like ETH or SOL. The economy is initiated by a source generating an infinite number of tokens, which players can then earn. These tokens can be used in several ways: to buy NFTs, to sell for cryptocurrency at a fixed rate (simulated through conversion nodes), or to reinvest in purchasing more NFTs. Two converters, "Sell on Marketplaces" and "buy NFTs," facilitate these transactions, with set formulas dictating the conversion rates for selling tokens for crypto and the cost of NFTs in tokens.

The system's dynamics are further enriched by player choices, modeled through a gate with probabilistic outcomes—there's a chance to reinvest tokens in buying more NFTs or sell them for cryptocurrency. These choices are tied to specific probabilities, reflecting, for example, a more significant propensity to reinvest tokens rather than sell them immediately. Additionally, feedback loops are integrated into the model, such as the potential increase in tokens earned based on the number of NFTs held, representing investment growth over time. This interplay of nodes and connections outlines a complex interaction of earning, spending, and reinvesting within a digital economy themed on popular cryptocurrency and NFT market trends.