What is "Allocation of Earnings"?

In the economies of virtual worlds, players exhibit a preference for allocating their in-game earnings—such as gold—towards specific currency sinks. Currency sinks are mechanisms intentionally designed by game developers to absorb excess in-game currency, maintaining a balanced in-game economy and providing players with meaningful ways to spend their wealth.

Players often make decisions on allocating their earnings to different sinks based on various factors. Interest, or the perceived value gained from a particular sink, plays a significant role. Affordability matters, as players consider their financial capacity within the virtual economy. Perceived pay-off involves evaluating the benefits or rewards associated with a currency sink, influencing players to invest in avenues promising higher returns. Supply and demand dynamics also come into play, affecting the market value of in-game items or services tied to specific sinks.

For example, in many games, players have the option to allocate their earnings to different currency sinks, such as purchasing rare and powerful equipment, investing in in-game properties, or participating in virtual events. If a limited-time event promises unique rewards or a significant boost in character power, players might allocate a substantial portion of their earnings towards participating in and maximizing their gains from that event.