Philosophy of “Living Within Your Means”.

You don’t have to be an investor to understand the simple concept of supply and demand. When you were a little kid, if your friend had a toy, but nobody else had it, everybody wanted it. But as soon as all the kids had the same toy, nobody wanted it anymore. You don’t have to be a senior economist to understand that an infinite money supply eventually causes inflation.

In 2022, we witnessed the most ferocious bear market due to the US Federal Reserve and other central banks tightening their policies worldwide. Credit card debt is at an all-time high, meaning people live outside their means. Eventually, the bubble bursts and causes a system-wide recession.

These similar concepts killed most of the Play-2-Earn projects with inflationary tokenomics. Not only most of the tokens were filled with perpetual emissions coming from lockups at high valuations, but these tokens were also used as a way of rewarding the project community participants for either holding their NFT assets, getting staking rewards, participating in community activities or winning gaming quests where there were no losers, only winners. Combined, you get a never-ending flow of supply that isn’t met by demand due to an unattractive economic value proposition.

One can think of "market cap" as the total public demand, which rises and falls as prices go up/down and demand changes, but the market cap is the total amount of public dollars the market wants to buy tokens at the current price. Market capitalization is a measure of public demand to buy, while Fully Diluted Value (FDV) is not at all but rather an indicator of supply, which is why the concept of FDV can be confusing. When the market demand for unlocked tokens increases and leads to an increase in the market value of the tokens, the FDV will also increase proportionally (even if the market demand for these locked tokens does not necessarily increase). If the ratio between the market cap (tokens out in circulation x current price) and FDV (entire supply x current price) is high, then the token can be considered inflationary.

Combined with additional inflationary faucets in the form of NFT yield rewards, Play-2-Earn rewards, and staking rewards constantly printing emissions along with emissions from vested supply unlocks and no demand for the said unlocked supply, we get a maxed-out credit card with no one left to cover the bills.

This is a similar condition to which $GOB found itself at the start of 2023. To revive $GOB and rebuild the organic economic flow in the entire ecosystem, we performed three major surgeries on the system, one of which required an implant in the form of a secondary token for the entire structure to remain intact and improve its functional ability. Consider it necessary dental implants that will hold the bridge and help reconstruct the mouth.

• 1st major surgery was identifying all inflationary aspects of the token (such as staking rewards, P2E rewards, team excess tokens, and other empty “supply”) and completely removing it from the system via a massive burn.

• 2nd major surgery was giving the $GOB token a new utility and extra liquidity and giving $GOB holders access to a basket of real-yield rewards that are now possible due to $CHUNKS. The plan was to turn $GOB into the ecosystem’s main governance token, and the main asset behind $GOB’s community DAO called exactly that: GOB DAO.

• 3rd major surgery was to replace the lost value for the current GOB ecosystem asset holders and early adopters while shifting the project’s mindset from living off a credit card to a debit card or within our means. This also means shifting the ecosystem participants' mindset from accepting dilution due to collecting inflationary, devalued supply to earning from a pool of rewards that replenishes due to organic demand activity.

In such a model, the earnings are directly proportional to the token demand, ecosystem scaling, product mass adoption, and the combined team and community effort to promote and support such a model.

This brings us to the new era within GOB: RiskFi.

Read more about our game microwagering module-in-development on our Gitbook.

https://goons-of-balatroon.gitbook.io/goons-of-balatroon/ecosystem/microwagering#:~:text=Powered%20By%20GitBook-,Microwagering,collected%20in%20the%20bank%20as%20a%20result%20of%20the%20trading%20activity.,-ECOSYSTEM%20%2D%20Previous