SA World Economy: NFT Supply Limit & Inflation Control

Let's explore how we control NFT inflation in SA World with Nmax, an NFT supply limit mechanism in this ecosystem.

With many years in the traditional gaming scene coupled with the experience in building Summoners Arena: Idle RPG, we understand the concerns of players as well as how to effectively use blockchain technology to enhance the experience for the gaming community.

We’re launching a blog series called SA World Economy to explain the solution that SA World can bring. SA World’s goal is to solve existing problems in the game industry and build a more advanced and efficient gaming ecosystem integrating blockchain for players.

To start off this series, we will explain how we control inflation in SA: Idle RPG with Nmax, a mechanism that limits the number of Heroes released to the market. This mechanism will serve for the current Summoners Arena: Idle RPG game and similarly for other SA World titles in the future

NFT Hyperinflation - The Concern of NFT Game Players

In traditional games, resources are generated by game developers and there’s no or rarely any exchange among players. This creates a distinction of assets between players, hence no inflation.

With NFT games, developers will release a number of NFTs and resources in the beginning. Players will need to purchase NFT in order to play the game, generate other resources including more NFTs in order to sell them to other players. 

If the amount of resources and NFT is generated indefinitely or faster than the growth of a game’s user base, the NFT will lose its value gradually over time. For that reason, the NFT limit control limitation in SA World was created in order to prevent this issue.

Nmax - SA World’s Solution

Nmax is the limit control mechanism that ensures the maximum number of NFTs that circulate in the market is not subject to inflation or deflation. The formula to calculate Nmax is as follows:

Nmax = N.Ro * No* Alpha

• Nmax is calculated on the basis of direct correlation of itself and the optimal number of players in each game.

• The more players, the higher the Nmax will be. This means that the cost of owning NFT will also increase as the number of players and Nmax increase.

Details on the formula here: https://docs.saworld.io/nft/types-of-nfts-in-sa-world

After applying the formula, the price to acquire 1 Hero NFT in SA: Idle RPG is as follows.

Notes:

• Currently, the number of Main NFT in the market is between 1 - 50,000 NFTs

• The total number of Heroes include Heroes NFTs in circulation and unsummoned Heroes.

Community will always be a top priority at SA World. With the ability to create resources and currency in the ecosystem, holding governance rights and many other powers, NFT holders are the real owners of the project. Therefore, limiting the number of NFTs generated is one of the many ways that our team protects the rights of NFT holders at SA World.

---

Join Our Community

• Website: https://saworld.io/

• Telegram: https://t.me/SAWorld_io

• Twitter: https://twitter.com/SAWorld_io

• Discord: https://discord.gg/saworld