Economy Design

The major problem with Play to Earn projects is that their token prices are based on the FOMO sentiment of users, not the value created by the project itself. Once the FOMO sentiment fades and the growth rate of new users drops, it quickly goes into a death spiral.

Value Anchor

Skytopia aims to build a metaverse that can continuously create high value. The metaverse is a revolution of user experience, where the experience of traditional Internet applications such as games, social networking, e-commerce and other products will be upgraded. These new experiences will create new application scenarios and business opportunities, and the main value of Skytopia comes from the applications such as content, social and services based on new virtual experiences created by various Metaworlds.

Production Model

According to the Solow Growth Model, the gross product of the economy is Y:

Y=AF(K, L)

Where A is technological progress, K is capital, and L is labor.

To facilitate the effective growth of Skytopia's gross product, Skytopia will focus on building a connectable metaverse infrastructure to support ecology-wide technological advancement. At the same time, Skytopia will guide the effective flows and growth of capital in the ecology through a reasonable revenue and incentive model to attract more creators and developers to join the creative ecology.

Revenue

Skytopia's main revenue consists mainly of content service fees, transaction fees and metaverse service fees.

• Content service fees. To balance user experience and creator revenue, Skytopia has improved the traditional games' Buy-to-Play (B2P) and In-Game Purchase game mechanics by using the Metaworld shuttle fuel fee and in-Metaworld equity NFT as the main source of revenue. Most of the revenue (70%-90%) will go to the creators, and a small percentage will go to Treasury.

• Transaction fees. Mainly covers Skytopia ecological NFT transaction fees, cross-world asset conversion fees, etc.

• Metaverse service fees. Skytopia will provide a range of paid services to the metaverse ecosystem, such as high-quality art assets, complex system development, content distribution services, and more.

Motivation

According to the growth model, the gross product of a Metaworld can be used as a measure of its ecological contribution. Skytopia will offer high incentives to creators of Metaworlds with high gross product encouraging high quality content creation, efficient asset liquidity and innovative experiences based on cutting-edge technologies.