EOS Knights is one of the most popular EOS based games with over 1400 daily active users. It was launched shortly after the launch of EOS mainnet. This game is certainly popular but its economic model is flawed. In this article I will discuss why its economy is flawed and potential solutions to solve it.
EOS Knights is a farming / mining game where you can level up and mine materials after the main characters of the game die. The mined rewards are claimed by the rebirth of main characters of the game which are Knight, Archer and Mage. You will be rewarded materials with different level of rarity, depending on how many enemies you kill. You can then trade the materials on the internal market or craft items using them.
The lowest price for materials is 0.01 EOS. Since many types of materials have become abundant, very low quality materials and rare materials are selling for the same price [its like setting the same price for a rocket and a car]. Cats eye was selling at 0.03 a few weeks ago but now it is worth 0.01 EOS.
The same is true for items as well. Items are crafted from various materials. For example, a wooden bow is crafted with two materials which are 1x wood and 1x papyrus. These items are also tradable goods. Item prices have declined even though the number of people playing the game has increased significantly. Shouldn’t it be the other way around?
This is happening because both materials and items have become abundant. There is too much supply of materials and less demand to buy them. So, how can the game solve this?
In order to fix the abundant supply problem, the game should add a system that will award more rare materials to only users who are able to perform tasks that bots can’t do. If bots can do things that awards it good materials then some malicious users will take advantage of that and game the system to their advantage.
This is why it is important to require human input in order to progress in the game. This will prevent bots from playing the game like real users. Also, the smarter and more experienced players will then be able to get better materials which will make the game more attractive and competitive. And reducing the minimum trade amount to 0.005 EOS will help with pricing materials.