Let’s suppose Joe is a simmer and a user of SimFly.
To make purchases on SimFly, one PAX token is equivalent to one United States dollar (USD). For example, Joe can purchase a $60 airport using 60 PAX, which he can obtain by connecting SimFly to his flight simulator and completing free flights and missions. SimFly issues new PAX to reward pilots and owners of airports and aircraft who use their assets with SimFly. If Joe wants, he can convert the PAX he has earned, depositing them into his Ethereum wallet as ERC20 tokens, and selling them on a decentralized exchange.
However, it is unlikely that someone would buy Joe’s PAX for more than $1 each, as they can only be used on SimFly, where they have a value of $1 per token. Similarly, it would not be advantageous for Joe to sell them at a price significantly lower than $1 per PAX, as they would have a higher value if used for making payments on SimFly.
If Joe accumulates many PAX and wishes to monetize them, he can sell them at a price lower than $1 per token on an exchange, obtaining another currency (for example USDC). In this way, he allows other players to purchase PAX at a cost lower than $1 per token and use them to buy airports, airplanes, licenses, and upgrade their assets on SimFly, where PAX have a value of $1 each. As a result, these players can acquire assets at a reduced price, having purchased PAX at a cost lower than $1 per token.
When PAX are used for making payments on SimFly, for example, for purchasing assets or upgrading resources, these tokens are removed from circulation through a process called “burning.” Simultaneously, SimFly creates new PAX to reward users. By eliminating the used PAX and generating new PAX when they are earned, SimFly ensures that the PAX in circulation are exclusively those earned by simmers and not yet spent, creating an authentic economic ecosystem for the game that prevents manipulation of the token’s value.
Video SimFly token economy: https://www.youtube.com/watch?v=ZGylFsuJ4BY&t=1s