> For the complete documentation index, see [llms.txt](https://wiki.metados.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.metados.com/economy/economy-overview.md).

# Economy Overview

Overview of MetaDOS economy and its monetization model

## Market Research

According to [Business Research Insights](https://www.businessresearchinsights.com/market-reports/battle-royale-game-market-101554), the global Battle Royale Game market is poised to attain a valuation of USD 1.9 Billion, supported by a consistent CAGR of 9.1% from 2023-2031. The market's current trajectory suggests that it will surpass USD 2.5 Billion by 2031. Games in the core competitive Battle Royale genre show huge growth potential in the future, especially on PC and mobile.

The key players in the Battle Royale Game Market are:

* Tencent
* Epic Games
* NetEase
* Electronic Arts
* Activision

However, most popular titles are at least 5 years old and are declined in terms of active players. Battle Royale players also often play multiple titles at the same time.

## Challenges in Competitive Game Economics

1. Flawed reward systems. Many games have economies that are poorly designed, leading to unrewarding progression and unbalanced gameplay.
2. Short-term monetization models. When a game focuses on squeezing short-term spending instead of long-term fun, the economy and the community collapse eventually.
3. Unclear revenue models. Developers face a significant challenge when it comes to making sustainable business decisions around free-to-play games.
4. Pay-to-win imbalance. When spending money grants real gameplay advantages, the experience for the majority of players suffers.

## Our Approach To Addressing These Challenges

### Skill-Based and Challenge-Based Reward Systems

* Exclusive cosmetics will be only rewarded to top leaderboard Players.
* The players or esports organizations can host their own tournaments which use their own reward pools. MetaDOS will take 5% of the pool as the hosting fees.
* Some rare collectibles could be claimed by reaching the max level of Battle Pass only, which requires the players' time and skill.
* Certain collectibles have the potential for free evolution; however, players must complete an evolution quest, such as inflicting 100K damages while equipping that collectible.

### Cosmetic Based Economy

At MetaDOS, our core design principle is fair play, and that's why we have created a "Cosmetic Based Economy" for our platform.

In games such as Genshin Impact, players have the opportunity to gain a significant advantage by purchasing the strongest heroes or items. On the other hand, in free-to-play cosmetic economies like League of Legends, Fortnite, or Valorant, the skins purchased by players from the game studio are not actually owned by them and will be removed if the games are shut down.

At MetaDOS, all the Collectibles are cosmetic based, such as skins, takedown animations or artworks. They don't impact anything in the game balance while giving the players unique appearance and visual effect. Some key points:

* Cosmetic Items are limited. For example: If the total supply of Skin A is 100, only 100 will ever exist.
* We'll create a system for user-generated content (UGC) where creators can submit cosmetic designs and players can vote for their favorites.

## SECOND - The Premium Currency

### What is SECOND?

SECOND is the official premium currency of MetaDOS, serving as the primary way to purchase exclusive cosmetics and to participate in community tournaments. It is not a cryptocurrency and cannot be traded or exchanged outside the game.

### Purpose and Use

* **Exclusive Items:** Purchase exclusive cosmetics and items on the Time Shop.
* **Tournaments:** Host or participate in Custom Tournaments with community prize pools.
* **Rewards:** Earned by top-performing players on seasonal leaderboards and in tournaments.

### Important Notes

* **In-Game Only:** SECOND can only be used within MetaDOS and has no value outside the game.
* **Cosmetic Only:** Spending SECOND never grants gameplay advantages - cosmetics and convenience only.


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