💸Internal Economy

The way in which an internal economy is managed determines its growth and level of prosperity. This is why, in order to understand the functioning of the internal economy of Fragmented Spells, it is necessary to understand a few aspects.

First, any economy has the potential to prosper if the interrelationship between its actors tends to be balanced. What does this mean? That, among other things, it is not enough for there to be a balance between supply and demand, since the economy is a relationship between different types of individuals, each contributing from different angles to the system as a whole.

One of the factors that we believe affect internal economies in these types of projects is that there is a tendency to confuse an economy in the real world with an economy in the crypto/blockchain world.

While the laws of supply and demand are valid within the crypto world, one must also consider the premise behind the laws of supply and demand in the real world. The premise is known to all, and that is that economies have limited resources and infinite needs. This premise is not true in the crypto world, in fact, it is completely reversed.

Technically, in the crypto world, resources are unlimited while needs, i.e. the requirements for those resources, are limited to the number of participants interested in those resources. One might think that some crypto resources are limited, such as bitcoin, but the reality is that technically each bitcoin can be subdivided into up to 1,000,000 parts. Consequently, bitcoin could be subdivided into enough parts so that the entire world's population, both present and future generations, could have a share of bitcoin.

Remember that infinity is a concept, not a number.

With this background in mind, an economy has been designed that captures the main characteristics of a traditional economy, such as collaboration, relationships between individuals and the generation of value through scarcity and user preferences, making the necessary modifications to sustain a sustainable and thriving internal economy.

The internal economy refers to a system of dependence of users, as in a real economy, in which all resources are generated and how users address their own needs and/or preferences for participation is determined.