🪄Game Theory

Deflation, Reward, Sustainability And Outcome

The Strategy And Goal

To achieve a balanced and sustained economy in Wonderland Finance, a thoughtful approach to managing the three tiers of insanity—White Rabbit, Mad Hatter, and Cheshire Cat—is crucial. Let's explore a strategy that balances deflation and inflation, maximizing rewards while maintaining the stability of the ecosystem.

1. White Rabbit (Cost: 45 Tokens):

   • Deflationary Impact: The lower cost encourages more participants, resulting in increased token burning and deflationary pressure.

   • Compounding Effect: At a daily reward of 5%, each White Rabbit entry generates 45 * 0.05 = 2.25 tokens daily. Strategy: Initiate the journey with White Rabbit for the deflationary effect. Regularly compound the rewards to benefit from the compounding magic. Reinvesting the generated tokens back into White Rabbit ensures a continuous deflationary impact.

2. Mad Hatter (Cost: 450 Tokens):

   • Controlled Madness: With a daily reward of 10%, participants in Mad Hatter experience controlled madness.

   • Compounding Effect: Each Mad Hatter entry generates 450 * 0.10 = 45 tokens daily. Strategy: As the rewards accumulate from White Rabbit, consider diversifying by acquiring the Mad Hatter. The 10% daily rewards offer a sustainable and controlled form of madness. Reinvest a portion of the rewards and use the remainder to compound White Rabbit.

3. Cheshire Cat (Cost: 950 Tokens):

   • Balanced Inflation: The higher cost of entry is balanced by a daily reward of 15%, providing controlled inflation.

   • Compounding Effect: Each Cheshire Cat entry generates 950 * 0.15 = 142.5 tokens daily. Strategy: Once the economy is well-established with White Rabbit and Mad Hatter, explore the Cheshire Cat tier. The 15% daily rewards provide a higher yield, balancing controlled inflation. Allocate a portion of the rewards to compound the lower tiers, ensuring a harmonious balance.

Recommended Strategy:

• Entry Strategy: Participants could start by entering White Rabbit to initiate the deflationary impact. Once a substantial number of tokens are accumulated, they can progress to Mad Hatter and Cheshire Cat.

• Compounding Strategy: Regularly compound rewards back into the lower tiers to sustain deflationary forces while enjoying the benefits of controlled madness in the higher tiers.

Calculations for Daily Rewards:

• Total Daily Reward: 2.25 (White Rabbit) + 45 (Mad Hatter) + 142.5 (Cheshire Cat) = 190.75 tokens.

Considerations:

• Regularly monitor the token distribution across tiers to ensure a balanced participant base.

• Implement governance mechanisms to allow community input on adjustments to maintain economic equilibrium.

• Educate participants on the benefits of compounding to foster sustainable growth.

This strategy aims to strike a balance between deflation and inflation, leveraging the strengths of each tier while encouraging participants to navigate the Wonderland ecosystem strategically. Adjustments may be needed based on market conditions, user behavior, and project goals, so ongoing analysis and adaptation are crucial for sustained success.