One vs. Two Token Models in Crypto Gaming

Whether to use a one or two token model is among the most common questions I get from teams designing their crypto game’s economy. 

My default response until recently was always to use two tokens, but now I’ve been rethinking that advice. I think you can make a compelling case for either choice, and I’m going to try to explain some of that nuance here. There also may be a way to get the best of both worlds, as I walk through at the end.

This article will primarily focus on gaming, though you could apply similar thoughts to other crypto projects. Gaming is a nice sandbox to think this through in though since it allows for so much more token utility than other projects. 

Anyway, let’s dive in. 

What’s a Token For?

The primary use of a token in a crypto game should be to improve the game economy in some way that is not possible without a token. 

Tokens are used for many other things like speculation, but as I explained in my “crypto gaming is broken” article, those other uses can end up hurting the quality or future of the game.

So how can a token improve the game economy in some new way? I believe this primarily occurs through closing the loop on microtransactions. Instead of a one-way street where players make microtransactions to unlock some additional utility in the game, crypto tokens enable a two-way street where players can also pull some of the value of their work out of the game. They allow those who have invested significant time into the game to trade that time for capital, and they allow people with capital a new way to trade some of that capital for saved time.