I am looking at the $PIXEL token system and it feels like a constant race to stay ahead of a crash. My main focus is on how the project balances the tokens they give out versus the tokens they destroy. I see that the game uses a model where they try to get back as much value as they distribute. When I spend my tokens on things like VIP status or upgrades, those tokens are either locked away or burned. This helps the project keep the price from dropping too fast, but it forces the team to keep making new things for me to buy just to keep the economy alive.
I find the gap between the new tokens being created and the tokens being burned to be very risky. Even if no one is playing, the project still releases a steady stream of new tokens to pay their team and early investors. This is like a tap that never turns off.
PIXEL
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However, the burning only happens if people like me are active and spending money. If the game gets boring and we stop spending, the burn rate stops, but the new supply keeps coming. This makes me realize the system is quite fragile because it depends entirely on keeping us on a spending treadmill to fight off inflation.