Adora Economy & Long-term Sustainability

Adora Principles

• Adora is a new type of game that rewards players for the time and effort they spend both playing the game and growing the ecosystem.

• Adora has a 100% player-owned, real money economy. Rather than selling game items or copies, the developers of the game focus on growing the player to player economy. Marketplace fees go into a Community Treasury whose usage will be guided by Stitch - $STI holders. The developers monetize through their ownership of Stitch - $STI. Adornment are created by players using in-game resources (Adornment, Thread - $THD & Stitch - $STI) and sold to new/other players. You can think of Adora as a nation with a real economy. The holders of the Stitch - $STI are the government that receives tax revenues. The inventors/builders of the game, Adora Ink, hold ~20% of all Stitch - $STI

• Game resources and items are tokenized, meaning they can be sold to anyone, anywhere on open peer-to-peer markets.

Adora population growth is a major factor within the Adora ecosystem. At any given moment, there exists some ideal inflation rate that allows us to grow to our maximum potential. Too slow and Adornment prices are too high for everyday people to join; especially competitive Adornment. Too fast and you get unhealthy inflation. Stitch - $STI / Thread - $THD face similar economic forces that need to be managed.

Economic Sustainability

Long-term the economy will be sustained by adding:

• Additional valuable utility to Adora. New and improved experiences such as House, Mini-games, and Battle updates will be introduced over time. New experiences outside of Battle, like SocialFi will also add utility to Adora beyond their effectiveness in fleeting metas. Players will constantly have new goals to reach within the Adora universe. Ultimately, the demand for Adornment will come from the intrinsic value they can provide to players in the form of competitive, social, and progression based fun and achievements.

• Vertical, rather than purely horizontal progression. Currently in order to progress the main path to progress in Battle is by expanding the size of one’s collection. This dynamic is not optimal long term. In the long run there will be upgrades to Adora, House, and other assets that will require crafting ingredients. Adornment themselves may be “released” to obtain these crafting ingredients or unlock upgrades. This creates a long term supply sink to the Adora population. Adornment progression is coming in the future; and it promises to create a much stronger bond between stylists and the Adornment they choose to upgrade.

• Accessibility improvements that help unlock sustainable value. There are various points of friction currently for stylists to be able to dive into Adora to compete, have fun, and socialize with the community. Improving onboarding and allowing players to enjoy the game with free Starter Adornment bundles for example would enable more players to fall in love with the Adora universe and want to engage in the economy long-term. The more sustained demand for Adornment and associated assets, the more healthy the long-term economy will be.

In the beginning to maximize growth, by design the Adora economy will be dependent on new entrants. New players require Adornment to get started and it is important to ensure there are enough Adornment being used in Recreation to make obtaining them accessible. There needs to be careful consideration for exactly when additional Blueprints are introduced as it could limit growth by causing prices to go too high. Over time, the outlined additions above will be rolled out to transition the economy towards growth and sustainability via demand from existing stylists, and reduce dependence on new entrants coming into the ecosystem.

Additional Sources of Capital

As the game becomes more established and scales, many additional opportunities will present themselves to introduce additional capital into the economy as a bonus on top of the core player-to-player economic activities:

• Physical/digital merchandise. This is already a frequent request from dedicated players who would like more physical and/or digital merchandise to be able to express and show-off their attachment to the game. Merchandise could range from exclusive official Adora Art NFTs to T-shirts to Plushies. Profits would go back into the game to be distributed to players.

• Offline events. The global Adora community has built extremely strong bonds with each other and meeting other stylists in real life is a valuable part of the Adora experience. Profits from major community events would go back into the game to be distributed to players.