Game Economy: How to Build a Sustainable Resource and Progression System

Modern video games are not only about engaging gameplay but also complex in-game economy systems, with carefully designed mechanics for balancing currencies, resource distribution, trade flows, and reward systems. A successfully designed economy can not only spark player interest but also ensure long-term project monetization. Excessive availability of virtual currency triggers inflation, undermining the value of players’ efforts. Conversely, resource scarcity can lead to player churn due to unjustifiably high difficulty. The key is achieving a balance that fosters stability and engagement.

Fundamentals of Game Economy

A game economy is a complex organism that dictates how players interact with the game world, achieve goals, and perceive progress. It encompasses not only currencies and resources but also trade, progression, and reward systems. Its sustainability directly impacts engagement, game longevity, and monetization. According to a 2023 SuperData study, 68% of players abandon projects where the economy feels unfair or imbalanced.

Main Components of the Economy

The key elements determining the success of a game economy include:

Currencies and Resources. These include soft currencies (easily earned), hard currencies (purchased with real money), and natural resources used for building, character upgrades, and crafting in-game items. Each currency type plays a role in the exchange and progression system.
Trade and Exchange. In-game markets allow players to trade resources and items, creating a dynamic ecosystem where player interactions become an additional gameplay element.
Progression and Rewards. Mechanics for leveling up, obtaining rare items, and earning bonuses for activity help retain player attention by showcasing tangible results of their efforts.

Principles of Building a Sustainable Economy

The primary goal is to create equal conditions for all players. In-game systems should not give clear advantages to players spending real money if it disrupts the balance of free gameplay. Fairness is achieved through clearly defined rules governing resource inflow and expenditure, as well as regular balance updates based on analytics and player feedback.

Constraints as the Foundation of the System

Any sustainable economy is built on a system of constraints that set boundaries for resource inflow and expenditure. For example, the drop rate of rare items may be strictly limited, encouraging players to plan their actions long-term, while a “spend point” system creates scarcity to incentivize purchases. This approach is used in major projects like World of Warcraft or Travian, where probability calculations and mathematical balance models help set appropriate drop and trade parameters.

Dynamic Tuning and Adaptation

A game economy must be flexible, capable of adapting to changes in player behavior. This is achieved using dynamic algorithms that automatically adjust in-game system parameters based on analytics. Examples of such methods can be found in GEEvo, which generates and adjusts economic models based on set goals (e.g., stable resource drops or optimal ARPDAU).

Balancing Currencies and Resources

Every game currency or resource must have clear paths for acquisition and expenditure. If faucets (e.g., quest rewards) outweigh sinks (e.g., crafting costs), inflation occurs.

Several types of in-game currencies serve distinct functions:

Hard Currency. Purchased with real money and used for exclusive content or progression acceleration. Examples: crystals in Brawl Stars, gold bars in Candy Crush Saga.
Soft Currency. Earned through gameplay and used for standard purchases. Examples: coins in Idle Miner Tycoon, credits in Call of Duty Mobile.
Medium Currency. Has accumulation or acquisition limits to prevent devaluation and stabilize the economy.

Regulating Inflows and Outflows

To prevent inflation or scarcity, constant monitoring of in-game resource inflows and outflows is necessary. This is achieved through:
Acquisition Limits. For example, implementing timers that restrict the amount of resources obtainable within a set time.
“Sinking” Mechanisms. Features that allow spending currency or resources on upgrades, unique items, or special content reduce overall supply and prevent excess accumulation.
Data Analysis. Regular A/B testing and monitoring of key metrics (e.g., LTV, ARPDAU, retention rate) enable timely adjustments to the economic model.

Comparison of methods to combat inflation:

Method	Example Game	Effectiveness	Risks
Taxes	WoW	High	Player negativity
Destruction	EVE Online	Maximum	Content loss
Restrictions	Clash of Clans	Moderate	Reduced engagement

EVE Online

Resource Balancing Methods

Use algorithms that adjust resource drops based on player activity. For example:

If there are too many players in a region, reduce the drop chance of rare items by 10-15%.

Introducing temporary events (e.g., “Double Resource Weekend”) helps test the economy without risking long-term imbalance. Post-event parameters can be adjusted based on analytics.

Examples of Successful Cases

Games like World of Warcraft, EVE Online, and Travian demonstrate how a well-tuned in-game economy can sustain player interest for years. In WoW, the balance of currencies and items is regularly adjusted based on extensive data analysis, maintaining economic stability even with major gameplay changes.

In Travian, the resource field system, where productivity grows with levels, and market-based trade mechanics are a prime example of integrating economy with gameplay, where every player action directly impacts resource dynamics.

Progression as the Foundation of Game Growth

Progression is the path a player follows from initial levels to higher achievements. A sustainable resource system should not only provide players with necessary materials but also allow them to feel growth and development. Key aspects include:

Achievement Rewards. The more effort a player invests, the more valuable the rewards, such as unique items, in-game currencies, or stat bonuses.
Rarity Mechanics. Limiting the availability of rare resources or items heightens player motivation, making each acquired item particularly valuable.

Progression formula (from “Game Economy Design” by H.K. Lim):

Resources for Level N = Base Value × (1 + Difficulty Coefficient)^N

Level and Achievement Systems

Effective progression relies on a clear level system, where each stage brings not only increased difficulty but also rewards proportional to the effort. A crucial aspect is allowing players to influence their economic development—for example, completing challenging missions or quests grants exclusive bonuses that provide additional in-game advantages.

From Rank to Endgame

Early Game (Quick Start). The first 2-3 hours should provide 70% of basic resources, creating a sense of progress and teaching mechanics.
Mid-Game (Strategic Choices). Players are offered alternative development paths (e.g., investing in crafting or combat). In Path of Exile, the skill tree allows combining resources for unique builds.
Endgame (Scarcity and Mastery). At high levels, a “soft cap” slows progress, requiring exclusive resources. In Destiny 2, max-level gear requires materials from raids, available once a week.

Analytics and Dynamic Economy Adjustment

Data collection and analysis are the primary tools for maintaining economic balance. Modern analytics tools track:

Engagement Metrics. Metrics like retention rate, ARPDAU, and LTV assess how effectively the economy retains players.
Resource Inflow Changes. Analyzing acquisition, expenditure, and trade data helps developers quickly identify imbalanced areas and make adjustments.

Algorithmic methods are now widely used to automate balancing. For example, GEEvo’s evolutionary algorithms generate and adjust economic models based on various parameters and goals, enabling a more flexible and adaptive economy that responds to shifts in player behavior.

Practical Adjustment Examples

Developers regularly conduct A/B testing of economic parameters, such as adjusting reward frequency, tweaking currency inflow-to-expenditure ratios, or introducing new resource “sinks.” These measures achieve optimal balance and prevent negative effects like inflation or currency devaluation.

Real-World Cases and Industry Examples

In WoW, the in-game economy is sustained through regular updates, data analysis, and active community engagement. Developers closely monitor currency, item, and reward balances, adjusting rare item drop rates and setting limits to prevent inflation.

EVE Online

EVE Online is a prime example of a player-driven virtual economy where trade, resource extraction, and even corporate political decisions create a dynamic, ever-changing economy. Developers provide market analysis tools, and in-game mechanisms like taxes and “item sinks” help control inflation.

Features:

A fully player-driven economy with auctions, speculation, and production chains.
Inflation is controlled through ship destruction (resources “leave” the system).

Data (CCP Games, 2022):

Metric	Value
Daily ISK Turnover (in-game currency)	2.1 trillion
Annual Inflation	4.7%

Travian and Ikariam

Browser-based strategies like Travian and Ikariam show how economies can be integrated into gameplay. In Travian, the resource field system and market-based trade allow players to regulate resource inflows and outflows. Ikariam emphasizes building, trade, and diplomacy, with in-game resources playing a key role in player progression.

Recommendations for Developing a Sustainable Economy

Before development begins, create a detailed document outlining the economy’s goals, key metrics, and constraints. This helps developers maintain a clear vision of the intended resource, currency, and reward balance.

Divide the economy into modular components—currency, resource acquisition, trade, and rewards. This allows changes to one module without disrupting the entire system, simplifies testing, and enables faster responses to shifts in player behavior.

Use modern analytics and monitoring tools to collect player behavior data. Regularly conduct A/B testing and analyze key metrics to identify imbalanced areas and make timely adjustments.

Create a user-friendly, transparent interface for in-game marketplaces, enabling players to easily navigate prices and offers. Transparent transactions build player trust and promote market stability.

Player feedback is an invaluable resource for economy adjustments. Conduct surveys, analyze reviews, and integrate user suggestions into updates to keep the economy adaptive and aligned with audience expectations.

Conclusion

Building a sustainable resource and progression system in a game economy is a complex but achievable task. To create an economic model that retains player interest and provides a solid foundation for long-term monetization, developers must focus on:

Fairness principles;
Clearly defined constraints;
Dynamic tuning;
Continuous data analysis.

By integrating modern analytical tools and modular approaches, developers can quickly respond to changes in player behavior and adjust economic parameters, ensuring flexibility and adaptability. Ultimately, the game economy becomes more than a set of mechanics—it evolves into a robust system that drives progression, rewards effort, and lays a strong foundation for the project’s growth.