Strategic currency systems that create in-system economies
Core Idea: Exchangeable Points are a type of virtual currency that users can spend, trade, or redeem for rewards, creating an economy within a gamified system that drives strategic decision-making and engagement.
Key Elements
- Points can be exchanged for rewards or other valuables
- Users make strategic decisions about how to spend their points
- Points create scarcity and opportunity cost in decision-making
- Effective point economies require careful balance and maintenance
Types of Exchangeable Points
- System-Limited: Can only be redeemed within the system for predetermined rewards
- User-Tradable: Can be exchanged between users within the same system
- Externally Valuable: Can be traded or redeemed outside the original system
Contrast with Status Points
| Exchangeable Points | Status Points |
|---|---|
| Can decrease through spending | Generally only increase |
| Create strategic choices | Track achievement and progress |
| Drive Core Drive 4: Ownership | Drive Core Drive 2: Accomplishment |
| Require economic balancing | Require achievement balancing |
Implementation Challenges
- Value Perception: Maintaining perceived value of the points
- Inflation Control: Preventing point oversupply or value degradation
- Exchange Ratio: Determining appropriate point costs for rewards
- Economy Balance: Monitoring point sources and sinks to maintain equilibrium
Additional Connections
- Broader Context: Core Drive 4 - Ownership and Possession (exchangeable points create owned resources)
- Applications: Virtual Economy Design (principles for creating sustainable point systems)
- See Also: Status Points (complementary non-exchangeable point system)
References
- Yu-Kai Chou, "Actionable Gamification: Beyond Points, Badges, and Leaderboards"
#gamification #virtualeconomy #points #gamedesign
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