CCP Games Appoints New Head of Economy

CCP Games, the creator of Eve Online, has appointed Stefán Þórarinsson, a former economist at the Central Bank of Iceland, as its new Head of Economy. In this position, Þórarinsson will experiment with the virtual economy of the upcoming blockchain-based survival game, Eve Frontier, to develop a player-driven financial system.

Focus on Virtual Economies

Þórarinsson argues that real-world and virtual economies share similarities. However, he notes that a lack of research and data, especially regarding blockchain-based economies, poses challenges. His initial experiment will involve observing Eve Frontier during its closed alpha phase with a limited player base.

Eve Frontier is being developed on the Ethereum ecosystem via Redstone, a network for autonomous worlds using Optimism layer-2 scaling tech.

Goals and Experiments

“We want to map the pricing system to understand market reactions to changes,” said Þórarinsson in an interview with Decrypt. He aims to gather data on how monetary policy influences the game’s economy, seeking key insights like demand and supply curves.

The next phases will depend on findings from this initial experiment. The goal is to grasp the closed economy before potentially opening it up for player exchanges.

The Future of Economy in Eve Frontier

A closed economy, according to Þórarinsson, means the game does not yet have a token redeemable for real-world currencies. Once that happens, stakes increase, and refining the financial system is crucial.

After the initial experiment, the game will undergo 60-day cycles introducing gameplay and economic features as part of what CCP Games CEO Hilmar Pétursson calls a “grand experiment.” The aim is to build a flexible, player-driven economy reflecting the harshness of the Eve Frontier world, which Pétursson describes as one that “literally tries to kill you.”

As players become accustomed to surviving, they must also defend against each other, which fosters new economic structures.

Player-Driven Economy

The ultimate vision for Eve Frontier allows players to shape the in-game economy independently. Pétursson notes, “The economy ideally lives to a point where Stefán and I don’t have to be involved.” Instead, the society within the game would manage all roles autonomously.

Players can create custom missions and bounties through smart contracts using Solidity, the Ethereum language. This capability enables players to acquire in-game resources or even initiate an entirely new economy independent of CCP Games’ oversight.

Looking Ahead

Pétursson anticipates opening the economy in the next couple of quarters, signifying a potential token launch. He acknowledges that it may take years for CCP Games to be fully hands-off, achieving a self-sustaining economy supported by smart contracts.

“This is truly a game-changer for both games and the world overall,” he stated, emphasizing the potential of Eve Frontier’s smart contracts. He likens the transformative nature of this technology to past innovations in AI and GPUs in gaming, which later influenced other industries.

“Games often lead the way for broader applications in the world,” he concluded.

Edited by Andrew Hayward