Non-fungible tokens (NFTs) are becoming increasingly popular in Play-to-Earn (P2E) Web3 applications as a means of incentivizing user engagement. In Web3, users with NFTs ownership are entitled to monetize them. However, due to lack of objective NFT valuation, which makes NFT value determination challenging, P2E applications ecosystems have experienced inflation. In this paper, we propose a method that enables NFT inflation value management in P2E applications. Our method leverages the contribution-rewards model proposed by Curve Finance and the automated market maker (AMM) of decentralized exchanges. In decentralized systems, P2E Web3 applications inclusive, not all participants contribute in good faith. Therefore, rewards are provided to incentivize contribution. Our mechanism proves that burning NFTs, indicating the permanent removal of NFTs, contributes to managing inflation by reducing the number of NFTs in circulation. As a reward for this contribution, our method mints a compensation (CP) token as an ERC-20 token, which can be exchanged for NFTs once enough tokens have been accumulated. To further increase the value of the CP token, we suggest using governance tokens and CP tokens to create liquidity pools for AMM. The value of the governance token is determined by the market, and the CP token derives its value from the governance token in AMM. The CP token can determine its worth based on the market value of the governance token. Additionally, since CP tokens are used for exchanging NFTs, the value of the NFT is ultimately determined by the value of the CP token. To further illustrate our concept, we show how to adjust burning rewards based on factors such as the probability of upgrading NFTs' rarity or the current swap ratio of governance and CP tokens in AMM.

翻译：非同质化代币（NFT）正日益成为“边玩边赚”（P2E）Web3应用中激励用户参与的重要手段。在Web3生态中，持有NFT的用户有权将其变现。然而，由于缺乏客观的NFT估值方法，导致NFT价值判定困难，P2E应用生态系统普遍面临通胀问题。本文提出一种在P2E应用中实现NFT通胀价值管理的方法。该方法借鉴Curve Finance的贡献-奖励模型与去中心化交易所的自动做市商（AMM）机制。去中心化系统（包括P2E Web3应用）中并非所有参与者均以善意贡献，因此需通过奖励激励正向行为。我们的机制证明：销毁NFT（即永久移除NFT）可通过减少流通中的NFT数量有效管理通胀。作为对该贡献的回报，该方法铸造一种补偿代币（CP Token，遵循ERC-20标准），用户积累足够CP代币后可兑换NFT。为提升CP代币价值，我们建议将治理代币与CP代币组合创建AMM流动性池。治理代币价值由市场决定，而CP代币在AMM中通过治理代币派生价值——即CP代币价格可基于治理代币的市场价值确定。此外，由于CP代币用于兑换NFT，NFT的最终价值由CP代币价值决定。为阐明这一概念，我们进一步展示了如何根据NFT稀有度升级概率或AMM中治理/CP代币当前兑换比率等参数调整销毁奖励。