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）在“边玩边赚”（P2E）类Web3应用中作为激励用户参与的手段正日益普及。在Web3中，拥有NFT所有权的用户有权将其货币化。然而，由于缺乏客观的NFT估值方法，使得NFT价值确定具有挑战性，P2E应用生态系统已出现通货膨胀问题。本文提出一种方法，用于在P2E应用中实现NFT通胀价值管理。我们的方法借鉴了Curve Finance提出的贡献-奖励模型以及去中心化交易所的自动化做市商（AMM）机制。在去中心化系统（包括P2E Web3应用）中，并非所有参与者都秉持善意进行贡献，因此需要通过奖励机制激励贡献行为。我们的机制证明，通过销毁NFT（即永久移除NFT）减少流通中的NFT数量，有助于管理通货膨胀。作为对此贡献的奖励，我们的方法会铸造补偿（CP）代币作为ERC-20代币，当积累足够数量时可用于兑换NFT。为进⼀步提升CP代币价值，我们建议使⽤治理代币和CP代币在AMM中创建流动性池。治理代币的价值由市场决定，⽽CP代币在AMM中从治理代币衍生其价值。CP代币可根据治理代币的市场价值确定⾃⾝价值。此外，由于CP代币⽤于兑换NFT，NFT的价值最终由CP代币的价值决定。为进⼀步阐述我们的理念，我们展示了如何根据NFT稀有度升级概率、AMM中治理代币与CP代币的当前兑换⽐率等因素调整销毁奖励机制。