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(+2)

I don't understand what this means.  Who is collecting these payments?  If it's the developer, why would they charge players money and then give it back to them?  What is a yield farm?  Who decides what to buy with the money?  If it's an in-game item, why does the developer need all these extra steps or even the blockchain at all to give it away?  Couldn't they just randomly give stuff away for free every month?  Is there really any difference from the player's perspective?

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If its trustless then its the game program that will collect. It can also be the developer wallet for example but probably better if its the game program wallet. The developer has multiple options (they can charge on a per turn basis with micro payments and super low tx fees like $0.0001) in any case all payments from users can be pooled together and put into a yield farm(this is just one example) => This earns a yield on the existing pooled amount => After some time elapses the yield collected can be used to completely reward a user (or set of users) => A portion can be put aside for the continued development of the game also (users can vote on this for example) => Once yield is realised and digital good bought the principal pooled amount can be returned to the players  (e.g. literally just a few steps  from realising yield to buying digital good  rewarding user with digital good to returning pooled capital to users

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if you have thousands of players (say you have 10000s of players => The yield can be significant enough to continue long-term development of the game and reward users )

(+4)

Eh... that sounds basically like playing the stock market on top of playing the game.  Speaking for myself, I don't really want to do that.

At any rate, this kind of blockchain yielding or mining or whatever has priced me out of the GPU market for the past five years.  Irrespective of what it means for game design, it's been a disaster for gaming.

yield is yield (the term is different from investing). Yield is typically fixed rate. And I don't think anyone really mines these days. Unless you were there when the protocol was in its infancy.