Utilizing AI To Manage Long-Term Growth

1. Our Economic Principles With a strong emphasis on creating a multi-layered economy that has great extensibility for the token holder; encouraging participation and rewarding creativity, dynamic liquidity management is critical in maintaining economic equilibrium. Hence, with $PASTA as the backbone, we’re integrating an elastic token supply model for $PASTA that’s AI-powered and managed, removing risks of human error and creating a sustainable and forward economics model, with an initial supply of 1Billion $PASTA at TGE.

1. Core Features

   1. Elastic Supply: $PASTA’s supply adjusts dynamically based on player growth and resource demand, with faster reaction times to volatility than traditional manual oversight.

   2. Hybridized Layered Economy: Bemella and Vaya are offchain resources that are fundamental for in-game progression and remain pegged to $PASTA’s value to prevent arbitrage or hyperinflation.

   3. Cross-Game Interoperability: Liquidity must flow seamlessly between Pastopia and future partner games.

   4. Player Behaviour Complexity: Pastopia’s core gameplay flywheel features a UGC-driven economy that will fuel participation and community involvement but may have unpredictable demand spikes (e.g., blueprint sales, AI inference usage) which AI liquidity manager can solve.

1. How AI Solves These Challenges

2. Burn Mint Mechanisms Players burn Bemella + Vaya to mint $PASTA. The amount of Bemella/Vaya is adjusted daily through AI-driven ratios based on the following:

   

   The burn/mint mechanisms ensure burn requirements adjust to market price with the following simulation further demonstrating this:

   

3. Real-Time Supply-Demand Balancing

   

   This provides our liquidity manager with a real-time temperature gauge on supply-demand and can now determine what the total supply needs to be:

   

   General assumptions & rule sets for mint and burn include:

   

4. Predictive Liquidity Pools As liquidity pools provide an integral cog to Pastopia’s economic design, we’re deploying reinforcement learning models that can help forecast short term liquidity needs based on historical UGC transaction patterns as well as notable spikes in demand from e.g. campaign acquisition programs, bounties, etc.

   

5. Dynamic Fee Structures Fees across the Pastopia ecosystem are also dynamically managed so this helps with stabilizing prices during periods of volatility. Our AI sets transaction fees (t) to incentivize liquidity provision during volatility:

   

6. Dynamic Tax Rates Taxes increase with UGC activity to stabilize revenue.

   

7. Anti-Inflation Burns Burns scale with ecosystem activity to offset inflation.

   

8. Cross-Game Liquidity Routing In the event where Pastopia integrates with partner games, our AI optimizes liquidity allocation across partner games using a multi-armed bandit algorithm below, directing liquidity to the games with the highest utility e.g. where $PASTA staking yields the most Bemella.

   

   AI-powered liquidity management is not a luxury but a necessity for Pastopia’s vision of a scalable, player-owned economy. By dynamically balancing supply, optimizing fees, and routing liquidity across games, these ensure $PASTA remains stable, scarce, and valuable—even as the ecosystem grows exponentially. This creates a flywheel where liquidity attracts players, players generate revenue, and revenue funds further AI innovation. In a world where traditional games fail due to rigid economies, Pastopia’s AI-driven model offers a blueprint for the future of decentralized gaming.