# Active Participation

$EARNS' value comes from augmenting performance and unlocking additional ecosystem benefits; it requires active gameplay on the part of the holder to have value.&#x20;

## What $EARNS Is Not

Since $EARNS design is different from most tokens, it's a good idea to explore what the token ***ISN'T***.

This token is not an attractive asset to individuals seeking "power", “passive income” or other “returns” on an “investment” of anything other than their time and effort playing games through our platform.&#x20;

### Not a currency

One of the easiest concepts for a gaming token is as an in-game currency.

While not a tokenized asset, **gold in World of Warcraft is a typical example**; people pay with fiat to buy in-game currency. The fiat value of such currencies drops with inflation as more people mine and sell them, which often outpaces the deflation via in-game purchases from vendors. Many game developers ban this practice for this reason (among others).

The need to spend this currency in-game gave it powerful intrinsic value, but **it carries an inflation problem** which must be controlled since even entirely Web2 implementations cannot stop it.

Since $EARNS is not used in this manner, it is not a currency.

### Not for governance

$EARNS is also not designed as a governance token.

Governance tokens are most frequently used by traders or speculators. They buy up large amounts in hopes of controlling the ecosystem's assets and further enriching themselves. This can be successful, but brings issues.

Not being a governance token offers **reduced volatility in $EARNS value,** though it is unlikely to be fully eliminated. Swings from people buying and dumping the asset to control the ecosystem's other assets as the coffers are filled or depleted are reduced. Instead, the non-token revenue sources for holders which are unlocked by staking afford a better model.

## Engagement as a Value

All $EARNS goals revolve around generating value through engagement rather than speculation.

Speculation does not generate value. Speculation is gambling which transfers wealth; no wealth is created, just moved. $EARNS exists to generate value the only way value has ever been generated: **human engagement**.

Engagement is the only way to create value, therefore the $EARNS token must generate engagement. The approach taken to building the ecosystem $EARNS powers reflects this philosophy.


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