How does it occur and why is it harmful?

It is a process that can completely destroy the economy of a game if it grows uncontrollably, as it generates exorbitant entry barriers, which progressively reduce the entry of new players, slowing down the economy and leading to disaster.

Inflation occurs through 5 main channels:

• Increases in demand for goods and services greater than the economy's ability to satisfy it.

• Increases in production costs that reduce supply and produce an increase in prices.

• Increases in the money supply

• Devaluation against other currencies (exchange rate adjustments).

• Wage increases.

At SesSoccer we have developed an algorithmic inflation control system that allows for a healthy economy, with controlled entry barriers and sustainable growth.