Currencies are the pillar on any real world modern economy, since exchanges are done through them. Their objective is to be as universal and frictionless as possible, to make the system more efficient at allowing transactions.
Contrary to that, F2P games feature specialized currencies that have strict rules and limitations. Each ingame currency has been designed with a purpose: Be it to push the player towards specific activities that will foster the fun, generate monetizable scarcity, provide a reason to come back later, or other.
This article aims to list the main types of ingame currencies, their uses and general characteristics. The idea is that it helps you decide which ones would be appropriate for your game, or which extra rules you should add to them. Or think of new hybrid mutations!
This is a follow-up of my article about IAP packs balance and design, which covers the relationship of in-game currencies with real world money. You may want to check that one out if you haven’t already!
types of currencies AND THEIR PURPOSE
First of all: What’s a currency?
I’m defining ‘currency’ as an element that has no use value on itself, but rather it’s main purpose and value comes from its ability to be exchanged for something else which has an actual use value.
So in accordance to this, I’m not considering currencies the following things:
- Score metrics like Clash Royale’s Trophies. Even though trophies grant rewards when reaching certain milestones or at the end of a competition period, we could argue that the main purpose of Trophies is not to be exchanged, but to represent the player’s competitive prowess and progression.
- Progression metrics like Experience Points or Player Level, which similarly are oriented towards representing (or gating) player progression within the game, not serve as a means to be exchanged.
But I will be considering currencies any resources or items whose purpose is accumulation to buy upgrades (like Clash Royale‘s cards… the first card of each type is to unlock the unit in gameplay, but after that point they’re a currency).
Also, note that the types are not mutually exclusive and some of the categories may in fact be subcategories of each other. For example, an event currency can be a hard currency, within the context of an event.
Based on those assumptions, I’m classifying currencies in 11 different categories. (Though I’m sure the list is missing several so it may grow. If you spot what’s missing, let me know in the comments!). They are:
1. Hard Currency (aka Cash)
A hard Currency is a high value, generalistic purpose currency which is primarily obtained through IAP and is closely related to monetization. Often it allows the access to exclusive premium content. Examples would be the Gems on Brawl Stars, or the Gold Bars in Candy Crush Saga.
Hard Currency the closest thing to an universal medium of exchange, since not only allows to purchase content, but also generally it can be exchanged for most of the other currencies, or indirectly allows to obtain the means to get what the player wants:
As a consequence, overflowing the economy with it will diminish a game’s ability to generate situations of scarcity where the player needs to spend real money. Because of this, sources of hard currency tend to be few and are under strict control, and is a resource that generally doesn’t suffer inflation over the progression of the game.
A good way to check the health of an ingame economy is to check the sources of hard currency, and the amounts stored by paying and non-paying users. Increments on the player currency savings may indicate an unbalance on rewards, or perhaps the lack of valuable content to buy, or sinks.
Nevertheless, if used wisely and with measure , hard currency is an excellent reward because it’s extremely valuable for all the players, regardless of their progression or amount spent.
This may not necessarily be true for other types of rewards (i.e. like heroes, which may already be owned by the player, not valuable for competition or below the level of the characters already owned by the player)
2. Soft Currency (aka Coins)
A soft currency is a low value, generalistic purpose currency which is primarily obtained for free, either by playing or just waiting time. Examples of this would be Credits in Call of Duty Mobile (the main reward for completing matches), or coins in Idle Miner Tycoon (which are automatically generated over time).
We all know about this one because it’s part of the dual-currency mechanism that has ruled the F2P model since before the times of Facebook games. The benefit of this dual model being that it’s a simple way to separate the content for non-paying users from the one that is premium and exclusive.
3. Medium Currency
So what happens when you want a currency that players can grind with relatively ease without destroying your overall economy, but your soft currency is too soft to generate monetization around it? You create a mix, of course!
The medium currency is a currency obtainable through grinding, but which has some kind of limitation to their usage or accumulation.
This makes it more resilient to the devaluation that soft currencies tend to suffer due to their nature, while creating additional monetization opportunities around their limitations (storage expansions, refills, etc…).
Some games incorporate several of these gating mechanics to their soft currencies, in order to keep the game economy more under control.
This is a great idea to have a game economy that’s easy to manage, but incorporates clear friction points versus a standard model, which users may find unfair or frustrating.
Some examples of the gatings that medium currencies may incorporate are:
This may range between a hard limit on how much currency can be stored (like Gold in Clash of Clans), or making harder the accumulation beyond a certain point (like the protection capacity of storages in Rise of Kingdoms).
In most cases, this cap can be increased through successive upgrades or other purchases, which generates an additional (and highly valuable, in player’s eyes) monetization point.
On the other hand, the limitation can be on how much the player can obtain within a specific period of time, rather than on how much it can be stored. The hard limits on currency acquisition on Clash Royale and Brawl Stars are good examples.
Contrary to the usage of energy, in those examples the player can still play after reaching the limit, but that won’t generate currency rewards.
This is well suited for multiplayer games, where there’s an interest in allowing long sessions so that the players keep on being content for the rest, but it lacks the monetization aggressiveness of energy.
Additional applications of this concept may include boosting the ratio of acquisition up until reaching a certain amount (which some items do in Brawl Stars and Wild Rift) or stopping the resource generation when reaching a certain point (like happens with energy in most games).
Another point where gates can be added is on the capacity of the currency to be exchanged into the game element that has the actual value.
For example, this can be because the player has to accumulate specific amounts before the currency can be used, or multiple resources or additional requirements are required in order to allow the exchange, or because the points where the currency can be spent are few and limited.
4. Energy Currency
Energy is a type medium hardness currency whose definitory characteristic is that it’s exchanged exclusively for playing time. Either because it’s a price to be paid on every attempt or action (Monster Legends‘ Dungeons), or because it has to be paid on a retry (Candy Crush, Homescapes).
5. Feature Currency
If your game features multiple activities which reward the same thing, players will naturally tend to orbit towards those that are more efficient granting rewards. For example, they’ll do Daily Dungeons instead of grinding the single player mode, because Dungeons grant more gold.
This is an issue, because each of those activities may ask the player different inventory requirements and styles of playing, which will make the game more interesting but also incentivize players to spend more on it.
What you need is a way to make players have to play a specific game activity. And what better way to achieve it than to create a currency that can only be obtained on that mode?
Feature currencies have a very specific ingame usage, and are linked exclusively to a specific game activity. Some of the objectives may be:
- To force the user to play a specific section of the game in order to be able to access a set of rewards, progression or upgrade axis.
- To isolate an entire system from the rest of the ingame economy, in order to make it easier to manage, balance and analyze.
- Limit the access to a specific feature, whose free over usage might be detrimental for the economy.
6. Social Currency (aka Virality currency)
Social Currency is a feature currency which aims to foster a specific game behavior of incentivizing virality, social interaction and connectivity inside the game.
It’s important to note that virality can actually have two meanings:
- Bringing new users from those that are already on the game (classic, K-factor virality).
This is the one that most of us think the most with the word virality: players extending the contagion among people they already know outside of the game.
- Incentivizing interaction and connection between players that are already un the game, with the objective of boosting their engagement and retention (the neighboring or network effect).
Usually, this is oriented towards players that are not related or friends outside of the game.
In general, social currencies in games are oriented towards the second sense, since players bringing new players is not something that happens often enough to sustain a currency.
7. Guild Currency
Guild currency is intrinsically related to a clans/alliances/guilds feature. What makes it stand out from other feature currencies is the fact that it usually has unique mechanics related to being generated by a group.
This often means that additional balancing measures need to be deployed (calculating the distribution of costs among all members, limiting the benefits that some can provide to freebooters, etc…).
Examples of unique mechanics potentially in guild currencies would be:
- The currency is shared and generated by all the guild members, but can only be spent by the high members of its hierarchy (i.e. Shop Titans‘ Renown, which guild leaders can spend in Boosts or Perks to the entire clan).
- The currency it’s entirely individual, but all team members may contribute to the payment, and the benefits are shared (i.e. gold priced City Upgrades in Shop Titans).
- The currency it’s entire individual, but it’s generated by the shared collective effort (i.e. Guild Points in Summoners Wars).
It’s also important to note that guild currency may also have additional social dynamics beyond its direct exchange usefulness: For example, clans may use it as an indicator of contribution of each teammate to establish group hierarchy, or set periodic quotas as a requirement for membership.
8. Event Currency
One of the reasons why time limited events are so positive to monetization and engagement is the fact that they can introduce entire layers of game economy which are completely independent from the main game.
Of course, that objective would be defeated if players which have accumulated tons of currency can use it to smash the requirements presented there, or to buy the rewards without engaging on the event activities. This could force the devs to balance the event multiple times for several user profiles.
Many games avoid these issues entirely by using event currencies, which are feature currencies that exist temporarily and are entirely focused around a time limited event. They may allow to purchase an actual set of rewards, or perhaps are part of a system which exists exclusively within an event.
9. Discard Currency (aka Dust)
Discard currencies are obtained through the destruction of game items. These currencies pursue several objectives aimed to extend the usefulness of items beyond gameplay itself, or decrease the friction or randomized drops and meta rotations:
- Transform those items in rewards that can be given recurrently (i.e. fusion systems).
- Grant a use to obsolete items that no longer have gameplay value. For example, repeated items of a type that has been already maxed out.
- Decrease the friction generated by loot boxes, by allowing players to transform unwanted items into the desired ones, so the bad drops aren’t that frustrating.
- Help complete a collection, by removing items already owned and allow to craft the missing ones. Completing collections without this would be extremely hard.
- Helping players to update their inventory to a new set of items, therefore decreasing the friction of having a rotative meta or power creep.
It also grants more confidence for the player to spend, knowing that even if the dominance of the purchased items is limited, they’ll generate some long term return too.
10. VIP Currency (aka Prestige…)
A VIP Currency is generated as a by-product of performing an IAP spending, as a side-incentive for monetization and customer reward.
Note that most games tend to do this not through a currency but rather through a permanent score, which is a greater incentive.
11. Informal Currency
There’s a saying that goes that money always finds a way, and that if people has a need which can’t be fulfilled by normal means, shadier ones will appear to do it. In many games, that need is the ability for players to trade stuff without resorting to bartering.
Informal currencies are game elements which players effectively use as medium of exchange, even though the intended purpose of the devs for that element was different.
This can happen on games that allow item gifting and trading, but don’t allow sending currency, which is a common setup to avoid exploits such as creating fake accounts for to share the starter rewards, or alternative sellers of currency (like the infamous World of Warcraft‘s gold farmers…) or hackers breaking the economy (like in GTA Online…).
Or it can happen if the main currency method of the game has been heavily devalued or has another problem which makes that another game item is better suited to act as currency.
Thanks for reading!
I hope that this list helps you to expand your views on in-game currencies or inspires you to improve the ones you’re already considering on your game.
This article took me quite a bit of time to finish, but thanks to that it’s the first post of 2021, yay! I’ve a bunch of articles on the oven, so stay tuned for more content.
And meanwhile, I’m looking forward to hearing your comments on which currencies I’ve missed out!
Special thanks to Mathew Baker, Marc Llobet, David Andrusiak, Philipp J. Karstaedt, Risto. D Holmström, Hippolyte Babinet, Tj’ièn Twijnstra, Alexandre Besenval, Paul West, Luke Stapley and ‘el designer de la plata’ Francisco Andrada, which gave me their feedback and suggestions on the topic.
Extra thanks to Tayber Voyer who pointed out to me the informal currency and sent me the screenshots of Party in my Dorm.